scholarly journals Comprehensive identification of operational risk factors based on textual risk disclosures

2018 ◽  
Vol 139 ◽  
pp. 136-143 ◽  
Author(s):  
Yinghui Wang ◽  
Guowen Li ◽  
Jianping Li ◽  
Xiaoqian Zhu
Keyword(s):  
Risk Factors ◽  
Operational Risk ◽  
Risk Disclosures

Firm Use of Cybersecurity Risk Disclosure

2021 ◽  
Author(s):  
Wanying Jiang ◽  
Joseph Legoria ◽  
Kenneth Reichelt ◽  
Stephanie Walton
Keyword(s):  
Risk Factors ◽  
Information Asymmetry ◽  
Response Behavior ◽  
Risk Disclosure ◽  
Market Reactions ◽  
External Stakeholders ◽  
Risk Disclosures

Increasingly, firms are subject to rising cybersecurity risks. One way that firms can communicate cybersecurity uncertainty and reduce information asymmetry with external stakeholders is through cybersecurity risk disclosures. SEC (2011, 2018) guidance encourages the disclosure of significant cybersecurity risk factors. However, not all firms provide informative or quality disclosures following a cybersecurity breach event. In this study, we examine the firm use of cybersecurity risk disclosures after a cybersecurity breach. We find that not all breached firms alter their cybersecurity disclosure behavior similarly following a breach. Rather, firm prior breach experience and breach-related market reactions impact the provision of additional cybersecurity disclosures. Our study provides initial evidence on when firms provide additional cybersecurity disclosures post-breach and informs regulators and policymakers on how firms utilize cybersecurity risk disclosures as a response behavior.

The nexus between risk factor disclosures and short-run performance of IPOs – evidence from literature

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Krishan Lal Grover ◽  
Pritpal Singh Bhullar
Keyword(s):  
Risk Factors ◽  
Risk Factor ◽  
Literature Review ◽  
Research Papers ◽  
Content Type ◽  
Ipo Performance ◽  
Short Run ◽  
Research Gap ◽  
Review Study ◽  
Risk Disclosures

PurposeThe main purpose of the present study is to stretch the theoretical framework of existing stock of literature with reference to Risk Disclosures in IPO Prospectus and IPO performance. The systematic literature review study endows easy and quick access to researchers as well as categorization of the available literature.Design/methodology/approachFifty research papers, which has been published or presented from 2000 to 2019 and are related to IPO risk disclosures and IPO performance, have been finalized. Further, these research papers were categorized based upon the five different variables to identify the probable research gap in the selected topic.FindingsThis review provides a coherent summary of past studies related to topic and develop a comprehensive evidence on relationship between disclosure of risk factors and IPO underpricing in short run. It shows the existing research gap that needs to be fulfilled to expand the research horizon of future research studies.Research limitations/implicationsThe sole limitation of the study is that being a systematic literature review study, it does not carry any empirical results.Practical implicationsThe investors will be able to identify the key risk factors, disclosed in IPO prospectus, that may have probable dent on the short-term return from IPO. The findings will further help the investors and financial analyst to identify the degree of impact of risk disclosures that are listed in IPO prospectus.Originality/valueThe paper is a first of its kind to stretch the existing literature and develop theoretical framework in the context of risk factor discloses in IPO prospectus and IPO performance with reference to India. The present study is an attempt to integrate the existing gap between empirical research and existing literature and suggest the techniques to the future practitioners to widen the horizon of their research.

scholarly journals Risk factors identification and evolution analysis from textual risk disclosures for insurance industry

2019 ◽  
Vol 162 ◽  
pp. 25-32 ◽  
Author(s):  
Yinghui Wang ◽  
Bin Li ◽  
Guowen Li ◽  
Xiaoqian Zhu ◽  
Jianping Li
Keyword(s):  
Risk Factors ◽  
Insurance Industry ◽  
Evolution Analysis ◽  
Risk Disclosures

