Journal articles on the topic 'Risk management and enterprise value'
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Kountur, Ronny. "The likelihood value of residual risk estimation in the management of enterprise risk." Investment Management and Financial Innovations 15, no. 3 (July 13, 2018): 49–55. http://dx.doi.org/10.21511/imfi.15(3).2018.04.
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A model for estimating the likelihood value of residual risk (Y) is introduced. The model consists of three independent variables: the likelihood value of risk before risk treatment (X1), the quality of risk treatment (X2), and the appropriateness of risk treatment (X3). An experimental research design with a multiple linear regression analysis was used in the estimation. All independent variables, the likelihood value of risk before treatment, the quality of risk treatment, and the appropriateness of risk treatment, can be significantly used to estimate the likelihood value of residual risk. Since no model of estimating residual risk of likelihood had been introduced yet, the findings of this study provide significant contribution to firms or organizations that need to assess the likelihood value of residual risks.
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Hoyt, Robert E., and Andre P. Liebenberg. "The Value of Enterprise Risk Management." Journal of Risk and Insurance 78, no. 4 (April 11, 2011): 795–822. http://dx.doi.org/10.1111/j.1539-6975.2011.01413.x.
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Savitri, Enni, Tatang Ary Gumanti, and Nelly Yulinda. "Enterprise risk-based management disclosures and firm value of Indonesian finance companies." Problems and Perspectives in Management 18, no. 4 (December 21, 2020): 414–22. http://dx.doi.org/10.21511/ppm.18(4).2020.33.
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Rapid changes in business transactions and technology development have made risk-based management a significant issue for business entities. The ability in managing risk would lead to a better firm value. This study investigates the effect of enterprise risk-based management disclosures (ERMD) and intellectual capital (IC) on firm value. It also tests the moderating effect of profitability on the relationship ERMD and IC with firm value. It examines the annual reports of 49 finance firms listed on the Indonesia Stock Exchange (IDX). The data cover three years, from 2016 to 2018. It employs panel data regression to test the hypotheses. The results show that the effect of ERMD and IC on firm value is partially and positively moderated by profitability. The findings show that the application of ERDM and IC can increase firm value. The originality of this study is that profitability can moderate the effect of ERMD and IC on firm value. The increase of ERMD and IC management within the company must be balanced with profitability to raise capital from outside the company to increase firm value. AcknowledgmentThe Research was conducted with the support of the Universitas Riau, Indonesia.
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Essert, Henry. "Risk and Enterprise Value." Geneva Papers on Risk and Insurance - Issues and Practice 27, no. 3 (July 2002): 435–43. http://dx.doi.org/10.1111/1468-0440.00183.
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McShane, Michael K., Anil Nair, and Elzotbek Rustambekov. "Does Enterprise Risk Management Increase Firm Value?" Journal of Accounting, Auditing & Finance 26, no. 4 (August 24, 2011): 641–58. http://dx.doi.org/10.1177/0148558x11409160.
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Wang, Peng‐fei, Shi Li, and Jian Zhou. "Financial risk management and enterprise value creation." Nankai Business Review International 1, no. 1 (March 5, 2010): 5–19. http://dx.doi.org/10.1108/20408741011032836.
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Yang, Hui, Guixian Tian, and Yongchao Tao. "Quantitative Model of Enterprise Financial Risk Management Based on Nonlinear Differential Equation." International Journal of Circuits, Systems and Signal Processing 15 (September 6, 2021): 1305–13. http://dx.doi.org/10.46300/9106.2021.15.141.
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In order to accurately assess the financial risks of enterprises, a quantitative model of enterprise financial risk management based on nonlinear differential equations is designed. According to the hierarchical running track of enterprises, 30 evaluation indexes are selected, the index weights are determined, and the financial risk evaluation index system is constructed. Constructing allocation judgment matrix based on binary allocation scale value. Copula nonlinear differential equation is selected to comprehensively quantify the risk management of enterprise financial portfolio. Realize the quantitative model of enterprise financial risk management. The accuracy of the design model is verified by experiments. The results show that the upper quantile of the design model analysis is closer to the standard value, which is consistent with the actual situation and is effective
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Zhu, Wen, and Zhiqi Tan. "Research on risk Prediction of enterprise Financial management based on optimized BP neural network algorithm." Advances in Engineering Technology Research 1, no. 2 (September 24, 2022): 427. http://dx.doi.org/10.56028/aetr.1.2.427.
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The construction and development of the new age, although our country enterprise quantity is increasing, but the financial risk is also increased, so how to do a good job in risk prediction and management decisions, truly achieve expected set of financial management goal, improve the ability of enterprises to cope with risk consciousness, is the enterprise leadership and management of the main problems are discussed. Enterprise financial risk management is an important part of enterprise management. Financial personnel should accurately predict the possible risks of financial management and formulate effective risk prevention and control and solutions when integrating and analyzing relevant data, so as to ensure that enterprises can achieve sustainable development goals. Therefore, this paper takes 53 listed enterprises as an example, on the basis of understanding the risk prediction method of enterprise financial management in recent years, according to the BP neural network algorithm after optimization, in-depth discussion on how to optimize the BP neural network algorithm as the core, do a good job in the risk prediction of enterprise financial management. The final experimental results show that BP neural network algorithm has research value in the risk prediction of enterprise financial management.
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Zhu, Wen, and Zhiqi Tan. "Research on risk Prediction of enterprise Financial management based on optimized BP neural network algorithm." Advances in Engineering Technology Research 2, no. 1 (September 24, 2022): 427. http://dx.doi.org/10.56028/aetr.2.1.427.
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The construction and development of the new age, although our country enterprise quantity is increasing, but the financial risk is also increased, so how to do a good job in risk prediction and management decisions, truly achieve expected set of financial management goal, improve the ability of enterprises to cope with risk consciousness, is the enterprise leadership and management of the main problems are discussed. Enterprise financial risk management is an important part of enterprise management. Financial personnel should accurately predict the possible risks of financial management and formulate effective risk prevention and control and solutions when integrating and analyzing relevant data, so as to ensure that enterprises can achieve sustainable development goals. Therefore, this paper takes 53 listed enterprises as an example, on the basis of understanding the risk prediction method of enterprise financial management in recent years, according to the BP neural network algorithm after optimization, in-depth discussion on how to optimize the BP neural network algorithm as the core, do a good job in the risk prediction of enterprise financial management. The final experimental results show that BP neural network algorithm has research value in the risk prediction of enterprise financial management.
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Marc, Mojca, Danijela Miloš Sprčić, and Marina Mešin Žagar. "Is enterprise risk management a value added activity?" E+M Ekonomie a Management 21, no. 1 (March 29, 2018): 68–84. http://dx.doi.org/10.15240/tul/001/2018-1-005.
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Grace, Martin F., J. Tyler Leverty, Richard D. Phillips, and Prakash Shimpi. "The Value of Investing in Enterprise Risk Management." Journal of Risk and Insurance 82, no. 2 (January 16, 2014): 289–316. http://dx.doi.org/10.1111/jori.12022.
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Curtis, Joyce A., Daniel D'Angelo, Matthew R. Hallowell, Timothy A. Henkel, and Keith R. Molenaar. "Enterprise Risk Management for Transportation Agencies." Transportation Research Record: Journal of the Transportation Research Board 2271, no. 1 (January 2012): 57–65. http://dx.doi.org/10.3141/2271-07.
