Managing Financial Risk and Its Interaction with Enterprise Risk Management

Rogers, Daniel A.

doi:10.1002/9781118267080.ch18

Cited by 3 publications

(4 citation statements)

References 19 publications

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“…This implies that higher ownership by external stakeholders (i.e., not managers or employees) is positively associated with the RMS development stage. Finally, we also expect a positive association with RMS development for financial risk management (Rogers 2009). (INT) is a reflective construct; therefore, its internal consistency is assessed using Cronbach's alpha (0.906), composite reliability index (CR 0.930), average variance extracted (AVE; 0.728) and factor loadings (all above 0.7), which are all higher than suggested critical values (Hair Jr et al 2017).…”

Section: Variablesmentioning

confidence: 91%

The role of interactive style of use in improving risk management effectiveness

2023

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The purpose of this paper is to investigate how to make risk management systems (RMS) more effective. We identify a critical element for effective RMS, which is neglected in the literature, and argue that the potential of advanced RMS designs (e.g., enterprise risk management—ERM) depends on the interactive style of use. However, interactive use is costly in terms of managers’ time and attention, so many organizations do not use RMS in this way. Using survey data and PLS-SEM, we show for our sample companies that the positive effects of advanced RMS design on effectiveness are fully mediated through interactive use of RMS. This brings on an important implication that a RMS leads to better results when it is used interactively. For example, more interactive use of less developed RMS design (such as the traditional silo-based design) would improve its effectiveness by compensating for the lack of an organization-wide RMS.

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Section: Variablesmentioning

confidence: 91%

The role of interactive style of use in improving risk management effectiveness

2023

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“…When Indonesian adolescents agree to follow the guidelines of consuming nutritious, balanced, and diverse food plus active in their everyday life, then Indonesia will be able to achieve food security simultaneously to preserve the ecosystem services to achieve biodiversity by at least 25%. [16] stated that food security and biodiversity can be achieved simultaneously in Fig 1.…”

Section: Sustainable Society Toward Ecological Citizenshipmentioning

confidence: 99%

“…In 2018, the Indonesian population was 265,000,000, 67.6% of whom are in the productive age group (aged 15-64). Among the productive age group, 25.2% are adolescent (aged [10][11][12][13][14][15][16][17][18][19]. Adolescence is a predictable developmental stage of human capital investment [2] to support economic growth and achieve sustainable development simultanously.…”

Section: Introductionmentioning

confidence: 99%

Ecological Citizenship Through Education and Management

Bintang

2021

JEBI

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The dominance of the Indonesian population in 2018 for the productive age group (aged 15-64) reached 67.6% of 265,000,000 people, with 25.2% adolescents among the productive ages. Adolescence seek new ways to redefine themselves (identity processes) and to explore new ideas and challenges, so it is important to understand how they influence others and how they could have an impact on their families, communities, and the world. This understanding will encourage adolescents to become political actors to take action (WTTA) by influencing society on ecological citizenship, which concerns rights, entitlements, duties, obligations, and responsibilities to ensure that ecological footprints make a sustainable impact. Adolescents need community and social support to develop this ecological citizenship along with their own identity processing and coping with their life struggles. The idea of this paper is to offer food chemistry education as an alternative health and nutrition information so as to facilitate the ability of adolescents to achieve the appropriate development for ecological citizenship. This paper aims to discuss how food chemistry education develops Indonesian adolescents as the future generation who will manage the quality of the environment by becoming ecological citizens through their various life struggles. The discussion will be based on a literature review.

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“…Adjudicating between these mechanisms remains a task for future research; however, available evidence suggests that both factors likely operated. There is abundant evidence that risk managers viewed new derivatives as crucial components of their enterprise risk management toolkit (e.g., Banham 2000; Baranoff 2004; Lam 2003; Moody 2003; Rogers 2009). There is also evidence that managers in firms with CROs overseeing ERM programs felt more confidence in the efficacy of their risk-management systems.…”

Section: Expert Construction Of Organizational Compliancementioning

confidence: 99%

The Hazards of Expert Control: Chief Risk Officers and Risky Derivatives

2017

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At the turn of the century, regulators introduced policies to control bank risk-taking. Many banks appointed chief risk officers (CROs), yet bank holdings of new, complex, and untested financial derivatives subsequently soared. Why did banks expand use of new derivatives? We suggest that CROs encouraged the rise of new derivatives in two ways. First, we build on institutional arguments about the expert construction of compliance, suggesting that risk experts arrived with an agenda of maximizing risk-adjusted returns, which led them to favor the derivatives. Second, we build on moral licensing arguments to suggest that bank appointment of CROs induced "organizational licensing," leading trading-desk managers to reduce policing of their own risky behavior. We further argue that CEOs and fund managers bolstered or restrained derivatives use depending on their financial interests. We predict that CEOs favored new derivatives when their compensation rewarded risk-taking, but that both CEOs and fund managers opposed new derivatives when they held large illiquid stakes in banks. We test these predictions using data on derivatives holdings of 157 large banks between 1995 and 2010.

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Managing Financial Risk and Its Interaction with Enterprise Risk Management

Cited by 3 publications

References 19 publications

The role of interactive style of use in improving risk management effectiveness

The role of interactive style of use in improving risk management effectiveness

Ecological Citizenship Through Education and Management

The Hazards of Expert Control: Chief Risk Officers and Risky Derivatives

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