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Risks, Volume 12, Issue 8 (August 2024) – 16 articles

Cover Story (view full-size image): Family considerations are known to influence the decision to buy long-term care (LTC) insurance. The aim of the research conducted by Botteron, Courbage and Wagner is to identify the characteristics of individuals willing to purchase LTC insurance, either for protecting their children’s bequest or because they cannot rely on their family for care. View this paper
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21 pages, 1206 KiB  
Article
Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers
by Faraz Ahmed, Arsalan Hussain, Sajjad Nawaz Khan, Arsalan Haneef Malik, Muhammad Asim, Sadique Ahmad and Mohammed El-Affendi
Risks 2024, 12(8), 133; https://doi.org/10.3390/risks12080133 - 22 Aug 2024
Cited by 2 | Viewed by 3592
Abstract
The digital economy’s rise has fueled the growth of digital banking, but concerns linger about customer protection. While offering advantages like financial inclusion, this shift disrupts traditional banking experiences and introduces potential risks. Customer safety in this new landscape is paramount, as dissatisfied [...] Read more.
The digital economy’s rise has fueled the growth of digital banking, but concerns linger about customer protection. While offering advantages like financial inclusion, this shift disrupts traditional banking experiences and introduces potential risks. Customer safety in this new landscape is paramount, as dissatisfied users may switch providers and institutions risk reputational damage. To remain competitive, financial institutions must prioritize a secure experience that aligns with customer expectations. This study investigates five key factors influencing customer protection in Pakistan’s digital financial services. Analysis reveals all factors positively impact customer protection, with information security holding the most weight. These findings highlight the need for robust information security measures as a critical driver for the Pakistani digital banking industry’s success. Full article
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24 pages, 9098 KiB  
Review
Quick Introduction into the General Framework of Portfolio Theory
by Philipp Kreins, Stanislaus Maier-Paape and Qiji Jim Zhu
Risks 2024, 12(8), 132; https://doi.org/10.3390/risks12080132 - 19 Aug 2024
Viewed by 1417
Abstract
This survey offers a succinct overview of the General Framework of Portfolio Theory (GFPT), consolidating Markowitz portfolio theory, the growth optimal portfolio theory, and the theory of risk measures. Central to this framework is the use of convex analysis and duality, reflecting the [...] Read more.
This survey offers a succinct overview of the General Framework of Portfolio Theory (GFPT), consolidating Markowitz portfolio theory, the growth optimal portfolio theory, and the theory of risk measures. Central to this framework is the use of convex analysis and duality, reflecting the concavity of reward functions and the convexity of risk measures due to diversification effects. Furthermore, practical considerations, such as managing multiple risks in bank balance sheets, have expanded the theory to encompass vector risk analysis. The goal of this survey is to provide readers with a concise tour of the GFPT’s key concepts and practical applications without delving into excessive technicalities. Instead, it directs interested readers to the comprehensive monograph of Maier-Paape, Júdice, Platen, and Zhu (2023) for detailed proofs and further exploration. Full article
(This article belongs to the Special Issue Portfolio Theory, Financial Risk Analysis and Applications)
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28 pages, 1129 KiB  
Article
A Hypothesis Test for the Long-Term Calibration in Rating Systems with Overlapping Time Windows
by Patrick Kurth, Max Nendel and Jan Streicher
Risks 2024, 12(8), 131; https://doi.org/10.3390/risks12080131 - 16 Aug 2024
Viewed by 1325
Abstract
We present a statistical test for the long-term calibration in rating systems that can deal with overlapping time windows as required by the guidelines of the European Banking Authority (EBA), which apply to major financial institutions in the European System. In accordance with [...] Read more.
