Strategic risk management

Andersen, Torben Juul; Schrøder, Peter Winther

doi:10.1017/cbo9780511816017.010

Cited by 2 publications

(2 citation statements)

References 3 publications

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“…However, BASEL II is applied throughout the South African firm and in its East African operations as the adopted best practice for the management of risk. Risk management is a strategic activity (Andersen, 2006) and lies at the core of a financial institution's operations; however, traditional risk management frameworks assume a linear pattern of Levin et al 9237 cause and effect with regard to risk and do not sufficiently consider the psychosocial element: The social, cultural and behavioural factors influencing risk management. Kersten (2001) explains that conventional organisation theory portrays organisations as rational and ordered entities, where decisions are made in a reasonable and predictable way.…”

Section: Literature Reviewmentioning

confidence: 99%

A call for trust in cross border business

Levin

Niekerk²,

Geldenhuys³

2012

Afr. J. Bus. Manage.

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Organisations expanding their business to African countries place particular emphasis on risk management and tend to follow known practices applicable to their own context. An investigation was conducted into the experiences of the implementation of a risk management framework involving indepth interviews with role-players of an East African subsidiary of a South African financial institution. This research studied the impact of socio-cultural differences on the implementation of a risk management framework in East Africa and in particular considers the role and influence of trust. The implementation of risk management practices is often experienced negatively, and the importance of trust as a key element in the process is frequently not sufficiently considered. The management of risk should not only be based on financial criteria, but should also be influenced by psychosocial factors. Disregarding an important factor such as trust is counterproductive to risk management risk.

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Section: Literature Reviewmentioning

confidence: 99%

A call for trust in cross border business

Levin

Niekerk²,

Geldenhuys³

2012

Afr. J. Bus. Manage.

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“…Taking risk is inherent to any business endeavour (Hubbard, 2009) and the economic recession has highlighted the importance of managing it (Butler, 2010). Risk management lies at the core of the operations of financial institutions and is a strategic activity (Andersen, 2006). Managers drive risk management and employees adhere to it (Jain, 2010).…”

Section: Introduction Key Focus Of the Studymentioning

confidence: 99%

Risk management as a social defence against anxiety

2012

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Orientation: This article deals with the unconscious role of risk management in an African country.Research purpose: The aim of the study is to describe how risk management unconsciously influences behaviour when doing business in an African country.Motivation for the study: Operational risk management is a rational management imperative. However, this does not take cognisance of the unconscious role of risk management. A systems-psychodynamic perspective might be particularly relevant if the anxiety implied in risk management is not appropriately contained. Awareness of these dynamics may provide an opportunity for addressing them and allow for a more holistic way of managing risk. Research design, approach and method:The researchers conducted the study as a qualitative case study in an African country. They used purposive sampling and analysed the data using qualitative content analysis. Main findings:Viewing risk management from a systems-psychodynamic perspective allowed the researchers to identify the influence of risk management on the behaviour of people. The emerging hypothesis was that, if businesses do not address the anxiety underlying risk management, managing risk becomes a social defence against the anxiety. Practical/managerial implications:Awareness of the anxiety involved in risk management may assist businesses to manage risk in a more realistic way, making provision for, and even capitalising on, the human element. Contributions/value-add:The article provides a systems-psychodynamic, and hence a more complete, perspective of operational risk management when doing business in an African country.

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Strategic risk management

Cited by 2 publications

References 3 publications

A call for trust in cross border business

A call for trust in cross border business

Risk management as a social defence against anxiety

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