EVALUATING THE IMPACT OF INTEGRATED MANAGEMENT SYSTEMS ON OPERATIONAL RISKS AND FINANCIAL PERFORMANCE IN A RESEARCH ORGANIZATION
Keywords:
Operational risks, COSO, ERM, (IMS), SWOT Analysis, Scientific research organization
Abstract
The study builds on the findings of Jonović et al. (2024) and aims to: 1) determine whether the implementation of Integrated Management Systems (IMS) based on the Committee of Sponsoring Organizations (COSO) Enterprise Risk Management (ERM) model improves sustainable operational risk management and financial performance in a Scientific research organization; and 2) develop a method for improving operational risk management and financial outcomes. Primary research includes SWOT (Strengths, Weaknesses, Opportunities, and Threats) analyses conducted from 2021 to 2024, with an average response rate of over 71%, confirming a sustainable business context. Following the PDCA (Plan-Do-Check-Act) cycle, it strives to enhance the response of the scientific research organizations to strategic goals and operational risks. It is supported with the analysis of financial indicators, as result of the secondary research (for the same period), and Pearson’s correlation, showing the impact of IMS based on the COSO ERM model on the organization's financial and operational stability. It emphasizes the importance of effective operational risk management for better financial performance. However, it suggests that implementing IMS is not enough to improve operational risk management within the organization. Future research should investigate comprehensive methods, diverse strategies, and comparative studies to enhance operational and financial outcomes.
References
1. Book
a. Book (one author) format:
Barjaktarović, L. (2015). Upravljanje rizikom (V izdanje). Univerzitet Singidunum, Beograd, p 37.
Mestchian, P. (2003). Operational Risk Management: The Solution is in the Problem. In Advances in
Operational Risk: Firm-wide Issues for Financial Institutions, London: Risk Books, p. 3.
Moosa, I.A. (2007). Operational Risk Management. (1ed.) Hampshire: Palgrave Macmillan, p. 83-
136.
b. Book (two or more authors) format:
Stanišić, M., & Stanojević, Lj. (2010). Evaluacija i rizik. (V izdanje). Univerzitet Singidunum,
Beograd,str. 133.
c. Conference proceedings published as a whole book:
Barjaktarović, L., & Vićentijević, K. (2017). Analysis of the risk management practice in the Serbian companies, The book of proceedings of conference FINIZ 2017 - Challenges in modern corporate governance, Belgrade, Singidunum University, Serbia, pp. 1-7. doi: 10.15308/finiz-2017-1-7
Jonović, M., Barjaktarović, L., & Stefanović, N. (2024). Enhancing operational risk management in
the scientific research organization. The book of proceedings – International scientific conference
FINIZ 2024 - Sustainable development as a measure of modern business success, Belgrade,
Singidunum University, Serbia, pp.15-20.https:// DOI: 10.15308/finiz-2024-15-20
Kopia, J., Just, V., Geldmacher, W., & Bußian, A. (2017). Organization Performance and Enterprise
Risk Management. Ecoforum, 6(1), pp. 1–13. Retrieved 2/25/2025, from: https://www.researchgate.net/publication/313251386_Organization_Performance_and_Enterprise_Risk_Management
Qu, Sq., & Zhang, Yz. (2013). The Relationship of the Operational Risk with Other Types of Risks: Concept and Analysis. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. Retrieved 2/27/2025, from: https://doi.org/10.1007/978-3-642-38433-2_101
d. Published Dissertation or Thesis References
Jonović, M. (2023). Upravljanje operativnim rizicima na primeru IRM-a, (Master rad). Univerzitet
Singidunum, Beograd
2. Article
a. Journal Article
Ai, J., Bajtelsmit, V., & Wang, T. (2018). The combined effect of enterprise risk management and diversification on property and casualty insurer performance. Journal of Risk and Insurance, 85(2), 513–543. https://doi.org/10.1111/jori.12166
Ait Novatiani, R., Afiah, N. N., & Sumantri, R. (2022). Risk management and other factors preventing fraudulent financial reporting by state-owned enterprises in Indonesia. Asian Economic and Financial Review, 12(8), 686-711. https://doi.org/10.55493/5002.v12i8.4587
Asif, S., & Shahzad, M. (2023). Enterprises’ Financial Performance and Operational Risk
Management: A Theoretical Assessment of the Literature. Qlantic Journal of Social Sciences and
Humanities, 4(110), 102-112. https://doi.org/10.55737/qjssh.826426821
Bakator, M., & Ćoćkalo, D. (2018) Improving business performance with ISO 9001: A review of literature and business practice, The European Journal of Applied Economics (84) (83-93).
https:// DOI: 10.5937/EJAE15-16145
Barjaktarović, L., Pindžo, R., Đulić, K., & Vjetrov, A. (2017). Analiza primene ERM koncepta u Srbiji: Analiza finansijskog i realnog sektora: Bankarstvo volume 46 No 2, pp. 50-67. https://doi: 10.5937/bankarstvo1702050B
Callahan, C., & Soileau, J. (2017). Does enterprise risk management enhance operating performance? Advances in accounting, 37, 122-139, pp. 122-139, https://doi.org/10.1016/j.adiac.2017.01.001.
