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The evolution of risk management has placed some emphasis on the language of risk management practices. The classic categories risk control and risk financing, as umbrella terms for the range of risk management tools that may be employed, are still widely used – but as has been pointed out elsewhere in this book, the broadening of risk management has led to a reconsideration of the continuing accuracy and usefulness of the older terminology. For example, historically the term insurance-buying was expanded to include risk financing, which allowed recognition of newer, non-insurance tools. Similarly, loss prevention became risk control to include risk reduction, risk distribution, hedging, and more. More recently, risk treatment has emerged as a term that encompasses both the control and financing categories.

One of the significant changes in practice is the inclusion of opportunities that may arise from risks. Here the terminology has not quite kept pace with changes in the field. Additionally, while assessment and analysis has long captured the idea of evaluating risks and uncertainties, the more explicit inclusion of uncertainty, along with emergent phenomena, complexity, and the unknown/unknowable has led to questions about whether risk control meaningfully conveys the essence of these activities. The search for an alternative terminology is ongoing, but for the time being the term adaptive response (AR) is used here, which refers to a range of actions that could be taken to capture the full range of exposures.

Chapters Nine and Ten continue to use the term risk financing. This is more of a concession to practicality as, in any other setting, financial measures logically are ARs. Nevertheless, there are technical and substantive reasons to maintain some separation. But even here, the pressures of change are being felt. For example, while most risk financing arrangements focus on addressing the costs of risk (e.g. indemnifying an organisation for losses), the role of financial measures in encouraging or discouraging certain practices – including paying the risk manager’s salary, or incentivising certain desired practices – has historically not been considered in discussions

The evolution of MIS technology has affected traditional auditing and created a new set of audit issues. This paper describes the Continuous Process Auditing System (CPAS) developed at AT&T Bell Laboratories for the internal audit organization that is designed to deal with the problems of auditing large paperless real-time systems. The paper discusses why the methodology is important and contrasts it with the traditional audit approach. CPAS is designed to measure and monitor large systems, drawing key metrics and analytics into a workstation environment. The data are displayed in an interactive mode, providing auditors with a work platform to examine extracted data and prepare auditing reports. CPAS monitors key operational analytics, compares these with standards, and calls the auditor’s attention to any problems that may exist. Ultimately, this technology will utilize system probes that will monitor the auditee system and intervene when needed.

We examined how Conservation of Resources (COR) theory has been applied to work and stress in organizational settings. COR theory has drawn increasing interest in the organizational literature. It is both a stress and motivational theory that outlines how individuals and organizations are likely to be impacted by stressful circumstances, what those stressful circumstances are likely to be, and how individuals and organizations act in order to garner and protect their resources. To date, individual studies and meta-analyses have found COR theory to be a major explanatory model for understanding the stress process at work. Applications of COR theory to burnout, respite, and preventive intervention were detailed. Studies have shown that resource loss is a critical component of the stress process in organizations and that limiting resource loss is a key to successful prevention and post-stress intervention. Applications for future work, moving COR theory to the study of the acquisition, maintenance, fostering, and protection of key resources was discussed.

Due to climate change and an increasing concentration of the world’s population in vulnerable areas, how to manage catastrophe risk efficiently and cover disaster losses fairly is still a universal dilemma.

This paper applies a law and economic approach.

China’s mechanism for managing catastrophic disaster risk is in many ways unique. It emphasizes government responsibilities and works well in many respects, especially in disaster emergency relief. Nonetheless, China’s mechanism which has the vestige of a centrally planned economy needs reform.

I propose a catastrophe insurance market-enhancing framework which marries the merits of both the market and government to manage catastrophe risks. There are three pillars of the framework: (i) sustaining a strong and capable government; (ii) government enhancement of the market, neither supplanting nor retarding it; (iii) legalizing the relationship between government and market to prevent government from undermining well-functioning market operations. A catastrophe insurance market-enhancing framework may provide insights for developing catastrophe insurance in China and other transitional nations.

First, this paper analyzes China’s mechanism for managing catastrophic disaster risks and China’s approach which emphasizes government responsibilities will shed light on solving how to manage catastrophe risk efficiently and cover disaster losses fairly. Second, this paper starts a broader discussion about government stimulation of developing catastrophe insurance and this framework can stimulate attention to solve the universal dilemma.

This study examined use of preventive health care services, for working-age adults with mobility limitations (uses mobility aids, has difficulty walking, difficulty standing for extended periods of time, or difficulty climbing steps) and for working-age adults reporting no mobility limitation, in order to identify similarities and disparities between the two populations. We analyzed data from the 1994 National Health Interview Survey Disability Supplement and NHIS Year 2000 file with cross-tabulation and logistic regression procedures to examine the relationship between mobility limitation and use of health screenings, immunizations, and health behavior counseling. Results were mixed, but disparities in preventive service use were identified.

Though some disaster risk reduction and management (DRRM) abstractions and core concepts may appear transparently obvious to some readers, others might not easily grasp the complexities embedded in them. This chapter focusses on the main arguments connected to DRRM. It unravels some of the complexities that abound in the framing of key disaster risk reduction concepts in literature. This chapter is divided into three parts. The first part focusses on understanding the dynamics of disasters. This part revisits definitions of disasters in literature, how they have been conceptualised in academia and what makes them different from other related concepts such as hazards, crisis, vulnerabilities and emergencies. Furthermore, considering that some impacts of disasters are more obvious than others, it examines some of the less conspicuous relationships between disasters and other phenomena. The second part examines the concept of DRRM in existing literature, highlighting the importance of resilience in DRRM and revisiting key methodological approaches in building resilience among communities. The third part places the concept of DRRM within the African context. It demonstrates the delicate aspects embedded in successful DRRM in Africa amid institutional development and policy issues. This part concludes with the identification of key knowledge gaps in DRRM in Africa. These knowledge gaps identified in the wider literature are used to justify why the chapters in this book and the context covered (sub-Saharan Africa) are of utmost importance in DRRM.

We demonstrate the role of regulatory fit and moral emotions, that is, contempt and anger, in influencing conflict resolution between the headquarters and subsidiary boundary spanners. We develop a theoretical framework, which integrates literature on international business and headquarters-subsidiary relationships with regulatory focus, moral emotions, and conflict resolution. The chapter outlines the relationships between the regulatory focus of a headquarters’ boundary spanner, and his or her manner of engagement, conflict sensitivity, violation of code, moral emotions, and the way conflicts are resolved. The theoretical framework developed here provides a starting point for future research on bargaining processes between boundary spanners of a multinational corporation (MNC). This chapter is the first one to discuss regulatory focus, and moral emotions, in the contexts of a MNC headquarters-subsidiary relationship.