We present a statistical test for the long-term calibration in rating systems that can deal with overlapping time windows as required by the guidelines of the European Banking Authority (EBA), which apply to major financial institutions in the European System. In accordance with regulation, rating systems are to be calibrated and validated with respect to the long-run default rate. The consideration of one-year default rates on a quarterly basis leads to correlation effects which drastically influence the variance of the long-run default rate. In a first step, we show that the long-run default rate is approximately normally distributed. We then perform a detailed analysis of the correlation effects caused by the overlapping time windows and solve the problem of an unknown distribution of default probabilities. Full article
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19 pages, 2226 KiB  
Article
Trading Option Portfolios Using Expected Profit and Expected Loss Metrics
by Johannes Hendrik Venter and Pieter Juriaan de Jongh
Risks 2024, 12(8), 130; https://doi.org/10.3390/risks12080130 - 16 Aug 2024
Viewed by 1293
Abstract
When trading in the call and put contracts of option chains, the portfolios of strikes must be selected. The trader must also decide whether to take long or short positions at the selected strikes. Dynamic strategies for making these decisions are discussed in [...] Read more.
When trading in the call and put contracts of option chains, the portfolios of strikes must be selected. The trader must also decide whether to take long or short positions at the selected strikes. Dynamic strategies for making these decisions are discussed in this paper. On any day, the strategies estimate the drift and volatility parameters of the future probability distribution of the price of the underlying asset. From this distribution, the trader can further estimate the future expected profit and expected loss that may be experienced for any portfolio of strikes of the call and put contracts. Expected profit and expected loss are the reward and risk metrics of such portfolios. An optimal portfolio can then be selected by making the reward as high as possible under the risk tolerance set by the trader. Extensive back-testing applications to historical data of SPY option chains illustrate the effectiveness of these strategies, particularly when dealing with short-term expiry options and when acting as a seller of put and call options. Full article
(This article belongs to the Special Issue Portfolio Theory, Financial Risk Analysis and Applications)
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30 pages, 2977 KiB  
Article
Uncovering the Impact of Digitalization on the Performance of Insurance Distribution
by Thomas Köhne and Marija Köhne
Risks 2024, 12(8), 129; https://doi.org/10.3390/risks12080129 - 14 Aug 2024
Viewed by 2421
Abstract
This study explores the impact of digitalization on the performance of insurance intermediaries, who still play a key role in the revenue generation of insurance companies. By using an interdisciplinary approach, this study is the first to examine the extent and type of [...] Read more.
This study explores the impact of digitalization on the performance of insurance intermediaries, who still play a key role in the revenue generation of insurance companies. By using an interdisciplinary approach, this study is the first to examine the extent and type of digital technologies used by intermediaries, their impact on performance with respect to revenue, productivity, and interaction with clients, and the role of digital stress in this context. The research is exploratory, which is why a research model with many variables and relationships between them was built. The quantitative multivariate method of Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied as it allows the simultaneous estimation of models with multiple dependent variables and their interconnections. In this context, data collected in 2022 from 671 insurance intermediaries from Germany, whose demographic distribution in the sample is representative of the German insurance market, were analyzed. The findings show that insurance intermediaries use many digital technologies compared to other industries, particularly those that create added value in their daily work. Empirical evidence also showed that using digital technologies positively affects performance but induces perceived digital stress. As this study reveals, the latter diminishes the positive effects on performance. Technology optimism, technological skills, and organizational support reduce the severity of stress. This means that insurers can start here to support intermediaries to mitigate the performance-limiting effects. This study adds to the insurance literature by providing a broader understanding of how insurance intermediaries deal with digitalization and what it means for their performance. Full article
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15 pages, 805 KiB  
Article
European Non-Performing Exposures (NPEs) and Climate-Related Risks: Country Dimensions
by Elisa Di Febo, Eliana Angelini and Tu Le
Risks 2024, 12(8), 128; https://doi.org/10.3390/risks12080128 - 13 Aug 2024
Viewed by 1375
Abstract
The EU faces two economic challenges: managing non-performing exposures (NPEs) and climate change. This paper analyzes the relationship between the NPEs of domestic banking groups and climate risks, including macroeconomic variables such as the GDP growth rate, unemployment rate (UnEmp), and the voice [...] Read more.
