Unrecognized,concealed, or forgotten – the case of absent information in risk communication

There are differing and partially incompatible views about what kind of issues should be included into risk discussions and what kinds of risks should be emphasized and dealt with. While the emergence of new risks has been extensively studied, relatively little attention has been paid to the roles that the absence of information can play in risk debates. Potentially relevant information may be downplayed or omitted and less relevant overemphasized when actors with varying interests, knowledge bases, and risk frames interact. Multiple and cumulative environmental and health risks caused by chemicals and other stressors pose particular challenges for risk communication. We identify and discuss different forms of unrecognized, hidden, and forgotten information by using chemical risks as a case. A widely applicable typology of absent information in risk communication is outlined.     

Political–security risk in the oil and gas industry: the impact of terrorism on risk management and mitigation

Oil and gas companies are experiencing an increase in terrorist attacks. The industry became a legitimate target for terrorist groups in the 1990s and the number of attacks have increased yearly, with a spike after the 9/11 attacks. In today’s interconnected world, political risk is not only about the relationship between the host government and the company. Oil and gas companies may experience risks on a transnational, national and human security level. The success of new investments often depends on the successful utilization of risk management strategies. This study focuses on the importance of political–security risk in the oil and gas industry. In January 2013, the oil and gas industry experienced one of its deadliest attacks at the In Amenas gas facility in Algeria, forcing firms to reconsider its focus on security management. Statoil undertook a thorough analysis of security at the site as well as of the company′s corporate security risk management. The report revealed a lack of focus on political–security risk. This study argues that political–security risk has not been used to its full potential in the oil and gas industry. The oil and gas industry has always focused on site security, but a broader more holistic approach to risk management has been lacking. As a result of the In Amenas incident, the industry has become more willing to have a new discussion on security and this has resulted in changes in the way companies operate.     

New development: Governmental accounting reforms in Latin America. The case of the municipality of Medellín,Colombia

ABSTRACT

Government accounting reforms in Medellín (Colombia) were promoted with the adoption of New Public Management principles. The reforms began by introducing accrual accounting, using this financial information for decision-making and, finally, adopting international standardization and comparability. This article shows how and why the government of Medellín modernized its public financial management systems to achieve transparency, accountability and efficiency.     

My computer is infected: the role of users’ sensation seeking and domain-specific risk perceptions and risk attitudes on computer harm

Literature has traditionally shown the potentially harmful consequences of risk-taking in a variety of domains. Less scholarly attention, however, has been directed to the study of risk-taking in the computer use domain. Using scanned data from 1902 computers, we sought to analyze the potentially harmful consequences that sensation-seeking and computer use risk perceptions and attitudes had on users’ computer vulnerability. Results of the study indicated that general sensation-seeking as well as computer use risk perceptions and risk attitudes were predictive of computer harm. The general measure of sensation-seeking was predictive of both risk perceptions and risk attitudes which in turn translated into the existence of malicious software in users’ computers.     

Investigating explanatory theories on laypeople’s risk perception of personal economic collapse in a bank crisis – the Cyprus case

We investigate the explanatory power of decision, psychometric, and trust theory to describe laypeople’s risk perception of personal economic collapse in a bank crisis. The aim of this investigation is to improve the understanding of the effects of national initiatives for crisis fighting taken to prevent systemic risk. Using a stratified sample of 738 Cypriote citizens, we conducted an investigation in Cyprus in the spring of 2013 when the country was facing a bank crisis. At that point in time, the Cypriote Government had imposed capital controls to prevent a bank run. We find that decision theory variables alone have low explanatory value on laypeople’s risk perception, and that laypeople’s risk perception in this situation is affected primarily by psychometric variables. Further, confidence in one’s own bank also explains risk perception. Our findings contribute novel knowledge about risk perceptions in a financial crisis, with practical crisis management implications for regulators.     

