Search results

1 – 10 of over 102000
Article
Publication date: 12 October 2012

Thomas Cooper

The purpose of this paper is to examine the management of strategic public sector risks in communities and municipalities.

Abstract

Purpose

The purpose of this paper is to examine the management of strategic public sector risks in communities and municipalities.

Design/methodology/approach

This research collates information on public sector risk management through a series of key informant interviews and content analysis of municipal plans.

Findings

Financial, environmental, social and other strategic risks were found to be important by communities but not necessarily managed as part of the strategic planning process.

Social implications

The paper explores the question: what are the strategic risks that communities report on and how they are managed? What risks are identified in communities and how they are managed, if they have significant practical and social implications.

Originality/value

It is an interesting time to study public sector risk management. From a regional policy development perspective, public sector organizations will be facing substantial strategic risks in the coming years due to demographic changes (implications of the graying population), urbanization, economic downturns (or booms in certain regions of North America), as well as changes from advances in technology and communication.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 6 no. 4
Type: Research Article
ISSN: 1750-6204

Keywords

Book part
Publication date: 4 April 2022

Peter C. Young

There are several ways that risks and uncertainties might be discussed in the context of assessment and analysis – several of which could be inferred from previous chapters. Here…

Abstract

There are several ways that risks and uncertainties might be discussed in the context of assessment and analysis – several of which could be inferred from previous chapters. Here, Chapters 6 and 7 are structured around what might be called strategic risks/uncertainties and operational risks/uncertainties.

This chapter presents the strategic risk/uncertainty assessment and analysis challenge. Most current thinking on risk management – enterprise risk management (ERM), but even including more traditional approaches – place expectations on leaders and top managers to provide guidance on risk policy, but also require those individuals to understand the challenges for which they are responsible. As implied previously, this domain mainly consists of uncertainties. Typically, top managers deal with aggregated operational data that – in itself – might be measurable but owing to the effects of consolidation tend to present leaders with a singular strategy/issue that is unique to the organisation and therefore not well-suited to statistical analysis. Furthermore, scanning for future threats and opportunities is decidedly a matter of considering the unknown, the emergent, and even the unimaginable. Within this assortment of challenges are the very large-scale features that – among many things – compel consideration of collaboration with other organisations. Here these special risks/uncertainties are labelled global risks.

The issue of complexity is here revisited, and this discussion serves two particular purposes. Complexity theory (and complex adaptive systems) offers some insights into methods of assessment and analysis, but they also provide some useful views on the nature of the uncertainty field in the context of complex environments. This discussion will offer some consideration of traditional, ERM, and alternative approaches and the appropriate ‘fit’ of assessment and analysis into these frameworks.

Details

Public Sector Leadership in Assessing and Addressing Risk
Type: Book
ISBN: 978-1-80117-947-8

Keywords

Article
Publication date: 20 August 2021

Aqueeb Sohail Shaik and Sanjay Dhir

The purpose of this study is to explain the interrelationships between the elements of strategic thinking, technological change and strategic risks. The main objective of this…

Abstract

Purpose

The purpose of this study is to explain the interrelationships between the elements of strategic thinking, technological change and strategic risks. The main objective of this research is to identify the hierarchy for the elements of thinking, technological change and strategic risk and also to identify the driving powers of these elements.

Design/methodology/approach

The methodology used in this study is modified total interpretive structural modelling and MICMAC analysis which gives the interrelationships and also the driving powers of the elements by analysing the relationships between the elements from the existing literature. This method helps us in answering/understanding the “what”, “how” and “why” of the research. Modified total Interpretive structural modeling is considered in this study, which helps in doing both the paired comparisons and transitivity checks simultaneously. A digraph is constructed at the end of the analysis, which shows the links between the elements, and a driver dependence matrix is constructed, which shows the driving powers.

Findings

This study gives an understanding of the role of the elements, the relationships between them and the hierarchy of addressing these elements, and also the driving and dependence power. Findings of this research give us an understanding of how strategic thinking/technological change/strategic drives the performance of the firm.

Research limitations/implications

This study is conducted with the help of existing literature; this can be further extended by considering the expert opinion.

Practical implications

The model explains the direct and transitive links of the elements and the strength of the relation between them, which helps the researchers and the practitioners to understand the driving power and importance of these constructs. It also helps us to understand the role of these elements and, if implemented in an organisation, which elements need to be prioritised for enhancing the performance of the firm.

Originality/value

Research done in the past has individually analysed the elements effecting strategic thinking; this study identifies the relationships between the elements of all three constructs and helps in understanding the levels of hierarchy.

Details

Journal of Indian Business Research, vol. 13 no. 4
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 20 January 2012

Udechukwu Ojiako

The purpose of this paper is exploratory. The author seeks to put forward propositions on how firms may best conceive business risks in an environment characterised by constant…

1022

Abstract

Purpose

The purpose of this paper is exploratory. The author seeks to put forward propositions on how firms may best conceive business risks in an environment characterised by constant change and uncertainty. To construct such a reality, the author examines how the military manages its engagement with strategic risk and uncertainty.

