Managing unintentional dwelling fire risk

In this paper, we examine the management of unintentional dwelling fire risk through the development of a geographical information system (GIS) for dwelling fire prevention support based upon an 18-month case study in a UK fire and rescue service. Previous research into causal factors in unintentional dwelling fire incidents was used to guide the development of a multiple linear regression risk model for dwelling fire incidents that was the basis of the GIS developed. The GIS provided a more detailed analysis of unintentional dwelling fire risk factors, and enabled more targeted fire prevention activities for the identified at-risk social groups.     

Emerging risk of autoignition and fire in underground coal storage

The risk and prevention of autoignition in underground coal storage facilities are reviewed in the light of the recent incidents of smouldering fires. Also, the opportunities are considered on the efficiency of the alternatives to prevent and extinguish closed-space fires. The complexities in avoiding and extinguishing underground fires are highlighted in the case example, describing the observations and outcome of a smouldering coal fire in the storage. The principles of self-heating and most critical factors in spontaneous combustion such as the condition and quality of coal are fairly well known, but usually only provide partial help in fire prevention. The documented cases and the case example suggest that nitrogen injection can be useful for extinguishing controllable fires. Three-phase foams and oxygen-displacing exhaust gases appear preferable against uncontrolled fires, particularly if access to the fire area is limited or impossible. Otherwise, efficient fire extinction during power plant operation can be challenging, as any air ingress tends to feed the fire and results in losses of the extinguishing agent and the heating value of coal. Methods and indicators for detecting and predicting the ignition are discussed, and improvements are suggested to enhance the storage and plant availability.     

Home Fire Safety Checks in New South Wales: an economic evaluation of the pilot program

Traumatic events such as fire can result in fatality, injury, and loss of property; even a minor fire can interrupt the normal flow of people’s lives. During the years 2009–2013, urban and regional New South Wales (NSW) experienced an annual average of 4329 residential structural fires with 593 injuries and 22 fatalities at an annual cost of $656 million dollars. In 2014, Fire and Rescue NSW piloted a program called Home Fire Safety Checks (HFSC), aimed at high-risk households. In total, 228 homes in 8 suburbs received safety checks, including having smoke alarms installed, having batteries changed in smoke alarms, and being provided with fire blankets and fire safety information. The pilot study design enabled detailed economic evaluation of the program, including both development costs and ongoing costs for a full roll-out. Analysis of the cost of fire within NSW, combined with measurements of the success of similar programs internationally, demonstrates the program’s cost effectiveness. Savings per dollar spent exceed $12 if the program includes 1% of high-risk homes and obtains a 0.75% reduction in number of fires. These results demonstrate that a full roll-out of the HFSC program warrants ongoing funding. External factors affecting program delivery include community acceptance and willingness to participate in the program, particularly very high-risk individuals, and ongoing behavioral change. In addition, HFSC faces the same ongoing funding challenges other preventative community programs face in a period of tightening state budgets.     

Domestic fire risk: a narrative review of social science literature and implications for further research

In this paper, we make the case for more social science research into fire incidents and fire-related risk behaviour. Unlike other vulnerabilities, such as crime, illness or risk-associated activities such as smoking, or accident avoidance, remarkably little research has focused on this area. This is perhaps surprising given the propensity for fire, its emotional, social and economic impacts, and evidence that fires and fire victims are not equally distributed across socio-demographic or geographical domains. In making our case, we outline: recent numbers and trends in incidents in the UK, focusing on domestic incidents and recent policy developments affecting fire and rescue services. Next, we review the social-science based literature on fire incidents, suggesting that while this offers useful insight, much more needs to be done to develop a rigorous evidence base. While we would not want to dismiss or downplay existing social science contributions, our contention is that a considerable number of opportunities exist for further work in this area. Consequently, we propose a number of ways in which popular ideas about risk theory can be applied to a domestic fire context and raise a number of questions that social scientists are well positioned to contribute to an interdisciplinary understanding of domestic fire incidents and associated risks.     

Loosely Coupled Results Control in Dutch Municipalities

This paper analyses the implementation of the ‘dual system’ in Dutch municipalities which was part of a package of New Public Management‐reforms. This system was stimulated by Dutch central government and called for more accountability for performance of municipal managers and the board of mayor and aldermen, as well as for the use of more output and outcome information. Interviews of participants on four different hierarchical levels in 12 municipalities show that the practices of output management at different hierarchical levels are only loosely coupled to each other (‘vertical loose coupling’). We also found some degree of ‘horizontal loose coupling’ at each hierarchical level between result orientation, the development of output indicators and the use of output information for performance evaluation. The paper analyses the reasons why municipalities encounter difficulties in designing a comprehensive and coherent performance management system.     