A longitudinal study of concern and judged risk: the case of Ebola in the United States, 2014–2015

The goal of the present study was to investigate whether playing a serious game concerning natural and man-made risks leads to increased risk awareness and additional information search. As an experimental task, we developed a serious board game. Fifty-six students participated in the experiment; half of them played the serious game whereas the other half only filled in a questionnaire at pretest and posttest (after two weeks). Participants who had played the game were more aware of risks in their own environment. Furthermore, playing the serious game counterbalanced the decline in self-efficacy as seen in the control condition. In both conditions, participants gathered more information on natural risks. This positive effect in the control condition is probably a side effect of the method used: a reasonably elaborate questionnaire in combination with a delay of two weeks. In all, the results provide a positive basis for further development of the game and to use it on a larger scale to empower citizens to take more responsibility for their own safety.     

Examining inequities in children’s environmental health: results of a survey on the risk perceptions and protective actions of new mothers

Young children are more highly exposed and vulnerable to environmental health hazards than adults due to a variety of physiological and behavioural factors. Despite the significant responsibility mothers typically bear in managing their children’s health, little is known about how they perceive and negotiate these risks in their day-to-day lives. To better understand mothers’ environmental health risk perceptions and associated protective actions across socio-economic and geographic contexts, a telephone survey was conducted among new mothers (n = 606) recruited through two Public Health Units in Ontario, Canada. Analyses revealed that approximately half of the respondents were moderately or highly concerned about environmental health risks, ranging in nature from household products to outdoor air contaminants. Factors affecting the likelihood of experiencing concern included lower income and lower levels of perceived control. With regard to protective actions, 43% reported taking three or more actions to reduce environmental health risks to their children, with the likelihood of taking action being negatively affected by factors including low income and first language other than English or French, and positively affected by being a first-time parent (primiparous). This study contributes to our understanding of environmental health risk perceptions and associated protective behaviours among new mothers, and has implications for the development of more context-focused risk management and communication strategies.     

Integrating education and training,and their implications in NGOs’ disaster management: the case of Korea

This paper examines the education and training provided by nongovernmental organizations (NGOs) in disaster management. The research presented was prompted as a result of serious errors made by both staff and volunteers involved in recent disaster recoveries in South Korea, for example following the sinking of a ferry and the outbreak of MERS. This paper presents important lessons for international NGOs, as well as for national and regional NGOs.     

How the enterprise risk management function influences decision-making in the organization – A field study of a large,global oil and gas company

Risk management has been a discipline for decades. However, organizations have only recently begun to introduce a separate enterprise risk management (ERM) function. The aim of this study is to examine the transformation of the ERM function's influence in a company over time. We use a historical case study informed by social theory on how to influence others to investigate this phenomenon. The findings show that the construction of risk technologies over time triggers a change in the ERM function's influence on decision-making. Two processes of influence are used by the ERM function: selling new ideas and managing knowledge across boundaries. In the first process, the ERM function attempts to vertically influence top management's decisions regarding acceptance of new risk management technologies. In the second process, the ERM function attempts to horizontally influence decision makers to use risk knowledge in decision processes. Theoretically, our findings contribute to our understanding of how the ERM function influences decision-making in organizations over time.     

Firms cash management,adjustment cost and its impact on firms’ speed of adjustment: a cross country analysis

Review of Quantitative Finance and Accounting - We investigate the firms’ specific attributes that determine the difference in speed of adjustment (SOA) towards the cash holdings target in...     

Engagement on risk and uncertainty – lessons from coastal regions of Fukushima Prefecture,Japan after the 2011 nuclear disaster?

This paper uses the case study of the south-east coast of Fukushima Prefecture in Japan to draw lessons for risk communication under situations of high uncertainty and conditions of varying trust. Based on an existing field of research into the social and ethical aspects of governing risks around environmental radioactivity, empirical qualitative material collected in Fukushima Prefecture over 2014 and 2015 is analysed around three key questions: who is undertaking risk communication and how they are perceived (in particular their motivations and perceived competence); what is the purpose of engagement with citizens and stakeholders on risk and uncertainty (i.e. whether it is to ‘convince’ people or allow them to come to their own informed decision); and whether risk communication may be considered responsive to the needs of the affected populations. The findings are then applied to Kasperson’s four questions for the future of risk communication in order to assess their wider implications. Particular attention is paid to how the individual or institution conveying the risk message is perceived, and in whose interests risk communication is undertaken.     

