Operational Risk Management using a Fuzzy Logic Inference System

Operational Risk (OR) results from endogenous and exogenous risk factors, as diverse and complex to assess as human resources and technology, which may not be properly measured using traditional quantitative approaches. Engineering has faced the same challenges when designing practical solutions to complex multifactor and non-linear systems where human reasoning, expert knowledge or imprecise information are valuable inputs. One of the solutions provided by engineering is a Fuzzy Logic Inference System (FLIS). Despite the goal of the FLIS model for OR is its assessment, it is not an end in itself. The choice of a FLIS results in a convenient and sound use of qualitative and quantitative inputs, capable of effectively articulating risk management's identification, assessment, monitoring and mitigation stages. Different from traditional approaches, the proposed model allows evaluating mitigation efforts ex-ante, thus avoiding concealed OR sources from system complexity build-up and optimizing risk management resources. Furthermore, because the model contrasts effective with expected OR data, it is able to constantly validate its outcome, recognize environment shifts and issue warning signals.Operational Risk, Fuzzy Logic, Risk Management Classification JEL:G32, C63, D80

Human Factor’s Involvement in the Consumer Protection Management

The study emphasizes the results of the excellence research dedicated to theoretical and practical basics for the human factor involvement in the consumer protection management between 2008 – 2009 at the level of National Authority for Consumer Protection, the Region Committee for Consumer Protection Sibiu, and the Brasov County Committee for Consumer Protection. The article presents several elements regarding consumer protection management and the manager’s profession in the consumer protection field. In order to reflect the human factor’s degree of involvement in the consumer protection management we carried out a survey at the level of National Authority for Consumer Protection (NACP). The findings of our study imply that consumer protection and its management represent a new step of human civilization, a better quality life style, implying the intensive use of information from various fields, involving the human factor not only as a producer, but also as a consumer, with a great economic and social impact. Under these circumstances, consumer protection management at the level of NACP and its local institutions is an important source of information and decision; this is not only as a way of data processing. Moreover, in order to be socially efficient visible it is necessary to imply operational and top management in fields of planning-decision, organization-coordination, training-leading and controlling-monitoring, all of them being in a special position of priority. All these allowed us to present some solutions for improving the activity of NACP, from the point of view of the human factor’s involvement in this institution’s management.consumer protection, human factor, consumer protection management, manager in the field of consumer protection, NACP

"A manager in the minds of doctors" : a comparison of new modes of control in European hospitals

Background: Hospital governance increasingly combines management and professional self-governance. This article maps the new emergent modes of control in a comparative perspective and aims to better understand the relationship between medicine and management as hybrid and context-dependent. Theoretically, we critically review approaches into the managerialism-professionalism relationship; methodologically, we expand cross-country comparison towards the meso-level of organisations; and empirically, the focus is on processes and actors in a range of European hospitals. Methods: The research is explorative and was carried out as part of the FP7 COST action IS0903 Medicine and Management, Working Group 2. Comprising seven European countries, the focus is on doctors and public hospitals. We use a comparative case study design that primarily draws on expert information and document analysis as well as other secondary sources. Results: The findings reveal that managerial control is not simply an external force but increasingly integrated in medical professionalism. These processes of change are relevant in all countries but shaped by organisational settings, and therefore create different patterns of control: (1) ‘integrated’ control with high levels of coordination and coherent patterns for cost and quality controls; (2) ‘partly integrated’ control with diversity of coordination on hospital and department level and between cost and quality controls; and (3) ‘fragmented’ control with limited coordination and gaps between quality control more strongly dominated by medicine, and cost control by management. Conclusions: Our comparison highlights how organisations matter and brings the crucial relevance of ‘coordination’ of medicine and management across the levels (hospital/department) and the substance (cost/quality-safety) of control into perspective. Consequently, coordination may serve as a taxonomy of emergent modes of control, thus bringing new directions for cost-efficient and quality-effective hospital governance into perspective

Index to Library Trends Volume 38

published or submitted for publicatio

What lies beneath? The role of informal and hidden networks in the management of crises

Crisis management research traditionally focuses on the role of formal communication networks in the escalation and management of organisational crises. Here, we consider instead informal and unobservable networks. The paper explores how hidden informal exchanges can impact upon organisational decision-making and performance, particularly around inter-agency working, as knowledge distributed across organisations and shared between organisations is often shared through informal means and not captured effectively through the formal decision-making processes. Early warnings and weak signals about potential risks and crises are therefore often missed. We consider the implications of these dynamics in terms of crisis avoidance and crisis management