Design/methodology/approach

The paper presents a summated examination of literature published over the last four decades covering three major areas of management literature; risk management, competitive strategy and military tactics are conducted.

Findings

The propositions which are put forward provide the foundation for the empirical development of an appropriate framework for strategic risk management.

Originality/value

The major contribution of the study is that it has focused readers on not only strategic risk and competition, but on how lessons can be drawn from the military's experience of dealing with irregular forms of competition.

Details

Management Research Review, vol. 35 no. 2
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 5 May 2020

Sehrish Huma, Waqar Ahmed and Arsalan Najmi

In the era of market turbulence, sourcing specialists consistently face challenges to keep the availability of the material efficiently and effectively without any disruption…

1436

Abstract

Purpose

In the era of market turbulence, sourcing specialists consistently face challenges to keep the availability of the material efficiently and effectively without any disruption. Sourcing strategies and planning have a huge impact on procurement performance. The purpose of this paper is to examine the relationships among different sourcing strategies and supply risk management and performance and additionally, the role of procurement practices in different strategic settings.

Design/methodology/approach

This is empirical research that collected data gathered from 223 procurement specialists working in various manufacturing firms through a structured questionnaire. Valid data is then analyzed through the structure equation modeling technique for hypotheses testing.

Findings

The findings of this study reveal that supplier development is a partial complementary mediator between multiple supplier strategy and supply-side risk management. While in a volatile business environment, strategic supplier strategy has a significant negative impact on supply-side risk management, and in this case supplier development acts as a competing partial mediator between the two. Contract management has resulted in an important mechanism to be deployed in a strategic sourcing strategy. It is also shown that supplier risk management is also associated with improved supply management performance.

Practical implications

This paper establishes an explanation of theoretical and practical understanding of sourcing strategies and empirically shows that supplier development is the appropriate mechanism to deal with supply-side risk management, which in turn positively impacts on supplier management performance.

Originality/value

This study contributes to supply chain risk management literature, especially in the context of strategic risk management and explains how a strategic decision can impact supply risk management. This provides a piece of empirical evidence regarding the use of well-established procurement practices to improve supply performance.

Details

Benchmarking: An International Journal, vol. 27 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

Book part
Publication date: 12 November 2016

Artie W. Ng and Wallace Tang

This study explores the interrelationship between regulatory risks and strategic controls within the financial supervision architecture of an emergent global financial centre of…

Abstract

Purpose

This study explores the interrelationship between regulatory risks and strategic controls within the financial supervision architecture of an emergent global financial centre of China that embraces innovation as part of its strategic objectives.

Methodology/approach

This paper employs a longitudinal case study approach to examine the institutional dynamics of the key financial regulators in connection with the regulated financial institutions in Hong Kong before and after the financial tsunami of 2008.

Findings

First, this study reveals an organic development of a specialised financial regulatory architecture that resists transforming itself structurally despite the significant impact of externalities. Second, in this post-financial crisis analysis, regulated financial institutions swiftly respond by strengthening their risk controls through compliance with the guidelines imposed by the regulator. Institutional dynamics in influencing the implementation of risk controls through a top-down interactive mechanism are observed. Such dynamic and pertinent rapid responses induce the pursuit of optimal risk management within a regulatory framework.

Originality/value

This paper provides a longitudinal case study to reveal regulatory risks and strategic controls of the global financial centre of China. It unveils mitigating risk control measures in the aftermath of the global financial crisis. The study demonstrates how regulatory institutions strive to take precautionary, coercive measures such that the regulated institutions mimic and implement prudent mechanisms.

Details

The Political Economy of Chinese Finance
Type: Book
ISBN: 978-1-78560-957-2

Keywords

Article
Publication date: 11 December 2018

Alasdair Marshall, Udechukwu Ojiako and Maxwell Chipulu

Risk appetite is widely accepted as a guiding metaphor for strategic risk management, yet metaphors for complex practice are hard to critique. This paper aims to apply an…

Abstract

Purpose

Risk appetite is widely accepted as a guiding metaphor for strategic risk management, yet metaphors for complex practice are hard to critique. This paper aims to apply an analytical framework comprising three categories of flaw – futility, perversity and jeopardy – to critically explore the risk appetite metaphor. Taking stock of management literature emphasising the need for metaphor to give ideation to complex management challenges and activities and recognising the need for high-level metaphor within strategic risk management in particular, the authors propose a means to scrutinise the risk appetite metaphor and thereby illustrate its use for further management metaphors.

