A theoretical framework on the level of risk management implementation in the Nigerian banking sector: The moderating effect of top management support

Risk management has occupied an important place on the agenda of practitioners, academics and the business community and has been on the rise because it enhances organizational performance and creates value for shareholders.The main objective of this study is to examine the level of risk management implementation in the Nigerian banking sector.It will also determine the antecedents of risk management implementation.It will further investigate the moderating effect of top management support on the relationship between the antecedents and the level of risk management implementation.The research will adopt a quantitative approach using questionnaire.The need for more research on the level of risk management implementation in the banking sector has become imperative in view of the scarcity of research on risk management and the fact that risk management is still at its rudimentary stage in Nigeria

Enfoques contemporáneos en el Control Interno Empresarial

El propósito de este trabajo es presentar el papel del control interna en la vida contemporánea de una empresa. La ocupación del control interno desempeña un papel importante en la empresa, llevando el control en el campo financiero y todos los demás establecidos por la administración, salvaguardando los activos corporativos y garantizando la seguridad de registros precisos. Entre el control interno y la prosperidad de una empresa, existe un fuerte ví­nculo que conduce a incrementar el valor de la empresa y alcanzar sus objetivos. La pertinencia de los informes de control interno se da también adaptando su función a las expectativas cambiantes y su alineación con las polí­ticas de prevención del fraude, además de evaluar el riesgo y mejorar las estrategias de gestión

The Mediating Effect of Top Management Support on the Relationship between Organizational Culture and Enterprise Risk Management Effectiveness among Malaysian Public Listed Companies: A Conceptual Framework

Enterprise Risk Management (ERM) is believed as an effective risk management technique in managing risk within an organization and is fast becoming the best practice standard for an organization primarily for an entity that has high-risk exposure such as banking institutions. The purpose of this study is to develop the base knowledge and empirically test the relationship between organizational culture and ERM effectiveness. Also, an element of top management support also will be studied for determining the mediating effect of top management support on the relationship between organizational culture and ERM effectiveness. The data will be collected using a survey questionnaire and will be addressed to chief risk officers (CROs), chief internal auditors (CIAs) and chief financial officers (CFOs). This study tries to develop a conceptual framework by investigating the mediating effects of top management support on the relationship between organizational culture and ERM effectiveness among Malaysian public listed companies. Organizational culture expected to have direct effects and significantly influence ERM effectiveness. Also, top management support expected to mediates the relationship between organizational culture and ERM effectiveness. Keywords: enterprise risk management, organizational culture, top management support, effectiveness DOI: 10.7176/RJFA/10-2-1

Strategic Cooperation of Ukrainian Industrial Enterprises to Create Competitive Advantages in the World Market

Competitive advantages in the market can be accumulated both with the use of the mechanism of cooperation, and as a result of coordination in the interregional sphere. The relevance of the study is determined primarily by the fact that cooperation between organisations allows to increase competitiveness in the foreign market. However, this gives rise to a contradiction that determines that cooperation between companies is possible only if the conglomerate or certain entities own controlling shares. With that, companies should not only constitute holding structures, but primarily be co-operators in the production cycle. The novelty of the study is determined by the fact that strategic cooperation is proposed to be considered not only as a set of practical actions on the part of the state or regulatory structures, but also of consulting bodies. It is proposed to use the mechanisms of strategic cooperation based on mutual conditionality of interests and security of budgetary mechanisms that allow for practical activities. The authors also admit the possibility of the use of public-private partnership mechanisms. The practical significance of the study is determined by the fact that each of the participants in the organisation of strategic management of enterprises can use not only strategic, but financial and systemic interaction mechanisms to form

Capital Market Penalties and Corporate Violations of the Three Pillars (Operations, Reporting, and Compliance) after COSO 2013 Internal Controls: Integrated Framework