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Risk management is implicit in transportation business practices. Administrators, planners, and engineers coordinate many organizational and technical resources to manage transportation network performance. Transportation agencies manage some of the largest and highest-valued public assets and budgets in federal, state, and local governments. It is the agencies' corporate responsibility to set clear strategic goals and objectives to manage these assets so economic growth and livability of their regions improves and the public gets the best value. Risks can affect an agency's ability to meet its goals and objectives. As network and delivery managers, these agencies must identify risks, assess the possible impacts, develop plans to manage the risks, and monitor the effectiveness of their actions. This paper presents the results of (a) a comprehensive literature review, (b) a state-of-the-practice survey of 43 U.S. transportation agencies, and (c) seven case studies from leading transportation organizations in Australia, England, Germany, the Netherlands, and Scotland. The paper concludes with recommendations for achieving enterprise risk management in U.S. highway agencies. Recommendations pertain to formalizing enterprise risk management approaches, embedding risk management in existing business processes, using risk management to build trust with transportation stakeholders, defining leadership and organizational responsibilities for risk management, identifying risk owners, supporting risk allocation strategies, and reexamining existing policies, processes, and standards through rigorous risk management analysis.
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Wen, Qiong. "Application of Clustering Algorithm in Corporate Strategy and Risk." Computational Intelligence and Neuroscience 2022 (August 31, 2022): 1–11. http://dx.doi.org/10.1155/2022/8803375.
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With the increasing rise of market mechanism and corporate strategic management theory, many companies, especially listed companies, take diversification as their basic strategy. As the main source of power to promote the rapid development of China’s economy, listed companies have also changed the way of China’s economic development. It increases the speed of economic development, improves the level of economic technology, and accelerates the process of economic internationalization. Any economic behavior of an enterprise involves risks. As the development plan to mobilize the overall interests of the enterprise, the strategy will definitely involve the long-term development direction of the enterprise. Enterprise strategic deployments to strategic managements are affected by risk control elements. Strategic risk, as an unavoidable practical problem for enterprises, must be managed. Managing strategic risk is the key to effectively evaluate the management and control system. In order to solve this problem, this paper introduces a clustering algorithm, classifies the strategic risk of diversification, and analyzes its causes. For an in-depth analysis of the risks that diversification will face, this paper selects the case of the enterprise’s diversification development to carry out the research. It conducts in-depth analysis and research on its basic situation, diversification strategy, dilemma, and behavior. The experimental results show that the financial leverage coefficients of the company in the four quarters are 24.64, 3.93, 104.71, and 6.59 respectively. From the numerical value, it can be concluded that the enterprise is in a high-risk state and the strategic risk status of the company can be accurately judged.
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Pererva, Petro, Tetiana Kobielieva, Nаdеzhdа Tkасhovа, Maxim Tkachov, and Tetiana Diachenko. "Management of relations with enterprise stakeholders based on value approach." Problems and Perspectives in Management 19, no. 1 (January 20, 2021): 24–38. http://dx.doi.org/10.21511/ppm.19(1).2021.03.
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Significant transformations in economic relations and increased competition have posed enterprises with extremely complex tasks in the field of corporate governance. Mainly it concerns the systems of corporate governance, in which the principles of vertical organization are losing relevance, and the effectiveness of management largely depends on the balance of interests of participants (stakeholders) who can actively influence the production and commercial policy of the enterprise to distribute its resources in their favor.The study aims to develop proposals to ensure the effective interaction of the enterprise with stakeholders, based on establishing an optimal balance of material (value) interests, allowing achieving a reduction of risks that threaten the development of the enterprise.Thus, it was proposed to determine the total value of the commercial results of the enterprise, taking into account the real contribution, which is provided by the relations with one or another stakeholder. A similar approach is implemented to determine the share of the value of the corresponding stakeholder, which is ensured by its relationship with this enterprise. In addition to the value of the enterprise itself, the proposed models explicitly determine the value benefits of stakeholders and disclose a list of the main controlling factors: the volumes of resources supplied and consumed by the parties, their relative values, the structure of resource flows, etc.As an example, using the developed recommendations, the circle of the most influential stakeholders of the Ukrainian enterprise – PJSC KhTP – was studied. This approach allows an industrial enterprise to rank stakeholders by value, to analyze the dynamics of the structure and parameters of material and financial resources flows of the enterprise and its stakeholders.
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Yow, Shaun, and Michael Sherris. "Enterprise Risk Management, Insurer Value Maximisation, and Market Frictions." ASTIN Bulletin 38, no. 01 (May 2008): 293–339. http://dx.doi.org/10.2143/ast.38.1.2030415.
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Enterprise risk management has become a major focus for insurers and reinsurers. Capitalization and pricing decisions are recognized as critical to firm value maximization. Market imperfections including frictional costs of capital such as taxes, agency costs, and financial distress costs are an important motivation for enterprise risk management. Risk management reduces the volatility of financial performance and can have a significant impact on firm value maximization by reducing the impact of frictional costs. Insurers operate in imperfect markets where demand elasticity of policyholders and preferences for financial quality of insurers are important determinants of capitalization and pricing strategies. In this paper, we analyze the optimization of enterprise or firm value in a model with market imperfections. A realistic model of an insurer is developed and calibrated. Frictional costs, imperfectly competitive demand elasticity, and preferences for financial quality are explicitly modelled and implications for enterprise risk management are quantified.
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Yow, Shaun, and Michael Sherris. "Enterprise Risk Management, Insurer Value Maximisation, and Market Frictions." ASTIN Bulletin 38, no. 1 (May 2008): 293–339. http://dx.doi.org/10.1017/s051503610001518x.
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Enterprise risk management has become a major focus for insurers and reinsurers. Capitalization and pricing decisions are recognized as critical to firm value maximization. Market imperfections including frictional costs of capital such as taxes, agency costs, and financial distress costs are an important motivation for enterprise risk management. Risk management reduces the volatility of financial performance and can have a significant impact on firm value maximization by reducing the impact of frictional costs. Insurers operate in imperfect markets where demand elasticity of policyholders and preferences for financial quality of insurers are important determinants of capitalization and pricing strategies. In this paper, we analyze the optimization of enterprise or firm value in a model with market imperfections. A realistic model of an insurer is developed and calibrated.Frictional costs, imperfectly competitive demand elasticity, and preferences for financial quality are explicitly modelled and implications for enterprise risk management are quantified.
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Zhang, Qianying, and Fang Zhou. "Research on Enterprise Financial Management and Prediction System Based on SaaS Model." Security and Communication Networks 2022 (April 13, 2022): 1–9. http://dx.doi.org/10.1155/2022/3218903.
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In order to supervise and forewarn the sustainable operation ability of enterprises efficiently and accurately, this paper proposes an enterprise financial management and forecasting system based on SaaS model. First of all, in order to continue to effectively predict and analyze the enterprise finance, first analyze and extract the report data in the financial system. Then, by building a deep belief network model to predict the enterprise financial data, in order to reduce the cost of enterprises, the financial system designed in this paper chooses the cloud technology service framework based on SaaS model. Finally, in order to analyze the risk identification performance of the financial management and prediction system in this paper, the risk sample data of an enterprise’s financial system is selected for simulation test. The results show that the correct rate of risk identification of the financial management system designed in this paper is higher than other comparison systems, which speeds up the speed of risk identification of the financial information management system, and has certain practical application value.
