The Evolving Landscape of Insurance: Digitalization and its Implications

The primary objective of this paper is to examine the market risk and liquidity risk management techniques and practices followed by the Indian scheduled commercial banks (SCB) consisting of public sector banks (PSBs) and private sector banks (PVSBs) for five years from 2016-17 to 2020-21. The other objective is to compare market and liquidity risk management practices between the public sector banks (PSBs) and private sector of banks (PVSBs). The other purpose of the study is to review the strategies adopted by the SCBs in risk management practices. To study the risk management practices, six largest banks each from PSBs and PVSBs are taken for sample study. This study finds that the SCBs are facing credit risk, market risk (Interest rate risk, foreign exchange risk, commodity price risk and equity price risk,) liquidity risk and operational risk. It also finds that the PSBs are better reporting and presenting their risk management practices in their annual reports than that of PVSBs in risk identification, risk assessment and risk analysis. The results indicate that there is no significant difference between the PVSBs and PSBs in the policies and practices of market risk and liquidity risk assessment, evaluation, monitoring risk controlling and risk taking. This paper will be relevant and value to those interested in research in the risk management banking industry. This is a descriptive research based on secondary data.

This study examines the impact of risk management and compliance practices on the financial performance and corporate reputation of financial institutions in Indonesia. Utilizing a quantitative approach, data were collected from 160 financial institutions through a structured questionnaire and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS 3). The results indicate that both risk management and compliance practices significantly enhance financial performance and corporate reputation. Specifically, risk management practices have a stronger positive impact on both outcomes compared to compliance practices. These findings underscore the necessity for financial institutions to integrate comprehensive risk management and compliance strategies into their operations to achieve financial stability and bolster their reputation. The study provides valuable insights for practitioners and policymakers, highlighting the critical role of these practices in fostering long-term sustainability and success in the financial industry.

The main challenges and barriers facing the effective implementation of risk management (RM) practices in the construction industry have increased the ceiling of challenges associated with the implementation of construction projects during the COVID-19 era. The aim of this paper is to assess the level of significance of risk management implementation challenges and barriers (RMICB) and the level of efficacy of construction RM practices during COVID-19 by considering the case of Iraq. A multistage research methodology was adopted, including semistructured interviews with construction experts to identify the main RMICB and RM practices indicators; surveys to assess the identified RMICB and RM practices indicators; analytical hierarchy process–based and fuzzy-based models to quantify RMICB level of significance, and RM practices level of efficacy. Based on the adopted methodology, the authors identified a total of 34 RMICB grouped under four categories, namely analytical approach–related, behavior-related, management-related, and team-related RMICB. Moreover, the assessment of the current construction RM practices during the COVID-19 era indicated a low level of RM practices efficacy. This study significantly contributes to the body of knowledge by helping construction practitioners and researchers to better understand the RMICB that are hindering effective implementation of RM strategies for construction projects during the COVID-19 era. Furthermore, it provides valuable information to decision-makers regarding the current construction RM practices efficacy during extreme conditions.

PurposeThe purpose of this paper is twofold: first to add to the debate on good governance and ethics of enterprise risk management (ERM) and second to describe an ethical maturity scale based on duty and responsibility for practical implementation to ensure better governance.Design/methodology/approachThe methodology has centred on risk governance as a way for many organisations to improve their risk management (RM) practices from an ethical perspective based on responsibility and on fulfilling one's duty within the organisation.FindingsWhile companies in Australia, for example, are more mature than those in Russia in terms of governance systems life cycle, there are a number of common international challenges in risk governance implementation. These relate to a link between risk framework, enterprise value model and strategic planning; to a definition of risk appetite, the embodiment of RM in organisational culture, internal audit and ERM function, the evolving role of a chief risk officer (CRO) and senior management buy‐in and sponsorship of the integrated ethical RM from a chief executive officer.Practical implicationsERM – a way for many organisations to improve their RM practices – is a key component of the applied ethics of corporate governance. It has developed into a philosophy to assist organisations with the process of protecting shareholders' value while also increasing the bottom‐line profitability. Effective ERM is based on ethical risk governance. Internal audit needs to be involved in the process of integrating RM and compliance. It should maintain a degree of independence when assisting with ERM establishment. CRO is most effective when reporting to the board.Originality/valueGlobal companies are becoming more accountable to multiple stakeholders. It is the adoption of an ethical code to arrest the lack of clarity of roles ascribed to the audit committee and risk committee and management's accountability or lack thereof that remains the challenge across different jurisdictions. In attempting to implement good governance and meet the challenges, the paper introduces an ethical maturity scale as an internal measure that could be embedded in an organisation's strategy.

