Despite regulatory guidelines, unreliable financial reporting exists in organizations, creating undue financial risk-harm for their stakeholders. Normal accident theory (NAT) identifies factors in highly complex integrated systems that can have unexpected, undetected, and uncorrected system failures. High-reliability organization (HRO) theory constructs promote reliability in complex, integrated systems prone to NAT factors. Enterprise risk management (ERM) integrates NAT factors and HRO constructs under a holistic framework to achieve organizational goals and mitigate the potential for stakeholder risk-harm. Literature on how HRO constructs promote ERM in responsible integrated financial systems has been limited. The purpose of this qualitative, grounded theory study was to use HRO constructs to identify and define the psychological factors involved in the effective ERM of responsible organizational financial reporting. Standardized, open-ended interviews were used to collect inductive data from a purposeful sample of 13 reporting agents stratifying different positions in organizations that have maintained consistent operational success while attenuating stakeholder risk-harm. The data were interpreted via transcription, and subsequent iterative open, axial, and narrative coding. Results showed that elements of culture and leadership found in the HRO construct of disaster foresightedness and mitigation fostered an internal environment of successful enterprise reporting risk management to ethically achieve organizational goals and abate third-party stakeholder risk-harm. The findings will contribute to positive social change by suggesting an approach for organizations to optimize strategic objectives while minimizing stakeholders' financial risk-harm.

This dissertation comprises three studies, a literature review and two experimental studies, that center on the effects of psychological distance on judgment and decision-making in accounting. Construal level theory (CLT) of psychological distance (Liberman and Trope 1998; Trope and Liberman 2003), a framework recently developed in the field of social psychology, constitutes the theoretical foundation for each study. The first study reviews extant literature on CLT and illustrates the theory's potential for investigating previously unexplained phenomena within the accounting domain. Selected publications that apply CLT in contexts that are of particular interest to accounting researchers are emphasized and a series of broad, CLT-based research questions pertaining to various accounting domains are offered. The second study applies CLT to the audit context by investigating whether the performance of common auditing tasks that require varying degrees of abstract thinking affect decision-makers' overall mindset and hence their subsequent judgment. Results from the second study have important implications for audit practice as auditors work in environments that require frequent shifts in focus due to multiple client or project demands. The third study applies CLT to the enterprise risk management context by examining how spatial distance from a risk assessment object and risk category (i.e., the type of risk) affects decision-makers' assessment of the probability that the risk will materialize. The third study thus informs the corporate governance literature by identifying psychological distance as a potential source for judgment bias during the risk assessment process. Overall, the results reported in this dissertation suggest that psychological distance systematically affects individuals' judgment subject to the caveat that the judgment of concern falls within the domain of the decision-maker's routine cognition. By presenting empirical evidence from both the audit and the risk management domain, the studies contribute to our understanding of the heuristics and biases in judgment and decision-making in professional settings that are of interest to accounting research.

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No / Risks exist in all aspects of our lives. Using data in both Scopus and ISI Web of Science, this review paper identifies pioneer work and pioneer scholars in enterprise risk management (ERM). Being ranked the first based on the review data, Desheng Wu has been active in this area by serving as a good academic network manager on the global research network, His global efforts with diverse networking have enabled him to publish outstanding papers in the field of ERM. Therefore, this paper also conducts a literature review of his papers and critical analysis of the work of Wu and Olson, from the perspective of the ERM, to glean implications and suggestions for the optimization and customization of the ERM. / NFSC grant (Grant # 71471055), the 100-Talents plan Program at Chinese Academy of Sciences and 1000-Talents plan Program for the Young Scientists.