Strategic management accounting in close inter-organisational relationships

This paper provides a conceptual comparison between the ‘mainstream strategic management accounting’ literature, the ‘accounting and strategising’ literature and ‘strategic management accounting (SMA) in close inter-organisational relationships’. It concludes that ‘SMA in close inter-organisational relationships’ shares some important characteristics with the ‘accounting and strategising’ literature. Important differences were found, too, though. These mainly concerned the need to understand individuals working for close partners as preparers of strategic information; the need for disaggregated accounting information about unique connections to close partners and about the role of indirect benefits that follow from close connections and the need for the company to not only collect information but also disperse diverse information within close inter-organisational relationships. Through an intensive case study of a global robot manufacturer, Robotics, this paper also provides novel empirical evidence on ‘SMA in close inter-organisational relationships’. For instance, SMA practices included indirect benefits, something mainly neglected in the existing literature on SMA. These indirect benefits involved a close customer's willingness to invest time and effort in Robotics’ technological development, thereby contributing to Robotics’ ability to attain revenue gains in its interactions with other customers. Our findings also have important implications for the ‘inter-organisational accounting’ literature, for instance, by highlighting the need to link more explicitly strategic decision-making with the current interest in the role of accounting in inter-organisational dynamics.     

Looking for a safe haven after fancy thrills: a psychometric analysis of risk perception in alpine tourist destinations

Visitors’ risk perceptions have been found to influence the on‐site behaviour of tourists and their intention to return to a destination or to recommend it to others. The present study analyses the perception of tourism risks in the Tyrol, Austria. Building on the psychometric paradigm, participants (N = 207) assessed 15 vacation risks on nine risk characteristics that are derived from psychometric research and completed with characteristics relevant in a tourism context. Findings suggest that additionally to managing the most likely risks, alpine destinations should be prepared to cope with worst case scenarios such as ‘potable water poisoning’, ‘food poisoning’, ‘breaking of an embankment dam’, ‘rock fall on a village’, ‘cable car accident’ and ‘terrorist attack’. Considering these rather low‐probability risks is of decisive importance since such risks are especially prone to evoke public outrage if they – against all expectations – result in damaging events.     

A Consulting Giant; a Disgruntled Client: A ‘Failed’ Attempt to Change Management Controls in a Public Sector Organisation

There has been very little research into management consulting interventions in public sector organisations, especially in emerging economies. This paper aims to fill this void by narrating the empirics of a consulting assignment carried out by a large international consulting firm in a Pakistani public sector organisation. The study found that consultants’ recommendations of ‘businesslike’ management controls, such as a modern performance measurement system and a ‘state‐of‐the‐art’ information system, were rejected outright by the client management. Employing a critical realist perspective that focuses on the structural conditions facing both the client and the consultants, and on the strategies adopted by both parties, the study aims to explain the empirics of the case. Through structural and strategic analysis, this paper aims to enhance our understanding of the dynamics of management consulting in public sector organisations, especially in emerging economies.     

Do Repeated Wildfires Change Homebuyers’ Demand for Homes in High-Risk Areas? A Hedonic Analysis of the Short and Long-Term Effects of Repeated Wildfires on House Prices in Southern California

Unlike most hedonic studies that analyze the effects of a one-time event, this paper analyzes the effects of forest fires that are several years apart in a small geographical area. We find that repeated forest fires cause house prices to decrease for houses located near the fires. We test and reject the hypothesis that the house price reduction from one fire is equal to the house price reduction from a second fire. The first fire reduces house prices by about 10%, while the second fire reduces house prices by nearly 23%, a statistically significant difference. The pattern of these results are robust to several alternative econometric specifications.

Fair value accounting and the present value fallacy: The need for an alternative conceptual framework

The major functions of company accounting identified by the IASB and the FASB are (1) reporting on ‘the custody and safekeeping’ of the company's resources and (2) reporting on ‘their efficient and profitable use’. The joint IASB/FASB project for improving the conceptual framework for financial reporting is directed towards better performance of both functions within the conventional ‘accrual’ system of accounting through the use of ‘fair value’. Although the disclosure of fair values is a development to be welcomed, the requirement that changes in fair value should be reported as ‘gains’ or ‘losses’ appears to rely on the ‘Hicksian’ concept of income as a theoretical ideal.The object of the present paper is to establish that this concept is fundamentally flawed by what may be called the ‘present value fallacy’. Even in an economic utopia of perfectly competitive markets (with no discrepancies between objective market values and subjective present values), the concept of income or profit as value growth can be seriously misleading.If the prevailing Hicksian conceptual framework is discarded in favour of an alternative based on Fisher's theory of income, the two major, but incompatible, functions of financial reporting can be carried out independently and without compromise. The conventional ‘hybrid’ system of accrual accounting, in which backward-looking measures of volume and forward-looking measures of value are mixed together, would be replaced by a ‘segregated’ system in which they are kept strictly apart. A logical extension of Fisher's theory suggests the disclosure by agent/managers of the return on investment that they are planning to deliver to their principal/owners. This type of ‘decision-useful information’ is vital for the efficient operation of capital markets and for removing the accounting incentive to short-termism.     

