Construction projects have several characteristics including: defined scope, predefined timeline, defined budget and specific quality requirements. Therefore, investment in construction projects is a tough decision to be made. Especially when we know that construction projects involve risk complicated issues, which will influence project objectives. Risk management is an integral part of the construction management process. The overall objective of this study is to understand the depth to which risk management is applied in construction projects in Jordan and identify the barriers and challenges that may hinder the risk management process. The study will also highlight the benefits of applying risk management and how construction companies can improve their risk management process by adopting set of best practices. This study is based on findings from a questionnaire-based survey on risk management application to construction projects in Jordan
Risk Management, Risk Concentration and the Performance of Deposit Money Banks in Nigeria (Published)
This study investigated the effect of risk management and risk concentration on the performance of Deposit Money banks in Nigeria for the period 1997 to 2016. The study adopted credit risk, liquidity risk and capital adequacy risk as proxies for risk management/concentration, and return on assets as the measure for performance of Deposit Money banks. Secondary data was collected from the annual financial statements of listed banks and the Nigerian Stock Exchange fact book. The study employed multiple regression technique based on the E-views 7 software for analysis of data. The results of the analysis indicated that credit risk and liquidity risk had positive and significant effect on return on asset, while capital adequacy risk had negative and insignificant effect on return on asset. The study concluded that risk management/concentration affected the performance of banks in Nigeria. Based on the findings, the study recommended that the management of banks should establish sound lending policies, adequate credit administration procedure, and effective and efficient machinery to monitor the lending function in line with established guidelines. Also, the character and financial statement of the borrower must be properly scrutinized and a careful evaluation of the customer’s credit worthiness be carried out before extending loan facilities to potential borrowers.
Literature Review Supporting Development of a Resilience-Oriented Supplier Segmentation Method (Published)
Supply chain exposure to major disruptions has increased following trends of globalization, reduced inventory, and increased reliance on strong relationships with fewer suppliers. Many management strategies for increasing resilience are discussed in literature, but these often require trade-offs in other performance areas, such as cost. A structured method is needed to ensure selection of the best strategy for any given sourcing scenario. Supplier segmentation is a method that has been used to identify appropriate procurement strategies for groups of suppliers with similar needs. However, existing segmentation methods have not focused on the goal of choosing strategies that support increased supply chain resilience. Through systematic literature review, this work identifies and categorizes a set of management strategies and supply chain characteristics that can increase resilience. By identifying factors to enable resilience and relating them to existing dimensions of supplier segmentation, this research introduces an approach to supplier segmentation for increased resilience.
Corporate Board Size, Risk Management and Financial Performance of Listed Deposit Money Banks in Nigeria (Published)
This study examined the effect of corporate board size, risk management on financial performance of listed deposit money banks in Nigeria for the period of 2011-2016. The population of the study is fifteen (15) listed deposit money banks in Nigeria out of which a sample of fourteen (14) were used for the study due to the accessibility and availability of data. Corporate board size and risk management as the independent variable was proxy with numbers of board of directors, liquidity risk, credit risk and operating risk, while the return on equity(ROE) and earnings per share (EPS) were used to proxy financial performance. Data were collected from secondary source through the annual report and account of the banks for the period under study and the data was analysed using multiple panel regression techniques. The findings reveal that board size, credit risk and operating risk are significant negative effect on return on equity (ROE) and earnings per share (EPS) respectively. The study also shows that liquidity risk is negative and insignificant effect on ROE and EPS of the study banks in Nigeria. It is recommended among others that the banks should regulate their risk management practices and ensure they minimize the non-performing loan as it has been found empirically to reduce the quality of the firm’s financial performance. They should also reduce their operational cost for better performance
Determinants Affecting the Effectiveness of Risk Management of Commercial Banks in Dong Nai Province (Published)
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals. The objectives of this study are to identify the factors that affecting the effectiveness of risk management of commercial banks in Dong Nai province. The data analysis for this study is a quantitative type. Moreover, the results provided an insight of the effectiveness of risk management from 350 customers related to commercial banks in Dong Nai province. The regression analysis result showed that there were five factors that included of factors following the procedure (Pr), the communication (Co), the technology (Te), the Human Resource development (Hr) and the organization structure (Or) affecting the effectiveness of risk management of commercial banks in Dong Nai province with significance level of five percent. In addition, the study results showed that there were 350 customers who interviewed and answered about 29 questions. The Data collected from November 2016 to April 2017. This study had been analyzed Cronbach’s Alpha, KMO testing and the result of KMO testing used for the research method of the regression. Customers’ responses measured through an adapted questionnaire on a 5-point Likert scale following; conventions: 1: Completely disagree, 2: Disagree, 3: Normal; 4: Agree; 5: completely agree. Hard copy and online questionnaire distributed among 50.500 customers of the commercial banks.