Shock around the clock—on the causal relations between international stock markets,the strength of causality and the intensity of shock transmission: an econometric analysis

This paper investigates empirically the interrelationships between the daily stock market returns of the Nikkei 225, DAX and Dow Jones Industrial index. In contrast to former work this paper uses the succession of the markets in time to form different econometric models. In this way it is possible to detect causality not only from the USA to foreign countries but in some cases vice versa. The observation period is October 1985 to October 1997. Analysis of the structural properties leads to the examination of four separated periods. Results for Hosoya’s measure of the strength of causality and impulse response analysis facilitate a dynamic analysis of the causal structure. Increasing influence from NYSE to foreign markets can be shown, whereas influence of the foreign markets on the Dow Jones is decreasing. Copyright © 1999 John Wiley & Sons, Ltd.     

Americanism and financial accounting theory – Part 2: The ‘modern business enterprise’, America's transition to capitalism,and the genesis of management accounting

The paper uses accounting evidence to explore when and how capitalism came to America. It continues the search for capitalists in American history begun in ‘Americanism and financial accounting theory. Part 1: Was America Born Capitalist?’ Part 1 concluded that America was not ‘born capitalist’ in Marx's sense, and that the capitalist mentality had not appeared in farming even by the late 19th century, on southern slave plantations by the Civil War, or in manufacturing enterprises by the 1830s. This paper (Part 2) challenges Alfred Chandler's thesis that the ‘modern business enterprise’ brought ‘a new type of capitalism’ from around the mid-19th century. It re-examines accounting evidence from the Boston textile mills, the railroads, and the iron and steel industry. It concludes that the Boston Associates who historians often see as ‘proto-capitalists’, the ‘managerial capitalists’ Chandler sees on the railroads, and the ‘entrepreneurial capitalists’ he sees in the iron and steel industry and elsewhere, remained semi-capitalists because their capitals and workers were not ‘free’. The paper re-examines the ‘costing renaissance’, the introduction and spread of product costing, standard costing, ROI and flexible budgets, and the evidence in Chandler's and Johnson and Kaplan's studies of the DuPont Powder Company and General Motors. This suggests that capitalism only appeared in America by around 1900, after more than two decades of intense conflict between ‘capital and labour’, and became established by the 1920s. This is the critical turning point in American business history, not the appearance of ‘managerial capitalism’, the paper argues. It concludes that America did not catch up with British capitalism until the late 1920s because its ruling elite faced an ideological problem created by its exceptional transition from a society of simple commodity producers and semi-capitalists, particularly the threat of popular socialism. The final paper, Part 3: ‘Adam Smith, the rise and fall of socialism, and Irving Fisher's theory of accounting’, argues that Fisher made a seminal contribution to solving this problem, but his legacy is a pathological theory of financial accounting.     

‘Ordinary science intelligence’: a science-comprehension measure for study of risk and science communication,with notes on evolution and climate change

This paper describes the ‘ordinary science intelligence’ scale (OSI_2.0). Designed for use in the empirical study of risk perception and science communication, OSI_2.0 comprises items intended to measure a latent capacity to recognize and make use of valid scientific evidence in everyday decision-making. The derivation of the items, the relationship of them to the knowledge and skills OSI requires, and the psychometric properties of the scale are examined. Evidence of the external validity of OSI_2.0 is also presented. Finally, the utility of OSI_2.0 is briefly illustrated by its use to assess standard survey items on evolution and global warming: when administered to members of a US general population sample, these items are more convincingly viewed as indicators of one or another latent cultural identity than as indicators of science comprehension.