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Article
Publication date: 4 May 2012

Lishan Ai

This paper attempts to examine the practical condition of implementing risk‐based approach (RBA) in Chinese financial sectors.

Abstract

Purpose

This paper attempts to examine the practical condition of implementing risk‐based approach (RBA) in Chinese financial sectors.

Design/methodology/approach

This paper compares the differences between rule‐based approach and risk‐based approach (RBA), and provides different options to financial institutions considering their own circumstances.

Findings

This paper finds that capacity constraint is an issue for directly transplanting the RBA performed by developed countries to Chinese financial institutions.

Originality/value

This paper creatively proposes a rule‐based but risk‐oriented AML approach or partial RBA that fits Chinese financial institutions' reality underpinned by Chinese culture, and correspondingly, different assessment methods are presented as well.

Details

Journal of Money Laundering Control, vol. 15 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 18 May 2020

Taisiia I. Krishtaleva, Elena A. Gureeva, Liliya A. Kripakova, Inna N. Rykova and Yuriy A. Krupnov

The purpose of the paper is to develop a risk-oriented approach to managing the social market economy.

Abstract

Purpose

The purpose of the paper is to develop a risk-oriented approach to managing the social market economy.

Design/methodology/approach

The first task is to determine the differences in susceptibility to the risk of the social market economy as compared to “pure” market economy. The authors use comparative analysis, variation analysis and correlation analysis for determining the dependence between quality of life in 2020 and variation of quality of life in 2012–2020, as well as variation of gross domestic product per capita in 2012–2020. The second task is to determine the perspectives of risk management of the social market economy in view of the specifics of the risk component of its functioning and development. Regression analysis is used for determining the dependence of quality of life in top ten countries with the social market economy in 2020 in the key risk factors that are peculiar for market economy and that lead to its destabilization: globalization, innovations and digitization.

Findings

It is substantiated that the unique economic and social environment predetermines the specific influence of the factors that are peculiar for the modern market economy. It is proved – by the example of top ten social market economies in 2020 – that social factors are more important for provision of stability of the social market economy than economic factors.

Originality/value

A risk-oriented approach to managing the social market economy is developed; it takes into account the specifics of the risk component of its functioning and development. The offered approach showed that the social market economy requires indirect regulation of risks through correction of institutions.

Details

International Journal of Sociology and Social Policy, vol. 41 no. 1/2
Type: Research Article
ISSN: 0144-333X

Keywords

Content available
Article
Publication date: 3 April 2020

Georg Josef Loscher and Stephan Kaiser

This study aims to explore how commercial and professional management instruments are combined in accounting firms.

Abstract

Purpose

This study aims to explore how commercial and professional management instruments are combined in accounting firms.

Design/methodology/approach

The authors conducted a qualitative study based on 30 semi-structured interviews with partners from 30 different accounting firms (sole practitioners to Big Four) in Germany. The study mainly draws from the literature on the management of accounting firms.

Findings

The findings of this study indicate that professional and commercial management instruments structure the use of time by accountants. In these management instruments, professional and commercial goals are interwoven by three mechanisms revealed in this study and named as ambivalence, assimilation and integration. The authors further identify the managerial aspects of professional instruments.

Originality/value

This paper offers three mechanisms that combine commercial and professional goals in the management of accounting firms. The authors thereby contribute to the literature on the management of accounting firms by analysing these mechanisms that enable the pursuit of both goals simultaneously. Further, the authors argue that the minimum organisation, defined by regulators, of accounting firms is an essential infrastructure for the commercialisation of accounting.

Details

Journal of Accounting & Organizational Change, vol. 16 no. 1
Type: Research Article
ISSN: 1832-5912

Keywords

Book part
Publication date: 24 October 2018

L. Yu. Andreeva, T. V. Epifanova, O. V. Andreeva and A. S. Orobinsky

The digital economy provides companies with financial stability and highly developed technological tools to run businesses based on their operations’ transparency…

Abstract

The digital economy provides companies with financial stability and highly developed technological tools to run businesses based on their operations’ transparency. Business stability is formed due to the introduction of a competence-based management system in financial organizations in the Russian corporate sector.

In terms of the digital economy as financial and technological companies, we consider large banks and other financial organizations to develop risk-oriented technologies for managing financial stability based on digitization.

The main aim of this chapter is to describe the features, the factors, and the conditions for the competence-based management development system. It highlights the role of the system for the banks and the financial technologies used by companies for sustainable development.

Details

Contemporary Issues in Business and Financial Management in Eastern Europe
Type: Book
ISBN: 978-1-78756-449-7

Keywords

Article
Publication date: 12 October 2010

Lishan Ai, John Broome and Hao Yan

The purpose of this paper is to explain the rule‐based and risk‐based anti‐money‐laundering (AML) approach, to demonstrate the implementation problems in carrying out a…

877

Abstract

Purpose

The purpose of this paper is to explain the rule‐based and risk‐based anti‐money‐laundering (AML) approach, to demonstrate the implementation problems in carrying out a risk‐based approach (RBA) to AML and finally propose in what way the RBA should be conducted in China.

Design/methodology/approach

This paper analyzes the practice of money‐laundering risk management in Chinese AML programs, compares the rule‐based AML approach and the risk‐based AML approach, and discusses the practical condition of carrying out the risk‐based AML approach in China.

Findings

Although China has made significant progress on combating money laundering, the practice of money‐laundering risk management in Chinese AML programs is still weak, and the pre‐conditions for fully implementing the RBA in China are yet to be met.

Originality/value

This paper highlights the practical issues preventing Chinese authorities from fully implementing a risk‐based AML approach, and proposes a “rule‐based but risk‐oriented” AML approach (a partial RBA) in the context of Chinese realities.