The EU faces two economic challenges: managing non-performing exposures (NPEs) and climate change. This paper analyzes the relationship between the NPEs of domestic banking groups and climate risks, including macroeconomic variables such as the GDP growth rate, unemployment rate (UnEmp), and the voice and accountability percentile (VCA) and the interaction variable between the GHG and the Rule of Law Percentile (GhGRLP). The estimation uses ordinary least squares with time-fixed and individual effects. Physical and transition risks significantly affect NPEs, showing that both adverse climate events and the transition to a low-carbon economy worsen the financial situation of European banking institutions. The analysis also revealed that increased levels of VCA lead to a rise in NPEs, while an increase in GhGRLP reduces NPEs. In contrast, financial institutions tend to recognize and report NPEs more accurately in contexts with greater transparency and accountability. In comparison, UnEmp negatively affects NPEs, suggesting that economic support measures during high unemployment can reduce NPEs in the subsequent period. In conclusion, climate risk management represents a crucial challenge for the financial stability of banking institutions. Policymakers and financial institutions must continue to develop and implement climate change mitigation and adaptation strategies to preserve financial system stability amid growing climate uncertainties. Full article
(This article belongs to the Special Issue Credit Risk Management: Volume II)
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12 pages, 948 KiB  
Article
Fair and Sustainable Pension System: Market Equilibrium Using Implied Options
by Ishay Wolf and Lorena Caridad López del Río
Risks 2024, 12(8), 127; https://doi.org/10.3390/risks12080127 - 8 Aug 2024
Viewed by 1345
Abstract
This study contributes to the discussion about a fair and balanced pension system with a collectively funded pension scheme or social security and a defined contribution pillar. With an invigorated risk approach using financial option positions, it considers the variance of socioeconomic interests [...] Read more.
This study contributes to the discussion about a fair and balanced pension system with a collectively funded pension scheme or social security and a defined contribution pillar. With an invigorated risk approach using financial option positions, it considers the variance of socioeconomic interests of different society-earning cohorts. By that, it enables the assumption of un-uniformity in interests about the fair and sustainable pension design. Specifically, we claim that the alternative cost of hedging the ideal position to the counterparty position studies the implied risks and returns that participants are willing to absorb and hence may lead to a fair compromise when there are different interests. The novelty of the introduced method is mainly based on the variety of participants’ risks and not on the utility function. Accordingly, we spare the discussion about the right shape of the utility function and the proper calibrations. Full article
(This article belongs to the Special Issue Risks Journal: A Decade of Advancing Knowledge and Shaping the Future)
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13 pages, 409 KiB  
Article
The Impact of Research and Development Investment on the Performance of Portuguese Companies
by Ana Santos, Ana Bandeira and Patrícia Ramos
Risks 2024, 12(8), 126; https://doi.org/10.3390/risks12080126 - 7 Aug 2024
Viewed by 1394
Abstract
This study investigates the impact of Research and Development (R&D) investment on the performance of Portuguese companies, specifically addressing the gap in understanding how R&D influences a company’s value and performance. We employ a dynamic panel data model estimated using the Generalized Method [...] Read more.
This study investigates the impact of Research and Development (R&D) investment on the performance of Portuguese companies, specifically addressing the gap in understanding how R&D influences a company’s value and performance. We employ a dynamic panel data model estimated using the Generalized Method of Moments (GMM) to account for potential endogeneity issues. This approach allows us to analyze the influence of R&D investment on the Return on Operating Assets (ROA) for Portuguese companies with significant R&D investments between 2012 and 2019. The analysis reveals that while R&D investment itself may not have a statistically significant short-term impact on ROA, lagged financial performance, leverage, asset turnover ratio, and accounts payable turnover all demonstrate a statistically significant relationship with the dependent variable. Full article
38 pages, 9435 KiB  
Article
Mapping the Landscape of Key Performance and Key Risk Indicators in Business: A Comprehensive Bibliometric Analysis
by Ștefan Ionescu, Gabriel Dumitrescu, Corina Ioanăș and Camelia Delcea
Risks 2024, 12(8), 125; https://doi.org/10.3390/risks12080125 - 6 Aug 2024
Cited by 2 | Viewed by 3538
Abstract
Our study investigates the relevance and application of key performance indicators (KPIs) and key risk indicators (KRIs) in business management from 1992 to 2023 through a comprehensive bibliometric analysis performed in RStudio using the Bibliometrix platform and in VOSviewer. Utilizing data from the [...] Read more.
