International Journal of Business Continuity and Risk Management (18 papers in press)
Neural Networks and Technical Analysis for Price Prediction: The Case of Borsa Italiana SP MIB
by Angelo Corelli
Abstract: The paper analyses the relationship between common technical analysis indicators and the returns of an index for the period considered. It is expected to find correlation between indicators and index prices, as well as showing clear patterns and potential strategies for investment analysis and portfolio management. As an innovative methodology a mixed analysis is carried out, trying to combine classic signals offered by the indicators with the power of neural networks. The neural network plays an important role in that allows for an accurate regression with efficient error minimization, while giving indications about the concentration of results obtained around some reference values. Through a simple hidden-layer, back-propagation algorithm, regressions give interesting result, in term of the forecasting potential of the analyzed indicators. The final step of the project is to conclude about results and summarize the indication coming from the multivariate stage analysis, commenting on the power of the indicators to reveal potential investment opportunities.
Keywords: Technical Indicator; Neural Network; Normalization; Backpropagation; Steepest Descent.
Explaining the Competitive Advantage in strategic research and technology management for Research and Technology Organizations
by Reza Bandarian
Abstract: The emergence and rapid growth of Research and Technology Organizations and their leading role in knowledge based development and knowledge oriented economy, has drawn a special attention to the effectiveness of Research and Technology Organizations. Effectiveness of Research and Technology Organizations lie in providing value for customers and improve the technological competitiveness of related industry, and create more value for customer equals competitive advantage for the organization. Therefore, effective management of Research and Technology Organizations lie in creating and delivering competitive advantage through creating value for customers and it requires strategic models to explain the competitive advantage in these organizations. Due to the absence of models that explains the competitive advantage in Research and Technology Organizations, this study attempts to define the competitive advantage in strategic research and technology management in Research and Technology Organizations. Regarding to the identity of Research and Technology Organizations which is fully mixed with knowledge and technology, the base of competition in this category of organizations is providing integrated technology-based solutions for related businesses. Hence, the basis of discussion regarding strategic management in this area is interwoven to the concept of rapid technological changes and consequently dynamic capability with emphasis on technological innovation and entrepreneurship. Therefore, the latest theories of strategic management with an emphasis on dynamic capabilities (and evolutionary approaches) were used to develop a model in order to explain the competitive advantage in strategic research and technology management in RTOs.
Keywords: Strategic Research and Technology Management; Research and Technology Organizations; Competitive Advantage; Strategic Management approach.
Process System Resilience: From Risk Management to Business Continuity and Sustainability
by Prerna Jain, Hans Pasman, M. Sam Mannan
Abstract: In general, by competition, energy efficiency, reduced staff, etc., process safety and risk management challenges have increased with a heavier focus of public perception on risks globally. This has necessitated exploring tools for transition from the narrower to a broader approach with goals of business continuity and sustainability for risk management. The application of resilience engineering is being explored for considering the dynamics of socio-technical aspects. This paper presents the systems-based resilience approach for risk management in the process industry and provides a description of process system architecture, functional requirements, and life cycle stages. This paper introduces the Process Resilience Analysis Framework (PRAF) and its four aspects. As an example, the 2012 Chevron Richmond Refinery incident is reviewed, and relationship is established between resilience and sustainability. The conclusion is drawn that using PRAF strengthens the resilience capabilities of a process system to foster business continuity and sustainability.
Keywords: Process Resilience Analysis Framework (PRAF); System Resilience; Business continuity; Sustainability; Process Safety; Risk Management.
Reexamining fire emergency management in Korea
by Kyoo-Man Ha
Abstract: Deadly fires have recently smashed Korea. The article has aimed to see how Korean firefighters have managed various fires for the paramount goal of emergency management. Qualitative content analysis has been used as a key method. Two patterns on fire emergency management have been analyzed, such as firefighter-oriented pattern and people-oriented pattern. The former includes excessive political interests, obsessing about their own welfare, late decision on complicated issues, and the lack of flexible training and exercise, whereas the latter includes excessive risk interests, obsessing about peoples welfare, appropriate decision on complicated issues, and the reliance on flexible training and exercise. The biggest finding is that Korea needs to transform the firefighter-oriented pattern into a people-oriented pattern soon. Similarly, other nations may use the transition as a criterion for reviewing their own systems. This article has approached the Korean topic more comprehensively than previous studies.