As technology continuously evolves, it becomes increasingly important for various industries to adapt to the technological landscape. This necessity is evident in the banking sector, as banks must constantly evolve in parallel with those who may seek to harm the organization. The success of the industry is linked to its relationships with customers and other stakeholders, which means it is crucial to continually enhance and implement new measures to ensure risks are minimized. Previous research has highlighted the importance of leadership and the necessity of having a well-functioning risk management strategy to minimize risks and create a strong, stable foundation for operational efficiency. However, less attention has been directed toward the interdependence of these two components and how leadership affects risk management within organizations, such as banks. The purpose of this report is to increase the understanding of how various aspects of transformational and transactional leadership can be used to promote a proactive risk management, as well as how these leadership styles can be integrated with each other to create a proactive risk management within the banking sector.. The study draws on theories and previous research on leadership, risk management strategies, and Enterprise Risk Management, as well as respondents' knowledge and experiences, to address the study's purpose.This study examines the significance of leadership in cultivating a proactive risk management within the banking sector. By analyzing the role of leadership in promoting risk awareness and proactive behavior among employees, this research provides insights into how effective leaders can influence attitudes and behaviors crucial for managing risks. The findings emphasize the need for leaders within the banking sector to take initiatives to enhance the organization's capability to manage risks and promote a proactive culture essential for meeting the ever-changing challenges of today's financial landscape.In conclusion, the study's findings underscore the importance of a leader's ability to harmoniously integrate aspects of both transformational and transactional leadership to strengthen the organization's ability to manage risks and foster a proactive risk management necessary for addressing the continually evolving challenges in today's financial landscape.

A Gestão de Riscos Corporativos (GRC) tem despertado interesse da academia desde a década de 1990, quando foi definida como uma administração abrangente e holística dos riscos empresariais, em contraste à Gestão Tradicional de Riscos que objetiva proteção. Desde então, a maior parte dos estudos empíricos disponíveis sobre a GRC pretenderam associá-la a desempenho ou eficiência e pouco há sobre sua relação com o processo de internacionalização de empresas. O menor foco da literatura sobre essa relação desperta atenção, uma vez que o processo de internacionalização implica na exposição a riscos inerentes às diversas geografias e frequentemente atípicos nos países de origem das empresas. Dessa forma, a GRC pode ser uma vantagem competitiva no processo de internacionalização. Nesse contexto, esta dissertação investigou a relação entre Grau de Internacionalização (GI) e Nível de Maturidade em Gestão de Riscos Corporativos (NMGRC) de empresas brasileiras. Para isso, utilizou-se de análise de conteúdo dos Formulários de Referência de 72 empresas listadas nos três níveis de governança corporativa da BM&F Bovespa no ano fiscal de 2013. Por meio da técnica estatística multivariada de Análise de Componentes Principais foram definidos três construtos para a composição do GI (Receita do Exterior, Recursos Físicos e Humanos no Exterior e Participação em Sociedades no Exterior) e três para NMGRC (Liderança na Gestão de Riscos, Suporte Externo para Gestão de Riscos e Prática de Gestão de Riscos). Os construtos então foram agrupados em um índice composto para NMGRC e GI, seguidos de propostas métricas aplicáveis a dados primários. As análises estatísticas foram realizadas de forma associativa, por meio de correlações, entre grupos, com a análise de quatro agrupamentos ordenados por GI; e de forma preditiva, com emprego de Regressão Logística Ordinal. Os resultados mostraram uma relação direta e proporcional entre o Nível de Maturidade em Gestão de Riscos Corporativos e o Grau de Internacionalização das empresas pesquisadas pelos três métodos de análise. Quanto ao efeito da GRC no GI, esta última teve maior relação com Liderança na Gestão de Riscos, seguida em importância por Prática de Gestão de Riscos. O construto Suporte Externo para Gestão de Riscos não foi conclusivo. Quanto ao efeito da internacionalização no NMGRC, a maior relação foi encontrada para Receita do Exterior, seguida de Recursos Físicos e Humanos no Exterior. O construto Participação em Sociedades no Exterior não foi conclusivo. Com esses resultados, esta dissertação encontrou indícios de que o engajamento da alta direção com a GRC pode trazer vantagem no atingimento dos objetivos de internacionalização das empresas brasileiras de capital aberto, principalmente quando as receitas do exterior aumentam ou há alocação de recursos físicos e humanos fora do país. / The Enterprise Risk Management (ERM) has been of academic interest since the 90´s when it was defined as a wider and holistic management of business risks, in contrast to the Traditional Risk Management practice, which intends to protection. Since then, the vast majority of available empirical researches on ERM aimed to associate it with performance and efficiency and scarce literature is found on its relationship with the internationalisation process. The absence of this connection draws attention as the internationalisation process involves the exposition of a firm to risks derived from the array of involved geographies, frequently unusual in its origin country. Then, the ERM is potentially a competitive advantage in the internationalisation process of a firm. This research investigated the relationship between the Degree of Internationalisation (DI) and the Maturity Level of Enterprise Risk Management (MLERM) thru empirical data. To meet this objective, a documental research on 72 listed companies in the three top tier corporate governance index of the Brazilian Stock Exchange was conducted. Data was extracted from the forms officially submitted to the government market authority in the fiscal year of 2013 by an extensive content analysis. Using the multivariate statistic method of Principal Component Analysis, three constructs were defined to DI (Revenues from Abroad, Physical and Human Resources Abroad and Interest in Societies Abroad) and three to MLERM (Leadership in Risk Management, External Support to Risk Management and Risk Management Practices). These constructs were then used to build composite indexes to MLERM and DI, followed by a proposition of counterpart indexes applicable to primary data. The statistical analysis were made in three ways: associative, with use of correlations; between groups, with the analysis of four clusters ranked by their DI; and predictive, with the use of Ordinal Logistic Regression. The results have shown a proportional and direct relation between the Maturity Level of Enterprise Risk Management and the Degree of Internationalization of researched companies by the three applied methods. As for the effect of ERM on ID, the later shown greater relation to Leadership in Risk Management, followed in importance by Risk Management Practices. The construct External Support to Risk Management was inconclusive. As for the effect of internationalization on MLERM, the greater relation was found to Revenues from Abroad, followed in importance by Physical and Human Resources Abroad. The construct Interest in Societies Abroad was inconclusive. With these results this research has found indications that the engagement of the higher directive board towards ERM may be an advantage in achieving the internationalization targets of Brazilian public companies, mainly when the revenues from abroad increase or there are human or physical resources invested out of the borders.