The state of strategic human resource measurement in Spanish banks

The new strategic role of Human Resource (HR) management that many academics and practitioners have been calling for requires that HR systems not only achieve operational excellence in performing their traditional activities but that they also contribute to developing the strategic capabilities needed by the organization to maintain its competitive advantage. This new orientation has important implications for the evaluation of an organization's HR system. Traditional measures of the HR function tend to focus on internal efficiency. In order to determine the success of an HR system in achieving its new role as strategic partner, the strategic impact of HR practices must be evaluated. This requires measuring the contribution of the HR system toward building organizational capabilities, including employee skills, behaviors and attitudes, and the impact that changes at this level have on organizational results. This study presents a strategic HR measurement framework and investigates the current state of HR measurement in five large Spanish banks

Management Control Systems and Contextual Variables in the Hospitality Industry

Purpose – The paper examined management control systems (MCS) in Indonesian hospitality sector. This study examines the impact of six contextual factors at one time to determine the importance of each factor on the design of MCS. Design/methodology/approach – The paper is based upon data collected through a survey sent to “star” hotels in Central Java, Indonesia. Using Chenhall (2003) design, a regression equation is run to examine the relationship between MCS and the contextual variables of environment, technology, structure, size, strategy and culture. Findings – The paper finds that higher levels of the contextual variables of technology, structure, and culture are related to more sophisticated MCS while size is related to more traditional MCS. Research limitations/implications –These findings are related to the hospitality industry in Indonesia. Future research could examine different settings (i.e. country, industry, etc) and investigate the effect of each contextual variable on the relationships between MCS and firm performance. Originality/value – The present study extends the scope of MCS system in accounting literature by testing Chenhall (2003) works on the relationship between contextual variables and MCS. It attempts to fill the gap in contingency-based studies that have previously focused on one aspect of contingency by considering six contextual factors. Furthermore, this paper also contributes to a fuller understanding of MCS practices in Indonesia and the hospitality industry and helps management in determining its most effective design. Keywords Hospitality management, Management Control Systems, Indonesia, Contextual Variable

Critical success factors for preventing E-banking fraud

E-Banking fraud is an issue being experienced globally and is continuing to prove costly to both banks and customers. Frauds in e-banking services occur as a result of various compromises in security ranging from weak authentication systems to insufficient internal controls. Lack of research in this area is problematic for practitioners so there is need to conduct research to help improve security and prevent stakeholders from losing confidence in the system. The purpose of this paper is to understand factors that could be critical in strengthening fraud prevention systems in electronic banking. The paper reviews relevant literatures to help identify potential critical success factors of frauds prevention in e-banking. Our findings show that beyond technology, there are other factors that need to be considered such as internal controls, customer education and staff education etc. These findings will help assist banks and regulators with information on specific areas that should be addressed to build on their existing fraud prevention systems

E-Commerce Audit Judgment Expertise: Does Expertise in System Change Management and Information Technology Auditing Mediate E-Commerce Audit Judgment Expertise?

A global survey of 203 E-commerce auditors was conducted to investigate the perceptions about the potential determinants of expertise in E-commerce audits. We hypothesize and find evidence indicating that information technology and communication expertise are positively related to expertise in E-commerce audit judgment. We also find that system change management expertise and information technology audit expertise mediate this relationship.E-commerce Audit Judgment, IT Audit, Structural Equations Modeling

Capturing the competence of management consulting work

Purpose: The purpose of this article is to assess whether the effort of consulting firms and branch organizations to establish a shared and standardized methodology as a means to professionalize consulting and as a standard for training is possible and sensible. - \ud \ud Design/methodology/approach: A survey was conducted among Dutch management consultants, which explored their ways of working and their ways of learning. - \ud \ud Findings: The study shows that efforts to develop a shared and standardized phase-model methodology do not seem to be effective. Instead of following phase-models, consultants appear to be improvising bricoleurs, tailoring their ways of working to specific situations, and using broad, heterogeneous and partly implicit repertoires, which are built through mainly through action-learning. This requires another kind of methodology and another kind of training. - \ud \ud Research limitations/implications: The article gives a general direction for the development of a consulting methodology and the education of consultants. Further research on consulting practices and repertoires is necessary to explore this direction. - \ud \ud Practical implications: The paper concludes that the value of phase-models as a standard is limited. Therefore, branch organizations, consulting firms and corporate universities should not focus their professionalization and training activities on these standardized methods. - \ud \ud Originality/value: Little work has been done yet on the relation between professionalization, methods, and training in management consulting, and no earlier publication has studied this topic quantitatively