Keywords: firefighters; fire safety; comprehensive emergency management; political interests; training and exercise.
Global Cybersecurity Legislation? Factors, Perspective & Implications
by Emmanuel C. OGU, Chiemela OGU, Oluoha Onyekwere
Abstract: As at the time of writing this research, no globally adopted and unified legislation for cybersecurity exists that is currently operational, despite rife global clamours for such a legislative framework. This paper synthesizes and reviews some of the key imposing factors, putting in perspective the surrounding realities that impede the successful actualisation of such a framework, using the qualitative-exploratory research methodology. Also presenting the implications of these factors and associated realities for cyber peacekeeping and the struggle for a utopian global information society, and then proposing recommendations pertaining the feasibility and operability of a global cybersecurity legal framework.
Keywords: Cybersecurity; Cybercrimes; Cybersecurity Legislation; Cyber Peacekeeping; Cyber Policy; Cyber Law.
Preventing major accidents Changing business as usual
by Ingrid Årstad, Terje Aven
Abstract: In this article, we examine the recommendation to change business as usual in the aftermath of the Deepwater Horizon disaster. We address the risks associated with risk management practices and their improvement and propose a framework for questioning the foundations of risk management practices, to clarify in which direction business as usual needs to change. This framework helps identify eventual blind zones in risk management practices and vicious cycles that may prevent their improvement. It is intended to provide a structured approach for ensuring that the risk management repertoire reflects current knowledge about major accidents.
Keywords: Major accidents; Management; Complex systems; Framing issues; Risk management; Accident prevention; Socio-technical systems; Complexity vs complicatedness.
Interpersonal trust, Opportunism & Business Performance: An Empirical Evidence of Gem Dealers in Sri Lanka
by Pamudika Gamage
Abstract: This study primarily aims at investigating the effect of interpersonal-trust on the business performance of gem dealers in Sri Lanka. Empirical results were obtained using survey data gathered from 100 registered gem dealers in Ratnapura district in Sri Lanka. Partial Least Square-Structural Equation Model was used to analyse the collected data. The results demonstrate that interpersonal trust, i.e. credibility, benevolence, and the ability among gem dealers have a significant impact on mitigating opportunism, thus on business improvements under all hypothetical relationships. Many previous studies have clearly pointed out the negative relationship between interpersonal trust and opportunism and a positive association between interpersonal trust and business performance. This study concludes that interpersonal trust has major impacts on the well-being of this industry highlighting it as the main characteristic among gem dealers. Thus, interpersonal trust lowers their transaction costs in exchanges and increases the profit levels of gem dealers in Sri Lanka.
Keywords: Business Performance; Gem Dealers; Interpersonal trust; Opportunism; Transaction Costs; Sri Lanka.
Risk Management Practices of Transportation Companies: Practitioners Perspective
by Mazlina Mustapha, Nurul Janna Mustapah
Abstract: Organizations need to set clear strategic goals and objectives to manage the organizations, improve their products and services to the stakeholders and increase the shareholders wealth. However, it is claimed that organizations may face challenges and risks in their operations which may hinder the ability of the organizations to achieve their objectives. Prior studies suggested the implementation of risk management practices to assist the organizations in ensuring their sustainability in the long run. Risk management is posited to be an integral component of good management and is described as a sequence of analytical and management activities that focus on creating a response to the inherent uncertainties of managing a complex situations faced by the organizations, especially in service sector. This is because in the service sector, delivering quality services required by customers is very important so as to maintain the market share and be relevant in the industry. Thus, this study aims to examine the implementation of risk management in the transportation industry, one of the important service sectors in Malaysia. Specifically it investigates how risk management practices in transportation companies assist in ensuring the sustainability of the organizations. Fifteen Head of Operations and Managers in-charged of transportation companies at one of the popular tourism spots in Malaysia were interviewed. Findings suggest that implementation of risk management assist the companies to monitor the drivers and the costs of maintaining buses as well as planning for routes during slack periods. They also adopt different responses to the risks based on the conditions on hand. The results of the study provide information to the transportation companies about the importance of risk management practices in their operations.
