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Article
Publication date: 28 January 2020

Ehi Eric Esoimeme

This paper aims to critically examine the modern slavery statements of Anglo American Plc. and Marks and Spencer Group Plc. to determine the level of effectiveness of the…

Abstract

Purpose

This paper aims to critically examine the modern slavery statements of Anglo American Plc. and Marks and Spencer Group Plc. to determine the level of effectiveness of the risk assessment and risk mitigation measures of both companies and provide recommendations on how the risk assessment and risk mitigation measures of both companies could be strengthened.

Design/methodology/approach

The analysis took the form of a desk study, which analysed various documents and reports such as the UK Modern Slavery Act 2015, the UK Modern Slavery Act 2015 (Transparency in Supply Chains) Regulations 2015, the UK Guidance issued under Section 54(9) of the Modern Slavery Act 2015, the 2018 Global Slavery Index, funded by Forrest’s Walk Free Foundation, the Anglo American Plc. Modern Slavery Statement of 2017/18, the Marks and Spencer Modern Slavery Statement of 2017/18, the Financial Action Task Force Guidance on the Risk Based Approach to Combating Money Laundering and Terrorist Financing (High Level Principles and Procedures) 2007, the Financial Action Task Force International Standards On Combating Money Laundering and the Financing of Terrorism and Proliferation (The FATF Recommendations) 2012, the Australia Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No. 1) (as amended), the Financial Transactions and Reports Analysis Centre of Canada Guidance on the risk-based approach to combatting money laundering and terrorist financing 2017 and the Central Bank of Nigeria (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013.

Findings

This paper determined that the standard due diligence measures and the enhanced due diligence measures of Anglo American Plc. are not effective enough to identify/assess the risk(s) of modern slavery in the supply chains reason being that Anglo American Plc. does not use diverse methods/methodologies for her due diligence programme. This paper, however, determined that the standard due diligence measures and the enhanced due diligence measures of Marks and Spencer Group Plc. are effective enough to identify/assess the risk(s) of modern slavery in the supply chains because Marks and Spencer adopts diverse methods/methodologies for her due diligence programme. This paper also determined that both Anglo American Plc. and Marks and Spencer Group Plc. adopt diverse methods for the monitoring of their corrective action plans which are designed to mitigate the modern slavery risk(s) associated with high-risk suppliers. For example, Anglo American Plc. monitors anti-modern slavery compliance with the use of both internal Anglo American teams and third-party auditors to ensure that the identified issues are adequately addressed.

Research limitations/implications

This paper focuses on Section 54 of the UK Modern Slavery Act 2015 and the Modern Slavery Statements of Anglo American Plc. and Marks and Spencer Group Plc for the year 2017/18.

Originality/value

Several articles have been published on this topic. Among them, is an article by Stefan Gold, Alexander Trautrims and Zoe Trodd titled “Modern slavery challenges to supply chain management”, Supply Chain Management: An International Journal, Vol. 20 Issue: 5, pp.485-494 and an article by Stephen John New titled “Modern slavery and the supply chain: the limits of corporate social responsibility?”, Supply Chain Management: An International Journal, Vol. 20 Issue: 6, pp.697-707. The article by Stefan Gold, Alexander Trautrims and Zoe Trodd drew attention to the challenges modern slavery poses to supply chain management. Although the article briefly talked about the risk-based approach to monitoring supply chains for slavery, it did not discuss about the due diligence measures that UK firms are required to apply during risk identification and risk assessment, and the risk mitigation measures that will address the risk(s) that have been identified. The article by Stephen John New examines legal attempts to encourage supply chain transparency and the use of corporate social responsibility methods. Though the article mentions the UK Modern Slavery Act 2015, more attention was paid to the California Transparency in Supply Chains Act [S.B. 657], State of California, 2010), enacted in 2011 and in effect from 2012. The article analysed the California Act without critically discussing the risk assessment procedures for UK companies. In addition to discussing the different stages of the risk assessment/risk management process, this paper will examine the modern slavery statements of Anglo American Plc. and Marks and Spencer Group Plc. This paper will provide recommendations on how the risk assessment/risk mitigation measures of both companies could be strengthened. This is the only paper to adopt this kind of approach. The analysis/recommendations in this paper will help UK companies to design effective due diligence procedures for their supply chain.

Details

Journal of Financial Crime, vol. 27 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 7 August 2017

Stephanie Kewley

Effective risk management planning ought to include strategies that help control and mitigate risk, as well as develop and strengthen client’s protective factors. The…

Abstract

Purpose

Effective risk management planning ought to include strategies that help control and mitigate risk, as well as develop and strengthen client’s protective factors. The active risk management system (ARMS) is a structured risk assessment and management planning tool designed to assess both dynamic factors known to be related to sexual recidivism, along with protective factors that might support the desistance process. The tool was recently implemented across all police forces in England and Wales. The purpose of this paper is to examine police practitioner’s experience of the tool, their attitudes towards risk assessment, risk management planning, interviewing clients for the assessment and their perspective on strengths-based approaches in general.

