The likelihood value of residual risk estimation in the management of enterprise risk
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DOIhttp://dx.doi.org/10.21511/imfi.15(3).2018.04
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Article InfoVolume 15 2018, Issue #3, pp. 49-55
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A model for estimating the likelihood value of residual risk (Y) is introduced. The model consists of three independent variables: the likelihood value of risk before risk treatment (X1), the quality of risk treatment (X2), and the appropriateness of risk treatment (X3). An experimental research design with a multiple linear regression analysis was used in the estimation. All independent variables, the likelihood value of risk before treatment, the quality of risk treatment, and the appropriateness of risk treatment, can be significantly used to estimate the likelihood value of residual risk. Since no model of estimating residual risk of likelihood had been introduced yet, the findings of this study provide significant contribution to firms or organizations that need to assess the likelihood value of residual risks.
- Keywords
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JEL Classification (Paper profile tab)C13, C51, D81
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References26
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Tables3
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Figures2
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- Figure 1. Normal P-P plot: residual probability
- Figure 2. Scatterplot dependent variable: residual probability
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- Table 1. The quality of risk treatment
- Table 2. The appropriateness of risk treatment
- Table 3. Collinearity statistics
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