Risk Management

The current study contributes to our body of knowledge by evaluating for the first time how a leader’s personality affects risk for small and medium-sized enterprises (SMEs) in Vietnam. According to the findings, managers with a strong aptitude for innovation are more likely to lower business risk by boosting labor productivity and revenue, enhancing inter-firm communication, and lowering stakeholder risks, such as corruption. In contrast to the influence of a manager with a risk-taking attitude, a leader’s external locus of control is inversely related to firm risk. The results show that training owners and managers in business skills can help human resource professionals create the best environment for leadership behaviors that improve firm performance and lower risk in SMEs.

Unfortunately, an incorrect grant number has been published. Please find the correct grant number here: [University of Economics, Prague] under Grant [IGA F4/66/2019]

Precautionary avoidance of catastrophic risks based on the minimax'ing of potential loss can lead to dilemmas of the “doomed if we do, doomed if we don't” variety. Preaction in the form of sensible alternatives assessment can help eliminate these dilemmas. We suggest here that backcasting, a type of scenario analysis, provides a framework for effective, goal-oriented alternatives assessment.

This paper evaluates the effect of recapitalisation on technical efficiency and risk of life and non-life insurers in Ghana. The study uses balanced panel data for 14 life and 17 non-life insurers from 2008 to 2019. Technical efficiency is computed using Data Envelopment Analysis. A generalised least square estimation technique is used to determine the relationship between recapitalisation and technical efficiency and between recapitalisation and insurers’ risk. The empirical results show that recapitalisation has a significant positive effect on technical efficiency and a significant negative effect on the insurer’s risk. The findings also suggest that recapitalisation significantly mitigates risks and improves efficiency. The findings further provide insight into technical efficiency, regulation, and risk of insurance companies in Ghana.

The fundamental thesis of this paper is that no matter how much physical science and technology are involved in complex systems, no system is ever purely or solely physical or technical. Certainly no system of which we are aware is purely scientific or technical in its operation or management. Furthermore, while research on and the modeling of complex systems usually rely heavily on the consideration of technological variables and processes, they typically fail to consider the contributions of individual psychological, organizational and contextual factors. This paper argues that we need models that avoid committing errors of the third kind, solving the wrong problem precisely. The paper sets out a mechanism for developing models that include contextual as well as technological variables.