Keywords: Risk Management; Transportation Industry; Qualitative; Practitioners’ Perspective.
Sourcing Arrangement of Internal Audit Services: Does It Matter To the External Auditors?
by Mazlina Mustapha, Lee Yip Kwan
Abstract: Internal audit is a crucial monitoring mechanism which assists management of organisations in evaluating the operation effectiveness of organization activities. Their services can be obtained internally or externally by outsourcing the services to public accounting firms. Due to the importance of the function, this study aims to examine whether the sourcing arrangement of this function would influence the external auditors reliance on the work of internal audit in the audit processes. Questionnaires were randomly distributed to 100 external auditors in Klang Valley. However, only 32 questionnaires were returned and usable for the purpose of the study. The results of the study indicate that external auditors would significantly rely more on the work of out-sourced internal auditors compared to in-house internal auditors, especially when the inherent risk is high. In addition, it is also found that the most important factor which influences the level of reliance of external auditors on the work of internal auditors is the level of compliance with relevant professional standards by the internal auditors. This study provides information to the regulators and policy makers in Malaysia about the factors that are important to the external auditors in auditing processes. Furthermore, it also contributes to the internal audit literature in a developing country.
Keywords: Internal auditors; external auditors; outsourcing; in-house; Malaysia.
How would business school students respond if they suspect the boss at work of white-collar crime?
by Petter Gottschalk
Abstract: In this article we study business school students action orientation and follower syndrome when they suspect the boss at work of white-collar crime. Business school students are relevant for this research, as they will occupy positions in the future where they can commit financial crime, prevent crime, or become victims of such crime. Our student responses are particularly interesting, since the students actively had elected a class on financial crime rather than more traditional business school classes. Students responded that they would inform a colleague of their suspicion, and they would not raise their suspicion with the boss. Students do not suffer from the follower syndrome in their self-reported scores in the questionnaire. We found no statistical relationship between the extent of the follower syndrome and the extent of action orientation among students.
Keywords: White-collar crime; survey research; whistleblowing; business school students; retaliation.
A combination of the fuzzy best-worst and Vikor methods for Prioritization the lean six sigma improvement projects
by Mohammad Hashemi Tabatabaei, Mohammadali Khatami Firouzabadi, Maghsoud Amiri, Mohammad Ghahremanloo
Abstract: In today's competitive world, the number of organizations using lean six sigma techniques is increasing widely. The six sigma concept was originally developed to improve the efficiency and quality of manufactured products, but is now widely used by financial institutions, hospitals, retailers and other service industries. One of the most important issues in this regard is the selection of six sigma improvement projects. The purpose of this paper is to rank and prioritize the lean six sigma improvement projects by introducing a method which is a combination of fuzzy best-worst and Vikor methods. A total of 10 improvement projects were selected, and four criteria which have been used more frequently in previous studies were selected as evaluation crtiteria. The weights of the criteria was obtained by using the fuzzy best-worst method. Then, according to the weights obtained at this stage, the lean six-sigma improvement projects were prioritized by using the Vikor method. The results of this study showed that improvement project #5 had highest significance and it was placed at the first priority. Also, the results showed that selecting and prioritizing six sigma improvement projects using a combination of fuzzy best-worst method and Vikor method can lead to select the best project among the lean six sigma improvement projects, because this combined method requires less information and provides more consistent pairwise comparisons
Keywords: Fuzzy best-worst method; Vikor method; Improvement project; Lean six sigma.
