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1 – 10 of over 2000
Open Access
Article
Publication date: 20 March 2024

Marziana Madah Marzuki, Wan Zurina Nik Abdul Majid, Hatinah Abu Bakar, Effiezal Aswadi Abdul Wahab and Zuraidah Mohd Sanusi

This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the…

Abstract

Purpose

This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the Malaysian government on risk management practices.

Design/methodology/approach

The sample of this study was based on 257 firm-year observations during the 2012–2017 period. This study employed panel-least square regressions with period fixed effects.

Findings

This study found a significant association between risk management activities in the disclosure and potential fraudulent financial reporting. Nevertheless, this study found there is insignificant effect of the risk-management committee in reducing potential of fraudulent financial reporting.

Originality/value

This study is a pioneer research that relates firms’ risk management practices with potential fraudulent financial reporting measured by F-score. Thus, this study provides an insight to regulators on the extent of risk-management practices in deterring potential fraudulent financial reporting which can be used as an input for greater enforcement of risk-management regulations.

Details

Asian Journal of Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2459-9700

Keywords

Article
Publication date: 26 March 2024

Yuanwen Han, Jiang Shen, Xuwei Zhu, Bang An and Xueying Bao

This study aims to develop an interface management risk interaction modeling and analysis methodology applicable to complex systems in high-speed rail construction projects…

Abstract

Purpose

This study aims to develop an interface management risk interaction modeling and analysis methodology applicable to complex systems in high-speed rail construction projects, reveal the interaction mechanism of interface management risk and provide theoretical support for project managers to develop appropriate interface management risk response strategies.

Design/methodology/approach

This paper introduces the association rule mining technique to improve the complex network modeling method. Taking China as an example, based on the stakeholder perspective, the risk factors and significant accident types of interface management of high-speed rail construction projects are systematically identified, and a database is established. Then, the Apriori algorithm is used to mine and analyze the strong association rules among the factors in the database, construct the complex network, and analyze its topological characteristics to reveal the interaction mechanism of the interface management risk of high-speed rail construction projects.

Findings

The results show that the network is both scale-free and small-world, implying that construction accidents are not random events but rather the result of strong interactions between numerous interface management risks. Contractors, technical interfaces, mechanical equipment, and environmental factors are the primary direct causal factors of accidents, while owners and designers are essential indirect causal factors. The global importance of stakeholders such as owners, designers, and supervisors rises significantly after considering the indirect correlations between factors. This theoretically explains the need to consider the interactions between interface management risks.

Originality/value

The interaction mechanism between interface management risks is unclear, which is an essential factor influencing the decision of risk response measures. This study proposes a new methodology for analyzing interface management risk response strategies that incorporate quantitative analysis methods and considers the interaction of interface management risks.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 25 March 2024

Roope Nyqvist, Antti Peltokorpi and Olli Seppänen

The objective of this research is to investigate the capabilities of the ChatGPT GPT-4 model, a form of artificial intelligence (AI), in comparison to human experts in the context…

Abstract

Purpose

The objective of this research is to investigate the capabilities of the ChatGPT GPT-4 model, a form of artificial intelligence (AI), in comparison to human experts in the context of construction project risk management.

Design/methodology/approach

Employing a mixed-methods approach, the study draws a qualitative and quantitative comparison between 16 human risk management experts from Finnish construction companies and the ChatGPT AI model utilizing anonymous peer reviews. It focuses primarily on the areas of risk identification, analysis, and control.

Findings

ChatGPT has demonstrated a superior ability to generate comprehensive risk management plans, with its quantitative scores significantly surpassing the human average. Nonetheless, the AI model's strategies are found to lack practicality and specificity, areas where human expertise excels.

Originality/value

This study marks a significant advancement in construction project risk management research by conducting a pioneering blind-review study that assesses the capabilities of the advanced AI model, GPT-4, against those of human experts. Emphasizing the evolution from earlier GPT models, this research not only underscores the innovative application of ChatGPT-4 but also the critical role of anonymized peer evaluations in enhancing the objectivity of findings. It illuminates the synergistic potential of AI and human expertise, advocating for a collaborative model where AI serves as an augmentative tool, thereby optimizing human performance in identifying and managing risks.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 13
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 6 February 2024

Abdelmoneim Bahyeldin Mohamed Metwally and Ahmed Diab

In developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from…

Abstract

Purpose

In developing countries, how risk management technologies influence management accounting and control (MAC) practices is under-researched. By drawing on insights from institutional studies, this study aims to examine the multiple institutional pressures surrounding an entity and influencing its risk-based management control (RBC) system – that is, how RBC appears in an emerging market attributed to institutional multiplicity.

