-
A Case of Risk Management Control and Its Study in Non-Financial Risks
Lucy Brandan Betancur,
Rafael Paredes Carrasco,
David Henriquez Ramos,
Jessica Ramirez Ramirez
Issue:
Volume 8, Issue 2, June 2023
Pages:
31-42
Received:
2 February 2023
Accepted:
7 March 2023
Published:
17 May 2023
Abstract: The objective of the research work was to establish the context of non-financial risks in the company Brad of Wales, and it is recommended that they be managed as soon as possible, considering the low level of maturity of this international company. The applied paradigm was qualitative, the research method was descriptive, and the research tools were case studies. It was able to be carried out due to the adversities suffered in the company studied due to the pandemic and that generated risks that must be managed, adding to this new risks such as climate change, sustainability and social responsibility of the entity. Among the most important findings of this work, it was detected through an internal control survey with a focus on risks; a low level of maturity, explained by low risk assessment. In addition, the compliance risk showed a high level of criticality because basic risk management standards for any organization are not being considered by the regional corporate governance. And, therefore, a great opportunity was evidenced, not only at the local level, but also at the corporate level, for the application of the best practices around corporate risk management.
Abstract: The objective of the research work was to establish the context of non-financial risks in the company Brad of Wales, and it is recommended that they be managed as soon as possible, considering the low level of maturity of this international company. The applied paradigm was qualitative, the research method was descriptive, and the research tools we...
Show More
-
Risk Prioritizing Method at the Stage of Qualitative Risk Analysis in the Process of Project Implementation
Issue:
Volume 8, Issue 2, June 2023
Pages:
43-48
Received:
27 December 2022
Accepted:
26 April 2023
Published:
29 May 2023
Abstract: Current trends in project management include risk management in the process of project implementation. After identifying the risks of the project, the task arises to identify the most dangerous risks for the project out of all numerous risks, in order to subsequently take planned actions to avoid them or reduce their impact. This objective – the task of prioritizing (ranking) risks – is reached at the stage of qualitative risk analysis. As a rule, the danger (importance) of risks is determined by the risk magnitude, which depends on the occurrence probability of a risky event and the impact of risk on the main target parameters of the project. However, due to the peculiarities of the methods of determining the amount of risk at the stage of qualitative analysis, the problems of prioritizing several risks having an equal amount of risk often arise. Moreover, there are no rules or recommendations on how to practically act in such cases and prioritization is carried out with a high degree of subjectivity. Therefore, the purpose of this study is to propose a new risk prioritization method that project teams could practically use at the stage of qualitative risk analysis in these cases. This improvement in qualitative risk analysis methods will expand the ability of project participants to manage risks, reduce subjectivity in decision-making and, accordingly, improve the quality of project implementation. To do this a risk prioritization method based on the use of the analytical hierarchy procedure proposed by T. Saaty is suggested. This method consists in decomposition of the problem to be solved – obtaining hierarchies, and synthesis based on either quantitative estimates or relative judgments. Additional parameters (criteria) are considered for implementation of this method that characterize the compared risks, as well as the value coefficients of these criteria in the overall assessment. Based on the estimates obtained for each criterion and each risk, an overall score is calculated taking into account certain weighting factors of the criteria for each risk. As a result, according to the estimates obtained, risks are prioritized. The use of such a procedure enables reaching a reasonable decision, obtained not by means of simple conclusions, but on the basis of comparative assessments of each risk. This, accordingly, reduces subjectivity of risk prioritization. The proposed method is described in detail in the article and can be used in real projects.
Abstract: Current trends in project management include risk management in the process of project implementation. After identifying the risks of the project, the task arises to identify the most dangerous risks for the project out of all numerous risks, in order to subsequently take planned actions to avoid them or reduce their impact. This objective – the ta...
Show More
-
Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town
Hussen Abdulkadir Roba,
Habtamu Alebachew Legass,
Semira Jemal
Issue:
Volume 8, Issue 2, June 2023
Pages:
49-56
Received:
13 May 2023
Accepted:
12 June 2023
Published:
27 June 2023
Abstract: The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit effectiveness. As the main aim of this study was to investigate factors affecting internal audit effectiveness of commercial banks of Ethiopia, Explanatory study would be used to show the causal relationship between variables due to explanatory type of research is used to explain, understand and predict the relationship between variables through statistical tests such as regression A sample size of 139 was determined from the total population 160 using Yamane's (1967) formula and the questionnaires were distributed to the selected samples by random sampling method and judgmental or purposive Sampling method. The primary and secondary sources of data were used to collect the necessary data. The collected data was analyzed using both descriptive and inferential statistics through EViews software. The study found a significant positive relationship between information technology usage, competency of internal auditors, top management support and cooperation between internal & external auditors with internal audit effectiveness while independency of internal auditor was found to be statistically insignificant. Finally, the study recommended that, internal audit staffs should have sufficient knowledge of key IT audit tools and maintain good or smooth relationship with external auditors, top management should give enough support and training in developing internal audit staffs.
Abstract: The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit eff...
Show More