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Tong, Guangyin. "Differences in the Values of the Senior Management Team, Antirisk Ability, and Innovation Performance by the Data-Driven Approach: Evidence from 841 Listed Companies in China." Journal of Mathematics 2021 (November 9, 2021): 1–14. http://dx.doi.org/10.1155/2021/3218798.
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This study explores the mechanism of corporate antirisk capabilities on corporate innovation performance by using a data-driven method. The data are from China’s Shanghai and Shenzhen A-share listed companies from 2013 to 2018. The value differences between the senior management team’s ability to resist risk and innovation performance are discussed. The results show that the antirisk ability of an enterprise will improve the efficiency of the utilization of enterprise resources and promote the formation of competitive advantage so that enterprises have a more stable internal and external environment, so as to improve the innovation performance of the enterprise. Risk capability improves corporate innovation performance; from the perspective of the value difference of the senior management team, a smaller value difference has a more significant effect on enhancing the enterprise’s antirisk ability and improving corporate innovation performance than a larger value difference. While improving their own antirisk capabilities, companies should further promote and improve the consistency of senior management team values, thereby improving corporate innovation performance.
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Zhou, Ming Shi. "Algorithm Realization of GUI Visualization Window Based on Numerical Simulation of Matlab." Applied Mechanics and Materials 556-562 (May 2014): 3868–71. http://dx.doi.org/10.4028/www.scientific.net/amm.556-562.3868.
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This paper uses EVA investment objective function and benefits to establish the risk assessment model of enterprise investment and financing combination, and expounds the specific processes of computer EVA investment and financing risk management and designs the elimination matrix algorithm. In order to validate the validity and reliability of risk assessment model designed in this paper, the third part has designed numerical simulation of MATLAB, and an enterprise's 2011-2013 financial statements is took as an example to assess enterprise investment and financing risk. It can find that through calculation, the calculation error can achieve good convergence effects in 20s, and obtain the MATLAB GUI visualization window of enterprise investment and financing EVA accounting. It can identify enterprise year EVA profit value by using visualization window, which provides theoretical reference for enterprises investment and financing risk management.
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Faizah, Siti Nor, and Pujiono Pujiono. "Pengungkapan Enterprise Risk Management Terhadap Nilai Perusahaan." Jurnal Akuntansi AKUNESA 10, no. 2 (January 19, 2022): 81–93. http://dx.doi.org/10.26740/akunesa.v10n2.p81-93.
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This study aims to determine the effect of Enterprise Risk Management disclosure on firm value with firm size and industry type as control variables. Sample of this study is all company of various sectors which listed on the Indonesia Stock Exchanged (IDX) during 2017. The method used in this study is quantitative by collecting documentation through annual reports. Enterprise Risk Management was analyzed using content analysis method and firm value was proxied using Tobin’s Q. Sample selection using Slovin method. Data were analyzed using multiple linear regression and then data processed using SPSS 22. The result of this study show that Enterprise Risk Management disclosure has no influence on firm value.
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Silva, Juliano Rodrigues, Aldy Fernandes da Silva, and Betty Lilian Chan. "Enterprise Risk Management and Firm Value: Evidence from Brazil." Emerging Markets Finance and Trade 55, no. 3 (August 28, 2018): 687–703. http://dx.doi.org/10.1080/1540496x.2018.1460723.
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Pirogova, Оksana, and Marina Makarevich. "The mechanism for value formation in a trading enterprise." MATEC Web of Conferences 193 (2018): 05070. http://dx.doi.org/10.1051/matecconf/201819305070.
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Currently, one of the problems in managing the development of trade enterprises is the problem of choosing the type of value and management of this value. This problem can be solved on the basis of the concept of value-based management (VBM). The concept is based on the value of the enterprise, which, in the form of a quantitative integrated assessment, reflects the efficiency of the operation and the prospects for the development of the enterprise, balancing in one measure such important economic categories of microeconomics as profitability, risk and growth rates. The article considers the types of value used in the valuation of trading enterprises and shows that the fundamental value can be used in managing the development of a trading enterprise. The article considers the components of the fundamental value, which include the balance component, the operating component, the investment component, and the component of dynamic flexibility. The fundamental value covers all levels of management of a trading enterprise, both strategic and tactical. As it allows building a developed system of indicators, managers will be made it possible to make well-founded management decisions and contribute to the main task of increasing the value of a trading enterprise. The offered approach allows linking the components of the fundamental value of a trading enterprise with the levels of management of the enterprise and the forms of activity of a trading enterprise.
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Rodriguez, Eduardo, and John S. Edwards. "Knowledge Management in Support of Enterprise Risk Management." International Journal of Knowledge Management 10, no. 2 (April 2014): 43–61. http://dx.doi.org/10.4018/ijkm.2014040104.
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Risk management and knowledge management have so far been studied almost independently. The evolution of risk management to the holistic view of Enterprise Risk Management requires the destruction of barriers between organizational silos and the exchange and application of knowledge from different risk management areas. However, knowledge management has received little or no attention in risk management. This paper examines possible relationships between knowledge management constructs related to knowledge sharing, and two risk management concepts: perceived quality of risk control and perceived value of enterprise risk management. From a literature review, relationships with eight knowledge management variables covering people, process and technology aspects were hypothesised. A survey was administered to risk management employees in financial institutions. The results showed that the perceived quality of risk control is significantly associated with four knowledge management variables: perceived quality of risk knowledge sharing, perceived quality of communication among people, web channel functionality, and risk management information system functionality. However, the relationships of the knowledge management variables to the perceived value of enterprise risk management are not significant. We conclude that better knowledge management is associated with better risk control, but that more effort needs to be made to break down organizational silos in order to support true Enterprise Risk Management.
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Zhadan, Yuliya. "EFFICIENCY ASSESSMENT OF IMPLEMENTATION OF THE MECHANISM OF INNOVATIVE RISK MANAGEMENT OF THE FAT AND OIL INDUSTRY IN UKRAINE." ScienceRise, no. 5 (October 31, 2020): 61–70. http://dx.doi.org/10.21303/2313-8416.2020.001455.
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Object of research: risk management processes of enterprises of the oil and fat industry in Ukraine.
Investigated problem: to assess the efficiency of the implementation of the mechanism of innovative risk management for enterprises of the oil and fat industry in Ukraine
Main scientific results: the paper proposes a scientific and methodological approach to quantifying the effectiveness of the implementation of the mechanism of innovative risk management (MIRM) of enterprises of the oil and fat industry in Ukraine, based on comparing the net present value before and after the MIRM implementation and consists of a number of successive interrelated stages, which include: comparative analysis and integrated assessment of unsystematic (financial, production, investment and other types) risks before and after the MIRM implementation at the enterprise; expert assessment of systematic risks that form the environment of the enterprise and can’t be controlled; determination of the total risk value as an arithmetic weighted average non-systematic and systematic component for each type of risk; determination of discount rates taking into account risk before and after the MIRM implementation at the enterprise using the CAPM model (capital assets pricing model) for calculating and comparing the net present value before and after the MIRM implementation at the enterprise (NPV and NPV', respectively). Efficiency assessment of the implementation of the mechanism of innovative risk management (MIRM) was carried out on the example of eleven processing enterprises of the fat and oil industry in Ukraine.