Reliability Analysis of Determinants Affecting the Effectiveness of Risk Management of Commercial Banks in Dong Nai Province (Published)
Commercial Banks have always played an important position in the country’s economy. They play a decisive role in the development of the industry and trade. They are acting not only as the custodian of the wealth of the country but also as resources of the country, which are necessary for the economic development of a nation. Besides, risk management is the main cause of uncertainty in any commercial banks. Thus, commercial banks increasingly focus more on identifying risks and managing them before they even affect the business. The ability to manage risk will help commercial banks act more confidently on future business decisions. Their knowledge of the risks they are facing will give them various options on how to deal with potential problems. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals. The objectives of this study are to reliability analysis of the factors of the effectiveness of risk management of commercial banks in Dong Nai province. The data analysis for this study is a quantitative type. Moreover, the results provided an insight of the effectiveness of risk management from 350 customers related to commercial banks in Dong Nai province. In addition, the study results showed that there were 350 customers who interviewed and answered about 29 questions. The Data collected from November 2016 to April 2017. This study had been analyzed Cronbach’s Alpha testing. Customers’ responses measured through an adapted questionnaire on a 5-point Likert scale following; conventions: 1: Completely disagree, 2: Disagree, 3: Normal; 4: Agree; 5: completely agree. Hard copy and online questionnaire distributed among 50.500 customers of the commercial banks.
Risk Management Best Practices and Challenges Encountered In Implementing the Risk Reduction Strategies in Industries (Published)
The need to ‘mainstream’ disaster risk reduction into development is a call to address risks emanating from natural hazards. This, states Benson and Twigg in their guidance notes for use by development organizations, on tools for mainstreaming disaster risk reduction; is evidence of the challenging situation. This paper is an exploration of best practices that can be undertaken by industries to reduce risks. The paper also discusses some of the challenges encountered in implementing risk reduction strategies. The authors thus conducted a study in Eldoret Municipality in the Rift Valley region of Kenya. Purposive sampling was used to select the industries and simple random sampling to select the study units which included Managerial staff and operational workers as well as labor officers in the Ministry of labor (Public Health Officers), fire brigade officers, Kenya National Environment Management Authority (KNEMA) and the Kenya Red Cross Society (KRCS) Regional officials. Interviews and questionnaires were used for data collection. Data was then analyzed using descriptive statistics. Hazard identification, risk assessment, control and monitoring while bottom-up communication and consultation model provided an important best practice for risk reduction. This study will help employers develop emergency response plans for risk reduction.
Identification and Assessment of Key Risk Factors Affecting Public Construction Projects in Nigeria: Stakeholders Perspectives (Published)
Managing risks in construction projects has been recognized as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. However, until now most research have focused on some aspects of construction risk management rather than using a systematic and holistic approach to identify risks and analyze the likelihood of occurrence, its impacts on stakeholders and determine relative significance index score for each factor identified. This paper aims to identify and assess the key risk factors affecting public construction project delivery from project stakeholder perspectives. The research strategy was a sequential mixed- method approach. It was adopted by means of interview surveys (qualitative approach) followed by a questionnaire (Quantitative approach). Data collection was done through a questionnaire survey self-administered on 40 randomly selected construction industry participants. Out of the 40 questionnaires administered, 33responses fit for analysis were received representing 82.5%. Data were analyzed with the use of parametric and non-parametric statistics. Forty one risk factors were classified into five categories based on their source: Construction, Political, Financial and Economic, design related and environmental risks. The study reveals that these risk factors spread through the whole project life cycle and many risks occur at more than one phase, with the construction stage with risky phase. On the risk categories level all the stakeholders agreed on the finance category as the main factor threatening project completion, and the external category as having the least impact. Furthermore, clients and consultants held different perception on the impact of design category. It is concluded that clients, builders and government bodies must work cooperatively from the feasibility stage onwards to address potential risk in time, and contractors and subcontractors with robust construction and management knowledge must be employed early to make sound preparation for delivery out efficient and quality construction program.