Current literature is somewhat unclear on how corporate violations under the new set of governance environments versed in the Internal Controls Integrated Framework issued by COSO (acronym of Committee of Sponsoring Organizations of the Treadway Commission) influence shareholders’ activism. Initially published in 1992, these guidelines faced a significant revision with proactive improvements in 2013. Since the first emission, this guidance has focused on providing safe-keeping basic standards for organizations to follow regarding the integrity of corporate governance and enterprise risk management by designing and implementing stable internal controls. The handbooks’ primary approach builds upon an environment of permanent improvement of self-regulatory governance in three main catalysts or pillars: (i) operational safety; (ii) financial statements reporting assurance; and (iii) regulatory compliance

A proposed framework of corporate governance and investment strategy impacts on occupational pension sustainability: the moderating effects of risk management

Recently, sustainability has emerged among major concerns in a broad range of fields.Comparatively, little research attention has been paid to sustainability of occupation pension (OP) scheme despite its significance on public finance. The widespread nature of pension reforms triggered by occupational pension crisis has led to privatization of management of pension funds among approaches of reforms. Grounded in institutional and agency theories, this paper proposes a theoretical framework of the influences of corporate governance and investment strategies on the sustainability of OP and the moderating role of risk management. The framework focuses on the Nigerian contributory pension scheme (CPS) which came into effect in 2004. Review of extant literature indicates that with good corporate governance and optimal investment strategies, the sustainability of Nigerian CPS would be enhanced. Furthermore, the moderating effects of risk management were established based on evidences from literature. The review has significant implication on the management of CPS not only in terms of the stewardship roles entrusted with privately firms (pension operators) managing the CPS fund, but also for the employees and other stakeholders to reap the benefits of well regulated CPS

Scaling operational risk management to leverage a firm’s value configuration and creation

Abstract: Operational risk management leverages a firm’s value configuration and creation. However, research on the scalability of operational risk management as a catalyser of value configuration and creation seems yet elusive in most of the contemporary management studies. To address such a gap, this research uses confirmatory factor analysis to test and validate the underpinning null hypothesis that operational risk management spawns value configuration and creation to spur a firm’s overall competitiveness and effective market performance. If strategically linked to the process of value configuration and creation, findings revealed it is during the consistent process of analysis, identification and mitigation of operational disruptions, errors and wastes that operational risk management enhances identification of new value drivers and the enrichment of the existing value drivers. Subsequently, all these were found to spur improved quality excellence, process efficiency and cost minimisation that in turn induce a firm’s improved competitiveness and its overall effective market performance. Basing on these findings, the study concludes with a framework that businesses can replicate when seeking to scale operational risk management to leverage the overall effectiveness of a firm’s value configuration and creation

