The challenges of and solutions for implementing enterprise risk management

Enterprise risk management (ERM) began to take root in the late 1990s and has since become generally recognized as an expectation of good management and corporate governance. However, as evidenced by surveys and research, many companies still struggle with ERM implementation. This article explores the challenges companies face when implementing ERM and offers solutions for firms struggling with the concepts and execution. We draw upon Hydro One's experience in achieving ERM maturity as a best practice case study. The company's ERM methods have been researched and documented extensively. With over 15 years of ERM success, Hydro One is an excellent organization to benchmark for ERM best practices.     

CLASS: Five elements of corporate governance to manage strategic risk

Strategic risk management is an increasing concern for both boards and senior executives. Many recent business failures are due to senior level misjudgement and mismanagement of risk, the consequences of which can range from embarrassment to serious setback to bankruptcy. Ineffective risk management puts otherwise strong business models in jeopardy. Here we present CLASS (Culture, Leadership, Alignment, Systems, and Structure), an integrated, five-element model of corporate governance. We identify how attending to the elements in this framework supports development of an integrated and robust approach to corporate risk, and helps senior executives anticipate and handle the complexities of risk inherent in meeting strategic objectives.     

知识管理时代中国企业文化的创新

21世纪知识管理时代的企业文化是不断创新的企业文化,其具有强大的生命力和创造性。但由于理论上本土成果的匮乏,企业文化建设的物质基础、政策保障、规范市场行为的经济立法等严重不足,导致企业文化与企业制度两张皮现象突出,企业文化对企业影响处于弱势,加之企业政策可操作性差,难以具体实施等。借鉴西方成功经验,中国企业文化创新要以先进文化为统领,按照知识管理和市场经济的客观要求,坚持“立意高、起点实、重点突破、系统推进”原则,构筑其个性化和可操作性的创新内容,力争在观念上、制度上、方法上、形象上创出新途径。     

关于国际贸易企业风险管理的探讨

国际贸易竞争越来越激烈,市场经营呈多元化趋势,支付方式各种各样,买卖双方信誉度低,企业经营不善,国际诈骗集团数量多,在这种局势下,国际贸易企业面临的风险越来越多.本文从国际贸易企业管理的现状和存在的问题进行分析,找出了一些应对分析的措施,为广大国际贸易企业风险管理政策提供参考.     

Risky business: How social psychology can help improve corporate risk management

Drawing on research in management theory, risk analysis, and the social sciences, this installment of Business Law & Ethics Corner promotes diversity of thought in corporate governance as not only beneficial to business growth and creativity, but also imperative to managing risk successfully. The article begins with a review of four major worldviews and the risk preferences of each. Next, it examines psychological processes that guide human decision making and greatly influence risk perception. The article then applies these worldviews and psychological phenomena to the case of risk management. It offers a critique of current risk management practices, drawing on evidence from the 2007–2008 financial crisis. The article concludes by promoting increased diversity of worldviews in corporate governance as a way to prevent the same risk blindness that led to the Great Recession.     

EWRM体系的应用及其对我国企业风险管理的启示

EW RM是近年来企业风险管理领域出现的一种先进的管理模式。我国的企业目前大多数已经实现了从传统的以保险为主的风险管理模式向经营型风险管理模式的过渡,研究EW RM管理体系的应用有助于提高我国企业的风险管理水平。企业应建立一个有效的架构,制定统一的管理及判断标准,明确具体的实施步骤。     

