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Article
Publication date: 15 May 2017

Yevgen Bogodistov and Veit Wohlgemuth

The purpose of this study is to enhance the existing enterprise risk-management (ERM) theory by introducing both a resource-based view and a dynamic capability…

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Abstract

Purpose

The purpose of this study is to enhance the existing enterprise risk-management (ERM) theory by introducing both a resource-based view and a dynamic capability perspective. These strategic management concepts might resolve several theoretical shortcomings in the field of risk management. The concept of risk-management capabilities is proposed as an explanation of a firm’s risk resilience.

Design/methodology/approach

This paper is conceptual in nature. For illustrative purposes, the paper refers to practical examples.

Findings

First, the resource-based view provides a framework that helps to set priorities in risk management. Second, the dynamic capability perspective illustrates how firms can handle unforeseen events. Third, it is proposed that dynamic capabilities are needed to allow a constant reassessment of the impact of specific resources and, consequently, of ERM priorities. Fourth, a risk-management capability, as an integral part of a dynamic capability, allows firms to develop risk resilience in turbulent environments.

Research limitations/implications

This paper develops an enhanced framework for ERM within specific boundary conditions. It shows how priorities at the strategic level are to be set, and how these priorities influence the operational level of risk management.

Practical implications

The framework provides clear guidelines on setting priorities in ERM and implementing a risk-management process within firms.

Originality/value

This study contributes to the theoretical literature on ERM by enhancing it through a new framework. The resource-based view and dynamic capability perspective benefit through insights from risk-management literature.

Details

The Journal of Risk Finance, vol. 18 no. 3
Type: Research Article
ISSN: 1526-5943

Keywords

Content available
Article
Publication date: 20 August 2018

Martin R.W. Hiebl, Rainer Baule, Andreas Dutzi, Volker Stein and Arnd Wiedemann

Abstract

Details

The Journal of Risk Finance, vol. 19 no. 4
Type: Research Article
ISSN: 1526-5943

Open Access
Article
Publication date: 11 November 2021

Danish Ahmed, Xie Yuantao and Umair Saeed Bhutta

Insurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how…

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Abstract

Purpose

Insurance companies exist to manage the risk of others, which is why they are perceived to be competitive in risk management (RM). Considering this, we investigate how different RM capabilities make insurers effective in RM. These capabilities include understanding risk and risk management (URRM), risk identification (RI), risk assessment and analysis (RAA) and risk monitoring (RMON) activities in insurance companies. In addition, the authors probe how these capabilities can jointly yield a competitive advantage for the insurance industry under the resource-based view (RBV) and dynamic capabilities perspective (DCP).

Design/methodology/approach

The authors present a latent variable RM model for the insurance industry and employ structural equation modeling (SEM) to test the hypotheses. Furthermore, the authors also conduct confirmatory factor analysis (CFA) and convergent and discriminant validity analysis for model fit and invariance testing, respectively.

Findings

The results show that insurers who investigated RM-related capabilities directly influence their risk management practices (RMPs). Moreover, improving these capabilities will make insurers more effective in managing the risks of others. Thus, RM as a business process will yield a competitive advantage for the insurance sector. The findings are supported by the theoretical insights presented by the RBV and DCP. Furthermore, the model also adheres to the convergent and discriminant validity cut-off values.

Originality/value

To the best of the authors’ knowledge, this is the first study examining insurers' RM practices as a source of a competitive advantage.

研究目的

保險公司存在的目的是為其它公司或個人管理其風險;因此,保險公司在風險管理方面、被認為具有競爭能力。故此、我們擬研究不同的風險管理能力是如何能使保險公司有效地管理風險的呢?這些風險管理能力包括對風險及風險管理之了解、風險辨識、風險評估和分析,以及在保險公司內的風險監控活動。再者,我們探究這些風險管理能力如何根據資源基礎觀點及動態能力理論共同為保險業創造競爭優勢。

研究方法

我們為保險業展示一個潛在變項風險管理模型,並使用結構方程模型,來測試我們的假設;而且,我們為模型適配度而進行了驗證性因素分析,又為不變性檢定而進行了驗證輻合及驗證區別效度分析。

研究結果

研究結果顯示、若保險公司審査與風險管理相關之能力,這會直接影響其對風險管理之措施;而且,若保險公司能改善其風險管理之能力,這會使它們更有效地管理其它公司或個人的風險。因此,作為業務過程的一環、風險管理會為保險業創造競爭優勢。我們的研究結果,得到資源基礎理論及動態能力理論提供之理論見解所支持;而且,我們的模型從附驗證輻合及驗證區別效度的截止值。

研究的原創性

據我們所知,本研究為首個研究、去探討保險公司的風險管理措施如何為它們創造競爭優勢。

Details

European Journal of Management and Business Economics, vol. 31 no. 3
Type: Research Article
ISSN: 2444-8451

Keywords

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