Reliability rating and reflective questioning: a case study of extended review on Australia's risk assessment of Bt cotton

The governance of emerging technologies is frequently constructed around risk assessment processes. However, when risk assessment as a decision‐making tool is applied to controversial fields such as genetic modification, stem cell research and nano‐scaled science and technology, inherent uncertainties and conflicting social values arise to challenge the adequacy of traditional approaches. In this paper, I propose a framework through which risk assessments may be exposed to a process of ‘extended review’, incorporating both natural and social science quality criteria and modes of reflection. I call this framework ‘Reliability Rating and Reflective Questioning’. The framework is developed through a detailed case study review of a particular risk assessment document. The case study risk assessment reviewed in this paper is that performed by an Australian governmental authority on the impact of genetically modified ‘Bt’ cotton on non‐target organisms. Through highlighting errors, misrepresentations, assumptions and embedded value judgements within the risk assessment document, I argue that the framework of ‘Reliability Rating and Reflective Questioning’ can serve as a useful tool for gauging and improving the quality of risk assessment, especially when used as a decision‐making tool for emerging technologies with high levels of uncertainty and strongly conflicting values.     

Apply with Caution: Introducing UK‐Style In‐Work Support in Germany*

Estimates of the labour supply effects of recent UK reforms in the area of direct taxes and benefits show that policy can have significant influence on the level of employment. We confirm this in a simulation of an in‐work support system introduced into the German tax and benefit system. Our simulation results suggest that introducing in‐work tax credits in Germany would increase the employment of single individuals by over 105,000 but would result in a reduction of labour supply among individuals living in couples by about 70,000, among both women and men. The result found for men is especially important as it is markedly different from all results for the UK, where the net response among men has always been found to be positive. Our estimation results call for a high degree of caution as far as ‘importing’ UK‐style tax credits to Germany is concerned. In‐work support based on family income would reinforce the existing work disincentives for secondary earners, reducing the employment levels of both men and women living in couples.     

Mobility,risk tolerance and competence to manage risks

Migration is a risky behaviour because of the uncertainty about future wages, living conditions, changing relationships with family and friends and cultural adjustment. While there has been some research on risk and uncertainty in migration, this has mostly been approached as a form of ‘rational’ decision-making: such approaches explain why some groups of individuals are more likely than others to migrate, but are limited in explaining individual variations in behaviour within these groups. Individual migrants vs. non-migrants are self-selected in terms of tolerance of risk and uncertainty but, with very few exceptions, there has been no research on migration within the framework of risk tolerance/aversion and competence to manage risk. Moreover, existing research is based on, and constrained by the limitations of, incumbent data-sets. Drawing on a specially commissioned large-scale survey of the UK population, this paper uses principal component analysis and logistic regression to analyse the extent to which risk and risk-related measures can be used to predict four different types of mobility profiles. There are significant associations between these individual mobility characteristics and general risk/uncertainty tolerance, and competence-based tolerance. These are strongest in terms of the two most polarised mobility types: the least mobile, the Stayers, and the most mobile, the Roamers. Recognising that previous migration is exogenous, a further analysis of migration intentions, with previous migration included as an independent variable, finds the propensity for future migration is, in fact, negatively associated with previous migration, probably due to the importance of ‘pure risk’ as opposed to acquired competence via migration experience, and to life cycle considerations.     

RegTech—the application of modern information technology in regulatory affairs: areas of interest in research and practice

We provide a high-level view on topics addressed in scientific articles about regulatory technology (RegTech), with a particular focus on technologies used. For this purpose, we first explore different denominations for RegTech and derive search queries to search relevant literature portals. From the hits of that information retrieval process, we select 55 articles outlining the application of information technology in regulatory affairs with an emphasis on the financial sector. In comparison, we examine the technological scope of 347 RegTech companies and compare our findings with the scientific literature. Our research reveals that ‘compliance management’ is the most relevant topic in practice, and ‘risk management’ is the primary subject in research. The most significant technologies as of today are ‘artificial intelligence’ and distributed ledger technologies such as ‘blockchain’.     