Studying the Role of Corporate Governance in the Development of Risk Management in Commercial Banks Listed At Amman Stock Exchange (Field Study) (Published)
The study aimed to identify the role of corporate governance in the development of risk management in commercial banks listed at Amman Stock Exchange (ASE). To achieve this goal, the researcher relied adopted an analytical descriptive approach in her study to be convenient to the study nature. A questionnaire has designed as a tool to collect data. It distributed to a sample survey of the members of the committee’s corporate governance, audit committees and risk management commissions in these banks. The questionnaires have statistically analyzed using Statistical Package for Social Sciences (SPSS). The most important findings of the study that the presence of the role of corporate governance committees resulting from the Board of Directors in development of risk management in banks listed at ASE. This role was in uneven degree, between medium and high. In addition, the role of audit committees is the most development in the risk management, followed by risk management committees, and finally to corporate governance committees. The study concluded a set of recommendations including: It is necessary to activate the role of committees in the exercise of its work in development of risk management in commercial banks listed at ASE. The sub-committees should constituted of the board of directors in accordance with corporate governance, which includes financially and accounting experienced members. Finally, the financial experience should not limited to a specific number of members
THE ADOPTION OF RISK BASED INTERNAL AUDITING IN DEVELOPING COUNTRIES: THE CASE OF GHANAIAN COMPANIES (Published)
The study investigated the adoption of Risk Based Internal Audit in Ghana, the factors that influence the adoption or non adoption of Risk Based Internal Audit amongst Ghanaian Companies. The involvement of internal auditors in risk assessment was also assessed in the context of Enterprise Risk Management. The study employed Pearson’s chi-square test of independence model at a p-value of 0.05. It was observed that risk based approach to internal auditing is widely used amongst Ghana’s Club 100 companies, especially amongst financial, Telecommunications, and Manufacturing companies. The study again found out that, there is high involvement of IA in risk management which translated to the use of risk based approaches in planning annual audits. Regulation the study observed is not a driver of adoption of RBIA in Ghana. The main factor that motivated the adoption of RBIA was, RBIA helped these organizations to focus on high risks priority areas
Financial crisis that emerged in the international markets and accounting abuses as Enron, Worldcom in the U.S.A. that brought out the need of detection of the risks that organisations will encounter in the future and the management of these risks. Organisations to use risk management as an auxiliary tool in order to reach the stated targets raised management’ expectation about adding value of internal auditing. Risk based internal auditing which is the present latest stage of internal auditing and which brings to create achievement that having expected from internal auditing place the retrospective point of view the conventional control mentality on one side and had focused on risks that organisations will encounter. As to achieve succeess in the risk based internal auditing is possible with an effective risk assessment studies performed within this period. Risk findings obtained as a result of risk assessment studies constitute an important support to internal auditors at the stage designing of plannimg. In this study, risk based internal auditing which constitutes of today’s internal auditing mentality is tried to explained and risk assessment studies which are this process’ the most important stage has been considered within the scope of internal auditing units performed studies.
Information Technology Governance Control Level in Jordanian Banks Using: Control Objectives for Information and Related Technology (COBIT 5) (Review Completed - Accepted)
Information technology is considered a sensitive part for most strategies in the global market competition. There are plenty of factors indicating expansion in the world of information technology, the matter that places greater demands on the control of the environment for information technology and augments the need to mitigate risk and cost control related to the IT environment information. Hence, the importance of emphasizing the horizons of information, and the existence of effective controls on the IT environment should be designed for information technology services used by several parties, managers, auditors and owners.
