PurposeThis study examined Muslim civil officers' cash waqf giving decisions in Malaysia.Design/methodology/approachUsing the theory of planned behaviour (TPB), the effects of the said factors on the decisions were examined using logistic analysis. A total of 583 Muslim civil officers were involved in this work. The discrete dependent variable measures whether a civil officer is a donor or non-donor cash waqf.FindingsResults obtained indicate significant influences of attitude, subjective norm, perceived behavioural control and some demographic items on cash waqf giving decisions in Malaysia.Research limitations/implicationsThe findings attained were narrowed in terms of chosen geographical settings and the theory used.Practical implicationsThis study provides a theoretical benchmark to enhance cash waqf giving decisions, which in turn can affect the waqf collection by the waqf institutions in Malaysia.Originality/valueThis study uniquely develops Muslim civil officers' cash waqf giving decisions framework (CAGDEF) in measuring cash waqf giving decisions in Malaysia.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0964.

This study examined the cash waqf giving behaviour in Malaysia covering Selangor, Perak, Negeri Sembilan and Pahang. The theory of planned behaviour (TPB) was employed as a point of departure to observe the factors influencing the cash waqf behaviours involving 777. SPSS 27 was then utilised to assess and consider the data to test hypotheses and draw statistical conclusions. The TPB’s factors were instrumental in shaping the expansion of cash waqf giving in Malaysia. The added variable, Islamic altruism was also statistically influential and played an important role in determining the behaviour formation. Besides, in the post hoc analyses, we discovered a mediating role of attitude for the tested and examined independent variables involved. The usefulness of the results obtained was confined to the theory used as well as the geographical areas chosen. The results obtained can be learned by Malaysian waqf institutions to further strengthen the waqf collections by optimising the significant variables found in this study. This study is the first to check the effects of the TPB's factors in the context of actual behaviour, which adds more knowledge to the existing waqf literature available in the world.

Board directing is a continuous process of risk analysis and control in response to the duality of risk as threat and opportunity. Judgments are made and remade to simultaneously reduce the potential for damaging threats (e.g., fraud, reputation damage), while exploiting opportunities (e.g., new product development, mergers and acquisitions). Adopting an institutional logics approach, we explore this process of risk analysis and control through the varied subject identities (e.g., directorial roles), risk management practices (the procedures and tools used to identify, assess, and control risk), and risk objects (the product of risk identification, assessment, and control, e.g., a risk matrix or register) of boards. We argue that the contingent interaction between these identities, practices, and objects inform the "risk logic" of a board, which may draw attention to the notion of risk as threat, risk as opportunity, or both threat and opportunity. Using the testimony of 30 executive and nonexecutive directors that represent 62 companies from a range of public, private, and third-sector organizations, we contribute to the literature on the microfoundations of risk analysis in organizations by shining a light on how board directors understand, assess, control, and ultimately govern risk in organizations.

Against the background of a succession of financial mishaps in the banking industry, all deeply rooted in the behavior of individual employees, this paper examines the place of "people risk" in the context of operational risk management in UK banks. Our research is informed by an examination of the literature alongside empirical evidence from 25 semi-structured interviews with operational risk practitioners in UK banks, and we find varying levels of awareness and understanding of people risk. As a result of a regulatory focus on quantitative capital requirements, we also find that management of people risk is subsumed under this regulatory approach, and we find evidence that the "embedded" nature of people risk has hindered the development of a more comprehensive industry-wide approach to people risk management. Nevertheless, some operational risk managers are working more closely with their human resources partners to develop a more cohesive approach to people risk management. In the context of current reforms to the capital requirements for operational risk, it may be an opportune time to examine the regulatory approach to people risk in banks.

This chapter focuses on the objectives of financial regulation and how that can influence the structure of national regulators. It then focuses on three particular issues: the regulatory concerns of front-line regulation, the role of regulators when it comes to the protection of financial services consumers and the regulation concerning the behaviour of individuals and culture of financial firms operating within the financial services sector. There are three objectives of financial regulation: systemic stability, the soundness of individual firms and ensuring that markets work effectively. Traditionally, it was thought that the regulation safeguarding the financial position of individual institutions was sufficient to maintain the stability of the financial system – what is referred to as microprudential regulation. Section 19 of the Financial Services and Markets Act 2000 prohibits any firm from carrying on any regulated activities in the United Kingdom unless it is authorised. Individuals holding specific important functions in those firms must also be separately approved.