Our study investigates the relevance and application of key performance indicators (KPIs) and key risk indicators (KRIs) in business management from 1992 to 2023 through a comprehensive bibliometric analysis performed in RStudio using the Bibliometrix platform and in VOSviewer. Utilizing data from the Web of Science database, we identify trends, key themes, and influential research in this domain, observing an annual growth rate of 17.76%. Our analyses include the top 10 most globally cited documents, word clouds based on authors’ keywords and Keywords Plus, clustering by coupling, co-occurrence networks, and factorial analysis. Our findings reveal a significant increase in research interest post-2004, with sustainability and corporate social responsibility emerging as central themes. We confirm positive correlations between KPIs, improved organizational performance, and effective risk management via KRIs. This research underscores the importance of international collaboration and diverse thematic exploration in advancing the field. Full article
(This article belongs to the Special Issue Financial Analysis, Corporate Finance and Risk Management)
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13 pages, 367 KiB  
Article
On the Motivations for Purchasing Long-Term Care Insurance: Protecting Bequest and Unreliability of Family Care
by Sylvain Botteron, Christophe Courbage and Joël Wagner
Risks 2024, 12(8), 124; https://doi.org/10.3390/risks12080124 - 6 Aug 2024
Viewed by 1168
Abstract
Family considerations are known to influence the decision to buy long-term care (LTC) insurance. This paper uses a Swiss survey to identify the characteristics of individuals willing to purchase LTC insurance, either to protect their children’s bequest or because they cannot rely on [...] Read more.
Family considerations are known to influence the decision to buy long-term care (LTC) insurance. This paper uses a Swiss survey to identify the characteristics of individuals willing to purchase LTC insurance, either to protect their children’s bequest or because they cannot rely on family for care. First, it shows that the presence or absence of children plays an important role in the two motivations for buying LTC insurance. Second, it shows that individuals from the French-speaking part of Switzerland and those with lower self-perceived health are more likely to buy LTC insurance because of the unreliability of family care. On the other hand, individuals with higher self-perceived health and those with a right and center political orientation are more likely to buy LTC insurance for reasons of bequest protection. The results provide insights into designing more targeted strategies to promote LTC insurance. Full article
22 pages, 813 KiB  
Article
Impact of Audit Fees on Earnings Management and Financial Risk: An Analysis of Corporate Finance Practices
by Abbas Ali Daryaei, Davood Askarany and Yasin Fattahi
Risks 2024, 12(8), 123; https://doi.org/10.3390/risks12080123 - 2 Aug 2024
Cited by 3 | Viewed by 1962
Abstract
This study employs a robust quantitative ex post facto research design to investigate the complex relationship between audit fees and earnings management. The financial information of 164 firms admitted to the Tehran Stock Exchange (TSE) was used from 2010 to 2019 (pre-COVID period) [...] Read more.
This study employs a robust quantitative ex post facto research design to investigate the complex relationship between audit fees and earnings management. The financial information of 164 firms admitted to the Tehran Stock Exchange (TSE) was used from 2010 to 2019 (pre-COVID period) to achieve the research goal. Analysing data from the Tehran Stock Exchange firms, the study uncovers an inverted U-shaped relationship between audit fees and earnings management. This suggests that moderate audit fees can lead to higher earnings management. Key contributions of this paper include highlighting the role of audit fees in influencing financial reporting quality and risk management, providing empirical evidence on the asymmetric effects of normal and abnormal audit fees on earnings management, and emphasising the need for balanced audit fee structures to ensure financial transparency and mitigate risk. The findings offer valuable insights for academics, practitioners, and policymakers in understanding the nuances of audit fees and their impact on corporate financial practices. This study advances the literature on financial risk management and corporate finance. It emphasises the importance of balanced audit fee structures for management teams, auditors, and policymakers to ensure transparent financial reporting practices. Full article
(This article belongs to the Special Issue Financial Analysis, Corporate Finance and Risk Management)
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21 pages, 3328 KiB  
Article
Lebanon’s Economic Development Risk: Global Factors and Local Realities of the Shadow Economy Amid Financial Crisis
by Samar F. Abou Ltaif, Simona Mihai-Yiannaki and Alkis Thrassou
Risks 2024, 12(8), 122; https://doi.org/10.3390/risks12080122 - 31 Jul 2024
Cited by 3 | Viewed by 2620
Abstract
The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign [...] Read more.
