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The Risk Analysis Quality Test Release 1.0 (RAQT1.0) was developed as a framework to encourage mutual understanding between technical risk analysts and risk management decision makers of risk assessment quality indicators. The initial version (release 1.0) was published by the Society for Risk Analysis (SRA) in 2020 with the intent of learning from early test applications whether the approach was useful and whether changes in approach or contents would be helpful. The results of applications across three diverse fields are reported here. The applications include both retrospective evaluations of past risk assessments and prospective guidance on the design of future risk assessment projects or systems. The fields represented include Quantitative Microbial Risk Assessment, Cultural Property Risk Analysis, and Software Development Cyber Risk Analysis. The RAQT1.0 proved helpful for identifying shortcomings in all applications. Ways in which the RAQT1.0 might be improved are also identified. [ABSTRACT FROM AUTHOR]

The capability to vary risk-taking is an important aspect of performance in organizations where behavioral adjustments are required to suit changing objectives. Incentive schemes are one way to influence risk-taking. Yet, evidence indicates incentives do not have their intended effects and may encourage excessive risk-taking. To examine this issue, we draw on compensation activation theory that proposes individual motives are activated by specific features of compensation schemes and expressed in behaviors. We extend compensation activation theory by focusing on (1) responses to a sequence of tasks designed to activate risk-taking and (2) the effects of incentive schemes on these relationships. We conducted a laboratory experiment with 173 participants who were allocated randomly to one of three bonus schemes. The linear scheme has a linear relationship between returns from risk-taking and rewards. The bonus cap scheme operates similarly up to a point where no further rewards are paid. The outcome-adjusted scheme, with a two-year hypothetical time frame, requires realized gains for the first year of investment and no losses in next year. Results support our hypotheses that these incentive schemes have differential effects on the strength and direction of relationships between risk-taking across a sequence of tasks. The linear scheme strengthens the relationships between risk-taking across sequential tasks. Conversely, the bonus cap scheme weakens the relationships between risk-taking across sequential tasks. The outcome-adjusted scheme creates variability by decreasing risk-taking when the connections between risk-taking and rewards are less salient and increasing risk-taking when connections between risk-taking and rewards are more salient. We contribute to the literature concerning compensation activation and incentives by deepening our understanding of the roles played by tasks and incentives in activation processes and by explaining the variability of risk-taking in terms of changes in connections between behavior and rewards. [ABSTRACT FROM AUTHOR]

This paper examines the impact of illusory control beliefs on the performance of traders in financial instruments. The authors argue that the task and environment faced by traders are conducive to the development of illusions of control and that individual propensity to illusion of control will be (inversely) related to trader performance. Using an innovative computer task, designed to assess illusion of control in the field, data from 107 traders in four organizations showed individual differences in this bias to have a significant, inverse, association with performance, as measured by managers' ratings of trader performance and by total remuneration. The authors conclude that, at least in this context, illusion of control is maladaptive and that it is productive to take an individual difference approach to the study of such illusions. Implications for debates about the costs and benefits of positive illusions are discussed., In this paper, we contribute to the debate about whether positive illusions are adaptive by showing that a particular positive illusion, illusion of control, may be maladaptive in a particular [...]

This article examines the role played by line managers in the link between HRM practices and individual performance outcomes. Drawing on social exchange theory, the authors test a mediated model linking perceived line manager behavior and perceived human resource management practices with employee engagement and individual performance. The study focuses on two self-report measures of individual performance; task performance and innovative work behavior. Two studies with a total of 1,796 participants were conducted in service-sector organizations in the United Kingdom and analyzed using structural equation modeling. The data reveal that perceived line manager behavior and perceived HRM practices are linked with employee engagement. In turn, employee engagement is strongly linked to individual performance and fully mediates the link between both perceived HRM practices and perceived line manager behavior and self-report task performance (study 1), as well as self-report innovative work behavior (study 2). The findings show the significance of the line manager in the HRM-performance link, and the mediating role played by employee engagement. © 2013 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

We theorized that absence from work is a resource-based process that is related to perceived meaningfulness of work, well-being, and engagement. Broaden-and-build theory (Fredrickson, 1998, 2001) and engagement theory (Bakker, Schaufeli, Leiter, & Taris, 2008; Kahn, 1990) were used to develop a framework for explaining absence. Results of a study of 625 employees and human resource records of subsequent absenteeism data for a three-month period supported our hypotheses that meaningful work increases engagement with work, and that engagement is associated with low levels of absenteeism. Furthermore, data showed that engagement fully mediated the relationship between meaningfulness and absence, and that well-being strengthened the relationship between meaningfulness and engagement. The results have implications for understanding the role of individual-level resources in the workplace, and how meaningfulness, well-being, and engagement influence absence. [ABSTRACT FROM AUTHOR]

The effect of operational risk management of firm on its securities trading in stock markets is discussed.

Theories about trading in financial markets are well developed and practically influential. However, traders' behaviour within these markets appears to deviate substantially from that predicted by theory. Using data from a study of traders within financial markets in London, this article seeks to document this apparent paradox and assess its implications. General theories about how the financial world works are distinct from, but compatible with, more instrumental behavioural rules about how to work in the financial world. The latter may be seen as internally consistent recipes for action which require concurrent belief in both the validity of the general theories -- for example about the relationship between risk and return -- and in the ability of individual agency to secure outcomes which, in terms of the general theory, have low probability. KEYWORDS financial markets * qualitative analysis * risk * theories in use * traders