The scope of practical use of research results: the risk management system of processing enterprises of the fat and oil industry in Ukraine, which should be the object of constant monitoring of the feasibility of implementation and assessment of the effectiveness of MIRM functioning by management and top management.
Innovative technological product: a scientific and methodological approach to quantifying the effectiveness of the implementation of the mechanism of innovative risk management for enterprises of the oil and fat industry in Ukraine, based on comparing the net present value before and after the MIRM implementation (NPV and NPV’, respectively) using the CAPM model (capital assets pricing model) to determine the discount rates taking into account the risk before and after the MIRM implementation (d and d', respectively), which makes it possible to determine the expected amount of reduction in losses at the processing enterprises of the oil and fat industry of Ukraine from the implementation of a set of risk management measures and make informed management decisions on the appropriateness of their application.
Scope of application of the innovative technological product: processing enterprises of the oil and fat industry in Ukraine.
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Husaini, Husaini, and Indah Rafika. "CORPORATE GOVERNANCE, ENTERPRISE RISK MANAGEMENT DAN NILAI PERUSAHAAN." JURNAL FAIRNESS 4, no. 1 (April 1, 2021): 23–36. http://dx.doi.org/10.33369/fairness.v4i1.15298.
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Implementation of the Good Corporate Governance (GCG) become a necessity in the business as a barometer of a company's accountability, while Enterprise Risk Management ERM) is inseparable from the practice of good corporate governance as a whole, which ultimately is expected to create value for the company on an ongoing basis. The purpose of this study was to examine the effect of the implementation of good corporate governance variables include the independent board, board size, audit committees, and the reputation of auditors and the implementation of ERM on firm value. Sample of this study was selected by exploring purposive sampling method. The sample of this study consists of 20 companies with the observation period of three (3) years (60 observations). The findings of this study showed that the independent board positively and significantly affect firm value. This result indicates that the greater proportion of independent member on board of the company, then the monitoring function could be improved and the lower the likelihood of conflict, so that the company's value increased. This study can not provide an empirical evidence on the impact of the board size and the audit committee on firm value. However, this found the the negative relationship between auditor's reputation and firm value. Interm of ERM, this study ound that there is a postive relationship between ERM implementation and firm value. It means that ERM implementations are used as part of overall corporate strategy, which allows companies to make better decisions and adjusted with acceptable risk, thus ultimately enhance shareholder value.
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Almeida, Rafael, José Miguel Teixeira, Miguel Mira da Silva, and Paulo Faroleiro. "A conceptual model for enterprise risk management." Journal of Enterprise Information Management 32, no. 5 (September 4, 2019): 843–68. http://dx.doi.org/10.1108/jeim-05-2018-0097.
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Purpose The purpose of this paper is to ease the ISO 31000 standard understanding and provide mechanisms that allow organizations to adopt and adapt this standard to their reality. Design/methodology/approach The research methodology adopted in this research was the design science research methodology. Findings Key finding is that enterprise architecture (EA) models and EA tools can help reduce the complexity of the ISO 31000 standard and improve the communication between stakeholders. Practical implications The research proposal serves the purpose of supporting the evidence collection for an enterprise risk management (ERM) initiative in an as-was, as-is, or to-be perspective. Originality/value Traditional ERM efforts operate on silos, limiting the sharing of risk information and the achievement of an organization-wide view of risks. EA can provide a common way to model complex business systems, from the strategic level to implementation details. This paper proposes the use of an EA model and an EA tool (Atlas) to represent ISO 31000, allowing a better understanding on the value of assets that can be affected from the manifestation of some risks over time.
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Zhou, Zhimin. "Green Supply Chain Management Model of e-Commerce Enterprises Based on SCOR Model." Mobile Information Systems 2022 (August 21, 2022): 1–10. http://dx.doi.org/10.1155/2022/3191317.
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With the rapid development of e-commerce technology, e-commerce enterprises, especially B2C enterprises, have sprung up. This competition based on e-commerce technology has changed the traditional supply chain model and improved the operation efficiency of the supply chain. However, with the use of e-commerce technology, the supply and demand relationship between e-commerce enterprises has become extremely complicated. The original risk management system in the past has long been unable to adapt to the development needs of e-commerce enterprises in the new era. In view of this, it has far-reaching practical significance to actively carry out research on supply chain risk management for e-commerce enterprises, especially for B2C enterprises. In this research, on the premise of some previous theoretical and practical results, a B2C enterprise supply chain risk identification model is established by means of the research on SCOR, namely, the supply chain operation mode, combined with the characteristics of the B2C enterprise supply chain. The comprehensive evaluation method is used to evaluate the supply chain risk. Finally, an empirical study is carried out with J Company, which represents the B2C enterprise, as an example, which proves the applicability and reliability of this model. The results of this study have a certain reference value for the identification and control of B2C enterprise supply chain risks and also an inspiration for future research.
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Polato, Maurizio, and Giulio Velliscig. "Operational risk, market risk and value of the asset managers." Risk Governance and Control: Financial Markets and Institutions 12, no. 4 (2022): 46–54. http://dx.doi.org/10.22495/rgcv12i4p3.
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Asset management has been one of the fastest-growing industries in the financial industry for a long time (Bigelli & Manuzzi, 2019). Moreover, after the eruption of the financial turmoil in 2008, financial intermediation has been characterized by a rapid increase in the role of the asset management industry. This paper aims to analyse the determinants of asset manager value and, in particular, it is focused on the value implicit in the assets under management. Starting from the works by Huberman (2005) and Joenväärä and Scherer (2017) the paper proposes a model for determining the enterprise value (EV) of asset managers by assessing the role of the contribution margin and the degree of risk (operational and market risk). As noted by Scherer (2008), following the financial crisis, asset management companies suffered a decline in profits, also due to the exposure of their revenues to the market risk. Although, as it’s known, the asset management firms are not directly subject to the market (and credit) risk, their revenues are exposed to the market risk, not only to the operational risk that had been thought of as the main risk factor (Hull, 2007). Management companies, in fact, operate in a cyclical context closely linked to the performance of the financial markets, which contributes to determining the size and volatility of the assets under management (AuM). Starting from a discounted cash flow (DCF) asset side model, a simple stochastic Monte Carlo simulation is provided in order to capture the relevance of the asset under management return and volatility and, therefore, the volatility of the benchmark return and management style. In this theoretical framework, the key point is that the enterprise value depends on the specific asset class the firm is involved with. Given the asset class, the enterprise value depends on the management style also.
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Chupryakova, Alena, Petr Kosinsky, and Rimma Takhtayeva. "Basics of building a risk-management system at mining enterprises." E3S Web of Conferences 315 (2021): 04011. http://dx.doi.org/10.1051/e3sconf/202131504011.