The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general. Full article
(This article belongs to the Special Issue Financial Analysis, Corporate Finance and Risk Management)
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21 pages, 617 KiB  
Article
Integration of CSR into the Marketing Mix for the Sustainable Development of Companies: A View from the Position of Financial Risk Management
by Abrorjon S. Kucharov, Anastasia A. Sozinova, Elena G. Popkova, Natalia M. Fomenko, Galina V. Vorontsova and Victoria N. Ostrovskaya
Risks 2024, 12(8), 121; https://doi.org/10.3390/risks12080121 - 31 Jul 2024
Viewed by 2365
Abstract
This paper is devoted to establishing the consequences of integrating CSR into the marketing mix for financial risks in modern companies. Based on the international statistics for 2023, we compiled a regression model of the dependence of financial risks on the integration of [...] Read more.
This paper is devoted to establishing the consequences of integrating CSR into the marketing mix for financial risks in modern companies. Based on the international statistics for 2023, we compiled a regression model of the dependence of financial risks on the integration of CSR into their marketing mix. Based on that, we developed a new system approach to managing companies’ sustainable development. Its features are marketing management of the sustainable development of companies, systemic management of social and financial risks to companies, and implementation of risk management through integrating CSR into the marketing mix. The main conclusion is that the sustainable development of companies in the Decade of Action requires a systemic integration of CSR into the marketing mix, for this will allow for the simultaneous reduction of social and financial risks. The theoretical significance of this conclusion consists in the disclosure of previously unknown cause-and-effect relationships between CSR and financial risks to companies, which are explained in this paper through the lens of the elements of the marketing mix in the 7P model. The originality of this research consists in developing novel marketing tools for the systemic management of social and financial risks for companies with the help of CSR. The practical significance relates to the fact that the offered recommendations on the more complete integration of CSR into their marketing mix will allow reducing financial risks and ensuring sustainable development of Russian companies in the Decade of Action (until 2030). The managerial significance is as follows: the developed system approach to managing companies’ sustainable development will improve the practice of risk management in companies due to previously unavailable joint management and the general reduction of social and financial risks. Full article
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18 pages, 3414 KiB  
Article
The Impact of Financial Stress and Uncertainty on Green and Conventional Bonds and Stocks: A Nonlinear and Nonparametric Quantile Analysis
by Muhammad Mar’I, Mehdi Seraj and Turgut Tursoy
Risks 2024, 12(8), 120; https://doi.org/10.3390/risks12080120 - 31 Jul 2024
Viewed by 1436
Abstract
This study aims to investigate the impact of financial stress and uncertainty on the returns of green and conventional bonds and stocks in the United States from 2010 to 2022. The research utilizes nonlinear and nonparametric analysis, which includes the quantile-on-quantile and nonparametric [...] Read more.