The concept of water security implies concern about potentially harmful states of coupled human and natural water systems. Those harmful states may be associated with water scarcity (for humans and/or the environment), floods or harmful water quality. The theories and practices of risk analysis and risk management have been developed and elaborated to deal with the uncertain occurrence of harmful events. Yet despite their widespread application in public policy, theories and practices of risk management have well-known limitations, particularly in the context of severe uncertainties and contested values. Here, we seek to explore the boundaries of applicability of risk-based principles as a means of formalizing discussion of water security. Not only do risk concepts have normative appeal, but they also provide an explicit means of addressing the variability that is intrinsic to hydrological, ecological and socio-economic systems. We illustrate the nature of these interconnections with a simulation study, which demonstrates how water resources planning could take more explicit account of epistemic uncertainties, tolerability of risk and the trade-offs in risk among different actors.

Background: The evolving business environment and technological advancements in the UK construction industry, particularly Artificial Intelligence (AI), are reshaping project management processes, including risk management (RM). As the industry continues to evolve, project managers need to develop AI competencies to effectively mitigate emerging risks. Background: The UK construction industry is undergoing a transformation, driven by technological advancements, particularly the integration of Artificial Intelligence (AI). This shift is reshaping traditional project management practices, including risk management (RM). With the increasing complexity of construction projects and evolving risks, it is essential for project managers to develop AI competencies to effectively navigate and mitigate emerging risks. Aim: This review aimed to evaluate the significance of AI competence for project managers and its impact on risk management practices within the UK construction industry. Methods: Using diverse databases including ProQuest, MEDLINE, and IEEE Xplore, a comprehensive literature review was conducted focused on studies from 2010 to the present related to AI competencies for project managers and risk management in the UK construction industry. The articles were initially screened based on relevant and specific keywords including Boolean operators and followed by full-text review to determine final choice articles used for this review. The findings were summarized using the narrative synthesis approach to report the findings in line with the review objectives. Results: The findings of this review highlight the critical role of AI competence among project managers in enhancing risk management (RM) practices within the UK construction industry. While AI integration improves decision-making, efficiency, and accuracy while reducing human error, the effectiveness of these benefits hinges on project managers’ ability to competently utilize AI tools. The findings were thematically categorized into: (1) AI in the construction industry, (2) AI integration in RM practices, (3) benefits and challenges of AI adoption, and (4) assessing project managers' AI competencies. Case studies, such as IBM’s Watson Explorer and RiskLens, underscore the necessity of AI competence for optimizing RM strategies. Conclusion: AI is revolutionizing RM practices by offering data-driven insights and predictive risk analysis within the UK construction industry. To harness AI's full potential, project managers must develop AI-related competencies. However, for successful adoption of AI in construction, addressing challenges related to competency, ethics, and cost is crucial. AI competencies development among project managers is key to maximizing AI’s benefits, ensuring effective risk management and successful projects.

This study investigates corporate strategies for integrating non‐financial risks and stakeholder engagement into business management frameworks. Our inquiry analyzes the extent to which companies explicitly or implicitly incorporate stakeholder perspectives into their risk management practices. Based on the four fundamental pillars of risk management outlined by the Institute of Risk Management (IRM 2002), this study seeks to elucidate the multidimensional and comprehensive nature of stakeholder engagement in risk management processes. This study is based on a content analysis of 253 sustainability reports and Non‐Financial Statements drawn from different categories of companies representing the Italian market: large companies, small and medium‐sized enterprises (SMEs), cooperatives, and public utilities. The results reveal that companies primarily address risk management and control in their reports, aligning with the literature. Although risk components are equally important in managing adverse events, the results show a high percentage of risk analysis unlike what emerged from the literature, and a smaller percentage of companies focused on risk monitoring and risk communication. Stakeholder engagement levels vary based on company type and the activities performed in the risk governance process. From a theoretical perspective, this study contributes to systemic risk management research by integrating stakeholders into risk governance models. From a managerial perspective, this study offers implications for both risk management and sustainability disclosure practices. Limitations include the sample of Italian companies only and the different publication years of the collected reports.