Design/methodology/approach

The authors apply a structured analytical perspective designed to scrutinise conceivably any purportedly progressive social measure. The three flaw categories are used to warn that organisational risk appetite specifications can be: futile vis-a-vis their goals, productive of perverse outcomes with respect to these goals and so misleading about the true potential for risk management as to jeopardise superior alternative use of risk management resource. These flaw categories are used to structure a critical review of the risk appetite metaphor, which moves towards identifying its most fundamental flaws.

Findings

Two closely interrelated antecedents to flaws discussed within the three flaw categories are proposed: first, false confidence in organisational risk assessment and, second, organisational blindness towards contributions of behavioural risk-taking to true organisational risk exposure. A theory of high (over-optimistic, excessive or inappropriate) risk-taking organisations explores flaws within the three flaw categories with reference to these antecedents under organisational-cultural circumstances where the risk appetite metaphor is most needed and yet most problematic.

Originality/value

The paper is highly original in its representation of risk management as an organisational practice reliant on metaphor and in proposing a structured means to challenge it as a dominant guiding metaphor where it has gained widespread uncritical acceptance. The discussion is also innovative in its representation of high risk-taking organisations as likely to harbour strong managerial motives, aptitudes and capacities for covert and illicit forms of risk-taking which, being subversive and sometimes reactionary towards risk appetite specifications, may cause particularly serious futility, perversity and jeopardy problems. To conclude, the theory and its implications are summarised for practitioner and educational use.

Details

International Journal of Organizational Analysis, vol. 27 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

Book part
Publication date: 19 June 2012

Selena Aureli and Federica Salvatori

Purpose – Since risk management is crucial for achieving strategic objectives in a complex and uncertain environment and its effectiveness relies deeply on efforts to create a risk

Abstract

Purpose – Since risk management is crucial for achieving strategic objectives in a complex and uncertain environment and its effectiveness relies deeply on efforts to create a risk-conscious culture, this study aims at understanding whether risk management can be promoted and reinforced by the use of performance-based monetary incentives given to Board members and top managers.

Methodology/approach – This study is explorative in nature and investigates four case studies based on document analysis and semi-structured interviews with risk managers.

Findings – Results show that some companies have already adopted risk measures in incentive schemes. At the same time all interviewees agree with the usefulness of linking traditional performance-based monetary incentives to risk management objectives in order to improve the effectiveness of the latter and to create a risk-aware culture. However, the difficulty in identifying proper measures has been underlined.

Practical implications – The study confirms the feasibility of linking risk dimensions to reward systems and suggests that firms should move in this direction. The study also outlines and proposes some possible measures to reward managers.

Limitations – This study views risk as measurable and managerially actionable and focuses only on incentives while acknowledging the use of other mechanisms that can contribute to the creation of an informed risk culture. Furthermore, the integration of risk management with other management control systems and accounting instruments has not been analyzed.

Value of the paper – This study addresses firms and their stakeholders’ need to make top managers more accountable for risk in their decision-making.

Details

Performance Measurement and Management Control: Global Issues
Type: Book
ISBN: 978-1-78052-910-3

Abstract

Details

Integrating Performance Management and Enterprise Risk Management Systems
Type: Book
ISBN: 978-1-80117-151-9

Open Access
Article
Publication date: 16 July 2018

Arun Chockalingam, Shaunak Dabadghao and Rene Soetekouw

Basel III regulations require banks to protect themselves against strategic risk. This paper aims to provide a comprehensive and measurable definition of this risk and proposes a…

23468

Abstract

Purpose

Basel III regulations require banks to protect themselves against strategic risk. This paper aims to provide a comprehensive and measurable definition of this risk and proposes a framework to estimate economic capital requirements.

Design/methodology/approach

The paper studies the literature and solicits expert opinion in formulating a comprehensive and measurable definition of strategic risk. The paper postulates that the economic capital for a bank’s strategic risk should be estimated using the cost of equity as the profitability threshold, rather than zero and develops a simulation-based framework to estimate economic capital.

Findings

The framework closely matches the actual economic capital outlay for strategic risk from our case study of ABN AMRO. It is shown that a bank’s strategic growth plans can fall into one of two scenarios based on risk-return characteristics. In one scenario, the required economic capital outlay will increase, and decrease in the other.

Practical implications

This framework is generalizable and makes use of widely accepted and used practices in banks, making it readily implementable in practice. It does not introduce errors resulting from model selection, parameterizations or complex calculations.

Social implications

Society would be worse off in the absence of banking and lending services. Banks need to take risks to grow and stay competitive. The framework facilitates better strategic risk management, protecting banks from collapse and reducing the need for taxpayer-funded bailouts.

Originality/value

The paper provides a measurable and practitioner-verified definition of strategic risk and proposes a simple framework to estimate economic capital requirements, a crucial topic, given the threats and increased levels of strategic risk facing banks.

Details

The Journal of Risk Finance, vol. 19 no. 3
Type: Research Article
ISSN: 1526-5943

Keywords

1 – 10 of over 102000