• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.343-352
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• 2021

This study aims to identify the impact of the audit approach based on business risks (i.e., external environment risk, operations risk, information risk) in reducing unsystematic risks (i.e., operational risk, credit risk, liquidity risk, capital risk, and administrative risk) in Jordanian banks. To reduce the effect of unsystematic risks and, thus, improve banking performance, an audit approach based on business risks has emerged. To achieve the objectives, this study relied on descriptive statistics and the regression approach to study twenty-five Jordanian banks. The researcher used the intentional sampling method represented by employees of the accounting, financial and control departments in Jordanian banks. Seventeen banks contributed to the study, with a percentage of 68%, totaling 356 employees. A questionnaire was designed to obtain the data, and due to homogeneity among the sampling members, a purposive sample was drawn and 300 questionnaires were distributed. The results of the study found a statistically significant effect of the audit approach based on business risks with its combined dimensions on reducing unsystematic risks in Jordanian banks. The results of the study also found a statistically significant effect of the business risk-based audit approach with its combined dimensions on reducing operational risks in Jordanian banks.

• Journal of Information Technology Services
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• v.4 no.1
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• pp.129-139
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• 2005

This paper proposes a framework of Operational Risk-based Business Continuity System(ORBCS), and develops protection system for operational risk through operational risk assessment and loss distribution approach based on risk management guideline announced in the basel II. In order to find out financial operational risk, business processes of domestic bank are assorted by seven event factors and eight business activities so that we can construct the system. After we find out KRI(Key Risk Indicator) index, tasks and risks, we calculated risk possibility and expected cost by analyzing quantitative data, questionnaire and qualitative approach for AHP model from the past events. Furthermore, we can assume unexpected cost loss by using loss distribution approach presented in the basel II. Each bank can also assume expected loss distributions of operational risk by seven event factors and eight business activities. In this research, we choose loss distribution approach so that we can calculate operational risk. In order to explain number of case happened, we choose poisson distribution, log-normal distribution for loss cost, and estimate model for Monte-Carlo simulation. Through this process which is measured by operational risk. of ABC bank, we find out that loss distribution approach explains closer unexpected cost directly compared than internal measurement approach, and makes less unexpected cost loss.

• Proceedings of the Earthquake Engineering Society of Korea Conference
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• 2003.09a
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• pp.295-302
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• 2003

A quantitative approach for the retrofit prioritization of bridges is developed based on the damage risk of seismic vulnerable components. In the developed approach, seismic damage risk is estimated in the probabilistic perspectives with an analytical bridge model, which can consider various phenomena found in the seismic behaviors of girder-type bridges and damage models of various vulnerable components. Based on the total cost due to failure of structural components, weighting factors are proposed. Finally, the ranking index and retrofit priority of bridges are estimated from the overall damage risk and weighting factors of bridges. As a result, the retrofit priority of four PSC girder bridges is evaluated by using the proposed approach. The vulnerable components in need of seismic retrofit are selected accordingly. From simulated results, the validity of the proposed approach is verified by comparison with the existing approach. In addition, the proposed approach is found to be appropriate in evaluating the priority of existing bridges.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.231-239
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• 2021

The purpose of this study is to analyze the effect of risk efficiency, financial decisions, and financial performance on firm value due to advances in financial reporting technology. This research was conducted on all banking sub-sector companies listed on the Indonesian capital market during a period of eight years, namely 2012-2019 which were selected using the purposive sampling method. The advancement of financial reporting technology is measured by two indicators based on the Internet financial reporting approach. Risk efficiency is measured using three indicators with a risk proxy relative efficiency approach using value at risk. Financial decisions are measured by two indicators that represent funding decisions and investment decisions. Financial performance is measured by two indicators with the profitability approach, and firm value is measured by two indicators based on the investor perception approach. The data analysis technique in this study used multivariate analysis with SEM-PLS. The empirical findings of this study are the advances in financial reporting technology, financial decisions, and risk-based efficiency value have a significant effect on firm value, while financial performance does not have a significant effect on firm value. Banking companies reduce risk to achieve efficiency and result in lower profits.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.32 no.4B
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• pp.261-266
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• 2012

In this study, soil environmental impact assessment using risk-based approach was compared with that using concentration-based approach. For this, heavy metal contaminant exposure was characterized in an abandoned mine area. According to the estimated carcinogenic and non-carcinogenic risks, soil ingestion was identified as the most dominant exposure pathway. When contaminant concentrations exceeded the Korean Soil Contamination Warning Standards, their corresponding risk values also exceeded the Total Soil Risk Standard. Even the cases of satisfying the Korean Soil Contamination Warning Standards mostly showed higher risk levels than the Total Soil Risk Standard, re-confirming a more sensitivity of the risk-based assessment than concentration-based assessment. However, the in-depth analysis of the estimated non-carcinogenic risk values revealed a few cases for soil contact pathway showing contaminant concentrations higher than the Korean Soil Contamination Warning Standards although their non-carcinogenic risk values satisfied the level of Hazard Index Standard. The findings from this study support a necessity of shifting policy paradigm from concentration-based approach into risk-based approach for reliable risk assessment in abandoned mine areas, and also suggest a necessity of further fundamental studies regarding risk factors and standards.

