Journal of Risk Analysis and Crisis Response

The Effect of Audit Committee Expertise on Audit Quality: Empirical Evidence from Bangladesh

Md. Mominur Rahman — 2024-03-31

The purpose of this study is to examine the effects of diverse expertise types on audit quality, providing valuable insights for corporate governance and enhancing the audit process. This research uses 651 firm-year observations for 2001-2021 year. This research applies Breusch-Pagan LM, Pesaran Scaled LM, Bias-corrected Scaled LM, and Pesaran CSD test to check the cross-sectional dependency of the series. The study uses second generation panel unit root tests to check the stationary of the variables. After applying the panel cointegration test, this study uses the long run estimation model and robustness checking to examine the relationship. The findings reveal that financial, accounting, and non-accounting expertise all positively and significantly affect audit quality, suggesting that audit committees with diverse expertise can effectively enhance the audit process. This study finds single causal indicating that audit committee expertise improves audit quality. This study emphasizes the importance of incorporating experts from various backgrounds on audit committees to improve audit quality and increase stakeholder confidence in financial statements. This study implies that companies must focus on the expertise on the audit committee during the appointment of the members to maintain the quality of audit reports. This research is unique to the existing literature on audit committee expertise and audit quality by examining the influence of accounting and non-accounting expertise types in Bangladesh context and providing empirical evidence in support of the agency theory.

Enterprise Marketing Risk Control Based on Information Technology and Supply Chain Management

Khaled Mohammed Alqahtani — 2024-03-31

The overall economic development of today’s society is showing a downward trend. In the process of operating and marketing, enterprises are affected by various factors. After the marketing risk reaches a certain level, enterprises would encounter various risks such as blocked marketing plans and failure to meet the estimated marketing goals. Enterprise marketing is affected by economic and market risks such as lack of information, decision-making errors, natural disasters, human factors, and other natural and social risks. This article combined information technology with supply chain management, applied radio frequency identification (RFID) technology to supply chain management, and controlled enterprise marketing risks through reasonable management of the supply chain. It also compared the effectiveness of enterprise marketing risk control between an information technology intelligent supply chain combined with RFID and a supply chain managed by ordinary artificial structures. The experimental results showed that the highest value of goods loss rate in the supply chain based on RFID technology and using traditional technology was 5% and 15%, respectively, according to the sample of goods loss experiments. For the information verification process of goods in supply chain management, the information identification accuracy rates of barcode and RFID technology were 89.98% and 97.7%, respectively. Therefore, applying the information technology intelligent supply chain management model combined with RFID technology to enterprise marketing risk control can save money for enterprises, ensure product quality, and effectively reduce the risks encountered in enterprise marketing by reducing information gaps, and reducing transportation and storage costs.

Analysis on the Income Risk and Income Insurance Ricing of Planting Farmers in North China

Cun-wen Tao — 2024-03-31

The frequent occurrence of extreme weather disasters under global climate change has greatly impacted agricultural production, caused crop yield and price fluctuations, affected the increase of farmers' income, and hindered the development of the rural economy. As a typical mountainous region in North China, Shandong Province is a major peanut-planting province. In recent years, the peanut planting area in Shandong Province has remained relatively stable at around 10 million hectares (approximately 6.67 million hectares), accounting for approximately 14% of the national peanut planting area. Affected by meteorological disaster risks and consequent price risks, peanut farmers in Shandong Province are faced with double threats of output and price. This study is aiming to analyze the income risks faced by peanut planting farmers in the northern regions of China and to develop a comprehensive understanding of the factors influencing their income variability. The study may investigate various aspects especially the market price fluctuations, socioeconomic factors affecting peanut farming and the correlation of the peanut pricing and the local insurance. The current policy-based peanut insurance makes it difficult to fully disperse risks and guarantee stable production with the permission of relevant government department. Therefore, based on the peanut yield and price data of Shandong Province from 1991 to 2017 and following the logical context of "meteorological disaster - yield risk - price risk - income loss - income insurance", this paper uses the Copula method to calculate the premium rate of peanut income insurance and finds that under the guaranteed level of 70%-90%, the pure premium rate is between 1.5%-4.15%. Compared with the current cost insurance with a flat rate of 4% in Shandong Province, the income insurance rate is generally lower than the current rate. Secondly, there are regional differences in income insurance rates. In addition, at a higher level of protection, the income insurance rate is higher.

