Abstract This paper describes the business of membership consumer warehouses. The author examines risks four key areas regarding the international expansion of this membership warehouse chain: Political risks, exchange risks, market risks and distribution risks. The paper concludes that the company needs to use a combination of consumer education and strategic expansion.
From the Paper Membership consumer warehouses are popular in the United States for offering low prices and high value meaning that the quality of the goods and services offered at these retailers is acceptable to consumers. These stores differ from traditional retail in that fewer amenities are provided but they also offer a wider variety of goods and services than are traditionally available in a retail environment. Expanding across Europe offers significant market potential for these types of companies particularly in light of the ..."
Tags:risk analysis, ABC company, political risks, exchange risks, market risks, distribution risks
Abstract The paper shows that risk-taking is something common in all of us, but the degree to which it actually motivates us, may vary from person to person. The paper explains that people take risks for different reasons: Sometimes we are simply motivated by thrill of the unknown attached with risk-taking, sometimes we take a chance just to appear different and non-conforming and yet at other times we take risks because we just have to. The paper thus divides risks into three broad categories: Responsible, calculated risks; Risks for fun and irresponsible, harmful risks.
From the Paper "A study conducted by Beaty et al. (1996) explored the experiences of 23 female risk-takers in a city jail and discovered much to their chagrin that, ?Maintaining sexual relationships with men and obtaining drugs were higher priorities for most women than protection against HIV disease.? (Beaty et al., 1996) No wonder these women ended up in prison. Men and women, who lead a high-risk life where they frequently take negative irresponsible chances, end up ruining their lives. In our intimate relationships, we may often go for unprotected sex either to experience the thrill of it or simply because we are afraid to ask our partner to use condoms. Women in Beaty study are good examples of negative risk-taking and its disastrous consequences. Upon exploration of their sex life, it was discovered that these women were using sex as a tool to maintain intimate connection with their partner."
Abstract This paper explains that risk perception examines the opinions of people when asked to evaluate hazardous activities, substances and technologies, which helps policy-makers by improving communication between them and the public, by directing educational effort and by predicting public responses to new technologies, events and new risk management strategies. The author points out that the fields that have the most important influence in evaluating risk perception are (1) geography because of the recent broadening of focus on technological hazards, (2) sociology and anthropology because risk perception is influenced by friends, family and co-workers, and (3) psychology because of the use of psycho-physical scaling and multivariate analysis techniques to produce quantitative representations or'cognitive maps' of risk attitudes and perceptions, which demonstrate that every hazard has a unique pattern of qualities related to its perceived risk. The paper states that, for the last 30 years, instead of asking how to prevent lead poisoning, the medical community has taken a risk assessment approach, asking, "How much lead is safe for industry to put into children?"
From the Paper "The present 'risk balance' situation also does not appear to differentiate between different sorts of risk. For example, a one in 1000 risk imposed on someone is different to a one in 1000 risk accepted by someone. It is often the case that the risk from using a chemical, say, is borne by the population as a whole, whereas the benefits accrue only to a minority. This is inequitable, and a new focus in risk - allowing a product on the market only if it passes a criterion of 'social need' for example, would ensure that inequitable distributions of costs and benefits were reduced."
Abstract This paper discusses the Ontario Financing Authority's (OFA) financial risk management program. Various risks are discussed and analyzed including liquidity risks, foreign currency exchange rate risks, debt maturity rate risks, and interest rate risks. The writer points out that in order to mitigate the financial risks inherent in a large and diversified debt portfolio, it is important for the province to maintain prudent risk management policies and practices.
Abstract This paper explains that the goal of its thesis is to conceive a model to manage the global interest rate risk of the commercial portfolio in order to determine the optimal structure of the new production and to test the tool on the Credit Foncier de Monaco, private banking and subsidiary of Calyon, which is obviously the investment banking of Credit Agricole. The paper's thesis is divided into two main sections: the theoretical modeling and the empirical application.
Table of Contents:
Abstract
Abbreviations
Introduction
Theoretical Modeling
Identification
Interest Rate
Nominal vs. Real Rate
Fixed vs. Variable Interest Rate
Short-Term vs Long-Term Rates
Spot vs. Forward Rates
Term Structure of Interests
Theories
Methods
Deterministic and Stochastic Models
Sources of Interest Rate Risk Repricing or Maturity Mismatch Risk Basis or Bid-Ask Spread Risk Yield Curve Risk Options Risk Interest Rate Exposure
Net and Gross Positions
Balance-Sheet & Gap
Profit and Loss Statement and Spread
Factors
Measurement
Volume
Instantaneous Gaps
Generalized Gaps
Indexed Gaps
Simulated Gaps
Value
Duration
Convexity
Market
Margin
Sensitivity
Modified Duration and Relative Convexity
Money Markets Rates
Management
Hedging And Speculation
Micro or Macro Hedging
Systematic or Selective Hedging
Partial and Total Speculation
Hedging Risk and Opportunity Cost
Passive and Active Hedging
Passive Hedging or Beta Management
Active Hedging or Alpha Management
Instruments
Spot
Forward And Future
Fra And Swaps
Options
Modeling
Utility
Structure
Utility Function
Constraints
Regulation
Commercial
Model
Objective Function
Efficient Portfolio
Optimal Portfolio
Empirical Application
Presentation
Cfm
Treasury
Asset-Liability Management (Alm) Committee
Adaptation
Structure
Constraints
Rates
Simulation
Leverage
Regulatory Constraints
Variance-Covariance Matrix
Utility
Variances
Conclusion
Glossary
Appendix: Balance-Sheet + Profit & Loss Statement
Appendix: Balance-Sheets by Currency, Maturity and Interest Rate
Appendix: Gaps
Appendix: Correlation and Variance-Covariance Matrix
Appendix: Weightings and Balance-Sheets in March 2008
Appendix: Coefficients of Variation
Appendix: Objective Function for Different Aversions to Risk
From the Paper "Taking into account the stock and constraints, the model determines the optimal allocation of the production for different scenarios of rates level, rates volatility and risk aversion degrees. The bank hedges against the interest rate risk by optimally adjusting its production.