Hudáková, M., Kardoš, P., Dvorský, J., Afful, C. R., & Kloudova, J. (2023). Management of Operational Risk in the Context of Financial Performance of SMEs. Systems, 11(8), 408. https://doi.org/10.3390/systems11080408
Muriithi, J. G., & Muigai, R. G. (2017). Quantitative analysis of operational risk and profitability of Kenyan commercial banks using cost income ratio. IOSR Journal of Economics and Finance (IOSR-JEF), 8(3), 76-83. https://DOI: 10.9790/5933-0803047683, Retrieved 1/28/2025, from IOSR Journals. https://www.iosrjournals.org/iosr-jef/papers/Vol8-Issue3/Version-4/J0803047683.pdf
Nocco, B. W., & Stulz, R. M. (2006). Enterprise risk management: Theory and practice.
Journal of Applied Corporate Finance, 18(4), 8-20. https://doi.org/10.1111/j.1745-6622.2006.00106.x
Pieket Weeserik, B., & Spruit, M. (2018). Improving Operational Risk Management Using Business
Performance Management Technologies. Sustainability, 10(3), 640.
https://doi.org/10.3390/su10030640
Radojević, T., Esić, M., Rajin, D.,&Butènas, R. (2023) Presentation of disclosurs related to credit risk of a certain bank. The European Journal of Applied Economics, (66) (66-92). https://DOI:10.5937/EJAE20-42344
Pagach, Donald P., & Warr, Richard S. (2010). The Effects of Enterprise Risk Management on Firm
Performance An academic paper from the Jenkins Graduate School of Management, North Carolina
State University. Retrieved: 2/25/2025, from: SSRN: https://ssrn.com/abstract=1155218
Sauka, A., & Welter, F. (2014). Determinants of business insolvencies during economic growth and recession in Latvia. Journal of Baltic Studies, 45(3), 375–396. https://doi.org/10.1080/01629778.2013.848372
Santomero, A.M. (1997) Commercial Bank Risk Management: An Analysis of the Process. Journal of Financial Services Research 12, 83–115. https://doi.org/10.1023/A:1007971801810
Segal, S. (2006). Screening for success: Value-based enterprise risk management: The key to unlocking ERM potential. Corporate Finance Review, Jan-Feb, p.16-26.
3. Other format
a. Report by a Government Agency References:
Zakon o računovodstvu (2019) Službeni glasnik Republike Srbije, br. 73/2019
Zakon o bezbednosti i zdravlju na radu (2023) Službeni glasnik RS, broj 35/2019
b. Whole Website References
Site of Bank for International Settlement /BIS/ (2023) Basel Committee on Banking Supervision OPE Calculation of RWA for operational risk OPE 10- Definitions and application, p.4.; Retrieved: 2/27/2025, from: https://www.bis.org/basel_framework/chapter/OPE/10.htm?tldate=20241010
Site of Bank for International Settlement /BIS/ (2023) Consultative Group on Risk Management, Central bank digital currency (CBDC) information security and operational risks to central banks. An operational lifecycle risk management framework, p.23. Retrieved: 2/11/2025, from: https://www.bis.org/publ/othp81.htm
Site of Bank for International Settlement /BIS/ (2021) Basel Committee on Banking Supervision, Revisions to the principles for the sound management of operational Risk. BCBS. p. 2. Retrieved: 02/01/2025, from: https://www.bis.org/bcbs/publ/d515.htm
Site of Committee of Sponsoring Organizations /COSO/ (2017) COSO ERM Integrating with Strategy and Performance. Retrieved: 01/25/2025, from: https://www.coso.org/_files/ugd/3059fc_61ea5985b03c4293960642fdce408eaa.pdf
Site of COSO (2017) COSO's enterprise risk management framework. Retrieved: 1/10/2025, from: https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/strategic-business-leader/technical-articles/coso-enterprise-risk-management-framework.html
Site of Corporate Finance Institute (2025) Resources/Management & Leadership/SWOT Analysis. Retrieved 1/11/2025, from: https://www.corporatefinanceinstitute.com/resources/management/swot-analysis
Site of International Organization for Standardization (ISO) (2015). Environmental management systems - Requirements with guidance for use (ISO 14001:2015). Geneva: ISO. Retrieved: 2/24/2025, from: https://www.iso.org/obp/ui/en/#iso:std:iso:14001:ed-3:v1:en:enISO
Site of ISO (2018) ISO 45001:2018 - Occupational health and safety management systems. Retrieved: 1/5/2025, from: available on the site https://www.iso.org/standard/63787.html
Site of Serbian Business Registers Agency (2020-2024) АПР - Претрага евиденције обвезникa финансијских извештаја. Retrieved 2/8/2025, from: https://www.apr.gov.rs/pretraga
Site of Serbian Ministry of Finance (2025) Međunarodni računovodstveni standardi i međunarodni standardi revizije. Retrieved: 1/9/2025, from: https://mfin.gov.rs/sr/dokumenti2-1/medjunarodni-racunovodstveni-standardi-i-medjunarodni-standardi-revizije
a. Book (one author) format:
Barjaktarović, L. (2015). Upravljanje rizikom (V izdanje). Univerzitet Singidunum, Beograd, p 37.