Design/methodology/approach

The authors used qualitative case study research methods to collect empirical evidence from a privately owned Egyptian insurance company.

Findings

The authors observed that in the transformation to risk-based controls, especially in socio-political settings such as Egypt, changes in MAC systems were consistent with the shifts in the institutional context. Along with changes in the institutional environment, the case company sought to configure its MAC system to be more risk-based to achieve its strategic goals effectively and maintain its sustainability.

Originality/value

This research provides a fuller view of risk-based management controls based on the social, professional and political perspectives central to the examined institutional environment. Moreover, unlike early studies that reported resistance to RBC, this case reveals the institutional dynamics contributing to the successful implementation of RBC in an emerging market.

Details

Qualitative Research in Accounting & Management, vol. 21 no. 2
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 14 April 2023

Masculine Muhammad Muqorobin, Utpala Rani and Alex Johanes Simamora

This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Abstract

Purpose

This research aims to examine the moderating role of the existence of risk management committee between risk-taking behavior and companies’ performance.

Design/methodology/approach

Research sample includes 383 manufacturing company-year that listed on the Indonesian Stock Exchange period of 2017–2020. The risk-taking behavior includes the use of leverage, capital intensity, research and development intensity, and earnings uncertainty. The hypothesis test uses company fixed-effect regression.

Findings

The result shows that risk management committee moderates the effect of risk-taking behavior on companies’ performance. This research also finds the similar result when risk management committee and risk-taking behavior are examined on the future performance. In the further analysis, the result also finds that the expertise of risk management committee moderates the effect of risk-taking behavior on companies’ performance.

Originality/value

This research contributes to fill the previous gap of risk-taking behavior and companies’ performance by considering the existence of risk management committee to promote oversight role on risk-taking behavior. This research also contributes to give new evidence in Indonesia about the role of risk management committee to improve the benefits or to reduce the costs of risk-taking behavior.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 3
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 27 June 2023

Arsalan Safari, Vanesa Balicevac Al Ismail, Mahour Parast, Ismail Gölgeci and Shaligram Pokharel

This systematic literature review analyzes the academic literature to understand SC risk and resilience across different organizational sizes and industries. The academic…

Abstract

Purpose

This systematic literature review analyzes the academic literature to understand SC risk and resilience across different organizational sizes and industries. The academic literature has well discussed the causes of supply chain (SC) risk events, the impact of SC disruptions, and associated plans for SC resilience. However, the literature remains fragmented on the role of two fundamental elements in achieving SC resilience: the firm's size and the firm's industry as firms' contingent factors. Therefore, it is important to investigate and highlight SC resilience differences by size and industry type to establish more resilient firms.

Design/methodology/approach

Building upon the contingent resource-based view of the firm, the authors posit that organizational factors such as size and industry sector have important roles in developing organizational resilience capabilities. This systematic literature review and analysis is based on the structural and systematic analysis of high-ranked peer-reviewed journal papers from January 2000 to June 2021 collected through three global scientific databases (i.e. ProQuest, ScienceDirect, and Google Scholar) using relevant keywords.

Findings

This systematic literature review of 230 high-quality articles shows that SC risk events can be categorized into demand, supply, organizational, operational, environmental, and network/control risk events. This study suggests that the SC resilience plans developed by startups, small and mdium-sized enterprises (SMEs), and large organizations are not necessarily the same as those of large enterprises. While collaboration and networking and risk management are the most crucial resilience capabilities for all firms, applying lean and quality management principles and utilizing information technology are more crucial for SMEs. For large firms, knowledge management and contingency planning are more important.

Originality/value

This study provides a comprehensive review of the literature on SC resilience plans across different organizational sizes and industries, offering new insights into the nature and dynamics of startups', SMEs', and large enterprises' SC resilience in different industries. The study highlights the need for further investigation of SC risk and resilience for startups, SMEs, and different industries on a more detailed level using empirical data. This study’s findings have important implications for researchers and practitioners and guide the development of effective SC resilience strategies for different types of firms.

