Risk Governance: Basic Rationale and Tentative Findings from the German Banking Sector

Corporate board, assurance and sustainability reporting practices: a focus on selected African countries

“…Thus, we accept the first hypothesis ( H1 ). The outcome is in line with earlier research on sustainability disclosure literature (Chau and Gray, 2010; Stein and Wiedemann, 2018). This demonstrates how a strong board can enhance the quality of disclosures.…”

“…Hence, we accept the second hypothesis (H2). While most studies (Stein and Wiedemann, 2018;Olayinka et al, 2019) hold that an independent board has a beneficial impact on company disclosures, the conclusion is consistent with studies of García-S anchez et al (2022). The study of García-S anchez et al (2022) opine that robust presence of independent outside directors is able to reduce agency conflicts, by intensifying monitoring of managers on their social and environmental strategic policy and investment, which can have a positive effect on firms' sustainability performance.…”

Regulatory Stress Tests and Bank Responses

“…Another important issue which is indirectly derived from our analysis is that the "bottom-up" approach of microprudential stress testing let the riskiness of assets be determined on the basis of the bank's internal risk models, which raises the importance of the elaborated and aligned risk model landscape. Clearly, it places an important role for the supervision of model landscape and risk governance within organizations (Stein and Wiedemann, 2018) to avoid the situation of "institutionalizing" model risk (Kupiec, 2019;Witzany, 2017b) and materially underestimate the vulnerability of banks to adverse circumstances (European Central Bank, 2019).…”

Guest editorial

“…However, such research remains at an early stage. In particular, while some important theoretical framing of risk governance has been performed (Cohen, 2015;Stein and Wiedemann, 2016), further conceptual work is needed and empirical research on risk governance is scant so far (but see some exceptions such as Aebi et al, 2012;Agarwal and Kallapur, 2018;Lundqvist, 2015;Mongiardino and Plath, 2010;Stein and Wiedemann, 2018). Owing to this dearth of the literature, the present special issue of the management research review aims to shed more light on framing and empirically examining risk governance.…”

“…She operationalizes risk governance with a series of questionnaire items and archival measures, and notes that her risk governance questionnaire items "are the typical characteristics of ERM addressing the organizational and holistic nature of risk management as ERM prescribes." Alternatively, Stein and Wiedemann (2018) suggest a measurement of risk governance based on their risk governance framework (Stein and Wiedemann, 2016). In contrast to Lundqvist (2015), their empirical approach to studying risk governance is not clearly related to ERM but involves specifically related constructs such as risk culture and the design of risk models.…”