Additional Safety Measures for Movable Bridges, A Bridge Too Far? A Calculated Approach on Proportional Safety for Movable Bridges in the Netherlands

Ira Helsloot — 2024-03-31

This article explores a proportional safety approach for movable bridges, aligning with the core principles of Dutch safety policies: the use of the Dutch norm for an individual risk (IR) of one fatality per hundred thousand people exposed (denoted as IR = 10-5) and a reasonable investment maximum of € 80.000, - per gained disability adjusted life year (DALY). Based on the actual history of accidents the individual risk for people using movable bridges is around 10-7 and thus easily meets the Dutch norm. Movable bridges in the Netherlands are thus more than ‘safe enough’ and do not require extra investments in safety measures. If the municipal and provincial authorities in charge of movable bridges do decide to invest in extra safety measures, a reasonable maximum budget is € 2.2 million a year for all 1.500 movable bridges. Here it is assumed that the newly implemented safety measures verifiably lead to preventing all casualties.

Seasonal Variation of Water Quality of Taiping Lake in Eastern China

Ran Chen — 2024-03-31

Lakes and reservoirs are an important sources of drinking water for human life. However, numerous water quality indexes show seasonal fluctuation under different climatic conditions. We conducted a one-year investigation of Taiping Lake in year 2022 to construct relationship between water quality parameters and water quality. High water temperature promotes the growth of algae, and the existence of N species could provide the essential nutrient substance for the growing of algae. Under the irradiation of sunlight, algae will consume carbon dioxide through photosynthesis and release oxygen which can raise oxygen levels in the water. However, the rapid growth of algae could influence the acid-base balance in water through the consumption of carbon dioxide; thus, resulting in the increasing of pH values. These pH changes may pose a threat to drinking water.

Characteristic Analysis of the MS6.8 Luding Earthquake Sequence in Sichuan, China, on Sept. 5, 2022

Min Zhao — 2024-03-31

The MS6.8 earthquake occurred in Luding County, Ganzi Prefecture, Sichuan Province, China at 12:52 p.m. on Sept. 5, 2022, is preliminarily analyzed in terms of regional tectonics, historical earthquakes, sequence characteristics and focal mechanism solutions. The results show that: 1) The magnitude difference ΔM between the main shock and the maximum aftershock, the energy ratio ER of the main shock to the aftershocks, the p-value and the estimated Mmax-value indicate that the MS6.8 Luding earthquake sequence can be divided into the main shock-aftershock type (MAT). 2) The spatial distribution of the aftershocks, their corresponding b-value and expected maximum magnitude are obviously segmented, which reflect the complexity of the seismogenic tectonics. 3) According to the focal mechanisms obtained from the HASH program, the geometry distribution of the sequence, and the relationship between the sequence and the nearby faults, it can be inferred that the Moxi fault segment of the Xianshuihe fault zone is the seismogenic tectonics of the MS6.8 Luding earthquake sequence.

Characteristic Analysis of the MS6.0 Ma'erkang Earthquake Sequence on Jun. 10, 2022

Yu-ping Qi — 2024-03-31

On June 10, 2022, the MS6.0 Ma'erkang earthquake sequence occurred in the Bayan Har block. In this paper, the temporal and spatial distribution and attenuation characteristics of earthquake sequence is analyzed based on the regional structure, the temporal and spatial distribution of earthquake sequence, the focal mechanism solution, and the parameters of earthquake sequence, using the data of Sichuan Seismic Network and the temporary stations incorporated into the network. The results show that: (1) The MS6.0 Ma'erkang earthquake sequence is generally distributed in NW-SE direction, and the long axis of this series is basically consistent with the nearby Songgang fault. (2) As the earthquake sequence is formed by three large events with MS ≥5.0, the frequency of small earthquakes in the earthquake sequence area generally attenuates relatively slowly, while the activity level (magnitude) of aftershocks attenuates rapidly. (3) After the MS5.2 earthquake, the sequence parameters obtained show that the h-value is 1.09 and the p-value is stable at 1.02, indicating that the intensity and frequency attenuation of the earthquake sequence are gradually stable and tend to be normal. The b-value is 0.95, indicating that the maximum aftershock magnitude of the series is estimated to be ML5.1, and the b-value gradually tended to be stable, indicating that the stress in the region gradually tended to be balanced after the MS5.2 earthquake. The MS4.4 (ML5.0) earthquake that occurred at 4:37 on June 10 (local time) is the largest aftershock after the MS5.2 earthquake in the sequence. (4) The Songgang fault with NW-SE trend is presumed to be the main seismogenic tectonics, but the migration of three earthquakes with MS≥5.0 may also indicate that the Songgang fault is not a single seismogenic tectonics, which requires further field scientific investigation and analysis.