Risk management behaviour by the Northern Ireland food consumer

The main criteria that consumers use during the decision‐making process when purchasing food have traditionally been a combination of prices, incomes, taste and social attitudes, with price being seen as the main determinant. However, in the past 10 years risk has become a ‘new’ criterion that can affect the consumer's decision whether or not to purchase a particular food item. The effect of the perception of risk has been observed during the numerous food scares in the last decade and in trends for the demand for foods that connote a health image. This research, carried out in Northern Ireland, looked at how consumers quantified and managed risk. The research involved 202 primary food consumers and identified the factors that were perceived to be important from both a societal and a personal perspective. Using principal component analysis techniques, societal food risks were seen as either processing or dietary, and personal food risks were seen as either extrinsic or intrinsic. Further investigation into the attributes of the personal risk using the same techniques revealed a three‐factor solution described as fear, involvement and newness. Although these factors cannot be used as predictors of the risk associated with a particular food, they help to describe and explain how the risk may be managed. The relationship between two of the factors, involvement and fear, provide a framework for understanding the way consumers manage their perception of the risk, particularly of high‐risk items. Consumer and scientific knowledge of the risk in question, and the degree of control over the risk were seen as important in the management of the risk in question. The conceptualization of the mechanism by which risks are processed and acted upon provides information regarding risk management and communication strategies that should be employed by educators, food retailers and government policy makers.     

Trader networks and options risk management

We examine the effect of trading partner concentration and a matrix of variables which dictate the relative importance of a trader to the network on a set of large member proprietary traders’ risk. An increased closeness centrality and concentration of trading among network partners are found to reduce price, volatility and rebalancing risk. We further explore the nature of trading concentration established through traders’ recurring trading relationships to find that trading with an established and small network has a positive, yet costly, effect on inventory management. Relationships among market makers are important to managing their portfolio of risk.     

Corporate culture and absorptive capacity: The moderating role of national culture dimensions on innovation management

Firms have to strive for innovation constantly in order to gain and retain a competitive advantage, which renders absorptive capacity (ACAP) – a firm’s ability to absorb and apply external knowledge – highly relevant. Based on data obtained from 592 CEOs and managers of firms in Austria, Brazil, Germany, India, Singapore, and the United States, we show how ACAP can be fostered in an international context. We analyze how corporate culture affects potential as well as realized ACAP and how national culture dimensions moderate these relationships in a fit-as-moderation model. We reveal that the adhocracy culture supports potential and realized ACAP, whereas the market and hierarchy cultures hinder both potential and realized ACAP. Moreover, the relationship between corporate culture and potential ACAP is stable across national culture dimensions, whereas selected national and corporate cultures are more effective in fostering realized ACAP. These results open up opportunities for researchers and support firms in their attempts to foster their firms’ knowledge management processes.     

风险管理集成方法在跨国经营财务风险识别与控制中的应用

跨国公司财务风险识别和控制的难度,决定了原来的风险识别和控制方法不够全面,需要一种有效的风险识别和控制方法——集成方法。该方法将跨国经营财务风险的识别与控制扩大到财务整体,并充分考虑风险量变到质变的过程。从风险的源头进行风险识别,有利于提高跨国经营中财务风险控制的效果。     

A strategic risk approach to knowledge management

In today's business environment, strong forces of competition and globalization have created an urgency to focus how an organization controls and nurtures its intellectual capital. The concept of knowledge and its management has gained currency and momentum as technology has enabled thoughts and ideas to be more easily generated and distributed. With increased application of technologies such as the Internet, Customer Relationship Management (CRM), and advanced software capabilities, it has been suggested the time has come for discussion of a new paradigm for knowledge management. Toward that end, this article examines the knowledge literature and reviews the experience of a leading private healthcare group, with the objective of gaining a better understanding of the issues that confront effective knowledge management in contemporary organizations. Finally, a tentative knowledge process model is developed herein, one which is intended to guide future discussion in the ongoing knowledge debate.     

Risk and risk management in the Liverpool slave trade

The profits of the Liverpool slave trade are infamous, if somewhat more realistically represented in recent literature. Contemporaries and historians have posited that these higher profits were required to entice merchants into the trade because of the higher risks. However, there is very little work which investigates whether the risks of the slave trade really were higher than other similar opportunities. This article uses the case study of Liverpool slave traders to investigate the risks within the slave trade compared to other Atlantic ventures, and how Liverpool merchants managed those risks. It will argue that the slave trade was indeed a relatively risky trade in comparison with other Atlantic ventures, but that Liverpool merchants not only understood these risks, but actively embraced them, allowing them to manage them extremely well.     