The impact of digitalization on engagement in budgeting process

Magistritöö Majandusarvestuse ja finantsjuhtimise õppekavalEelarvestamist peetakse üheks olulisemaks juhtimise tööriistaks (Lidia 2014; Collier, Berry 2002), kuid varasemates uuringutes on eelarvestamist ka palju kritiseeritud seoses sellega, et eelarvete koostamine on keeruline, ajamahukas (Lidia 2014; Bergmann jt 2020) ning tuntakse vähest kaasatust selles protsessis (Rautiainen jt 2022). Bergmanni jt (2020) sõnul on eelarvestamise edu seotud eelarvete eest vastutavate töötajate rahuloluga, mistõttu tuleb leida viise, et kaasatust ja rahulolu suurendada. Kaasatuse suurendamisel võib abiks olla eelarvestamise digitaliseerimine. Eelnevast tulenevalt on magistritöö eesmärk välja selgitada, kuidas on digitaliseerimine mõjutanud kaasatust eelarvestamisel Eesti kohalikes omavalitsustes (KOVides). Eesmärgi täitmiseks viidi läbi küsitlus KOV finants- ja allasutuste juhtide seas, kes kasutavad eelarvestamisel VeeRa eelarverakendust. Küsitluses osales 92 eelarverakenduse kasutajat ning saadud vastuste analüüsimiseks kasutati statistilist analüüsimeetodit. Uurimuses osalenud peavad eelarvestamist oluliseks juhtimise tööriistaks leides, et see aitab kaasa tegevusteks vajalike ressursside planeerimisele ja kontrollimisele. Analüüsi tulemustest selgus, et digitaliseerimine on aidanud suurendada kaasatust tõstes rahulolu tööülesannete sooritamise ja teabe jagamisega eelarvestamise protsessis. Tööga rahulolu aspektist on digitaliseerimine aidanud muuta eelarvestamise protsessi mugavamaks ning kiiremaks ja võimaldanud andmeid lihtsamini töödelda, analüüsida ja jälgida. Teabe jagamise aspektist on digitaliseerimine aidanud infot kiiremini ja kergemalt jagada ning võimaldanud juhtidel saada rohkem infot paremate otsuste tegemiseks.Budgeting is considered to be one of the most important management tool (Lidia 2014; Collier, Berry 2002), but in previous studies, budgeting has also been criticized for the complexity and time-consuming nature of the budgeting process (Lidia 2014; Bergmann jt 2020), as well as the limited engagement of those involved (Rautiainen jt 2022). According to Bergmann et al. (2020), the success of budgeting is linked to the satisfaction of the employees responsible for the budgets, so it is necessary to find ways to increase engagement and satisfaction. Digitalization of budgeting can be helpful to increase engagement. The aim of the master’s thesis is to find out how digitalization has impacted engagement in budgeting in Estonian local governments. To achieve this goal, a survey was conducted among financial and subunit managers in local governments who use the VeeRa budgeting software. 92 budgeting software users participated in the survey and statistical analysis method was used to analyze the results obtained. The participants in the study consider budgeting an important management tool. The analysis results showed that digitalization has helped to increase engagement by increasing satisfaction with task performance and information sharing in the budgeting process. From the perspective of job satisfaction, digitalization has made the budgeting process more convenient and faster, and has enabled data to be processed, analyzed, and tracked more easily. From the perspective of information sharing, digitalization has helped to share information more quickly and easily, and has allowed managers to obtain more information for better decision-making

The uncertainties of risk management - A field study on risk management internal audit practices in a Finnish municipality

Purpose: The paper analyses the implementation of risk management as a tool for internal audit activities, focusing on unexpected effects or uncertainties generated during its application. &nbsp;Design/methodology/approach: Public and confidential documents as well as semi-structured interviews are analysed through the lens of Actor-Network Theory to identify the effects of risk management devices in a Finnish municipality. &nbsp;Findings: We found that risk management, rather than reducing uncertainty, itself created unexpected uncertainties that would otherwise not have emerged. These include uncertainties relating to legal aspects of risk management solutions, in particular the issue concerning which types of document are considered legally valid; uncertainties relating to the definition and operationalisation of risk management; and uncertainties relating to the resources available for expanding risk management. More generally, such uncertainties relate to the professional identities and responsibilities of operational managers as defined by the framing devices. &nbsp;Research limitations/implications: Risks do not &ldquo;exist&rdquo; before they are a fact that can be clearly witnessed and agreed upon by most parties; until then they are just a construction, a set of beliefs, which might or might not ever become a fact. Risk management is supposed to reduce uncertainty by following procedures dictated by the framing. However, that very framing generates overflowing and thus emphasises the debated and more or less controversial nature of the manner in which we calculate risks. &nbsp;Practical implications: Based on the study, we encourage COSO spokespersons, auditors and others involved to engage more thoroughly in the debate concerning whether risk management is, for instance, too bureaucratic and time consuming for operational managers and other organisational actors. &nbsp;Originality/value: The paper offers three contributions to the extant literature: first, it shows how risk management itself produces uncertainties. Secondly, it shows how internal auditors can assume a central role in the risk management system. Thirdly, it develops Callon&rsquo;s framing/overflowing framework with the notion that multiple frames are linked and create unexpected dynamics, and applies it to the study on the effects of risk management tools in an internal audit context. It shows how, despite recurring attempts to refine risk management, further uncertainties are continuously produced, thus providing an empirical illustration of how reframing and overflowing intertwine in a continual process.</p