Mestchian, P. (2003). Operational Risk Management: The Solution is in the Problem. In Advances in
Operational Risk: Firm-wide Issues for Financial Institutions, London: Risk Books, p. 3.
Moosa, I.A. (2007). Operational Risk Management. (1ed.) Hampshire: Palgrave Macmillan, p. 83-
136.
b. Book (two or more authors) format:
Stanišić, M., & Stanojević, Lj. (2010). Evaluacija i rizik. (V izdanje). Univerzitet Singidunum,
Beograd,str. 133.
c. Conference proceedings published as a whole book:
Barjaktarović, L., & Vićentijević, K. (2017). Analysis of the risk management practice in the Serbian companies, The book of proceedings of conference FINIZ 2017 - Challenges in modern corporate governance, Belgrade, Singidunum University, Serbia, pp. 1-7. doi: 10.15308/finiz-2017-1-7
Jonović, M., Barjaktarović, L., & Stefanović, N. (2024). Enhancing operational risk management in
the scientific research organization. The book of proceedings – International scientific conference
FINIZ 2024 - Sustainable development as a measure of modern business success, Belgrade,
Singidunum University, Serbia, pp.15-20.https:// DOI: 10.15308/finiz-2024-15-20
Kopia, J., Just, V., Geldmacher, W., & Bußian, A. (2017). Organization Performance and Enterprise
Risk Management. Ecoforum, 6(1), pp. 1–13. Retrieved 2/25/2025, from: https://www.researchgate.net/publication/313251386_Organization_Performance_and_Enterprise_Risk_Management
Qu, Sq., & Zhang, Yz. (2013). The Relationship of the Operational Risk with Other Types of Risks: Concept and Analysis. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. Retrieved 2/27/2025, from: https://doi.org/10.1007/978-3-642-38433-2_101
d. Published Dissertation or Thesis References
Jonović, M. (2023). Upravljanje operativnim rizicima na primeru IRM-a, (Master rad). Univerzitet
Singidunum, Beograd
2. Article
a. Journal Article
Ai, J., Bajtelsmit, V., & Wang, T. (2018). The combined effect of enterprise risk management and diversification on property and casualty insurer performance. Journal of Risk and Insurance, 85(2), 513–543. https://doi.org/10.1111/jori.12166
Ait Novatiani, R., Afiah, N. N., & Sumantri, R. (2022). Risk management and other factors preventing fraudulent financial reporting by state-owned enterprises in Indonesia. Asian Economic and Financial Review, 12(8), 686-711. https://doi.org/10.55493/5002.v12i8.4587
Asif, S., & Shahzad, M. (2023). Enterprises’ Financial Performance and Operational Risk
Management: A Theoretical Assessment of the Literature. Qlantic Journal of Social Sciences and
Humanities, 4(110), 102-112. https://doi.org/10.55737/qjssh.826426821
Bakator, M., & Ćoćkalo, D. (2018) Improving business performance with ISO 9001: A review of literature and business practice, The European Journal of Applied Economics (84) (83-93).
https:// DOI: 10.5937/EJAE15-16145
Barjaktarović, L., Pindžo, R., Đulić, K., & Vjetrov, A. (2017). Analiza primene ERM koncepta u Srbiji: Analiza finansijskog i realnog sektora: Bankarstvo volume 46 No 2, pp. 50-67. https://doi: 10.5937/bankarstvo1702050B
Callahan, C., & Soileau, J. (2017). Does enterprise risk management enhance operating performance? Advances in accounting, 37, 122-139, pp. 122-139, https://doi.org/10.1016/j.adiac.2017.01.001.