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This paper reflects the problematic situation in the field of risk-management at mining enterprises. It is connected with the fact that not all hired top managers understand the role and importance of the risk management system in the overall management system of a mining enterprise. However, an increase in the number and weight of the consequences of the onset of risk events has recently changed the vision of senior management, business owners and other stakeholders in favor of recognizing the need to create in the structure of mining enterprises, if not separate, specialized structural units, in the form of a risk management service, then at least introduction of a staff unit of a specialist - a risk-manager , who clearly understands what the organization is doing to form and increase the value of a business and how he can influence this, demonstrating his professional knowledge, skills, and even some insight in anticipating future risks of a mining enterprise ... But the economic situation in the region, the country and the world does not allow, due to financial constraints, to fully implement the technologies developed in theory and fixed in practice for the application of methods and approaches to risk management in the mining industry, including the purchase of expensive software products that allow the formation of an effective risk-management system. Therefore, mining risk management professionals need to take full advantage of the potential and benefits of the GRC system, which has existed since 2004, which aims to use a common language and corporate risk management methodology to achieve the company's strategic goals. The results of the studies presented in this paper state that the main risks that the owners of mining enterprises are concerned about are financial risks and operational risks, legal risks, commercial risks and the risk of fraud, as well as natural, environmental and man-made risks, but a significant part of mining enterprises in the region does not have a well-developed risk management system, does not carry out systematic work to identify risks, assess risks and their possible consequences, and therefore: either operate at extreme risk, taking catastrophic risk, or work at the margin of profitability, refusing to accept risks, even there, where you really need it. However, one should proceed from their understanding that technologies in the field of corporate governance of mining enterprises, including risk management, can not only form lines of defence against risks, but also increase the value of a mining enterprise through an effective risk-management system.
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Hoyt, Robert E., Lawrence S. Powell, and David W. Sommer. "Computing Value at Risk: A Simulation Assignment to Illustrate the Value of Enterprise Risk Management." Risk Management and Insurance Review 10, no. 2 (September 2007): 299–307. http://dx.doi.org/10.1111/j.1540-6296.2007.00120.x.
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Elamir, Hossam. "Enterprise risk management and bow ties: going beyond patient safety." Business Process Management Journal 26, no. 3 (August 1, 2019): 770–85. http://dx.doi.org/10.1108/bpmj-03-2019-0102.
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Purpose The growing importance of risk management programmes and practices in different industries has given rise to a new risk management approach, i.e. enterprise risk management. The purpose of this paper is to better understand the necessity, benefit, approaches and methodologies of managing risks in healthcare. It compares and contrasts between the traditional and enterprise risk management approaches within the healthcare context. In addition, it introduces bow tie methodology, a prospective risk assessment tool proposed by the American Society for Healthcare Risk Management as a visual risk management tool used in enterprise risk management. Design/methodology/approach This is a critical review of published literature on the topics of governance, patient safety, risk management, enterprise risk management and bow tie, which aims to draw a link between them and find the benefits behind their adoption. Findings Enterprise risk management is a generic holistic approach that extends the benefits of risk management programme beyond the traditional insurable hazards and/or losses. In addition, the bow tie methodology is a barrier-based risk analysis and management tool used in enterprise risk management for critical events related to the relevant day-to-day operations. It is a visual risk assessment tool which is used in many higher reliability industries. Nevertheless, enterprise risk management and bow ties are reported with limited use in healthcare. Originality/value The paper suggests the applicability and usefulness of enterprise risk management to healthcare, and proposes the bow tie methodology as a proactive barrier-based risk management tool valid for enterprise risk management implementation in healthcare.
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SAYILIR, Özlem, and Muhammad FARHAN. "Enterprise Risk Management and Its Effect on Firm Value in Turkey." Journal of Management Research 8, no. 4 (December 26, 2016): 86. http://dx.doi.org/10.5296/jmr.v9i1.10124.
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Enterprise Risk Management (ERM)is an integrated risk management approach, which considers risks in the context of business strategy and manages them with a portfolio perspective through well defined risk responsibilities and strong risk monitoring processes. The purpose of this study is to examine the impact of ERM on firm value for 130 firms operating in the manufacturing industry and listed in Borsa Istanbul. For this purpose, we utilized panel regression models on financial data collected in the period 2008-2013. The dependent variable is Tobin’s Q, which is used as a proxy of firm value. The independent variable is ERM implementation, whereas the control variables are firm size, leverage ratios and profitability ratios. We tested the hypothesis that there is a relationship between ERM and firm value. Our findings suggest that there seems to be no statistically significant relationship between firm value and ERM. We also employed a survey to explore how firms implement ERM and to obtain information about motivation behind adoption of ERM, challenges of ERM implementation and effects of ERM adoption.
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Michalski, G. "Operational risk in current assets investment decisions: Portfolio management approach in accounts receivable." Agricultural Economics (Zemědělská ekonomika) 54, No. 1 (January 29, 2008): 12–19. http://dx.doi.org/10.17221/254-agricecon.
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The basic financial purpose of an enterprise is maximization of its value. Trade credit management should also contribute to the realization of this fundamental aim. Many of the current asset management models that are found in the financial management literature assume book profit maximization as the basic financial purpose. These book profit-based models could be lacking in what relates to another aim (i.e., maximization of the enterprise value). The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences that can result from operating risk that is related to purchasers using payment postponement for goods and/or services. The present article offers a method that uses the portfolio management theory to determine the level of accounts receivable in a firm. An increase in the level of accounts receivables in a firm increases both net working capital and the costs of holding and managing accounts receivables. Both of these decrease the value of the firm, but a liberal policy in accounts receivable coupled with the portfolio management approach could increase the value. Efforts to assign ways to manage these risks were also undertaken; among them, a special attention was paid to adapting the assumptions from the portfolio theory as well as gauging the potential effect on the firm value.
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Soliman, Alaa, and Mukhtar Adam. "Enterprise Risk Management and firm performance: an integrated model for the banking sector." Banks and Bank Systems 12, no. 2 (July 21, 2017): 116–23. http://dx.doi.org/10.21511/bbs.12(2).2017.12.
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This study investigates how the implementation of Enterprise Risk Management program affects the performance of firms using an Enterprise Risk Management model for the banking sector and an integrated model for measuring Enterprise Risk Management index used in the study by Mukhtar and Soliman (2016). Ten listed commercial banks were selected with the Enterprise Risk Management index as the main independent variable, with Return on Average Equity (ROAE), Share Price Return (SPR) and Firm Value (FV) used as three separate dependent variables. The study provides strong evidence of a positive relationship between Enterprise Risk Management implementation and performance in the Nigerian banking sector. The findings and conclusions of this study are consistent with those of other studies that used data from different industries, providing a basis from which to generalize the findings from this study to firms in other industries.
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Wei, Ran, and Sheng Yao. "Enterprise Financial Risk Identification and Information Security Management and Control in Big Data Environment." Mobile Information Systems 2021 (September 6, 2021): 1–6. http://dx.doi.org/10.1155/2021/7188327.
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With the deepening of business informatization, all kinds of business application data are rapidly gathering, which promotes enterprises to enter the era of big data. Enterprises begin to build the concept of big data, deepen the understanding of big data, extract potential data value, and improve the operation ability of enterprises and information systems. At the same time, big data brings internal control information to the system, which is becoming more and more challenging, so enterprises pay more and more attention to the security of the information system. This paper aims to introduce the enterprise financial risk identification and information security management and control under the big data environment and master the enterprise financial risk identification method so that the enterprise can adapt to the needs of the times competition faster and better. This paper introduces the method of identifying financial risk in the background of big data by classifying the methods of financial risk identification and designing the factor model. Through the experimental investigation of the company's financial asset rate, the enterprise financial risk situation is displayed, and the enterprise can improve the internal management to control the financial risk within a certain range. The experimental results show that from 2016 to 2020, the internal control and asset rate of the enterprise affect the financial risk of the enterprise, 82% of the operators only have a reasonable debt structure and sufficient solvency, the operator can operate in a safe state and then maintain a low financial risk, and the operator should also take measures to prevent the occurrence of risk in advance and realize the business goal of maximizing benefits.
