The aim of this study is to shed light on how two fundamental corporate macro processes (Human Resources Management – HRM - and Voluntary Disclosure - VD) contribute to Risk Management (RM) and Value Creation (VC) in financial institutions.In general, the copious literature produced of recent years on shareholder value creation and risk management, while emphasising aspects related to human resources management (and compensation systems in particular) and the importance of disclosure, still tend to discuss these topics at a fairly superficial level, in both theoretical and empirical terms. From the empirical point of view, this is partly understandable, given the lack of public data on HRM practices within banks, and the contents and modes of disclosure (especially voluntary forms of reporting, focusing on parameters not completely expressed in monetary terms), leading to the use of indirect measurements of some drivers which may explain the creation of value or the ability to deal with risks. We are thinking, for example, of customer satisfaction, and the adequacy of the organisational structure and management accounting systems.In the area of theory, and the consequent opportunity for new perspectives for research and innovation, this superficiality is less justifiable. Is it acceptable to provide only partial explanations of phenomena, simply because there are plenty of other studies with which my findings can be compared? Are the results researchers produce in this way of help for the actions managers and authorities, for example, have to take to improve the conditions for the implementation of value creation and risk management strategies? We will attempt to put forward comments and research hypotheses on the factors, linked to HRM and VD, which affect value creation and risk management in banks, starting from two research frameworks which have not been widely used when discussing financial institution management topics related to value creation and risk management, but that we think are very useful in clarifying the real situation behind value creation (for shareholders and other stakeholders) and risk management. These research frameworks are Intellectual Capital and Stakeholder Management.We believe that these managerial frameworks can offer useful theoretical and practical contributions to Risk Management and Value Creation issues in bank management. Risk Management issues are normally analysed (and managed) through measurement approaches that are above all, financial and quantitative, and are linked to the first and (partially) the second pillar of the Basel 2 Accord, and Value Creation is scrutinized under financial measurement approaches, the usage of which is widespread at the top management and board of directors level. Our aim is to demonstrate that to achieve better Risk Management and Value Creation, financial institutions must also consider some different perspectives, especially with regard to specific kinds of risk (i.e. operational, compliance, reputational), and the recommendations embedded in the managerial frameworks of analysis of financial institutions. We illustrate the case of Human Resource Management practices and Voluntary Disclosure.

Managerial Research Framework in Banking: Intellectual Capital and Stakeholder Management. The case of Human Resource Management and Voluntary Disclosure / D., Previati; Vezzani, Paola. - ELETTRONICO. - (2010), pp. 1719-1737.

Managerial Research Framework in Banking: Intellectual Capital and Stakeholder Management. The case of Human Resource Management and Voluntary Disclosure

VEZZANI, Paola
2010

Abstract

The aim of this study is to shed light on how two fundamental corporate macro processes (Human Resources Management – HRM - and Voluntary Disclosure - VD) contribute to Risk Management (RM) and Value Creation (VC) in financial institutions.In general, the copious literature produced of recent years on shareholder value creation and risk management, while emphasising aspects related to human resources management (and compensation systems in particular) and the importance of disclosure, still tend to discuss these topics at a fairly superficial level, in both theoretical and empirical terms. From the empirical point of view, this is partly understandable, given the lack of public data on HRM practices within banks, and the contents and modes of disclosure (especially voluntary forms of reporting, focusing on parameters not completely expressed in monetary terms), leading to the use of indirect measurements of some drivers which may explain the creation of value or the ability to deal with risks. We are thinking, for example, of customer satisfaction, and the adequacy of the organisational structure and management accounting systems.In the area of theory, and the consequent opportunity for new perspectives for research and innovation, this superficiality is less justifiable. Is it acceptable to provide only partial explanations of phenomena, simply because there are plenty of other studies with which my findings can be compared? Are the results researchers produce in this way of help for the actions managers and authorities, for example, have to take to improve the conditions for the implementation of value creation and risk management strategies? We will attempt to put forward comments and research hypotheses on the factors, linked to HRM and VD, which affect value creation and risk management in banks, starting from two research frameworks which have not been widely used when discussing financial institution management topics related to value creation and risk management, but that we think are very useful in clarifying the real situation behind value creation (for shareholders and other stakeholders) and risk management. These research frameworks are Intellectual Capital and Stakeholder Management.We believe that these managerial frameworks can offer useful theoretical and practical contributions to Risk Management and Value Creation issues in bank management. Risk Management issues are normally analysed (and managed) through measurement approaches that are above all, financial and quantitative, and are linked to the first and (partially) the second pillar of the Basel 2 Accord, and Value Creation is scrutinized under financial measurement approaches, the usage of which is widespread at the top management and board of directors level. Our aim is to demonstrate that to achieve better Risk Management and Value Creation, financial institutions must also consider some different perspectives, especially with regard to specific kinds of risk (i.e. operational, compliance, reputational), and the recommendations embedded in the managerial frameworks of analysis of financial institutions. We illustrate the case of Human Resource Management practices and Voluntary Disclosure.
Scritti in onore di Vittorio Coda
9788823811041
Egea
ITALIA
Managerial Research Framework in Banking: Intellectual Capital and Stakeholder Management. The case of Human Resource Management and Voluntary Disclosure / D., Previati; Vezzani, Paola. - ELETTRONICO. - (2010), pp. 1719-1737.
D., Previati; Vezzani, Paola
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/696862
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