Maximizing the Contribution of Renewables in a Utility Energy Mix
by Roy Nersesian, Joseph McManus
Abstract: Solar and wind energy sources present meaningful challenges for utility operators. These energy sources are subject to random exposure to cloud cover and variable wind conditions. Predicting cloud and wind conditions is fraught with uncertainty. Thus solar and wind power sources present important considerations of reliability. This paper develops and discusses a generalized methodology to incorporate renewables like solar and wind into the traditional energy mix for electric utilities in light of the reliability challenges they present. Solar and wind cannot reliably displace fossil fuel or nuclear power fully in the energy mix at present. However, pumped storage facilities retain the capacity to provide sufficient storage to stabilize renewable generation and assure reliability of service utilizing currently available technology. As a result pumped storage capacity is the demand stabilization method applied within the simulation set forth. The method presented also enables a utility to examine and model variance within the general shape of the demand for electricity through the simulation.
Keywords: Renewables; electricity storage; pumped storage plants; simulation modeling; @RISK; Evolver; and RISKOptimizer decision tools; reservoir dimensions.
Special Issue on: AIC 2018 Risk Mitigation and Management Strategies of Multinational Enterprises
CONSUMER ADOPTION OF MOBILE PAYMENTS: A DISTINCTIVE ANALYSIS BETWEEN CHINA AND MALAYSIA
by Kit Teng Phuah, Jit Heng Bernard Lim, Siti Intan Nurdiana Wong Abdullah, Tsu Ping Wong, Jing Yao Xie
Abstract: The adoption of mobile payment and assessment on the prediction of consumers intention has been rising this few years due to the emergence and importance of mobile payment provider such as Alipay and WeChat Pay. In China, these mobile payment providers have long gained users acceptance. However, this phenomenon is still rather new for an emerging economy like Malaysia whereby cashless payment has yet to be fully accepted by the vast majority. This is largely due to the negative perception of Malaysians towards mobile payments security and lack of understanding towards its usage Furthermore, there is still a lack of studies found on the cross-country differences between China and Malaysia, thus this study attempted to compare the adoption of mobile payment between these two countries to identify the differences in mobile payment adoption using existing theory. Factors like perceived usefulness, perceived security, perceived ease of use and attitude from models like TAM and TRA were used to analyse the intention to adopt mobile payment. Consumers from Nanjing, China and Klang Valley, Malaysia were selected for this study. A total of 384 respondents from each country were surveyed using personal administered questionnaire. Among the four factors, perceived security seems to differ for the two countries and the reason will be discussed in the analysis. This comparison study will definitely provide a new insight to researchers and market practitioners in terms of analyzing the adoption of mobile payment in future.
Keywords: Adoption; Cross-country Analysis; China; Malaysia; Mobile Payment.
Agroforestry As A Model of Sustainable Land Use of Small-Scale Private Forest: a case study in Sumedang, West Java, Indonesia
by Endang Hernawan, Mia Rosmiati, Tien Lastini, Sofiatin Sofiatin, Angga Dwiartama, Heri Rahman
Abstract: A small-scale private forest using a model of agroforestry has been growing as part of a rural culture and has become an important source of income for many rural people. In the case of subsistent farmers whereby two main production inputs: land and capital, are limited, farmers goal is not to maximize production on one commodity. In many cases, particularly in densely populated area, farmers usually integrate seasonal crops and livestock with perennial crops to fulfill their daily dietary needs. However, the aspects of sustainability that are comprehensively reviewed have not been widely revealed in small-scale private forest. This comprehensive study is important for future development and strategy development in small-scale private forest in Sumedang, West Java Province, Indonesia. The aim of this paper is therefore to identify the characteristics of small-scale private forests under the agroforestry model. The sampling technique used was simple random sampling and determining sample size using the Slovins formula. The survey included 27 open- and closed-ended questions investigating participants forest, owner's perception of ecological stability; local culture and knowledge; their income, and socio demographics' forest owner's. Agroforestry-based small-scale private forest demonstrates a sustainable farming system: the system possesses a high ecological stability; socially, it is based on the local culture and knowledge; and economically, the agroforestry model contributes significantly to farmers income.
Keywords: Small-Scale Private Forest; Agroforestry; Sustainability.