Design/methodology/approach

A mixed method approach is adopted including one attitudinal measure: community attitudes towards sexual offender-revised (CATSO-R); and four focus groups, analysed using interpretive phenomenological analysis (IPA).

Findings

CATSO-R results indicate that when compared to other populations, police officers appear to perceive sex offenders as dangerous, requiring severe punishment. These findings are supported in the IPA analysis where three themes highlight the following: principles and practices of the ARMS tool are incongruent with traditional policing; the negative values officers hold conflicts with a role that supports a process of reintegration and Training and supervision is insufficient to equip management of sexual offenders and violent offender’s with the skills and knowledge needed.

Originality/value

Only one study exists in which ARMS training and its pilot test were examined, this is the first empirical examination of its application in practice. Findings are therefore, of relevance to practitioners and academics alike.

Details

Journal of Criminal Psychology, vol. 7 no. 3
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 24 September 2021

Fabienne-Sophie Schäfer, Bernhard Hirsch and Christian Nitzl

Drawing upon new institutional theory and blame avoidance theory, this paper aims to examine how stakeholder pressure has an impact on the implementation and use of risk

Abstract

Purpose

Drawing upon new institutional theory and blame avoidance theory, this paper aims to examine how stakeholder pressure has an impact on the implementation and use of risk management practices in public administrations. Furthermore, this paper investigates whether top management support mediates this proposed relationship.

Design/methodology/approach

This paper is based on a survey among public financial managers of German municipalities and federal agencies. Data from 136 questionnaires were used to evaluate the model.

Findings

The results indicate that top management support fully mediates the relationship between stakeholder pressure and risk management practices. This finding suggests that top management support is crucial for the successful implementation of accounting techniques, such as risk management, in public administrations.

Research limitations/implications

This study is based on subjective answers by public financial managers. Moreover, this study is based solely on German data. Hence, future research could use a mixed-method approach and data from other countries.

Originality/value

This paper examines whether stakeholder pressure exerts an impact on the sophistication of public risk management practices.

Details

Journal of Accounting & Organizational Change, vol. 18 no. 1
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 3 May 2022

Johnny Jermias, Yuanlue Fu, Chenxi Fu and Yasheng Chen

The purpose of this study is to examine the design and implementation of enterprise risk management (ERM) in three large Chinese state-owned enterprises and to develop…

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Abstract

Purpose

The purpose of this study is to examine the design and implementation of enterprise risk management (ERM) in three large Chinese state-owned enterprises and to develop propositions on integrating ERM, budgetary control system and cash flow stability approach.

Design/methodology/approach

This study adopts a field study approach to analyze the risk assessment and risk-return matching of ERM. A field study was carried out over three years from 2008 to 2011 in three Chinese state-owned enterprises. These companies were chosen because less attention has been given to the implementation of ERM in such firms.

Findings

First, the authors find that all three companies use budgetary control to identify risks, analyze each risk to determine the potential consequences, determine the acceptable levels of risk, develop a risk mitigation plan and monitor the activities in all business processes that may change the levels of risks continuously. Second, the companies focus on cash flow risks through budgetary control to ensure the stability of cash flows. Finally, the degree of intensity of using budgetary control institutionalization to design and implement ERM has a positive impact on the level of risk acceptance and risk assessment culture.

Research limitations/implications

The findings of this study, however, should be interpreted with caution because this study was conducted in three Chinese state-owned enterprises. To increase the generalizability of the findings, future research is encouraged to replicate this study in different industries, as well as in different countries. Furthermore, future research might also examine the authors’ propositions using a large-scale survey across other regions of the world.

Practical implications

Companies can minimize resistance to change by using budgetary control institutionalization when implementing the ERM. State-owned enterprises can initiate and implement a new risk management system by identifying the potential risks and by developing a risk mitigation plan.

Social implications

The results of this study will help companies, particularly state-owned enterprises, to improve their performance and become more competitive, which in turn will benefit the society as a whole by performing their risk driver identification, risk driver impact assessment, risk management actions and risk management optimization more effectively.

Originality/value

The authors investigate how the firms use a legitimate system, namely, budgetary control, that is widely accepted and used in China to foster the acceptance and use of ERM. The authors also develop testable propositions of ERM implementation and cash flow stability that will provide useful guidelines for future research.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

Keywords

Article
Publication date: 23 May 2018

Sezer Bozkus Kahyaoglu and Kiymet Caliyurt

The purpose of this study is to analyze the cybersecurity assurance approaches to determine the key issues and weaknesses within the internal audit and risk management

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Abstract

Purpose

The purpose of this study is to analyze the cybersecurity assurance approaches to determine the key issues and weaknesses within the internal audit and risk management perspective. Organizations increasingly rely on digital data to drive their growth and they are interconnected in a complex web to a multitude of stakeholders.

