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One decade since its birth, the impact investing market has grown exponentially to several hundred billion dollars. Although promising, this figure is dwarfed by the major financing gap that still remains if we are to meet the world's sustainable development needs. In order to scale and capture the hundreds of trillions of private capital available for social good, it will be crucial to address the biggest question in impact investing today: who is willing to take on risk? Specifically, who is willing to take on the risk of innovation; the risk of valuing women and the underserved in financial markets and the risk of giving a voice to the voiceless? This chapter examines a novel ecosystem approach, developed over the past decade by Impact Investment Exchange (IIX) to address risk and find solutions to it at multiple levels of the social capital markets value chain. By incorporating the voices of underserved beneficiaries in impact assessments; providing impact enterprises with technical assistance, investment readiness and capital raising support and using innovative financial mechanisms to catalyse greater change, IIX has unlocked millions of dollars of investment capital while improving the risk–return–impact profile of investments. To lead impact investing in the long term, those in the sector must similarly learn to embrace and address risk through creative, practical and inclusive approaches that give voice and value to society's most vulnerable.

Purpose – This article examines management accounting practice in relation to the two aspects of Enterprise Risk Management (ERM): risk management and internal controls.

Methodology/Approach – We conducted a survey of experienced management accountants to find out about the risk management and internal control aspects of their current ERM practices, and their perceived effectiveness in performing various ERM roles, within the context of the ERM culture and the level of information systems support for ERM in their organizations.

Findings – In terms of the risk management aspects of ERM, the management accountants in the survey contribute highly to managing risks of a financial or compliance/legal nature and tend to focus mostly on risks with potentially higher impact and higher likelihood of occurring. In terms of the internal control aspects of ERM, they play a highly important role in ERM activities related to prevention and internal risk treatment. Their organizations have an ERM culture that is perceived as open to challenging discussions about risk and have implemented IS support for management accounting in areas such as information security and standardized information architecture. Overall, the effectiveness of their contributions to ERM is perceived to be high in the areas of compliance and finance-related risk.

Originality/Value – We develop a framework and offer empirical evidence about the ERM contributions of management accountants. We propose and use two original scales: one to classify ERM activities, and the other to assess ERM culture.

Climate and environment-related financial risks could significantly and negatively impact the financial sector in future, particularly its financing to those sectors adversely impacted by the climate-related risks, low-carbon policies and the transition from traditional energy sources-based economy to a more sustainable system with alternative energy sources. The participatory countries of the Paris Agreement agreed to align finance flows with a low-emission, low-carbon and climate-resilient growth, in order to facilitate achieving the long-term climate goals. The financial sector, therefore, needs to play a proactive role in aligning financial flows. It is, therefore, of utmost importance to study low-carbon finance and climate-related financial risks. This chapter examine how climate change can affect the financial sector. It discusses the concept, nature, measurement of climate risks and climate-related financial risks and associated prospects and challenges in the assessment and the measurement of these risks. It also presents the green financing initiatives and role of central banks and supervisory authorities and their monetary and financial policies in enhancing green financing and redirecting finance to low-carbon activities. In the financial sector, the insurance industry is highly vulnerable to such risks. The banking sector is yet to witness the serious impact of these risks. With the slowing of global economic growth, appropriate policies are needed to encourage banks to provide increased green finance with an adequate profitability. Studies recommend that climate-related risk has a strong potential impact on banks’ loan default rate as well as on the financial stability, there is hence a need to incorporate climate-related criteria and the systemic risk arising out of climate change into banks’ decision-making process and risk modelling and management. There is a need for developing an appropriate methodology for assessing and reducing these risks. Moreover, observers also anticipate a need for cooperation between banking regulators and banks to develop and adopt best practices in the management of environmental risks. The environment-related risks will call forth a multi-country, or regional, research office to collect and compile the required data and undertake analysis to enhance the banking sectors’ understanding of, and capacity to address, potential systemic environmental risks. What is needed is to test the feasibility of incorporating forward-looking scenarios for assessing potential impacts of providing credit to environmentally unsustainable or sustainable activities on financial stability.