Details

The International Journal of Logistics Management, vol. 35 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 20 March 2024

Ayse KUCUK YILMAZ, Konstantinos N. MALAGAS and Triant G. FLOURIS

This study aims to develop an inclusive, multidisciplinary, flexible and organizationally adaptable safety risk management framework, including diversity management, that will be…

Abstract

Purpose

This study aims to develop an inclusive, multidisciplinary, flexible and organizationally adaptable safety risk management framework, including diversity management, that will be implemented to ensure safety is and remains at the desired level. If the number of incidents and potential incidents that could lead to accidents and their impact rates are to be reduced operationally and administratively, aviation safety risks and sources of risk must be better understood, sources of risk identified, and the safety risk management framework designed in an organization-specific and organization-wide sustainable way. At this point, it is necessary to draw the conceptual framework well and to define the boundaries of the concepts well. In this study, a framework model that can be adapted to the organization is proposed to optimize the management of risks and provide both efficient and effective resource allocation and organizational structure design in its operations and management functions.

Design/methodology/approach

The qualitative research method – triple techniques – was deemed appropriate for this study, which aims to identify, examine, interpret and develop the situations of safety management models. In this context, document analysis, business process modeling technique and Delphi techniques from qualitative research methods were used via integration as the methodology of this research.

Findings

To manage dynamic civil aviation management activities and business processes effectively and efficiently, the risk management process is the building block of the “Proposed Process Model” that supports the decision-making processes of aviation organizations and managers. This “Framework Conceptual Model” building block also helps build capacity and resilience by enabling continuous development, organizational learning, and flexible structuring.

Research limitations/implications

This research is limited to air transportation and aviation safety management issues. This research is limited specifically to a safety-based risk management framework for the aviation industry. This research may have social implications as source saving, optimum resource use and capacity building will make a contribution to society and add value besides operational and practical implementation.

Social implications

This research may contribute to more safe operations and functions in the aviation industry.

Originality/value

Management and academia may gain considerable support from this research to manage their safety risks via a corporate-tailored risk management framework, both improving resilience and developing corporate capacity. With this model presented, decision-makers will have a guiding structure that can optimally manage the main risk types that may be encountered in the safety risk in the fields of suppliers, manufacturers, demand changes, logistics, information management, environmental, legal and regulatory. Existing studies in the literature are generally in the form of algorithms and cannot be used as a decision-making support tool. This model aims to fill the gap in the literature. In addition, added value may be created by applying this model to optimum management safety risks in the real aviation industry and its related sectors.

Details

Aircraft Engineering and Aerospace Technology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1748-8842

Keywords

Article
Publication date: 18 April 2023

Abdul Rashid, Muhammad Akmal and Syed Muhammad Abdul Rehman Shah

This study aimed at exploring the differential effects of different corporate governance (CG) indicators on risk management practices in Islamic financial institutions (IFIs) and…

Abstract

Purpose

This study aimed at exploring the differential effects of different corporate governance (CG) indicators on risk management practices in Islamic financial institutions (IFIs) and conventional financial institutions (CFIs) of Pakistan. It also investigated the moderating role of institutional quality (IQ) in shaping the effects of CG practices on financial institutions of Pakistan.

Design/methodology/approach

A sample of 57 financial institutions including commercial banks, insurance companies and Modarba companies over the period 2006–2017 is used to carry out the empirical analysis. The authors applied the robust two-step system-generalized method of moments estimator, which is also called the dynamic panel data estimator. They also built the PCA-based composite index of CG and IQ by using different indicators to investigate the moderating role of IQ. They used three proxies for risk taking, five for CG and one for Shari’ah governance. To test the validity of the instruments, they applied the Arellano and Bond’s (1991) AR (1) and AR (2) tests and the J-statistic of Hansen (1982).

Findings

The results provided strong evidence that several individual characteristics of CG and the composite index are significantly related to the operational risk, the liquidity risk and the Z-score (a proxy for solvency risk). The results also revealed that IQ significantly and substantially contributes in reducing the level of risks. Finally, the estimation results indicated that the effects of CG on risk management are significantly different at IFIs and CFIs. This differential impact is mainly attributed to the fundamental differences in business models, operational strategies and contractual obligations of both types of institutions.

Practical implications

The findings of this study are important for enhancing our understanding of how CG relates to risk taking in Islamic and conventional financial services industries and how good quality institutions are important for formulating the governance effects on the risk-taking behavior of financial institutions. The findings suggest that a suitable size of board should be chosen to manage the risk effectively. As the findings show that the risk-taking behavior of IFIs differs from that of CFIs, the regulators and international standard setting bodies should tailor the regulatory frameworks accordingly.