Hudáková, M., Kardoš, P., Dvorský, J., Afful, C. R., & Kloudova, J. (2023). Management of Operational Risk in the Context of Financial Performance of SMEs. Systems, 11(8), 408. https://doi.org/10.3390/systems11080408
Muriithi, J. G., & Muigai, R. G. (2017). Quantitative analysis of operational risk and profitability of Kenyan commercial banks using cost income ratio. IOSR Journal of Economics and Finance (IOSR-JEF), 8(3), 76-83. https://DOI: 10.9790/5933-0803047683, Retrieved 1/28/2025, from IOSR Journals. https://www.iosrjournals.org/iosr-jef/papers/Vol8-Issue3/Version-4/J0803047683.pdf
Nocco, B. W., & Stulz, R. M. (2006). Enterprise risk management: Theory and practice.
Journal of Applied Corporate Finance, 18(4), 8-20. https://doi.org/10.1111/j.1745-6622.2006.00106.x
Pieket Weeserik, B., & Spruit, M. (2018). Improving Operational Risk Management Using Business
Performance Management Technologies. Sustainability, 10(3), 640.
https://doi.org/10.3390/su10030640
Radojević, T., Esić, M., Rajin, D.,&Butènas, R. (2023) Presentation of disclosurs related to credit risk of a certain bank. The European Journal of Applied Economics, (66) (66-92). https://DOI:10.5937/EJAE20-42344
Pagach, Donald P., & Warr, Richard S. (2010). The Effects of Enterprise Risk Management on Firm
Performance An academic paper from the Jenkins Graduate School of Management, North Carolina
State University. Retrieved: 2/25/2025, from: SSRN: https://ssrn.com/abstract=1155218
Sauka, A., & Welter, F. (2014). Determinants of business insolvencies during economic growth and recession in Latvia. Journal of Baltic Studies, 45(3), 375–396. https://doi.org/10.1080/01629778.2013.848372
Santomero, A.M. (1997) Commercial Bank Risk Management: An Analysis of the Process. Journal of Financial Services Research 12, 83–115. https://doi.org/10.1023/A:1007971801810
Segal, S. (2006). Screening for success: Value-based enterprise risk management: The key to unlocking ERM potential. Corporate Finance Review, Jan-Feb, p.16-26.
3. Other format
a. Report by a Government Agency References:
Zakon o računovodstvu (2019) Službeni glasnik Republike Srbije, br. 73/2019
Zakon o bezbednosti i zdravlju na radu (2023) Službeni glasnik RS, broj 35/2019
b. Whole Website References
Site of Bank for International Settlement /BIS/ (2023) Basel Committee on Banking Supervision OPE Calculation of RWA for operational risk OPE 10- Definitions and application, p.4.; Retrieved: 2/27/2025, from: https://www.bis.org/basel_framework/chapter/OPE/10.htm?tldate=20241010
Site of Bank for International Settlement /BIS/ (2023) Consultative Group on Risk Management, Central bank digital currency (CBDC) information security and operational risks to central banks. An operational lifecycle risk management framework, p.23. Retrieved: 2/11/2025, from: https://www.bis.org/publ/othp81.htm
Site of Bank for International Settlement /BIS/ (2021) Basel Committee on Banking Supervision, Revisions to the principles for the sound management of operational Risk. BCBS. p. 2. Retrieved: 02/01/2025, from: https://www.bis.org/bcbs/publ/d515.htm
Site of Committee of Sponsoring Organizations /COSO/ (2017) COSO ERM Integrating with Strategy and Performance. Retrieved: 01/25/2025, from: https://www.coso.org/_files/ugd/3059fc_61ea5985b03c4293960642fdce408eaa.pdf
Site of COSO (2017) COSO's enterprise risk management framework. Retrieved: 1/10/2025, from: https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/strategic-business-leader/technical-articles/coso-enterprise-risk-management-framework.html
Site of Corporate Finance Institute (2025) Resources/Management & Leadership/SWOT Analysis. Retrieved 1/11/2025, from: https://www.corporatefinanceinstitute.com/resources/management/swot-analysis
Site of International Organization for Standardization (ISO) (2015). Environmental management systems - Requirements with guidance for use (ISO 14001:2015). Geneva: ISO. Retrieved: 2/24/2025, from: https://www.iso.org/obp/ui/en/#iso:std:iso:14001:ed-3:v1:en:enISO
Site of ISO (2018) ISO 45001:2018 - Occupational health and safety management systems. Retrieved: 1/5/2025, from: available on the site https://www.iso.org/standard/63787.html
Site of Serbian Business Registers Agency (2020-2024) АПР - Претрага евиденције обвезникa финансијских извештаја. Retrieved 2/8/2025, from: https://www.apr.gov.rs/pretraga
Site of Serbian Ministry of Finance (2025) Međunarodni računovodstveni standardi i međunarodni standardi revizije. Retrieved: 1/9/2025, from: https://mfin.gov.rs/sr/dokumenti2-1/medjunarodni-racunovodstveni-standardi-i-medjunarodni-standardi-revizije
Published
2025/10/14
Section
Original Scientific Paper