Service,investment, and risk management performance in commercial banks

This article characterizes the production process of commercial banks as three components: service activities, investment-related activities, and risk management activities, and assesses performance for these components, including service efficiency, investment efficiency, and risk management efficiency. With data from 36 Taiwanese commercial banks in the fiscal year 2009, we demonstrated how all the efficiency indices can be estimated. The major empirical findings are that the correlation coefficients between each pair of efficiency indices are positive, so the banks that make an effort in one activity for efficiency improvement could also inspire other activities to improve performance. The non-performing loan ratio can adversely influence efficiency. The establishment of financial holding companies can push the Taiwanese banking system to be more efficient than the privatization reform.     

煤炭企业战略性人力资源管理的特征与对策

煤炭企业战略性人力资源管理具有关键性、开发性、整体性、系统性和竞争性特征。煤炭企业实施战略性人力资源管理应树立“以人为本”的战略管理思想,组建战略性人力资源管理机构,完善人才选聘机制,加强效绩考核管理,建立有效的激励机制,加强战略性的员工培训和开发。     

Fraud risk management: A small business perspective

Small businesses face big challenges when it comes to managing fraud risks. Financial strain, rapid growth, and a lack of resources and expertise create ample opportunity for motivated fraudsters to take advantage of small businesses. In this article, we draw upon insights from our years as fraud investigators to offer seven practical recommendations to help small business leaders prevent and detect fraud in this unique environment. These strategies can help even the smallest company make a big difference when it comes to fraud risk management.     

对银行的流动性风险管理问题的思考

一直以来,流动性风险被称为银行最致命的风险,在银行的经营管理中流动性风险管理更是占有极其重要的地位。可目前银行的流动性风险管理的现状实在令人担忧,因此,如何有效地管理流动性风险就成为当前银行风险管理的核心内容。本文从流动性风险入手,着重阐述了当前银行的流动性风险管理现状,并提出一些应对策略,力图提高银行抵御流动性风险的能力,以供参考。     

基于风险成本管理的供应商选择

供应链的复杂性、动态性和交叉性的背后隐藏着巨大的风险,对供应商的选择评价是供应链风险控制的基础和重点。文章在对风险成本管理进行分析的基础上,基于成熟的商业标准,运用灰色综合评判法研究如何在风险管理成本最小基础上选择供应商。     

城市商业银行运营风险综合测评研究

城市商业银行是一类的特殊金融群体,在经营方面与其他类型商业银行有着共有的风险,同时由于其特有的历史背景和地域特色,还使其具有特有的经营风险。构建城市商业银行经营风险的测评指标体系要同时考虑共有风险和特有风险,以全面评价经营风险,这样有助于城市商业银行针对经营风险管理中存在的问题,制定有效对策,规避风险,提升竞争力。     

浅析如何改进我国商业银行信用风险管理方法

本文以商业银行信用风险管理为切入点,对我国信用风险管理的现状和问题进行探讨。文章介绍了我国商业银行目前使用的两种信用风险管理方法——客户信用评级法和贷款风险分类法,分析其存在的问题,并对完善我国商业银行信用风险管理提出了对策建议。     

The relationship between governance structure and risk management approaches in Japanese venture capital firms

This paper attempts to understand what drives Japanese venture capital (JVC) fund managers to select either active managerial monitoring or portfolio diversification to manage their firms' investment risks [J. Bus. Venturing 4 (1989) 231]. Unlike U.S. venture capitalists that use active managerial monitoring to gain private information in order to maximize returns [J. Finance 50 (1995) 301], JVCs have traditionally used portfolio diversification to attenuate investment risks [Hamada, Y., 2001. Nihon no Bencha Kyapitaru no Genkyo (Current State of Japanese Venture Capital), Nihon Bencha Gakkai VC Seminar, May 7]. We found that performance pay is positively related to active monitoring and that management ownership is positively related to active monitoring and negatively related to portfolio diversification. The managerial implication of our study is that venture capitalists should be as concerned about the structure of their incentive systems for their fund managers as they are for their investee-firm entrepreneurs. Agency theory says that contingent compensation is a self-governing mechanism for individual effort that is difficult to measure and verify. When properly applied, equity ownership and performance-based pay can have powerful influencing effects on the strategic choices of managers.