Identifying and managing supply chain risk is crucial for the competitiveness of a company. However, research focused on the risks of supply chain operations in Brazil is scarce. The purpose of this study is to analyze and assess the risk of cargo theft in the country. The methodology adopted is deductive and based on an analysis of historical data from January 2015 to November 2017, aiming to evaluate risk based on probability and impact. The findings unveil a scenario of criminality of transporting goods in Brazil, where the use of force, violence, and threats to steal goods is most likely to occur en route or when parked in key locations on the way to the distribution center. On the other hand, the higher impact cargo crimes are concentrated en route to the customer. This chapter provides a better understanding of the risks of transporting goods by road in Brazil and contributes to a more efficient supply chain design by identifying the risks and assessing the primary locations of the crimes along with their modi operandi and the period of the day during which the crime occurs.

In the past decade, firms have become more aware of supply chain disruptions and their impact on the firm. Developing a supply chain resilience organizational culture has been proposed as an effective way to manage supply chain risks. This study intends to explore how the geographical location risks impact the decision to develop a supply chain resilience strategy, in particular, to anticipate the disruption proactively and have a business continuity plan in place. Using a unique database including thousands of manufacturing locations that belong to over 7,000 firms across 102 countries, we test three hypotheses to understand if geographical location risks, frequency of disruptive events, and the region in which a site is located are factors for the likelihood of a firm having a business continuity plan at their locations. The study also seeks to understand if there are regional effects and firm effects affecting the decision to develop resilience. With a particular focus in Latin America and the firms with a manufacturing presence in that region. The main findings of the study are that natural disaster risks do tend to develop a culture of resilience, while macroeconomic risks tend to do the opposite. These results remain stable for firms' effects. The Latin America region shows no observable statistical difference in developing resilience compared to the Asia region. While the Northern America region shows more resilience compared to Asia. We conclude that economic risk is less predictable and harder to develop a plan for than disruptions, such as natural disasters. The findings of this study present an opportunity for governments to develop resilience plans that can make their countries more attractive for investment to multinational firms looking to establish new manufacturing locations around the world.

Globalisation is under significant threat due to the climate of uncertainty and conflicting trends caused by the new challenges of climate change impact further multiplied by the COVID-19 pandemic. Disaster risk reduction (DRR) effort is directly affected by finding new ways and strategies. World’s international cooperation, technology and knowledge transfer between countries are seriously affected and are directly impacting sustainability and even human survival. Global DRR strategy is struggling to face the unprecedented challenges brought by climate change and now COVID-19 pandemic has multiplied the uncertain climate. In this environment, some new emerging challenges are in the world healthcare systems, nutrition for millions of marginalised populations, working style, sustainable supply chain, even reducing anarchy governance, fear of being unsafe and changing beliefs and confidence of people in the system. In this environment, the pressing question is how DRR strategy can reposition and find better methods to deliver, globally, nationally and locally. The chapter focusses on the new emerging issues in the DRR strategy that the scientific community ought to address.

The emphasis on inter-organizational systems gave rise to concerns about inter-organizational relationships as trading partners became aware of the socio-political factors and trust that affect their relationships. This paper examines the importance of inter-organizational-trust in business-to-business E-commerce organizations. It examines how inter-organizational relationships impact trading partner trust, perceived benefits, perceived risks, and technology trust mechanisms in E-commerce that can in turn influence outcomes of business-to-business E-commerce. This paper develops a conceptual model and tests the model using a case study research methodology. The aim is to solicit qualitative in depth understanding of inter-organizational-trust in business-to-business E-commerce. Eight organizations from a cross section of industries that formed four bi-directional dyads participated in the third stage of this study. The first two stages include exploratory case studies in three organizations in the automotive industry that applied EDI via Value-Added-Networks in 1997, and a nationwide survey of organizations that examined the extent of E-commerce adoption in Australia and New Zealand in 1998. The findings identify the need for trustworthy business relationships in an E-commerce environment.