An in-depth analysis of organizational risk management in health care, and in particular the concepts of Enterprise Risk Management (ERM), has identified a five part model that can be used by Canadian health care leaders as an evidence supported approach to successful organizational risk management. The Model for Organizational Risk Management has been developed as a basis for linking the components of an ERM framework into a Canadian health organization in order to overcome the barriers that commonly disrupt strategic risk management. The Model addresses how an ERM framework can fit within an existing health organization by building off of and enhancing existing processes and resources in order to ensure familiarity, acceptance, and sustainability of the risk management program. By approaching the Model in a stepwise fashion (based on individual organizational context) health care leaders are provided with a roadmap from which to advance their own organizational risk management program.

An in-depth analysis of organizational risk management in health care, and in particular the concepts of Enterprise Risk Management (ERM), has identified a five part model that can be used by Canadian health care leaders as an evidence supported approach to successful organizational risk management. The Model for Organizational Risk Management has been developed as a basis for linking the components of an ERM framework into a Canadian health organization in order to overcome the barriers that commonly disrupt strategic risk management. The Model addresses how an ERM framework can fit within an existing health organization by building off of and enhancing existing processes and resources in order to ensure familiarity, acceptance, and sustainability of the risk management program. By approaching the Model in a stepwise fashion (based on individual organizational context) health care leaders are provided with a roadmap from which to advance their own organizational risk management program.