Developing a hierarchical system for energy corporate risk factors based on textual risk disclosures

2019 ◽  
Vol 80 ◽  
pp. 452-460 ◽  
Author(s):  
Lu Wei ◽  
Guowen Li ◽  
Xiaoqian Zhu ◽  
Xiaolei Sun ◽  
Jianping Li
Keyword(s):  
Risk Factors ◽  
Hierarchical System ◽  
Risk Disclosures ◽  
Corporate Risk

Distribution network operational risk assessment and early warning considering multi-risk factors

2020 ◽  
Vol 14 (16) ◽  
pp. 3139-3149
Author(s):  
Lijuan Chen ◽  
Li Liu ◽  
Yan Peng ◽  
Wenjin Chen ◽  
Hongyang Huang ◽  
...  
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Early Warning ◽  
Distribution Network ◽  
Operational Risk

scholarly journals A Framework for Analysis and Prediction of Operational Risk Stress

2021 ◽  
Vol 26 (1) ◽  
pp. 19
Author(s):  
Peter Mitic
Keyword(s):  
Risk Factors ◽  
Financial Risk ◽  
Time Window ◽  
Operational Risk ◽  
Specific Reference ◽  
Mild Stress ◽  
Regulatory Capital ◽  
Regulatory Requirements ◽  
Extreme Stress ◽  
Loss Data

A model for financial stress testing and stability analysis is presented. Given operational risk loss data within a time window, short-term projections are made using Loess fits to sequences of lognormal parameters. The projections can be scaled by a sequence of risk factors, derived from economic data in response to international regulatory requirements. Historic and projected loss data are combined using a lengthy nonlinear algorithm to calculate a capital reserve for the upcoming year. The model is embedded in a general framework, in which arrays of risk factors can be swapped in and out to assess their effect on the projected losses. Risk factor scaling is varied to assess the resilience and stability of financial institutions to economic shock. Symbolic analysis of projected losses shows that they are well-conditioned with respect to risk factors. Specific reference is made to the effect of the 2020 COVID-19 pandemic. For a 1-year projection, the framework indicates a requirement for an increase in regulatory capital of approximately 3% for mild stress, 8% for moderate stress, and 32% for extreme stress. The proposed framework is significant because it is the first formal methodology to link financial risk with economic factors in an objective way without recourse to correlations.

scholarly journals Readability of Operational Risk Disclosures of Banks

2019 ◽  
Vol 14 (3) ◽  
pp. 108-116 ◽  
Author(s):  
Mocanu Mihaela ◽  
Grose Christos ◽  
Kargidis Theodoros
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Textual Analysis ◽  
Banking System ◽  
Operational Risk ◽  
Risk Disclosure ◽  
Financial Firms ◽  
Risk Disclosures ◽  
Technical Terms

AbstractOperational risk has been acknowledged as a major source of material failures in financial firms. Despite the increased concern of financial institutions and their stakeholders on this topic, the literature that deals specifically with the operational risk disclosure in the banking system is scarce. The present research investigates the readability in transparency reports of Romanian banks, and focuses in particular on the operational risk disclosures. The sample consists of 13 commercial banks operating in Romania in 2017. A concise transparency report is characterized by clarity in the expression of concepts, usage of as few words as possible, limited use of technical terms and avoidance of highly generic disclosures. Drawing upon prior research, we expect that banks with lower levels of performance are foggier (i.e. less concise) in order to improve the image resulting from their transparency reports. Additionally, it is expected that the longer an entity has been established, the higher the quality of disclosures, thus the transparency reports of older banks are more concise compared to the recently established banks. Moreover, we posit that larger banks are more likely to provide more readable reports. The research is part of the larger debate related to disclosure and its various impacts on both the recipient and the giver of information. The main contribution is the innovative approach consisting in the textual analysis of transparency risk reports. To the best of our knowledge, we are not aware of any study that examined conciseness in the setting of operational risk disclosure by banks.

Sign in / Sign up

Export Citation Format

Share Document