Reducing financial risks in view of the organizational and leadership factors

Effectively reducing financial risks depends on workers' adherence to rules and regulations, and those who demonstrate misbehaviors during everyday work are more likely to bring financial risks to firms. Both the organizational factor of procedural justice and the leadership factor of abusive supervision were analyzed to predict and avoid financial risks in daily management practices. Survey data of 172 employees and their supervisors in 5 financial firms in North and Northeast China were obtained and studied to indicate that abusive supervision, lack of affective commitment, and procedural injustice are the antecedent of employee misbehavior. The abusive supervision on employees results in employees' commitment of low reliability, with procedural justice ameliorating the effect of abusive supervision on misbehavior. The results show that financial firms can reduce their risks by improving their management practices related to organizations and leaders.EI04530-5355