A Gestão de Riscos Corporativos (GRC) tem despertado interesse da academia desde a década de 1990, quando foi definida como uma administração abrangente e holística dos riscos empresariais, em contraste à Gestão Tradicional de Riscos que objetiva proteção. Desde então, a maior parte dos estudos empíricos disponíveis sobre a GRC pretenderam associá-la a desempenho ou eficiência e pouco há sobre sua relação com o processo de internacionalização de empresas. O menor foco da literatura sobre essa relação desperta atenção, uma vez que o processo de internacionalização implica na exposição a riscos inerentes às diversas geografias e frequentemente atípicos nos países de origem das empresas. Dessa forma, a GRC pode ser uma vantagem competitiva no processo de internacionalização. Nesse contexto, esta dissertação investigou a relação entre Grau de Internacionalização (GI) e Nível de Maturidade em Gestão de Riscos Corporativos (NMGRC) de empresas brasileiras. Para isso, utilizou-se de análise de conteúdo dos Formulários de Referência de 72 empresas listadas nos três níveis de governança corporativa da BM&F Bovespa no ano fiscal de 2013. Por meio da técnica estatística multivariada de Análise de Componentes Principais foram definidos três construtos para a composição do GI (Receita do Exterior, Recursos Físicos e Humanos no Exterior e Participação em Sociedades no Exterior) e três para NMGRC (Liderança na Gestão de Riscos, Suporte Externo para Gestão de Riscos e Prática de Gestão de Riscos). Os construtos então foram agrupados em um índice composto para NMGRC e GI, seguidos de propostas métricas aplicáveis a dados primários. As análises estatísticas foram realizadas de forma associativa, por meio de correlações, entre grupos, com a análise de quatro agrupamentos ordenados por GI; e de forma preditiva, com emprego de Regressão Logística Ordinal. Os resultados mostraram uma relação direta e proporcional entre o Nível de Maturidade em Gestão de Riscos Corporativos e o Grau de Internacionalização das empresas pesquisadas pelos três métodos de análise. Quanto ao efeito da GRC no GI, esta última teve maior relação com Liderança na Gestão de Riscos, seguida em importância por Prática de Gestão de Riscos. O construto Suporte Externo para Gestão de Riscos não foi conclusivo. Quanto ao efeito da internacionalização no NMGRC, a maior relação foi encontrada para Receita do Exterior, seguida de Recursos Físicos e Humanos no Exterior. O construto Participação em Sociedades no Exterior não foi conclusivo. Com esses resultados, esta dissertação encontrou indícios de que o engajamento da alta direção com a GRC pode trazer vantagem no atingimento dos objetivos de internacionalização das empresas brasileiras de capital aberto, principalmente quando as receitas do exterior aumentam ou há alocação de recursos físicos e humanos fora do país. / The Enterprise Risk Management (ERM) has been of academic interest since the 90´s when it was defined as a wider and holistic management of business risks, in contrast to the Traditional Risk Management practice, which intends to protection. Since then, the vast majority of available empirical researches on ERM aimed to associate it with performance and efficiency and scarce literature is found on its relationship with the internationalisation process. The absence of this connection draws attention as the internationalisation process involves the exposition of a firm to risks derived from the array of involved geographies, frequently unusual in its origin country. Then, the ERM is potentially a competitive advantage in the internationalisation process of a firm. This research investigated the relationship between the Degree of Internationalisation (DI) and the Maturity Level of Enterprise Risk Management (MLERM) thru empirical data. To meet this objective, a documental research on 72 listed companies in the three top tier corporate governance index of the Brazilian Stock Exchange was conducted. Data was extracted from the forms officially submitted to the government market authority in the fiscal year of 2013 by an extensive content analysis. Using the multivariate statistic method of Principal Component Analysis, three constructs were defined to DI (Revenues from Abroad, Physical and Human Resources Abroad and Interest in Societies Abroad) and three to MLERM (Leadership in Risk Management, External Support to Risk Management and Risk Management Practices). These constructs were then used to build composite indexes to MLERM and DI, followed by a proposition of counterpart indexes applicable to primary data. The statistical analysis were made in three ways: associative, with use of correlations; between groups, with the analysis of four clusters ranked by their DI; and predictive, with the use of Ordinal Logistic Regression. The results have shown a proportional and direct relation between the Maturity Level of Enterprise Risk Management and the Degree of Internationalization of researched companies by the three applied methods. As for the effect of ERM on ID, the later shown greater relation to Leadership in Risk Management, followed in importance by Risk Management Practices. The construct External Support to Risk Management was inconclusive. As for the effect of internationalization on MLERM, the greater relation was found to Revenues from Abroad, followed in importance by Physical and Human Resources Abroad. The construct Interest in Societies Abroad was inconclusive. With these results this research has found indications that the engagement of the higher directive board towards ERM may be an advantage in achieving the internationalization targets of Brazilian public companies, mainly when the revenues from abroad increase or there are human or physical resources invested out of the borders.

This research sheds light on the nature of the role of the operational risk controller in the financial services industry. The focus is on understanding how operational risk controllers interact with different layers of the organisation and become influential with the business lines and senior management. Nine semi-structured interviews were conducted with operational risk controllers, and it was found that their work is becoming increasingly focused on managing people with a view to creating mutual understanding. To achieve this, operational risk controllers should work more as independent facilitators in their interactions with the first line and senior management, as engaged toolmakers when adapting and reconfiguring tools, and as non-financial risk controllers when attempting to enable business leaders to understand the magnitude of operational risks.