This study aims to investigate the impact of financial stress and uncertainty on the returns of green and conventional bonds and stocks in the United States from 2010 to 2022. The research utilizes nonlinear and nonparametric analysis, which includes the quantile-on-quantile and nonparametric causality-in-quantiles approaches to examine the relationship between variables. The data analyzed using R programming language show that financial stress positively impacts the middle quantiles of both conventional and green equity, while financial uncertainty negatively impacts upper quantiles. The study also finds that financial stress has a more significant impact on all types of bonds compared to financial uncertainty, with conventional bonds being more affected. This study proposes a pyramid that classifies financial assets based on their susceptibility to financial stress, which could help investors evaluate risk levels and make better investment decisions. The study recommends that policymakers should encourage green investments by offering incentives, such as tax credits. They should also focus on enhancing the efficiency of volatile assets by implementing new investment rules and regulations. Full article
(This article belongs to the Special Issue Advances in Volatility Modeling and Risk in Markets)
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11 pages, 360 KiB  
Article
The Effects of Working Capital Management on the Financial Performance of Commercial and Service Firms Listed on the Nairobi Securities Exchange in Kenya
by Richard Wamalwa Wanzala and Lawrence Obokoh
Risks 2024, 12(8), 119; https://doi.org/10.3390/risks12080119 - 31 Jul 2024
Cited by 1 | Viewed by 3727
Abstract
Working capital management is critical because it affects a company’s profitability, liquidity, and investment decisions, all of which have an impact on financial performance. As a result, effective and efficient working capital management is an essential component for commercial and service businesses. Given [...] Read more.
Working capital management is critical because it affects a company’s profitability, liquidity, and investment decisions, all of which have an impact on financial performance. As a result, effective and efficient working capital management is an essential component for commercial and service businesses. Given the importance of the commercial and services industries to the Kenyan economy, the goal of this research was to investigate the impact of working capital management on the financial performance of these firms, particularly those listed on the Nairobi Securities Exchange (NSE), from 2003 to 2022. Working capital management was measured using the average age of inventory, average collection period, average payment period, and cash conversion cycle, whereas financial performance was measured using return on asset, return on equity, and net operating profit margin. Using panel regression analysis, the results showed that the average inventory age, average collection period, average payment period, and cash conversion cycle were all negatively related to financial performance for NSE-listed commercial and service firms. Based on the findings, it is recommended that Kenyan commercial and service firms adopt prudent optimal working capital management practices to improve firm financial performance and maximize shareholder wealth. Full article
28 pages, 572 KiB  
Article
Sustainable Development of Entrepreneurship through Operational Risk Management: The Role of Corporate Social Responsibility
by Raya H. Karlibaeva, Dmitry A. Lipinsky, Vera A. Volokhina, Elena A. Gureeva and Ivan N. Makarov
Risks 2024, 12(8), 118; https://doi.org/10.3390/risks12080118 - 30 Jul 2024
Viewed by 2062
Abstract
The goal of this paper was to study the role of corporate social responsibility (by the example of responsible HRM) in the sustainable development of entrepreneurship through operational risk management. The correlation analysis method was used to find a close connection between the [...] Read more.
The goal of this paper was to study the role of corporate social responsibility (by the example of responsible HRM) in the sustainable development of entrepreneurship through operational risk management. The correlation analysis method was used to find a close connection between the number of employees and operational risks to international companies from “Global 500” in 2021–2023. The regression analysis method was used to compile the economic and mathematical model of the sustainable development of international entrepreneurship, which demonstrated wide opportunities for operational risk management through responsible HRM. The method of trend analysis allowed determining scenarios of the sustainable development of international entrepreneurship, which demonstrated that in the Decade of Action, the success of operational risk management is largely determined by the activity of the use of responsible HRM practices. The main conclusion is that responsible HRM facilitates the reduction of operational risks to modern companies, but practices of responsible HRM have different impacts on operational risks to companies: some practices (creation of knowledge-intensive jobs and stimulation of the innovative activity of employees through support for research talents) reduce operational risks, while some practices (stimulation of the growth of labor efficiency and attraction of female researchers to the staff) have a contradictory impact, and other practices (development of human capital through corporate training) increase operational risks. The theoretical significance is because the paper discloses the previously unknown consequences of responsible HRM as a special sphere of manifestation of corporate social responsibility for the operational risks of companies. The practical significance is because the compiled scenarios disclose the perspective of the sustainable development of companies through the improvement of the management of their operational risks based on responsible HRM. The managerial significance is that the proposed recommendations from the authors for the practical implementation of the optimistic scenario can be milestones for companies and can be used to improve the practice of operational risk management of companies. Full article
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