International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

The Role of Managerial Ability, Enterprise Risk Management (ERM) in Reducing the Business Continuity Risk Using the Support Vector Machine (SVM) Model

Document Type : Original Article

Authors
Fatemeh Yari 1
Alireza Mehrazeen 1
Reza Yarifard 2
Abu'l-Qasem Masih Abadi 3
1 Department of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran.
2 Department of accounting, East Tehran branch, Islamic Azad univercity, Tehran, Iran
3 Department of accounting, sabzever branch, Islamic Azad univercity, sabzevar, Iran
10.30495/ijfma.2023.71294.1961
Abstract
Background: This research examines the role of managerial ability in relation to integrated risk management and business continuity risk of companies through the use of the support vector machine (SVM) model to determine the business continuity risk index.
Methods: The support vector machine has been used to determine business continuity. The number of 180 companies listed on the Tehran Stock Exchange and 2160 years/ company observations from 2008 to 2020 (12 years) were investigated. The support vector machine model was used to measure the business continuity risks. The Ordinary Least Squares regression (OLS) was used to test the research hypothesis. The support vector machine (SVM) model was used to measure business continuity risks.
Results: The results indicate that the greater the managerial ability, the lower the business continuity risks. They also confirm that managerial ability is an important indicator in reducing business continuity risks. In addition, the managerial ability has a positive and significant relationship with Enterprise Risk Management.
Keywords
Managerial Ability
Business Continuity Risks
Enterprise Risk Management (ERM)
Risk-Based Approach
Support Vector Machine (SVM)
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