Design/methodology/approach

In this paper, cybersecurity is defined, and cybersecurity assurance model is explained based on the relevant literature. In addition, the role of internal auditing is introduced within this new business landscape. Finally, recommendations are made to provide best practices for stakeholders.

Findings

There are four major cyber-focused standards and frameworks in the current literature, namely, Control Objectives for Information and Related Technology, International Organization for Standardization, The American Institute of Certified Public Accountants and National Institute of Standards and Technology. In addition, there are many mechanisms in existence and operation currently which support cybersecurity assurance to prevent major threats. These include risk assessment, risk treatment, risk management, security assurance and auditing.

Research limitations/implications

Cyber risk is not something that can be avoided; instead, it must be managed. Hence, it is very important to maintain formal documentation on related cyber controls. Internal audit should be an integral part of cybersecurity assurance process, as internal audit have a unique position to look across organizations. The contribution of internal audit also provides comfort to the Board and Audit Committee.

Practical implications

A model is introduced how the internal audit and information security functions could work together to support organizations accomplish a cost-effective level of information security. The key issues and approaches are explained for how to become a trusted cybersecurity advisor and a sample cybersecurity awareness program checklist is provided at Appendix 1.

Social implications

Considering cybersecurity threats grow with speed, complexity, and impact, organizations are no longer satisfied with an answer to a question like “are we secure?” instead, they need the answer for such a question like “how to give a reasonable assurance that our business will be secure enough?”. In that respect, the role of internal audit is discussed based on the relevant literature and the current condition of the business environment.

Originality/value

A model is introduced how the internal audit and information security functions could work together to support organizations accomplish a cost-effective level of information security. The key issues and approaches are explained for how to become a trusted cybersecurity advisor and a sample cybersecurity awareness program checklist is provided at Appendix 1.

Details

Managerial Auditing Journal, vol. 33 no. 4
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 January 2006

Gerrit Sarens and Ignace De Beelde

The purpose of this paper is to describe and compare in a qualitative way how internal auditors perceive their current role in risk management within US and Belgian companies.

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Abstract

Purpose

The purpose of this paper is to describe and compare in a qualitative way how internal auditors perceive their current role in risk management within US and Belgian companies.

Design/methodology/approach

In order to get adequate data, Chief audit executives from 10 different companies were interviewed and relevant documents were analyzed.

Findings

In the Belgian cases, internal auditors' focus on acute shortcomings in the risk management system creates opportunities to demonstrate their value. Internal auditors are playing a pioneering role in the creation of a higher level of risk and control awareness and a more formalized risk management system. In the US cases, internal auditors' objective evaluations and opinions are a valuable input for the new internal control review and disclosure requirements mentioned in the Sarbanes Oxley Act.

Research limitations/implications

Given the qualitative nature of this study, generalization to all Belgian and US companies is not possible. The time specific character of the subject is an opportunity for future longitudinal research.

Practical implications

In Belgium, the internal auditing profession is actually in a kind of “transition phase”. In order to survive this transition phase, internal auditors need to assume a “teaching role” vis‐à‐vis the different management levels to make them aware of their responsibilities in risk management. After this transition period, internal auditors will be able to focus more on their core activities.

Originality/value

In addition to a number of quantitative studies, this paper extends in a qualitative and comparative way the understanding of the specific role of internal auditors in risk management within US and Belgian companies.

Details

Managerial Auditing Journal, vol. 21 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 3 January 2019

Ayse Kucuk Yilmaz

Aviation has multi-cultural business environment in all aspects as operational and management. Managing aviation requires high awareness on human factor risk which…

1140

Abstract

Purpose

Aviation has multi-cultural business environment in all aspects as operational and management. Managing aviation requires high awareness on human factor risk which includes organizational behavior-related topics. The greatest risk to an enterprise’s ability to achieve its strategic goals and objectives is the human factor. Both organizational behavior and corporate culture behavior with social psychology are the most vital aspects of management and strategy in terms of human resources. Related risks, including organizational behavior and culture, have the potential to directly impact on both business performance and corporate sustainability. Therefore, in this paper, the most prominent risks were determined in accordance with social psychology, and after identification of human factor-based risks, these have prioritized and prepared risk mapping with fresh approach. For this reason, this study aims to develop risk mapping model for human factors that takes into account interrelations among risk factors three dimensional based new approach. This approach includes both identification of human factor based risks, prioritization them and setting risk mapping according to corporate based qualifications via tailoring risk list. Developed risk map in this paper will help to manage corporate risks to achieve improved performance and sustainability.

