Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development II

A special issue of Risks (ISSN 2227-9091).

Deadline for manuscript submissions: closed (30 June 2024) | Viewed by 10776

Special Issue Editor


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Guest Editor
Consortium of Sustainable Development and Technological Leadership, Russia and Рeoples’ Friendship University of Russia (RUDN University), 117198 Moscow, Russia
Interests: sustainable development and SDGs; corporate responsibility and social entrepreneurship; business management; economic crisis management and financial crisis management
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Special Issue Information

Dear Colleagues,

The Sustainable Development Goals (SDGs) require reconsidering the approaches to managing financial risks in business management. Traditional solutions should be replaced by new and more responsible ones. The traditional practice of reducing personnel during periods of financial instability for a business is not applicable anymore since it raises financial risks instead of reducing them. Thus, the loss of human resources and corporate knowledge conceals the state of crisis in a business, postponing it to a later period due to the loss of competitive advantage. Similarly, investments in human resources development do not reduce the financial sustainability of a business but, on the contrary, increase them, strengthening the competitive positions of businesses in target markets.

The sustainable development of the modern economy dictates the necessity for the essential reconsideration of business practices. The mention of SDGs in corporate strategies and reports is not enough for their successful practical implementation. It is necessary to build SDGs in the practice of financial risk management with the help of corporate social responsibility. This Special Issue aims to form scientific and methodological provision for the formation and implementation of a new (alternative) approach to financial risk management, which is based on corporate social responsibility for sustainable development.

This Special Issue welcomes original research on the following topics:

  • Conceptual foundations of financial risk management based on corporate social responsibility for sustainable development;
  • Modern case experience of building SDGs into the corporate strategies of financial risk management based on corporate social responsibility;
  • Data set modeling and monitoring of the international experience of financial risk management based on corporate social responsibility for sustainable development in view of the specifics of developed and developing countries.

This issue is a continuation of the previous successful Special Issue “Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development”.

Prof. Dr. Elena Popkova
Guest Editor

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Keywords

  • financial risks
  • financial risk management
  • business management
  • corporate social responsibility
  • Sustainable Development Goals (SDGs)
  • sustainable development of economy
  • data set modeling

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Published Papers (5 papers)