Details

Journal of Money Laundering Control, vol. 13 no. 4
Type: Research Article
ISSN: 1368-5201

Keywords

Book part
Publication date: 24 October 2018

E. A. Posnaya, E. V. Dobrolezha, I. G. Vorobyova and G. P. Chubarova

With this chapter, the authors reveal the content of the concept of economic capital, explore approaches to its evaluation, assess the implementation of the concept of…

Abstract

With this chapter, the authors reveal the content of the concept of economic capital, explore approaches to its evaluation, assess the implementation of the concept of economic capital in the national banking system, and identify problems and possible directions for development and convergence of the Russian approach with international requirements. As a result, the need to apply the model of economic capital in assessing bank capital is substantiated. A concept (from Latin “conception” – understanding a system) is a specific way of understanding (interpreting) an object, phenomenon, or process; that is, the main point of view on the subject and the guiding idea for its systematic coverage. This term is also used to refer to a leading idea and a constructive principle in scientific activity.

Initially, since 1988, under prudential supervision – a direct, quantitative-oriented approach, there existed a concept of regulatory capital, reflected in the document “International Convergence of Measurement Methods and Capital Standards” (Basel I). Regulatory capital was calculated to meet regulatory oversight standards. It was intended to cover unforeseen losses and reserves already identified; thereafter, expected losses were created.

The concept of regulatory capital proceeds from the premise that if capital must cover unexpected losses, it should be borne in mind that a surprise approximates uncertainty. Consequently, the theoretical possibility of occurrence of certain events is excluded and, hence, the methodical and practical ground of the concept of economic capital disappears, which is based on the assessment of default probability and the magnitude of its negative consequences for creditors.

The change in trends in banking regulation (the actions of supervisory authorities in matters of capital adequacy acquired a risk-oriented nature that takes into account the risks assumed by each bank and the quality of their management) led to the emergence of the concept of economic capital in 2004, which is reflected in the document “International Convergence of Capital Measurement and Standards of Capital: New Approaches” (Basel II).

According to this concept, commercial banks must have sufficient capital to cover not only credit and market, but also the operational risks. Thus, economic capital takes into account all the risky circumstances that a banking institution may encounter. The need to apply the method of economic capital in assessing the capital of a bank is justified and significant.

Details

Contemporary Issues in Business and Financial Management in Eastern Europe
Type: Book
ISBN: 978-1-78756-449-7

Keywords

Content available
Book part
Publication date: 24 October 2018

Abstract

Details

Contemporary Issues in Business and Financial Management in Eastern Europe
Type: Book
ISBN: 978-1-78756-449-7

Book part
Publication date: 4 May 2021

George Raounas, Dimitris Apostolidis, Constantinos Lefcaditis and Emmanuel Markakis

Most non-financial companies in Greece do not have an ERM function nor present one in their organizational charts. The enterprise risk management is still more theory than…

Abstract

Most non-financial companies in Greece do not have an ERM function nor present one in their organizational charts. The enterprise risk management is still more theory than practice even for companies that have embraced it so far, and in general the enterprise risk management seems to be at its infancy in Greece with only some prominent and mature organizations showing the way forward. The aim of this study is to provide some reflections about risk disclosure in annual reports and accounting practices in Greece. Although companies in Greece do seem reluctant to apply ERM, during last years, non-financial information demonstrated to emerge within financial statements and annual reports, giving a broader perspective to risk.

Article
Publication date: 9 May 2022

Simona Cosma, Salvatore Principale and Andrea Venturelli

The purposes of this paper are: firstly, to assess the disclosure related to climate change (CC) by major European banks to understand if the banks have grasped the most…

Abstract

Purpose

The purposes of this paper are: firstly, to assess the disclosure related to climate change (CC) by major European banks to understand if the banks have grasped the most substantive aspects of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and secondly, to evaluate the contribution of a non-traditional committee (i.e. corporate social responsibility (CSR) committee) to TCFD-compliant disclosure.

Design/methodology/approach

Using content analysis and ordinary least squares regressions on a sample of 101 European banks, this study sought to investigate completeness, tone and forward-looking orientation of CC disclosure and explore the relationships between CSR committee and previous disclosure aspects.

Findings

This study shows that European banks have been able to reach an intermediate level of adequacy of compliance in terms of completeness of information but forward-looking orientation seems to be the aspect that needs the most improvement. The existence of a CSR committee dedicated to sustainability issues seems to constitute the difference between the banks in terms of disclosure. The results highlight vulnerabilities in disclosure and board characteristics relevant for improving CC disclosure.

Practical implications

Firms interested in strengthening stakeholder engagement and capturing strategic opportunities involved in CC should be encouraged to establish a CSR committee and appoint female directors in financial companies. This paper should be of interest to policymakers, governance bodies and boards of directors considering the initiative of corporate sustainable governance complementary to Directive 2014/95/EU on non-financial reporting by the European Commission.

Originality/value

To the best of the authors’ knowledge, no prior study has investigated the relationship between the CSR committee and the application of the TCFD’s recommendations in the European banking industry.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 1 December 2002

Eva H.G. Hüpkes

On 9th July 2002, the Swiss Federal Banking Commission (SFBC) published for consultation a proposal for a new SFBC Money Laundering Regulation. The draft regulation…

2784

Abstract

On 9th July 2002, the Swiss Federal Banking Commission (SFBC) published for consultation a proposal for a new SFBC Money Laundering Regulation. The draft regulation proposes stricter rules for banks and securities dealers to prevent money laundering and financing of terrorism and details specific due diligence requirements with respect to business relationships with politically exposed persons. The draft incorporates the lessons drawn from money laundering cases in Switzerland as well as international developments.

Details

Journal of Financial Regulation and Compliance, vol. 10 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

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