Risk management in local authorities: An application of Schatzki's social site ontology

This paper aims to assess the degree to which Somali banks use effective risk management practices (RMPs). Furthermore, the study has explored the level of risk management practices using the original components of risk management aspects, including understanding risk and risk management, risk assessment and analysis, risk identification, risk monitoring, and credit risk analysis, with the addition of perceived trust to the original constructs of risk management aspects. The study is based on a questionnaire survey of 423 banking staff from 13 licensed banks in Somalia. The researcher adopted a questionnaire that covers six aspects of risk management with perceived trust: understanding risk and risk management, risk assessment and analysis, risk identification, risk monitoring, credit risk analysis, perceived trust, and RMPs. This study found that the staff of Somalia have a clear understanding of risk and risk management and have efficient risk identification, risk assessment, risk monitoring, credit risk analysis, perceived trust, and risk management practices. In addition, the respondents also recognize that the banks do not have deposit insurance, which is a risk to the depositors if the bank goes bankrupt. The paper’s findings are limited to the risk management aspects of the bank industry, with additional perceived trust in Somalia. The paper explores the risk management practice in the Somali bank sector. The results can be used as valuable feedback for improving risk management practice in the banking industry. This study is the first research attempt to investigate risk management practice with additional trust.

Purpose: The purpose of this study was to investigate how financial risk management strategies lead to growth of MFI sector in Kenya.Methodology: The study adopted a correlation survey research design. The population of this study was fifty seven (57) MFIs. The sampling frame was the list of MFIs provided in the AMFI website www.amfikenya.com. A sample of thirteen (17) MFIs was selected using the random sampling approach. A questionnaire and an interview schedule were the main data collection tools. Qualitative data was analyzed using content analysis whereas the quantitative data was analysed using Statistical Package for Social Sciences (SPSS) where descriptive and regression analysis were conducted to determine the relationship between enterprise risk management strategies and growth of MFIs.Findings: The findings indicated that MFIs had effective financial risk management strategies such as effective credit risk management practices, liquidity risk management practices, interest risk management practices and price risk management practices. In particular, MFIs took into consideration the conditions, characters, capacity, collateral and capital of borrowers. Strict debt collection practices were widely adopted by MFIs. In addition, the concept of Know Your Customer (KYC) policy, seem to have been adopted by MFIs. The relationship between financial risk management strategies and growth was positive and significant. It also shown that sources of funds for MFIs include external sources and internal sources and the most frequently used source of funds are bank loans. The use of banks loans may present various risk exposures to MFIs, the most significant being interest rate risk. However, the ability of MFIs to source funds from various sources indicates that MFIs can apply the pecking order by first exploiting internal sources of funds since they present a lower financial risks and then move on to external sources. However, despite the financial risk exposure accompanied by leverage from external sources, MFIs may also benefit as they may experience higher growth driven by the leverage. It was also found that MFIs had put in place a number of good practices that had emerged to promote responsible and inclusive lending. These include loan size limits, standardized (simple) loan terms, zero tolerance on delinquency, group-based lending. This finding implies that MFIs have put in place effective credit risk management policies which are part of an overall financial risk management strategy. The existence of effective financial risk management practices may have influenced the growth of MFIsUnique contribution to theory, practice and policy: The study recommends that the MFIs to continue practicing effective financial management practices as this would improve the growth of MFIs.

Project risks are widespread in the construction industry because of the uncertainty and complexity involved in construction activities. Many factors directly or indirectly affect a project’s successful completion. Therefore, a project’s success largely depends on how it manages risks. This study examines the effect of risk management practices on project success. In addition, it explores the mechanism that leads to project success. Understanding risk management practices and processes that influence project performance is vital for success. This study proposes that three risk management practices (e.g. risk identification, monitoring, and prevention) influence project success. Furthermore, this study maintains that the risk coping capacity mediates, and risk transparency moderates the relationship between risk management practices and project success. We tested the hypotheses using survey questionnaire data provided by 320 project managers. It reveals that risk management practices significantly influence project success. It also finds that risk coping capacity mediates the relationship between risk management practices and project success. Furthermore, risk transparency moderates the relationship between risk coping capacity and project success. This study contributes to the risk management literature by explaining the mechanism that leads to project success. It also discussed theoretical contributions and practical implementations.

Purpose– The purpose of this study is to examine the nature of the risk management practices of Islamic banks as recommended by the Islamic Financial Services Board (IFSB) in managing their unique risks. This study also explores the differences in risk management practices based on the country, size, type and age of the bank.Design/methodology/approach– A questionnaire was developed to investigate the risk management practices. The main reference for the questionnaire was the IFSB Guiding Principles of Risk Management and the respondents were either the chief risk officers or holders of other senior positions involved in risk management in the Islamic banks. A non-parametric test was then conducted to explain the difference in mean scores for the unique risk management practices by the Islamic banks.Findings– A lack of effective risk management practices was found in relation to liquidity risk, displaced commercial risk and equity investment risk by Islamic banks. However, Islamic banks were comparatively good in managing operational risk/Shari’ah non-compliance risk. The study found that there was a significant difference in the practice of equity investment risk management based on the size, type and age of the Islamic bank. In addition, a significant difference was found between the Islamic banks in the Middle Eastern and North African (MENA) and Asian countries concerning the practice of both displaced commercial risk and operational risk/Shari’ah non-compliance risk management.Research limitations/implications– In spite of the limitations in non-parametric analysis, this analysis was preferred inasmuch as the data were measured on an ordinal scale with a small sample size.Originality/value– This study is among the few studies that examine and explore the risk management practices of Islamic banks internationally by explaining the unique risks encountered in Islamic finance.