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Research

26 pages, 964 KiB  
Article
Financial Risk Management in Healthcare in the Provision of High-Tech Medical Assistance for Sustainable Development: Evidence from Russia
by Abdula M. Chililov
Risks 2024, 12(9), 134; https://doi.org/10.3390/risks12090134 - 26 Aug 2024
Viewed by 950
Abstract
The research determines the level of financial risk in the Russian healthcare system and identifies prospects for improving the current Russian practice of financial risk management in healthcare when providing high-tech medical care for sustainable development (using Russia as an example). The author [...] Read more.
The research determines the level of financial risk in the Russian healthcare system and identifies prospects for improving the current Russian practice of financial risk management in healthcare when providing high-tech medical care for sustainable development (using Russia as an example). The author summarizes the advanced experience of the top 20 largest healthcare organizations in Russia by revenue in 2022. Based on this experience, the author developed an SEM model of the financial risks in healthcare during the provision of high-tech medical care in Russia from a sustainable development perspective. The theoretical significance of the developed model lies in uncovering the previously unknown causal relationships between the implementation of the ICT, sustainable development support, and financial risks in healthcare. The model reveals a new market dimension of financial risks for healthcare organizations in Russia. The main conclusion is that implementing the ICT and support for sustainable development helps to reduce the financial risks in healthcare. The identified potential for reducing financial risks in providing high-tech medical care in Russia until 2026 is practically significant. This prospect can be practically applied as a roadmap for the digital modernization and sustainable development of healthcare until 2026, enhancing the state healthcare policy in Russia. The established systemic relationship between ICT implementation, sustainable development support, and financial risks in healthcare is of managerial importance because it will increase the predictability of the financial risks in the market dimension of healthcare in Russia. The newly developed approach to risk management in healthcare during the provision of high-tech medical care in Russia has expanded the instrumental framework of risk management for healthcare organizations in Russia and revealed further opportunities for improving its efficiency. Full article
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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 1601
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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26 pages, 2483 KiB  
Article
Support of the SDGs as a New Approach to Financial Risk Management in Responsible Universities in Russia
by Zhanna V. Gornostaeva, Larisa V. Shabaltina, Igor V. Denisov, Aleksandra A. Musatkina and Nikolai G. Sinyavskiy
Risks 2024, 12(6), 101; https://doi.org/10.3390/risks12060101 - 20 Jun 2024
Viewed by 1196
Abstract
The purpose of this paper was to reveal the influence of the support of the sustainable development goals (SDGs) on the financial risks of responsible universities in Russia. This paper fills the gap in the literature that exists regarding the unknown consequences of [...] Read more.
The purpose of this paper was to reveal the influence of the support of the sustainable development goals (SDGs) on the financial risks of responsible universities in Russia. This paper fills the gap in the literature that exists regarding the unknown consequences of SDGs’ support by responsible Russian universities concerning their financial risks. Based on the experience of the top 30 most responsible Russian universities in 2023, we used regression analysis to compile a model for their financial risk management. This model mathematically describes the cause-and-effect relationships of financial risk management in responsible Russian universities. This paper offers a new approach to financial risk management in responsible Russian universities. In it, financial risks to Russian universities are reduced due to universities accepting responsibility for state and private investors. A feature of the new approach is that the effective use of university funds is ensured not by cost savings but by the support of the SDGs. The potential for a reduction in financial risk in responsible universities in Russia through alternative approaches to financial risk management was disclosed. The proposed new approach can potentially raise (to a large extent) the aggregate incomes of responsible universities in Russia compared to the existing approach. The main conclusion is that the existing approach to financial risk management in Russian universities is based on low-efficiency managerial measures which risk burdening universities. This burden could be prevented with the newly developed approach to financial risk management in responsible universities in Russia through support of the SDGs. The theoretical significance lies in clarifying the specific list of the SDGs whose support makes the largest contribution to reducing financial risks for the universities—namely, SDG 4, SDG 8, and SDG 9. The practical significance is that the new approach will allow for full disclosure of the potential reduction in financial risks in responsible universities in Russia in the Decade of Action (2020–2030). The managerial significance is as follows: the proposed recommendations will allow improved financial risk management in Russian universities through optimization of the support of the SDGs. Full article
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21 pages, 1695 KiB  
Article
Integration of AI and IoT into Corporate Social Responsibility Strategies for Financial Risk Management and Sustainable Development
by Anna Viktorovna Shkalenko and Anton V. Nazarenko
Risks 2024, 12(6), 87; https://doi.org/10.3390/risks12060087 - 23 May 2024
Viewed by 3591
Abstract
This research explores the integration of artificial intelligence (AI) and the Internet of Things (IoT) within corporate social responsibility (CSR) strategies, focusing on financial risk management and sustainable development. Employing a novel Coevolutionary multi-paradigm approach to technological development, this study examines how these [...] Read more.
This research explores the integration of artificial intelligence (AI) and the Internet of Things (IoT) within corporate social responsibility (CSR) strategies, focusing on financial risk management and sustainable development. Employing a novel Coevolutionary multi-paradigm approach to technological development, this study examines how these technologies can be embedded into CSR practices to enhance sustainability and manage risks effectively. The findings reveal that successful integration depends significantly on the adaptability of institutional structures to support technological innovations. This study contributes to the literature by providing a comprehensive analysis of the intersection of AI, IoT, and CSR, highlighting the necessity for robust mechanisms and policies that ensure security, standardization, and sustainable use of emerging technologies. Through this investigation, this research offers a new perspective on leveraging advanced technologies to advance corporate sustainability and risk management objectives. Full article
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28 pages, 591 KiB  
Article
Responsible Innovations as Tools for the Management of Financial Risks to Projects of High-Tech Companies for Their Sustainable Development
by Elena G. Popkova, Muxabbat F. Xakimova, Marija A. Troyanskaya, Elena S. Petrenko and Olga V. Fokina
Risks 2024, 12(2), 21; https://doi.org/10.3390/risks12020021 - 27 Jan 2024
Cited by 2 | Viewed by 2529
Abstract
This paper is devoted to the resolution of the problem of risk management in a high-risk market environment. The goal of this paper was to study the experience of and prospects for the use of responsible innovations as tools for managing the financial [...] Read more.
This paper is devoted to the resolution of the problem of risk management in a high-risk market environment. The goal of this paper was to study the experience of and prospects for the use of responsible innovations as tools for managing the financial risks of high-tech companies’ projects for their sustainable development (using the example of companies in Russia’s IT sphere in 2022–2023). We used the SEM method to study the daily statistics of the Moscow Exchange in 2022–2023. As a result, we quantitatively measured the financial risks of Russian companies in the IT sphere in 2022–2023. The studied case experience of the IT sphere in 2022 confirmed that Russian high-tech companies actively implement responsible innovations based on ESG projects. Our main conclusion is that the financial risks of high-tech companies are reduced in the case of the implementation of responsible innovations. Therefore, it is advisable to implement responsible innovations for the sustainable development of high-tech companies in a high-risk market environment. The theoretical significance of our conclusions lies in the substantiation of the synergetic effect of financial risk management with the help of responsible innovations. The scientific novelty and contribution of this paper to the literature consist in its clarifying the sectorial (in the IT sphere) and market (in a high-risk market environment) specifics of managing the financial risks to companies. We also disclosed a poorly studied and largely unknown unique and leading experience of managing the financial risks of Russian high-tech companies in 2022–2023. The practical significance of our recommendations is that the compiled scenario can be used as a strategic benchmark for the most complete development of the potential of the sustainable development of Russian high-tech companies in 2024. Full article
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