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Idobayeva, Alla. "IMPROVEMENT OF THE ENTERPRISE MANAGEMENT SYSTEM BASED ON MODERN PRINCIPLES OF BUILDING BUSINESS PROCESSES, CONTROLLING AND RISK MANAGEMENT." Three Seas Economic Journal 1, no. 3 (December 18, 2020): 40–45. http://dx.doi.org/10.30525/2661-5150/2020-3-7.
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The objective of the article is to highlight and consider the main directions for improving the modern enterprise management system, since that in the modern market conditions, the issue of effective development for industrial enterprises becomes more relevant, while the fundamental bearing core of the enterprise's internal environment is the management efficiency. The main problem is the managerial inefficiency of an excessively large structure that is not well suited to the work in market conditions. Methodology. In the course of this analysis, the management system of an industrial enterprise was considered as a complex open system with the use of the system analysis methodology in the study, which made it possible to identify the main directions for its improvement. Results. Enterprise management is a continuous process of influencing the performance of an employee, group or enterprise as a whole for the best results in terms of achieving the goal, which has been set. The management process is provided by the trained management professionals who shape and manage the organization by setting goals and developing ways to achieve them. To do this, management must find an effective way to combine the key variables that characterize tasks and people, while taking into account the obvious and potential external and internal risks and threats. Setting goals and providing them with policies, strategies, procedures and rules, the necessary management mechanisms contribute to the solution of this task. Motivation and control also play a significant role in ensuring that the tasks are completed effectively. However, the key in this is precisely management, which is most obvious and directly related to the systematic coordination of tasks and, accordingly, the formal relationships of people performing them, and the correctly selected management process toolkit allows the enterprise to achieve the greatest efficiency. Practical implications. The performed analysis of the features of the functioning of the enterprise management system allows us to determine the following areas for improving the modern enterprise management system: improving the business processes of the enterprise, ensuring high-quality control in the enterprise management system, and introducing the enterprise risk-management. Value/originality. The use of system analysis made it possible to determine and substantiate the main directions of improving the modern enterprise management system.
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Jankensgård, Håkan. "A theory of enterprise risk management." Corporate Governance: The International Journal of Business in Society 19, no. 3 (June 3, 2019): 565–79. http://dx.doi.org/10.1108/cg-02-2018-0092.
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Purpose The purpose of this paper is to develop a theory of enterprise risk management (ERM). Design/methodology/approach The method is to develop a theory for ERM based on identifying the general risk management problems that it is supposed to solve and to apply the principle of deduction based on these premises. Findings ERM consists of risk governance, which is a set of mechanisms that deals with the agency problem of risk management and risk aggregation, which is a set of mechanisms that deals with the information problem of risk management. Research limitations/implications The theory, by identifying the central role of the Board of Directors, encourages further research into the capabilities and incentives of directors as determinants of ERM adoption. It also encourages research into how ERM adoption depends on proxies for agency problems of risk management, such as a decentralized company structure. Practical implications The theory encourages Boards of Directors to focus on understanding where the under and over management of risk are likely to be greatest, as opposed to the current practice of mapping a large number of risk factors. Originality/value The theory complements existing theory on corporate risk management, which revolves around the role of external frictions, by focusing on internal frictions in the firm that prevent effective risk management. It is the first work to delineate ERM vis-a-vis existing risk theory.
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Opalenko, Alla, and Oksana Rudenko. "METHODOLOGICAL BASES AND PRINCIPLES OF FORMATION OF THE ORGANIZATIONAL STRUCTURE OF THE ENTERPRISE BY THE GOLDEN RATIO THEORY." Baltic Journal of Economic Studies 5, no. 2 (May 13, 2019): 144. http://dx.doi.org/10.30525/2256-0742/2019-5-2-144-152.
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The relevance of the study of business process management at manufacturing enterprises is determined by the presence of uncertainty and the existence of risks, in particular, structural risks. The timeliness and value of the abovementioned problem are also determined by the low level of implementation of risk management at enterprises. The provision of mechanisms for increasing the level of risk management is an extremely relevant problem of the modern economy, and the construction of risk optimization models is one of the main in the system of factors that affect the effective operation of the enterprise and the prospects for its development. The purpose of the article is to determine principles of formation and approaches to the construction of an “ideal” organizational structure of a manufacturing enterprise. The application of such principles will allow conducting effective management of a production enterprise. Methodology. Development of economic systems requires from industrial enterprises to develop new approaches to business process management, contributes to the spread of innovation in all spheres of production, forms a new image of structures, and provides their competitiveness in the domestic and world markets. An important area of research is the management of business processes of the enterprise, which will provide conditions for the development and effective operation of production enterprises on the basis of new knowledge, technologies, and effective management. The study was carried out based on the activity of PJSC “Shpolyansky Foodstuffs Plant” for 2014–2018. The practical result of the research conducted is recommendations for the implementation of the risk management system at the manufacturing enterprise, and as a stage – building an “ideal” organizational structure that will allow timely responding to the problems of risk management. Originality. Enterprises combine many business processes that carry out thousands of operations, therefore, it is relevant to develop effective approaches suitable for their detailed description, analysis of the features of operation, optimization, control, diagnosis of problem situations, and the formation of measures for their elimination, management of structural risks. This requires the creation of effective tools for solving these tasks.
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Vertakova, Yulia, Irina Izmalkova, and Evgeniy Leontyev. "Cluster Enterprise Comprehensive Risk Assessment: Methodology Based on the Functional-Target Approach." Journal of Risk and Financial Management 15, no. 1 (January 4, 2022): 15. http://dx.doi.org/10.3390/jrfm15010015.
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The effectiveness of the unification of enterprises in the cluster is also associated with high uncertainty and risks. Thus, the development of theoretical approaches and methodological instruments for efficient risk management of enterprises under the conditions of cluster association is an urgent scientific task. The methodology of a comprehensive risk assessment of the cluster enterprise is based on the use of the approach for building a functional-target model of a cluster enterprise, and is reduced to the search for a response to the question: can an event change the value of a providing indicator in such a way that this will lead to a deterioration in the resulting indicator in each enterprise subsystem? Based on the results of forecasting external risks, it was established that the group of state and global risks, in particular, political, territorial and financial, is characterized by significant threats for the next 5 years for the studied cluster enterprises. We proposed and tested a methodology for a comprehensive assessment of the risks of cluster enterprises, based on a functional-target approach, according to which a cluster enterprise as a socio-economic system is considered as a set of three basic subsystems: management, production and financial and economic.
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Khan, Wajid, Muhammad Asif, and Syed Qasim Shah. "An Empirical Analysis of Enterprise Risk Management and Firm's Value: Evidence from Pakistan." JISR management and social sciences & economics 18, no. 1 (June 30, 2021): 107–24. http://dx.doi.org/10.31384/jisrmsse/2020.18.1.8.