Non-technical skills for managing risk and performance in financial trading

Recent large-scale failures in financial institutions have been found to be caused, in-part, by human factors-related issues in financial trading. In other environments where risk management and performance are intertwined, a human factors approach is often adopted to understand how the ‘non-technical skills (NTS)’ (leadership (LD), decision-making (DM), situation awareness (SA), teamwork) of organisational actors influence outcomes. Yet, to date, there has been minimal application of human factors research in financial trading. This study (i) identifies ‘real-world’ (i.e. non-laboratory) research studies investigating the NTS important for performance in financial trading, (ii) examines and synthesises data on the NTS found to underpin good or poor performance and (iii) considers the quality and coverage of research investigating NTS in financial trading, and identifies potential areas for future research. Nineteen studies were identified through a systematic literature search and then content-analysed for associations between NTS and performance in financial trading. The review found a range of decision-making (e.g. heuristics and biases, intuitive DM, emotional regulation) and LD skills (e.g. setting standards, monitoring behaviour, encouraging speaking-up) to have been identified as important for managing risk and performance in financial trading environments. Furthermore, SA (e.g. information search and assessment strategies, vigilance, identifying ‘noise’ data) and teamwork (e.g. avoiding ‘role’ conflict, communication between traders) were found to be important, yet remain less explored within the literature, and should be the focus of future research. NTS appear essential for effective risk management within the financial sector, yet further field research is required to examine the context-relevant behaviours that underpin safe activity. This will facilitate the development of evidence-based systems for assessing and training NTS competencies.     

Terrorism and Critical Infrastructures: Implications for Public–Private Crisis Management

The spate of terrorist attacks in New York, London and Madrid has raised some significant issues for the public management of critical infrastructures. In many countries, privatizations in the 1980s and 1990s have transferred key elements of the critical infrastructure to private companies. Because these infrastructures are of major significance to our societies and economies, they must be protected against prolonged periods of breakdown. The ‘new’ terrorism has the potential to do just that. The management of this new threat is a complex task, which invariably will be undertaken by both public and private actors. They must deal with the core challenges of the prevention of attacks, effective communication of information across organizational boundaries and the ‘ownership’ of crisis decision-making. This article considers these issues within the context of the broader research areas of public management and crisis management.     

Financial credit and social discredit: the pawnbroking dilemma

Researching, and therefore marketing, ‘unmentionable’ products has always been challenging. Pawnbroking, the act of offering a loan secured by the pledge of an item of value, fits within this domain; its use is stigmatised, despite dating back centuries and enjoying high levels of user satisfaction. This study explores perceptions of pawnbroking and recommends marketing tactics to reframe it as a ‘mentionable’ credit option, allowing the sector to benefit from increased flow of information. This research uses qualitative methods to explore perceptions of pawnbroking, identifying beliefs, attitudes and barriers to use through depth interviews with non-users. The results reveal minimal understanding of the pawnbroking process, with latent stigma and stereotyping reinforced by media sources. Social pressures, emanating from the negative perception of users and perceptions of important social groups, are influential in participants’ decisions to disassociate themselves from even the possibility of pawnbroker usage. The managerial implications are that pawnbrokers should emphasise the advantages of financial credit and minimise those of social discredit. Social marketing campaigns should target current perceptions of pawnbroking and encourage informed trial amongst a broader section of society.     

What is a fair amount of executive compensation? Outrage potential of two key stakeholder groups

The public discussion of executive compensation often centres on ‘fair’ and ‘unfair’ amounts and the public outrage over compensation that is deemed too high. The academic literature states that such outrage can lead to outrage costs, pressuring firms to adjust compensation levels. However, it is unclear what a ‘fair’ compensation is for various stakeholders and how their fairness concerns relate to outrage constraints. Based on surveys among two key stakeholder groups (representative eligible voters and investment professionals), we provide evidence that fairness is an important criterion for both groups but that opinions on how large a fair compensation amount should be are widely dispersed. Moreover, personality traits systematically influence fairness opinions through self‐serving interpretations of distributive justice and personal risk attitudes, indicating that a ‘fair’ amount of executive compensation may strongly depend on the involved stakeholders. Investigating thresholds for outrage, i.e., amounts above which compensation is judged ‘unfairly’ high, we show that even though investment professionals care for fairness as well, ‘capital market outrage’ might not equate to ‘public outrage’. Our paper contributes to the literature on outrage constraints by linking individual fairness concerns to outrage potential and has implications for transparency of executive compensation and research on shareholder activism.     

Accounting for the financialized UK and US national business model

In this paper we adopt a ‘business model’ conceptual framework grounded in accounting to describe the processes and mechanisms of national economic development and transformation. We locate national business models within a broad econo-sphere where they evolve and adapt to information arising out of stakeholder/institutional interactions. These interactions congeal into reported financial numbers that are presented as current income flows (income, expenditure), balance sheet accumulations and changes in net worth (assets and liabilities outstanding). We employ financial data from national accounts to specifically describe how the US and UK national business models have become financialized as ongoing capitalizations run ahead of earnings capacity. This process of interminable re-capitalization is conditioned by variable institutional and sub-institutional sector characteristics. However, in financialized national business models the system of accounting takes on added analytical significance because it ‘transmits rather than contains’ and ‘amplifies rather than dampens’ adverse financial disturbance as capitalizations are recalibrated up or down in secondary markets.