Design/methodology/approach

This new organizational behavior- and culture-focused risk mapping model developed in this study has the potential to make significant contribution to the management of the human factor for modern management and strategy. In enterprise risk management system, risk mapping is both strong and effective strategic methodology to manage ergonomics issue with strategic approach. Human factor is both determinative and also strategic element to both continuity and performance of business operations with safely and sound. In view of management and strategy, vitally, the human factor determines the outcome in both every business and every decision-making.

Findings

It is assumed that, if managers manage human risk you may get advantages to achieving corporate strategies in timely manner. Aviation is sensitive sector for its ingredients: airports, airlines, air traffic management, aircraft maintenance, pilotage and ground handling. Aim of this paper is to present risk management approach to optimize human performance while minimizing both failures and errors by aircraft maintenance technician (AMT). This model may apply all human factors in other departments of aviation such as pilots and traffic controllers. AMT is key component of aircraft maintenance. Thus, errors made by AMTs will cause aircraft accidents or incidents or near miss incidents. In this study, new taxonomy model for human risk factors in aircraft maintenance organizations has been designed, and also new qualitative risk assessment as three dimensions is carried out by considering the factors affecting the AMT’s error obtained from extensive literature review and expert opinions in the field of aviation. Human error risks are first categorized into two main groups and sub three groups and then prioritized using the risk matrix via triple dimension as probability, severity and interrelations ratio between risks.

Practical implications

Risk mapping is established to decide which risk management option they will apply for managers when they will look at this map. Managers may use risk map to both identify their managerial priorities and share sources to managing risks, and make decisions on risk handling options. This new model may be a useful new tool to manage ergonomic human factor-based risks in developing strategy in aviation business management. In addition, this paper will contribute to department of management and strategy and related literature.

Originality/value

This study has originality via new modeling of risk matrix. In this study, dimension of risk analysis has been improved as three dimensions. This study has new approach and new assessment of risk with likelihood (probability), impact (severity) and interrelations ratio. This new model may be a useful new tool to both assess and prioritize mapping of ergonomic-based risks in business management. In addition, this research will contribute to aviation management and strategy literature and also enterprise risk management literature.

Details

Aircraft Engineering and Aerospace Technology, vol. 91 no. 4
Type: Research Article
ISSN: 1748-8842

Keywords

Article
Publication date: 2 May 2017

Verity Chester, Anthony Scott Brown, John Devapriam, Sharon Axby, Claire Hargreaves and Rohit Shankar

There is increasing emphasis on caring for people with intellectual disabilities in the least restrictive, ideally community settings. Therefore, the purpose of this paper…

Abstract

Purpose

There is increasing emphasis on caring for people with intellectual disabilities in the least restrictive, ideally community settings. Therefore, the purpose of this paper is to explore the risk factors considered by clinicians involved in discharging people from secure services.

Design/methodology/approach

The views of five senior clinicians were sought in semi structured interviews. Data were analysed thematically.

Findings

Themes related to risk assessment, risk management, and multidisciplinary and multiagency working. Illustrative quotes are used to evidence themes.

Practical implications

This study described the risk assessment and management factors considered during the discharge of patients from secure to community services, which are of direct relevance to multiple stakeholders post-Winterbourne.

Originality/value

Challenges when facilitating discharge were highlighted, such as ongoing risk management issues, or unexpected discharge from tribunals, and how these were addressed, via the development of extensive risk assessment and management processes, and interdisciplinary and interagency working.

Details

Advances in Mental Health and Intellectual Disabilities, vol. 11 no. 3
Type: Research Article
ISSN: 2044-1282

Keywords

Article
Publication date: 1 March 2011

Jacqueline Pontré, Volker Welter, Joao N. Veiga Malta, Ibrahim Faria and Anna Chernyshova

Public procurement in many countries is one of the most important factors in governance and is a priority target of reform. In many humanitarian situations however…

Abstract

Public procurement in many countries is one of the most important factors in governance and is a priority target of reform. In many humanitarian situations however, service delivery cannot wait for procurement reform. The needs of many of the Millennium Development Goals are immediate, while procurement reform may take years to institutionalize. Under these circumstances, international organisations such as the United Nations have both implementation and capacity-building roles, often placing them in high-risk situations. This has led to the development of procurement risk assessment and management tools, designed to provide objectivity in country procurement risk monitoring and review, as well as assist capacity building. The procurement risk assessment methodology that follows uses established risk modeling to provide procurement risk ratings in 60 HIV/AIDS, Tuberculosis and Malaria programs in 26 countries, and is successfully promoting procurement strengthening within high-risk country offices.

Details

Journal of Public Procurement, vol. 11 no. 3
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 June 2004

Andreas Norrman and Ulf Jansson

Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson…

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Abstract

Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub‐supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade‐off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.

Details

International Journal of Physical Distribution & Logistics Management, vol. 34 no. 5
Type: Research Article
ISSN: 0960-0035

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