In a country like Ethiopia, where information and communication systems are in the early stage of development, software projects may face several challenges. Risk is one of the factors that challenges project performance, and even causes failure. Risk management helps project managers to control the effect of risks. However, risk management appears to be the least practiced component of project management. To help understand the software risk management practice in the developing countries (DC) context, this study explores the risk management practice of Ethiopian software projects. It also investigates the level of adoption of formal risk management models and which steps are included in the ad‐hoc risk management exercise. Finally, it looks into the relationship between risk management practice and project success. We conducted a survey of 45 banks, insurance companies and United Nations agency offices in Addis Ababa, Ethiopia. In this study, a very low rate of application of formal risk management models was observed. We observed a different perception of risk management whereby only watching projects to see if any risks occur during implementation without performing risk identification and mitigation or response plan was considered as a risk management practice by project managers. It was also found that some project managers were not able to confidently tell whether risk management processes have taken place in the projects they manage.

PurposeDemographics are perceived to influence risk management practices (RMPs) in construction. However, empirical evidence supporting this perception is lacking in the South African Construction Industry (SACI), especially within small and medium enterprises (SMEs). This study, therefore, aims to investigate the influence of demographic characteristics on RMPs.Design/methodology/approachThis study followed a positivist research philosophy, using a questionnaire survey for data collection. In total, 225 questionnaires were distributed, of which 187 were returned from conveniently sampled respondents, which included owners and senior managers of construction SMEs organizations in Gauteng province in South Africa (SA). In total, 181 questionnaires were usable, yielding a response rate of 80.44%. Data from the survey were analyzed using descriptive and inferential statistics i.e. multiple regression analysis (MRA). The outputs were represented using percent and regression coefficients values, respectively.FindingsIn total, 42 practices were established from the literature review and grouped into 9 major RMPs. The data analysis suggested that understanding the organizational environment, defining objectives, resource requirements, risk measurement, risk identification, risk assessment, risk response and action planning, communication and monitoring and review are reliable and valid practices. Findings from MRA established that demographic characteristics i.e. experience in the construction industry (CI), education level and the number of employees in the organization are not good predictors to determine the use of RMPs.Research limitations/implicationsThe study was limited to the data acquired from the SACI and to a lesser extent, construction SMEs in Gauteng. Therefore, the findings cannot be generalized to all SMEs in SA. Though neighboring and developing countries can use the RMPs identified in this study, the results cannot be directly used in developed countries without adequate substantiation.Practical implicationsThe current study provides useful information to assist construction organizations to pay more attention to risk management implementation. The RMPs established in this paper are reliable and valid in projects undertaken by SMEs, and therefore, may be used by top management and/or the risk task team of these enterprises for effective project risk management.Originality/valueThe study presents findings of an investigation of the influence of demographics on RMPs from the perspectives of construction SMEs, an area less explored. This work advances knowledge of RMPs in the SME sector. It, therefore, adds value to researchers and industry practitioners on the theme where no agreement has been attained relating to key factors and practices that should constitute a risk management model.

Approximately 20% of suicide decedents have had contact with a mental health professional within 1 month prior to their death, and the majority of mental health professionals have treated suicidal individuals. Despite limited evidence-based training, mental health professionals make important clinical decisions related to suicide risk assessment and management. The current study aimed to determine the frequency of suicide risk assessment and management practices and the association between fear of suicide-related outcomes or comfort working with suicidal individuals and adequacy of suicide risk management decisions among mental health professionals. Mental health professionals completed self-report assessments of fear, comfort, and suicide risk assessment and management practices. Approximately one third of mental health professionals did not ask every patient about current or previous suicidal thoughts or behaviors. Further, comfort, but not fear, was positively associated with greater odds of conducting evidence-based suicide risk assessments at first appointments and adequacy of suicide risk management practices with patients reporting suicide ideation and a recent suicide attempt. The study utilized a cross-sectional design and self-report questionnaires. Although the majority of mental health professionals report using evidenced-based practices, there appears to be variability in utilization of evidence-based practices.