This chapter focuses on the risks faced by retail financial services consumers, and how those consumers can, or can be helped to, manage those risks. Risk is inherent in the business of financial services and creates risk management challenges for both consumers and the financial services industry. Trust is regarded by behavioural finance as a 'mental short cut' for making decisions. Financial institutions are exposed to various risks while in the business of meeting the needs of their clients. Operational risk is the risk that loss may arise as a result of the weakness of a firm's internal risk management and governance. Market risk refers to the probability of loss as a result of unexpected movement in prices of financial assets. Credit risk refers to the probability of loss as a result of the failure of a borrower or other counterparty to a contract to repay the contractual debt or sum otherwise due.

Abstract The transboundary dynamics of COVID-19 present an unprecedented test of organisational resilience. In the UK, the National Health Service (NHS), a talisman of collective fortitude against disease and illness, has struggled to cope with inadequate provision of virus tests, ventilators, and personal protective equipment needed to fight the pandemic. In this paper, we reflect on the historic dynamics and strategic priorities that have undermined the NHS’s attempts to navigate these troubled times. We invoke the organisational resilience literature to address ‘the good, the bad and the ugly’ of preparedness in readiness and response to the current pandemic. In particular, we draw on Meyer’s (1982) seminal work on ‘adaptation to jolts’, excavating current preparedness failings. We argue an overreliance on perceived efficiency benefits of ‘lean production’ and ‘just in time’ continuity planning superseded strategic redundancy and slack in the system. This strategic focus was not simply the result of a failure in foresight, but rather a failure to act adaptively on knowledge of the known threats and weaknesses spotlighted by earlier projections of an inevitable pandemic threat. In conclusion, we consider how the UK Government and NHS must now undergo a phase of ‘readjustment’ in Meyer’s terms, in light of these failings. We suggest that independent responsibility for national future preparedness should be handed to the NHS free from political interference. This would operate under the umbrella of a national emergency preparedness, resilience and response public body, enshrined in law, and similar in governance to the current Bank of England. This will help ensure that foresight is accompanied by durability and fortitude in safeguarding the UK against future pandemic threats.

Organisations make strategic decisions in a world of uncertainty, and their success or failure depends on their ability to organize this uncertainty and exploit or mitigate the associated risks. At the apex of this risk-strategy nexus is the board of directors. We use the institutional logics perspective to investigate how board directors make sense of and act on their authority and accountability for risk management in an environment of conflicting social identities and goals that are bounded by limited resources and cognition. Through the analysis of 30 semi-structured interviews with executive and non-executive directors we find that boards are struggling to reconcile competing supra-organisational logics of ´risk as opportunity´ and ´risk as threat´. Many boards adopt a ‘governance and compliance’ logic for risk management, emphasizing threat reduction/value protection over the exploitation of opportunities/value creation. A very few opt for a ‘strategic-swashbuckling’ logic that gives primacy to value creation via opportunity exploitation. We also find evidence of a nascent ‘appetite aware’ logic, rooted in the object of the risk appetite statement and spread by directors acting as cultural entrepreneurs. Discovery of the appetite aware logic adds to the evidence on logic modularisation and the ability of cultural entrepreneurs to act as change agents by transferring elements of institutional orders from one situation to another. We find that the introduction of a risk appetite statement can influence board risk narratives and management practices.

The latest UK and Norwegian state pension reforms have reflected contrasting policy design in the balance of private pensions, savings and state provision. Nevertheless, we argue that both governments have in many ways adopted strikingly similar approaches in seeking public acceptance of these potentially controversial reforms, employing a similar repertoire of discursive elements to persuade populations about their logic and rationality. Based on critical analysis of government policy papers, speeches and parliamentary debates, we find that both countries emphasise ‘sustainability’ and ‘fairness’ within an increasingly individualised context where both systems are characterized as facilitating individuals’ efforts to attain security in retirement through ‘choice’ or ‘flexibility’. Significantly, contrasting symbolic metaphors are adopted to situate these reforms, and their proponents, within the heritage and traditions of their different welfare systems, which we find is a key element in successfully implementing the reforms. We note the implications of this research for the analysis of European state pension reform.

Ensuring effective risk management in any organisation is essential. This report takes a close examination of the practices organisations are adopting to embed risk management practices across the organisation. Using an in depth case study approach, it explores how businesses can overcome the common challenges presented in implementing effective risk management processes and suggests good practices for aligning these to the delivery of strategic goals.

This study examines the motives, entry mode choice, and challenges of the international expansion in an emerging country context. Data were collected via interviews from 30 senior managers based on a sample of 10 Chinese commercial banks (CCBs) involved in international expansion over the period of 2001–2013. This study finds greenfield and mergers and acquisitions are the most popular foreign entry mode used by CCBs. The motives of emerging market banks’ internationalization appear to be intrinsically linked to market development to serve customers operating in overseas market, government policies, and strategic knowledge sourcing. In terms of challenges, the study finds lack of management resources/technical capacity, culture, adapting to the host country regulatory environment, and lack of experience to be the main challenges to bank internationalization.