This should facilitate controls and offer the opportunity to re – engineer the applications of the existing regulatory environment, which requires a comprehensive review and redesign of the regulatory controls.
To respond to any changes in the business environment, executives must ensure that information technology works with the greatest possible efficiency to help achieve goals and objectives. Growing competitive advantage, ensuring compliance and continuity, security and privacy are essential in order to achieve effective management for Information Technology related risks as well as maximal benefits in technology investment.
COMPARATIVE ANALYSIS OF SOME DISTRIBUTIONS ON THE CAPITAL REQUIREMENT DATA FOR THE INSURANCE COMPANY (Published)
: In this work, we review the equitable transfer of the risk of a loss in insurance company by preparing a mitigating plan for risks that are chosen to be mitigated and the purpose of the mitigation is to describe how this risk will be handled to hedge against a contingent or uncertain loss. Here we examine their implications on capital requirements in insurance company a risk measurement go hand-in-hand with setting of capital requirements minima by companies as well as regulators but a special attention is given to some risk distributions as well as commendations on the case of a capital requirements in insurance industry using the distributions.
Corporate Governance and Its Role in Mitigating Risks in Stock Brokerage Firms in Nairobi, Kenya (Review Completed - Accepted)
The success or failure of any organization rests on its leadership. In the 21st century, corporate governance is becoming a matter of enormous public attention and concern. With regard to policy and regulatory changes that have taken place in the stock market in Kenya, more emphasis has been put on the need to improve corporate governance and strategic leadership practices of stock brokerage firms.The study adopted a descriptive design. A sample size of 64 managers from finance and operations departments was selected randomly in each organization involved in this study. Primary data was collected using questionnaires and analyzed using mean, standard deviation and coefficient of variation. The major findings were that all the brokerage firms have boards of directors. However, majority of board members did not have adequate skills, knowledge or experience in strategic leadership, stock brokerage finance and risk management.
The study concluded that corporate governance and strategic leadership practices were not being applied optimally to mitigate risks in the firms under study. This explained why several companies in the stock market had either collapsed or were experiencing financial distress
Comparative analyses of Strategic Financial Management Practices in Faith-based and Community-interest organizations (Review Completed - Accepted)
Non-profit organizations render certain services not provided by business or public sectors such as skills development, employment creation and fostering of pathways for social inclusion. In spite of their generally-acknowledged significant contribution to the society, researches on the management of their finance are not much. This research therefore advances the frontiers of knowledge by comparatively analysing the financial management practices of two non-profit organizations––a faith-based and a community-interest organization. The research adopted a field-based approach by evaluating the financial management practices of study organizations using methods such as interviews, study of documents, artefacts and published annual reports. The research found out that though the two organizations are fully aware of the risks involved in the management of finance, different strategies are adopted to mitigate the risks. Though not established for commercial purposes, Non-Profit organizations are encouraged to embark on cost control and reduction to justify their funding by financiers.
The resolution of the controversy surrounding which insurance risk management factors account for the growth of capital formation in developing countries is still a research burden. Some theories as well as empirical studies have attempted to identify insurance claims payment as a major driver of gross fixed capital formation through the channel of indemnification among others. This study is an attempt at investigating the relationship between insurance risk management through the window of claims payment and Gross Fixed Capital formation drawing empirical evidence from Nigeria. The study employed the ordinary least square, Johansen co-integration, Granger causality, impulse response and variance decomposition procedures on annual rate of change in Nigerian, using data from 1980 through 2011. The results indicate that claims paid on Accident, Fire, Motor vehicle and employers’ liability insurance policies affects growth in Gross Fixed Capital formation in the short run. It was found that unidirectional causality flow exists from Gross Fixed Capital Formation to claims paid on Fire and Marine insurance policies. This implies that growth in the acquisition of new productive capital stocks could trigger up insurance patronage especially in fire and marine insurance. The variance decomposition analysis of Gross Fixed Capital Formation to innovations emanating from claims paid on fire and motor vehicle insurance policies exhibit positive and consistent expansionary effects over the ten-years forecast period into the future; thus, as insurance claims payment increase, the tendency of indemnification pressures drive the economy to increase its capital formation in general terms.