Attitude of construction workers toward labor safety
by Phong NguyenThanh
Abstract: The construction industry has one of the most dangerous working environments among various professions. Workers in construction investment projects account for a large component of the costs, and there are many risks to labor safety. Therefore, ensuring that workers are not injured and aiming for zero labor accidents is a significant imperative and challenge for project managers and construction workers. Ensuring safety during construction work contributes to the success of a project. This paper presents a study of worker attitudes toward labor safety. The research was conducted by using an expert interview approach and questionnaire survey in order to find out which factors influence construction worker attitudes about labor safety conditions. Factor analysis found five factors that affect the attitudes of workers toward labor safety: (1) organizational policy; (2) communication; (3) risk acceptance; (4) psychology; and (5) equipment monitoring and management.
Keywords: construction workers; labor management; project management; safety management.
Assessment of Market Competition and Financial Stability of Takaful Market in Saudi Arabia and Malaysia
by Sue Sim Cheong, Ahmad Fahmi Sheikh Hassan
Abstract: The mounting pressure for consolidation may eventually bring about significant implications upon market competition, economic, and financial performances. As such, this paper reports a preliminary study that looked into the dynamics of Takaful market competition in Saudi Arabia and Malaysia between year 2008 and 2016 by using HerfindahlHirschman Index (HHI), and 4-firm concentration ratio (CR4). The outcomes revealed the Takaful markets in both countries have begun shifting to moderately concentrated position from highly-concentrated markets. Next, this study scrutinised the function played by competing markets so as to influence stability amongst Takaful operators, so as to test if competition can minimise either financial fragility (competition-stability) or financial stability (competition-fragility) in the Takaful market. An Ordinary Least Square (OLS) estimator was employed to assess 44 Takaful operators in Saudi Arabia and Malaysia between year 2008 and 2016. The results appeared consistent with the competition-stability view and transmission mechanism hypothesis.
Keywords: competition-fragility; competition-stability; efficiency; financial stability; Islamic insurance; market competition; Takaful.
Why Medical Tourists must go to Malaysia!
by Ai Chin Thoo
Abstract: Medical tourism industry in Malaysia is booming and has been highlighted as a major catalyst for economic development. This study attempts to examine the determinants that affect the foreign patients repurchase intention to obtain medical treatment in Malaysia. The determinants include hospital and staff, country factor, combination tourism and health services, and cost saving. Self-administered questionnaire was the main instrument for data collection of the study. Data were collected from 117 foreign patients in several private hospitals located at Selangor, Kuala Lumpur and Johor Bharu using purposive sampling technique. Multiple regression was used to test the four hypotheses. Two out of the four hypotheses were found to be significantly and related to repurchase intention for medical treatment in Malaysia. Cost saving was found to be the most important factor that affects the foreign patients intention to revisit Malaysia as their medical destination, followed by the factor of hospital and staff. The findings of the study could enable policy makers to further strengthen Malaysia as the worlds top health tourism destination due to the affordable and high quality medical treatment.
Keywords: Medical Tourism; Health Services; Malaysia.
Limitation Factors of Whistleblowing Practices among Public Sector Internal Auditors in Malaysia: In-Depth Interview Study
by Noridayu Abdullah Sani, Abdullah Sallehuddin Abdullah Salim, Nahariah Jaffar
Abstract: Like Malaysia, the commitment to eradicate the corruption was established through the enactment of Whistleblowing Protection Act 2010 (WPA). The recent Malaysia worst Corruption Perception Index 2017 and increases of Global Corruption Barometer 2017 should encourage the need to explore the answers in relation to whistleblowing practice, particularly among public sector internal auditors in Malaysia. Hence, this study is warranted to explore the limitation factors of whistleblowing practice among public sector internal auditors in Malaysia. Due to the complexity of whistleblowing practice, this study decided to conduct a semi-structured interview among the internal auditors from ministries, statutory bodies and state government offices. The result of this study reveals that there are four limitation factors of whistleblowing practice, that include power distance, failure of WPA implementation, lack of manpower and ineffective internal control. This study also ignites few recommendations to improve the effectiveness of whistleblowing legislation in Malaysia.
Keywords: Whistleblowing Protection Act 2010; whistleblowing practice; public sector organisation; internal auditor.