In the context of increasing private provision of social security and welfare, alongside what is argued to be the ‘financialisation’ of daily lives, individuals in many countries face an array of potentially difficult financial choices and decisions. Limitations in levels of knowledge and expertise may lead them to consider seeking financial advice. Yet, in the wake of the great financial crisis, trust in the financial services industry is low.At the same time, in a number of countries the financial advice sector is facing its own challenges. These include regulatory issues concerning the definition, suitability and delivery of advice; the affordability of advice; and the challenges and opportunities facing the advice sector as a result of the increasing use of technology in the financial services sector.This chapter examines the implications of these developments for the regulation and governance of financial advice in the context of Markets in Financial Instruments Directive II. In particular, it considers the example of the UK and issues this raises for the implementation of recent European regulatory reforms.

Interest in financial services firms developing and implementing robust systems and structures to manage operational risk has been growing. While there now appears to be some consensus in terms of definitions, quantification and modeling, firms are struggling with the qualitative side of operational risk management (ORM). This is particularly the case for financial institutions’ operational risk governance, where the three lines of defence model has become standardized. At the same time, corporate scandals post-financial crisis continue to indicate deficiencies in operational risk governance. Our paper examines the three lines of defence in the context of ORM in UK financial institutions. It focuses on roles and responsibilities and then analyzes the effectiveness of the traditional three lines of defence model. We find a lack of common understanding of the lines of defence in financial institutions, which leads to the duplication of roles and gaps in coverage. This is concerning for the industry, the economy and regulators.

Purpose The purpose of this paper is to review the effect of reforms to the UK’s retail advice sector as a result of the Retail Distribution Review (RDR). Design/methodology/approach The paper takes the form of a review of the RDR in the context of the Financial Advice Market Review (FAMR). Findings There is a lack of clarity, experienced by both consumers and financial advisers, concerning the nature of “advice”. This results from the use of an array of regulatory and non-regulatory terms. Whilst enhancing professionalisation and reducing commission bias, the RDR is failing to address the needs of many financial consumers – identified by many as an “advice gap”. It is argued that the focus of the RDR, and previous reforms, on addressing market failures may be misplaced. Practical implications The paper provides an analysis designed to help in the process of developing a retail advice sector that meets the needs of consumers, in the context policy reforms placing more emphasis on the responsibilities of individuals for financial planning. Social implications The study has the potential of better outcomes for consumers and reputational returns for the financial services sector. Originality/value This paper is a review of the current regulatory issues facing financial advisers and retail consumers in the context of the RDR and FAMR.

Following the financial crisis and a series of mis-selling and 'rigging' scandals in the financial services, organisational culture, and particularly the risk culture of organisations, has come to be regarded as a key issue for both financial firms and their regulators This paper considers the extent to which regulatory published notices, 'Final Notices' (FNs), relating to breaches of the regulatory Handbook, are able to provide lessons, or pointers, in the development of 'appropriate' cultures. By undertaking a qualitative content analysis of all the FNs in 2012, we examine the extent to which FNs draw attention to issues of culture, and to the regulator's analysis of the drivers of culture published as part of its treating customers fairly (TCF) initiative. The analysis finds that, although not easy to extract, there are important learning points in FNs relating to organisational culture, and in particular to the factors driving behaviours and outcomes that are signs of poor culture. This paper suggests that, whilst it may not be for a regulator to dictate firms' culture, it could do much more to make use of the content of FNs as a learning tool for firms; particularly in the context of its cultural framework for TCF. This would support the 'outcomes-based' approach being espoused by the UK's regulators.

Basel II introduced a three pillar approach which concentrated upon new capital ratios (Pillar I), new supervisory procedures (Pillar II) and demanded better overall disclosure to ensure effective market discipline and transparency. Importantly, it introduced operational risk as a standalone area of the bank which for the first time was required to be measured, managed and capital allocated to calculated operational risks. Concurrently, Solvency II regulation in the insurance industry was also re-imagining regulations within the insurance industry and also developing operational risk measures. Given that Basel II was first published in 2004 and Solvency II was set to go live in January 2014. This paper analyses the strategic challenges of Basel II in the UK banking sector and then uses the results to inform a survey of a major UK insurance provider. We report that the effectiveness of Basel II was based around: the reliance upon people for effective decision making; the importance of good training for empowerment of staff; the importance of Board level engagement; and an individual's own world view and perceptions influenced the adoption of an organizational risk culture. We then take the findings to inform a survey utilizing structural equation modelling to analyze risk reporting and escalation in a large UK insurance company. The results indicate that attitude and uncertainty significantly affect individual's intention to escalate operational risk and that if not recognized by insurance companies and regulators will hinder the effectiveness of Solvency II implementation.