This volume offers new, convincing empirical evidence on topical risk- and risk management-related issues in diverse settings, using an interdisciplinary approach. The authors advance compelling arguments, firmly anchored to well-accepted theoretical frameworks, while adopting either qualitative or quantitative research methodologies. The book presents interviews and surveys with risk managers to gather insights on risk management and risk disclosure in practice. Additionally, the book collects and analyzes information contained in public reports to capture risk disclosure and perceptions on risk management impacts on companies’ internal organization. It sheds light on financial and market values to understand the effect of risk management on actual and perceived firm’s performance, respectively. Further, it examines the impacts of risk and risk management on society and the economy.
The book improves awareness and advances knowledge on the complex and changeable risk and risk management fields of study. It interweaves among topical, up-to-date issues, peculiar, under-investigated contexts, and differentiated, complementary viewpoints on the same themes. Therefore, the book is a must-read for scholars and researchers, as well as practitioners and policy makers, interested in a better understanding of risk and risk management studies in different fields.
Author(s): Cristina Florio, Monika Wieczorek-Kosmala, Philip Mark Linsley, Philip Shrives
Series: Risk, Governance and Society, 20
Publisher: Springer
Year: 2022
Language: English
Pages: 291
City: Cham
Preface
Reviewers
Acknowledgements
Contents
Contributors
Understanding Risk Debates Through Mary Douglas: Environment, Inequality, and COVID-19
1 Introduction
2 Douglas´s Theory
2.1 The Foundations of Neo-Durkheimian Institutional Theory
2.2 The Four Solidarities
2.3 Risk and the Four Solidarities
2.4 Cultural Dialogues
3 Why Is It So Difficult to Manage Major Risks the World Faces?
3.1 Introduction
3.2 Risk and the Environment
3.3 Risk and Inequality and Poverty
3.4 Risk and COVID-19
4 Conclusion
References
Analysing Model Risks in Risk Aggregation of Non-financial Corporations
1 Introduction
1.1 Concept
2 The Risk Aggregation Model
3 Typology of Model Risk in Risk Aggregation
3.1 Breaking Down the Risk Aggregation Process
3.2 Model Input
3.3 Model Design
3.4 Model Implementation
3.5 Model Application
4 Dealing with Model Risk
5 Conclusions
References
The Interruptive Power of COVID-19 Under a Business Continuity Perspective
1 Introduction
2 Conceptual Setting: The Interruptive Power of COVID-19
2.1 Business Interruption
2.2 The COVID-19 Pandemic as an Interruptive Event: A Synopsis
3 The COVID-19 Interruptions: A Revision of the Business Outlook
3.1 Key Messages Behind the Results of the COVID-19 Business Impact Studies
3.2 The Study of COVID-19 Business Interruptions in Poland: Text Mining Approach
4 Concluding Remarks
Appendices
Appendix 1 Thesaurus and Parameters of Terms
Appendix 2 Text Mining: Adopted Research Procedure
References
Modelling the Risk and Reward Trade-off for SMEs: A Case Study
1 Introduction: Risk and Decision-making
2 The Risk and Reward Paradox
3 Prior Literature
4 The Principal-Agent Problem
5 The Case
6 Collecting and Synthesizing the Data
7 Modelling the `Disconnect´ Between the Owners and Managers and Staff
8 Results from the Ordered Logit Models
8.1 Factor One: Staff Shortages
8.2 Factor Two: Security Systems
8.3 Factor Three: IT Security
8.4 Factor Four: Stock Management System
8.5 Factor Five: Supply Chain Management
9 Conclusions
Appendix
References
The Relationship Between ERM and Performance Revisited: Empirical Evidence from SMEs
1 Introduction
2 Literature Review and Conceptual Model
2.1 Characteristics of Owners and of SMEs with Respect to Risk-Taking Behaviour
2.2 Organization of ERM and Performance Implications
3 Research Methodology
4 Data Analysis and Results
5 Discussion and Conclusions
References
Risk Management Implementation in SMEs Investigated Through a Lens of ERM Maturity Models
1 Introduction
2 Enterprise Risk Management
3 Small- and Medium-Sized Enterprises
4 Research Methodology
5 Discussion of Results and Findings
5.1 Enterprise Analysis
5.2 Brustbauer-Linke Item Comparison
5.3 Family Business Analysis
5.4 Independent Board Analysis
5.5 Industry Analysis
5.6 Correlation Analysis
5.7 Qualitative Comments by Respondents
6 Limitations and Recommendations for Future Research
7 Conclusions and Managerial Implications
References
Drivers of ERM in SMEs: Which Corporate Governance Features Matter?
1 Introduction
2 Theoretical Background and Research Hypotheses
3 Research Design
3.1 Institutional Setting, Sample, and Data Collection
3.2 Regression Model and Variables
4 Results
4.1 Descriptive Statistics
4.2 Multivariate Analysis
5 Additional Analysis
5.1 ERM and the Overall Corporate Governance System
5.2 Reverse Causality between Strategic Orientation and Enterprise Risk Management
5.3 The Association Between Enterprise Risk Management and Performance
6 Conclusions
Appendix: Questionnaire on Risk Management in Small- and Medium-Sized Enterprises
References
Insights from the Boardroom: Opening the `Black Box´ of Board Risk Oversight
1 Introduction
2 Literature Review
3 Research Method
4 Data Analysis and Findings
4.1 Organising the Board for Risk Oversight
4.1.1 Board Composition
4.1.2 Risk Governance Structure
4.1.3 Risk Reporting to the Board
4.2 Opening the Black Box of Board Processes
4.2.1 Board Effort Norms
4.2.2 Use of Board Knowledge and Skills
4.2.3 Cognitive Conflict and Board Culture
4.3 Board Strategic Role Performance
4.3.1 Embedding Risk in the Board´s Strategic Decision-Making
4.3.2 Aligning Strategic Decisions with the Company´s Risk Appetite
5 Discussion
5.1 Board Structure and Board Processes as Cornerstones of Risk Oversight
5.2 The Challenge of Integrating Risk and Strategy
5.3 No One-Size-Fits-All Approach to Board Risk Oversight
6 Conclusion
References
Supervisory Pressure and Risk Management Systems: Empirical Evidence from the Banking Context
1 Introduction
2 Literature Review and Hypotheses Development
2.1 Single Supervisory Mechanism and Risk Disclosure by Banks
2.2 Strong Supervisory Pressure and Risk Disclosure by Banks
3 Method
3.1 Sample Selection
3.2 Research Model
4 Results
4.1 Descriptives and Preliminary Tests
4.2 Regression Results and Robustness Tests
5 Discussion and Conclusions
Appendices
Appendix 1: Yearly ERM Index for Supervised Banks
Appendix 2: Yearly ERM Index for Non-supervised Banks
References
Setting up Risk Disclosure: Case-Study Insights from an Integrated Reporting Pioneer
1 Introduction
2 Background on Risk Disclosure Guidelines
3 Literature Review
4 Research Approach and Case-Study Company
5 Setting up Risk Disclosures in Integrated Reports: Findings
5.1 Disclosure on Risk Management Model
5.2 Disclosure on Risk Management Processes
5.3 Disclosure on Risks and Related Treatment Actions
6 Concluding Remarks
References
Integrated Report and Credit Risk: Empirical Evidence from a Mandatory Integrated Reporting Setting
1 Introduction
2 Theoretical Background and Hypothesis Development
3 Research Design and Methodology
4 Findings
5 Additional Tests
6 Discussion and Conclusions
References
Lessons Learnt and Directions for Future Research on Risk and Risk Management in Diverse Settings