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Since the last few decades, the firms have shifted their focus towards risk management from traditional risk management practices to enterprise risk management. For this purpose, the current study is designed to investigate the critical firm's characteristics that influence firms to adopt enterprise risk management practices. The data for this study comprises of 65 non-financial firms during the period 2009 to 2017. Binary Logistic and robust least square method was administered to determine the relationship among variables. Empirical results revealed that large firms, firms with a higher return on assets, and firms having more independent directors on board leads towards the implementation of enterprise risk management. The study also found a significant encouraging relationship between implementing of this risk management and Tobin's Q both in the short and long run. The implementation of an enterprise risk management system augments the performance of the firm soon after the induction of this system as revealed by the results.
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Dai, Debao, Shengnan Han, Min Zhao, and Jiaping Xie. "The Impact Mechanism of Digital Transformation on the Risk-Taking Level of Chinese Listed Companies." Sustainability 15, no. 3 (January 19, 2023): 1938. http://dx.doi.org/10.3390/su15031938.
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As the core engine of the digital economy, the digital transformation can make modern enterprises survive and develop better now. By the sample data of listed companies in the years from 2015 to 2020, this paper identifies the degree of enterprise digital transformation through text analysis, empirically examines the impact mechanism of digital transformation on corporate risk-taking, and fully considers the heterogeneity problems. The findings are as follows: (1) Digital transformation can improve the level of enterprise risk taking, especially the improvement of enterprise financial stability and strategic risk taking; (2) in terms of enterprise attribute structure, digital transformation can significantly enhance the risk-taking level of non-state-owned enterprises and high-tech enterprises; (3) the mechanism identification test finds that innovation-driven and enterprise value enhancement play a strengthening role in the role of digital transformation in promoting enterprise risk-taking level, and resource allocation efficiency as a mediating path weakens the role of digital transformation on enterprise risk-taking level. This study provides a basis for promoting the improvement of enterprises risk-taking: digital transformation can help enterprises maintain financial stability, improve innovation output capacity, enterprise value level, enterprise risk-taking capacity and sustainable development. At the same time, the Chinese government should take measures to further stimulate the willingness of state-owned enterprises to digital transformation.
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Grosul, Victoria, and Marуna Usova. "STRATEGIC ASPECTS OF RISK RESISTANCE MANAGEMENT OF A RETAIL ENTERPRISE." INNOVATIVE ECONOMY, no. 1 (2022): 38–43. http://dx.doi.org/10.37332/2309-1533.2022.1.5.
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Purpose. The aim of the article is substantiation of the methodology of strategic management of risk resistance of a retail enterprise. Methodology of research. The works of domestic and foreign scientists on strategic risk management in the enterprise are the theoretical and methodological basis of the study. The tasks set in the work were solved using the following methods: analysis and generalization - when analysing models of strategic risk management; a systematic approach, an abstract and logical one - when determining the main stages of strategic management of the risk resistance of a retail enterprise, developing a “bow tie” diagram for assessing the risks of a retail enterprise; economic and mathematical modelling - when developing a tuple of structural elements of an information system for managing the risk resistance of a retail enterprise. Findings. Scientific approaches to the formation of a strategic enterprise risk management system were studied. The key aspects of the methodology “Risk management of the organization. Integrated Model” were considered. A PPRR-model of strategic management of the risk resistance of a retail enterprise was developed. The main stages of strategic management of the risk resistance of a retail enterprise are determined. A tuple of structural elements of the information system for managing the risk resistance of a retail enterprise was formed. A methodical approach to the construction of a “bow tie” diagram for risk assessment of a retail enterprise is substantiated. This approach takes into account the relationship between the sources of risk and the consequences of its implementation. Originality. An organizational and methodological approach to the formation of a strategic management system for the risk resistance of a retail enterprise has been developed, unlike existing ones, it creates the opportunity to quickly and timely respond to changes in the external environment, identify sources of risk, establish cause-and-effect relationships between risk factors and its consequences, analyse and prove relevant information at risk for strategic decision makers. Practical value. Practical implementation of the results of the study lies in the development of applied tools that can be used to make informed strategic decisions to mitigate the consequences of the onset of risk events, increase the level of risk resistance of retail enterprises under resource and time constraints, while contributing to the achievement of the set targets for the activities of a trading enterprise. Key words: risk, risk resistance, strategic management, PPRR model, information system, assessment, “bow tie” diagram.
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Zaky, Ahmad, and Mukaram Mukaram. "ANALISIS FIRM VALUE PADA PERUSAHAAN YANG MENERAPKAN ENTERPRISE RISK MANAGEMENT (ERM)." Jurnal Riset Bisnis dan Investasi 1, no. 3 (January 26, 2016): 118. http://dx.doi.org/10.35697/jrbi.v1i3.57.
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A risk is not an odd thing which is encountered in the business activities. Therefore, risk management is becoming a serious concern within the company. To anticipate the impact of risk on the company and in order to create the Firm Value, Enterprise Risk Management (ERM) has been developed. ERM is not just aimed at the creation of value for the company, ERM is believed to be able to manage the risks facing the company better and integrated through the business organization. However, in 2008, the financial crisis in the United States become consideration of the impact of the implementation of ERM in the firm, particularly in the financial sector. An unsuccessful management of the firms in the financial sector could have a major impact on the economy of a country that resulted in the financial crisis occurred and many of those who argue that this is due to an irrelevant and improper implementation of ERM. In order to examine this, this research conducted on the financial sector in Indonesia, especially the listed banking companies in Indonesia Stock Exchange. In this study, the samples are 37 banking firms listed on Indonesia Stock Exchanges to examining the differences Firm Value means between the banking firms which implement ERM and banking firm which do not implement ERM. The Results show that among the bank companies, there is no significant difference of the magnitude of the Firm Value of an existing company. In essence, the financial sector especially the banking industry in Indonesia, the implementation of ERM is not an appropriate solution of efforts to increase the value of the firm in order to increase the potential growth of the investment.
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Burhanuddin, Fia Fauzia, Gagaring Pagalung, and R. A. Damayanti. "The Role of Enterprise Risk Management as a Moderation in Increasing Company Value." Volume 5 - 2020, Issue 9 - September 5, no. 9 (September 30, 2020): 778–85. http://dx.doi.org/10.38124/ijisrt20sep611.
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We try to explain the role of enterprise risk management as a moderation in increasing firm value (empirical study on manufacturing companies that have been listed on the Indonesia Stock Exchange (IDX) for the period of 2016-2018. in this study are manufacturing companies listed on the Indonesia Stock Exchange (BEI) during the period 2016 to 2018. Samples using the purposive sampling method, there are 14 companies as samples.The analytical tool used is multiple linear regression analysis with Moderated Regression Analysis (MRA) which aims to analyze the influence of corporate social responsibility (CSR), managerial ownership, independent commissioners and audit committees on firm value with enterprise risk management as a moderating variable using SPSS v.22 software The results of the study show evidence that: (1) Corporate social responsibility sponsibility has a positive and significant effect on firm value. (2) Managerial ownership has a positive and significant effect on firm value. (3) Independent commissioners have a positive and significant effect on company value. (4) The audit committee has a positive and significant effect on the value of the company. (5) Enterprise risk management is able to moderate the influence of corporate social responsibility on corporate value. (6) Enterprise risk management is able to moderate the influence of managerial ownership on firm value. (7) Enterprise risk management is able to moderate the influence of independent commissioners on company value. (8) Enterprise risk management is able to moderate the influence of the audit committee on the company's value.