• Korean Management Science Review
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• v.28 no.3
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• pp.73-82
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• 2011

Basel II advanced measurement approaches for operational risk need to estimate the frequency and severity distribution of operational losses. Due to lack of internal loss data, the estimation is impossible in many cases and so external loss data might be used by scaling on asset or gross income. To get around lack of loss data, scenario analysis combined with loss distribution approach can be useful in calculating the capital charge of operational risk. However, scenario based loss distribution approach requires much time and effort. Instead we may apply the analytic hierarchy process to measure operational risk of financial institutions. The analytic hierarchy process combined with loss distribution approach is to estimate the capital charge of operational risk in other areas based on the operational VaR in an area with sufficient loss data. AHP provides a tool for timely measurement of operational risk in this rapidly changing global environment.

• Journal of Applied Reliability
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• v.8 no.4
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• pp.167-179
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• 2008

System risk is the totality of all safety risks to customers, employees, suppliers, and other third parties that arise due to system operations. To assess the risk of major hazards with the potential to cause fatality to the customers and other members of the public, quantitative risk assessment methodologies are used. This paper presents the general principles of risk based management approach to improve the safety of high risk systems such as aviation, railway, and nuclear power plants. For the suitable risk control arrangement, case studies of acceptable risk level, risk rating matrix, and safety management philosophy are presented.

• Fisheries and Aquatic Sciences
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• v.22 no.12
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• pp.29.1-29.7
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• 2019

Veterinary drugs are widely used to protect production-related diseases and promote the growth of farmed fish. The use of large amounts of veterinary drugs may have potential risk and cause adverse effects on both humans and the environment. In this study, we developed risk-based ranking based on a scoring system to be applied in the national residue program. In this approach, the following three factors of veterinary drugs that may occur as residues in fishery products were considered: potency (acceptable daily intake), usage (number of dose and withdrawal period), and residue occurrence. The overall ranking score was calculated using the following equation: potency × usage (sum of the number of sales and withdrawal period) × residue occurrence. The veterinary drugs that were assigned high score by applying this approach were enrofloxacin, amoxicillin, oxolinic acid, erythromycin, and trimethoprim. The risk-based approach for monitoring veterinary drugs can provide a reliable inspection priority in fishery products. The developed ranking system can be applied in web-based systems and residuemonitoring programs and to ensure safe management of fishery products in Korea.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.11 no.2
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• pp.959-981
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• 2017

Existing Android malware detection approaches mostly have concentrated on superficial features such as requested or used permissions, which can't reflect the essential differences between benign apps and malware. In this paper, we propose a quantitative calculation model of application risks based on the key observation that the essential differences between benign apps and malware actually lie in the way how permissions are used, or rather the way how their corresponding permission methods are used. Specifically, we employ a fine-grained analysis on Android application risks. We firstly classify application risks into five specific categories and then introduce comprehensive risk, which is computed based on the former five, to describe the overall risk of an application. Given that users' risk preference and risk-bearing ability are naturally fuzzy, we design and implement a fuzzy logic system to calculate the comprehensive risk. On the basis of the quantitative calculation model, we propose a risk classification based approach for Android malware detection. The experiments show that our approach can achieve high accuracy with a low false positive rate using the RandomForest algorithm.

• Journal of the Korean Geotechnical Society
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• v.25 no.1
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• pp.31-40
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• 2009

This paper presents a new approach of risk evaluation method for the reinforced slopes. In order to perform this study, the existing stability and risk evaluation methods are reviewed and analysed in terms of rainfall, ground condition, and drain conditions. According to the characteristic of the reinforced slopes improved by internal and external reinforcement, the nineteen influence factors are determined in order to develop new risk analysis model based on 'Interaction matrix' approach suggested by Hudson (1991). Using new approach of slope risk analysis model, the weighting values for interaction factors are analysed and determined. Based on new slope risk evaluation approach, the slope risk index, namely SRI (Slope Risk Index) is developed in this study to apply the evaluation of the reinforced slopes. In order to verify the SRI, a total of 15 cases are studied and analysed. The analysed results are compared and evaluated. According to the results, it is deduced that new slope risk evaluation method (SRI approach) IS very useful and practically a reliable method to evaluate the existing slopes.