Originality/value

This paper is different from the existing studies in four aspects. First, to the best of the authors’ knowledge, this is the first empirical investigation in Pakistan, which does the comparison of IFIs and CFIs while examining the impacts of CG on risk management. Second, the paper constructs the composite index of CG by considering several different indicators of governance and examines the combined effect of governance indicators on risk management process. Third, this paper adds to the growing literature on the role of IQ by investigating whether it acts as a moderator between CG structures and risk management and if yes, then whether this moderating role is different for IFIs and CFIs. Finally, the paper builds upon the existing research work on the CG effects for different types of financial institutions by proposing a single regression based analytical framework for comparing the effects across two different types of institutions, harvesting the benefits of higher degrees of freedom and avoiding/minimizing the measurement error.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 22 March 2024

Hamada Elsaid Elmaasrawy and Omar Ikbal Tawfik

This paper aims to examine the impact of the assurance and advisory role of internal audit (ADRIA) on organisational, human and technical proactive measures to enhance…

Abstract

Purpose

This paper aims to examine the impact of the assurance and advisory role of internal audit (ADRIA) on organisational, human and technical proactive measures to enhance cybersecurity (CS).

Design/methodology/approach

The questionnaire was used to collect data for 97 internal auditors (IAu) from the Gulf Cooperation Council countries. The authors used partial least squares (PLS) to test the hypotheses.

Findings

The results show a positive effect of the ADRIA on each of the organisational proactive measures, human proactive measures and technical proactive measures to enhance CS. The study also found a positive effect of the confirmatory role of IA on both human proactive measures and technical proactive measures to enhance CS. No effect of the confirmatory role of IA on the organisational proactive measures is found.

Research limitations/implications

This study focused on only three proactive measures to enhance CS, and this study was limited to the opinions of IAu. In addition, the study was limited to using regression analysis according to the PLS method.

Practical implications

The results of this study show that managers need to consider the influential role of IA as a value-adding activity in reducing CS risks and activating proactive measures. Also, IAu must expand its capabilities, skills and knowledge in CS auditing to provide a bold view of cyber threats. At the same time, the institutions responsible for preparing IA standards should develop standards and guidelines that help IAu to play assurance and advisory roles.

Originality/value

To the best of the authors’ knowledge, this is the first study of its kind that deals with the impact of the assurance and ADRIA on proactive measures to enhance CS. In addition, the study determines the nature of the advisory role and the assurance role of IA to strengthen CS.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 11 December 2023

Melanie Kessler, Eugenia Rosca and Julia Arlinghaus

This study aims to advance a behavioural approach towards understanding how managerial perception impacts the enactment of responses to risk management during the implementation…

Abstract

Purpose

This study aims to advance a behavioural approach towards understanding how managerial perception impacts the enactment of responses to risk management during the implementation of digital technologies in industrial operations and supply chains. The purpose is to investigate the influence of (digital) technology and task uncertainty on the risk perception of managers and how this impacts risk responses adopted by managers.

Design/methodology/approach

Following an exploratory theory elaboration approach, the authors collected more than 80 h of interview material from 53 expert interviews. These interviews were conducted with representatives of 46 German companies that have adopted digital technologies for different industrial applications within manufacturing, assembly and logistics processes.

Findings

The findings provide nuanced insights on how individual and combined sources of uncertainty (technology and task uncertainty) impact the perception of decision makers and the resulting managerial responses adopted. The authors uncover the important role played by the interaction between digital technology and human being in the context of industrial operations. The exploratory study shows that the joint collaboration between humans and technologies has negative implications for managerial risk responses regardless of positive or negative perception, and therefore, requires significant attention in future studies.

Research limitations/implications

The empirical base for this study is limited to German companies (mainly small and medium size). Moreover, German culture can be characterised by a high uncertainty avoidance and this may also limit the generalizability of the findings.

Practical implications

Managers should critically revise their perception of different types of digital technologies and be aware of the impact of human-machine interaction. Thereby, they should investigate more systematic approaches of risk identification and assessment.

Originality/value

This paper focuses on the managerial risk responses in the context of digitalisation projects with practical insights of 53 expert interviews.

Details

Supply Chain Management: An International Journal, vol. 29 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

1 – 10 of over 2000