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Fletcher, Kenneth C., and Ali E. Abbas. "A Value Measure for Public-Sector Enterprise Risk Management: A TSA Case Study." Risk Analysis 38, no. 5 (October 30, 2017): 991–1008. http://dx.doi.org/10.1111/risa.12932.
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Sakrabani, Poorni, and Teoh Ai Ping. "ENTERPRISE RISK MANAGEMENT: A REVIEW OF TWO DECADES." Journal of Information System and Technology Management 7, no. 27 (September 1, 2022): 76–84. http://dx.doi.org/10.35631/jistm.727006.
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This paper is a modest review spanning a 20-year period on Enterprise Risk Management. Enterprise Risk Management (ERM) deals with risks and opportunities which have an impact on value creation. Unlike traditional risk management (TRM) which is silobased, ERM is a holistic approach to risk management. Past studies have produced many contradicting results on the impact of ERM implementation on firm performance and also on the factors which are crucial for the successful implementation of ERM. As such, it is of absolute necessity to identify the determinants of ERM implementation and also how ERM improves performance. The research methodology for this paper began with a literature search for ERM-related articles from journals of various rankings from 2000 to 2020. Relevant papers for the review were selected by using the `going backward’ and `going forward’ process. Fifty research papers were selected in this manner for this review. Prior studies have used different variables to show how implementation of ERM can create value. Further, in recent years, there has been an increase in studies reporting the importance of strong ERM and its link with performance. Although only fifty research papers were reviewed for this paper, yet a few gaps in the extant literature on ERM have been identified. As such, suggestions on how future research can be conducted in this field are given at the end of the review.
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Luo, Bing. "A Method for Enterprise Network Innovation Performance Management Based on Deep Learning and Internet of Things." Mathematical Problems in Engineering 2022 (March 19, 2022): 1–9. http://dx.doi.org/10.1155/2022/8277426.
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In the Internet era, traditional performance management has failed to satisfy the modern enterprise development; therefore, enterprises must achieve timely innovation and improvement of performance management. The application of performance management in state-owned firms promotes employee motivation and skill development, as well as the development of innovative thinking. Performance effect, therefore, on the role of management in the state-owned enterprise development is bigger, especially because of the influence of traditional human resources performance management mode. The further development of state-owned enterprise resource management work affected the operation and management of state-owned enterprises. Therefore, state-owned enterprises must further optimize the path of performance management, to achieve its fine development. In view of this, this paper deeply analyzes the problems existing in the current performance management of state-owned enterprises and puts forward optimization methods for the problems, aiming at providing help for the optimization of the performance management of state-owned enterprises. In essence, a value network is a value symbiosis system between firms that involves resource sharing, value cocreation, risk sharing, and benefit win-win situations. The formation and development of value network not only extremely change the industrial structure and mode of production, but also have an important impact on enterprise innovation mechanism. Enterprise innovation under the value network system has become the focus of academic and business circles. With the rapid development of machine learning and internet of things (IOT) technologies, as well as China’s urbanization, China’s agriculture is embracing new development opportunities. Using artificial intelligence (AI) technology to effectively mine agricultural big data and realize effective control and management of intelligent agriculture has become a research hotspot and difficulty. Based on recurrent neural network (RNN) and IOT technology, this paper proposes an enterprise network innovation performance management path optimization system.
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Yolanda, Yolanda, Ihyaul Ulum, and Setu Setyawan. "ENTERPRISE RISK MANAGEMENT DAN INTELLECTUAL CAPITAL DISCLOSURE : PERSPEKTIF INVESTOR." Jurnal Reviu Akuntansi dan Keuangan 8, no. 2 (October 22, 2018): 187. http://dx.doi.org/10.22219/jrak.v8i2.38.
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This paper aims to examine the effect of corporate value on investor reactions with enterprise risk management (ERM) and intellectual capital disclosure (ICD) as a mediation variable on Indonesian companies listed in the Jakarta Islamic Index in 2016. The sample of this study consists of 25 companies with purposive sampling technique. Five ways numerical coding system and Partial Least Square (PLS) are used as a tool to perform data analysis. The results show that firm value has a significant influence on investor reaction. Unlike the ERM capable of mediating the relationship between corporate value and investor reactions, ICD is unable to mediate.
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Buganová, Katarína, Jana Šimíčková, and Michal Brutovský. "Impact of global changes in the business environment in relation to risk management." SHS Web of Conferences 92 (2021): 03004. http://dx.doi.org/10.1051/shsconf/20219203004.
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Research background: Entrepreneurial activity is largely affected by negative changes in the global business environment, as evidenced by the huge impact of the COVID 19 pandemic on the entrepreneurial activity of Slovak enterprises. It is here that the importance of proactive risk management is reaffirmed, which should be an integral part of the enterprise’s management and thus preventively assess possible risks and their consequences and be prepared to manage them and not just respond to a crisis situation. Purpose of the article: The purpose of the article is to point out the importance of risk management in business and project management in connection with the globalization of the business environment. Assess the readiness of Slovak enterprises to ensure the continuity of business activities in connection with negative changes in the business environment such as the COVID 19 pandemic. Methods: The article will be processed using basic scientific methods. The qualitative and quantitative aspects of the researched problem, comparison and generalization of conclusions will be processed through observation, analysis, comparison and synthesis, including several managerial methods for risk assessment and management. Findings & Value added: Successful implementation of risk management in the enterprise and within the project activities from the point of view of prevention of crisis situations in the enterprise caused by interruption of operation as well as premature termination of projects is a means to maintain continuity and competitiveness of business activities and achieve project goals in the global market.
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Gleißner, Werner. "Cost of capital and probability of default in value-based risk management." Management Research Review 42, no. 11 (November 18, 2019): 1243–58. http://dx.doi.org/10.1108/mrr-11-2018-0456.
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Purpose This paper aims to present the combination of enterprise risk management (ERM) and value-based management as especially suitable methods for companies with a shareholder value imperative. Among its major benefits, these methods make the contribution of risk management for business decisions more effective. Design/methodology/approach Any possible inconsistencies between ERM, generating value because of imperfect capital markets and the CAPM to calculate cost of capital, which assumes perfect markets, must be avoided. Therefore, it is imperative that valuation methods used are based on risk analysis, and thus do not require perfect capital markets. Findings Value-based risk management requires the impact of changes in risk on enterprise value to be calculated and the aggregation of opportunities and risks related to planning to calculate total risk (using Monte Carlo simulation) and valuation techniques that reflect the effects changes in risk, on probability of default, cost of capital and enterprise value (and do not assume perfect capital markets). It is recommended that all relevant risks should be quantified and described using adequate probability distributions derived from the best information. Practical implications This approach can help to improve the use of risk analysis in decision-making by improving existing risk-management systems. Originality/value This extension of ERM is outlined to provide risk-adequate evaluation methods for business decisions, using Monte Carlo simulation and recently developed methods for risk–fair valuation with incomplete replication in combination with the probability of default. It is shown that quantification of all risk using available information should be accepted for the linking of risk analysis and business decisions.