"The optimal portfolio is the tangent point between the efficient frontier and the indifferent curve. It is obtained by equalizing the marginal rate of transformation (MRT) to the risk to return, which is the slope of the efficient frontier, and the marginal rate of substitution (MRS) to the risk to return, which is the slope of the objective function."
Tags: tool transformation, tangent point, risk premium, asset management
Abstract The paper explains the elements of the project risk management process that aims to minimize project risk and discusses the value of a detailed and concise risk register. The paper then discusses the importance of breaking down risks and categorizing them as to their impact and likelihood in affecting project completion and identifies four ways to handle risks. The paper looks at the positive outcome of risk management and concludes by answering the question posed at the start of the paper, namely, to what degree is it possible to meaningfully manage risks in project management. The paper asserts that one can manage risks to the degree the project manager and the project team prepared their project management plan to the minutest detail possible.
From the Paper "When there is an absence of threat or vulnerability, it is said to be risk-free. In project management, the astute project manager endeavors to mitigate the risks involve in implementing a project but doing so goes only as far because there is no such thing as a risk-free project. Risks are typically unforeseen events, which can cause adverse impact to any project. Risks can happen to any one of the major parameters of a project namely its schedule, scope, resources and quality. (Smartworks, 2003) The best way to humor the existence of risk is to always think about Murphy's Law, "If anything can go wrong it will!" Thus, a prudent project manager will always perform risk management and analysis in all aspects of the project life cycle whether it is in the initiation, planning, execution, monitoring and control, and closeout phases. This is not to say that the project manager is being paranoid but rather he or she is performing due diligence to ensure that the project will encounter risk that is no more than necessary."
This paper examines the correlation between risk management and project management as well as the ultimate aim, which is to ensure that the project achieves its defined goal.
Abstract This paper defines project management as a set of activities which has a defined start point and a defined end state and pursues a defined goal. Risk management is a process that involves measuring risk, assessing risk and finding ways to manage identified risk. The writer of this paper explains why the main challenge of project management is to ensure that the project achieves its defined goal. This paper discusses the various methods and strategies for identifying and managing risks as it relates to business. One method starts with the simple process of considering a project and listing everything that could be a barrier to its completion. Another method of identifying potential risk is to consider all the steps necessary to successful completion of a particular project and then determine what can prevent each step from proceeding. The writer contends and details why effective risk management is a crucial part of project management.
From the Paper "The next consideration is how risks can be identified. This can start with a simple process of considering a project and listing everything that could be a barrier to its completion. This can be a starting point, but may not ultimately be useful. After all, there are an unlimited number of things that can theoretically prevent a project from proceeding effectively. It is not feasible to suggest that every possible problem can be prepared for. Another way to manage risk is to consider all the steps necessary to successful completion of a project and then determine what can prevent each step from proceeding. In a complex project, this can also mean determining the steps of a project that are the most critical to a successful outcome. This focus on the key success steps associated with a project is an effective way to concentrate on the most critical problems, rather than focus on every possible potential problem. In addition, while some would say that it is better to prepare for the worst and think of every possible problem, this in itself can be a waste of resources and can reduce the amount of focus on the most important potential problems."
A summary and review of "The Contingent Effects of Risk Perception on Risk-Taking Behavior: Adolescent Participative Orientation and Marijuana Use", the authors C.F. Lee, Y. Su, and B.P. Hazard
Abstract This paper critiques an article about the use of marijuana by American high school seniors, entitled "The Contingent Effects of Risk Perception on Risk-Taking Behavior: Adolescent Participative Orientation and Marijuana Use". The paper first explains that the authors of the report see marijuana use as an example of risk-taking behavior, and presume that a reduction in marijuana use would mean that the perception of risk has increased and that this is leading to a lower rate of use. The paper then goes on to summarize the report and explain its findings.
From the Paper "The authors find that risk perception by itself accounts for about 21% of the variation in risk-taking behavior of marijuana use. Using the four participative orientations - sports, fun, school, and creative - the explained variance of marijuana use was increased to 33%, and all activity orientations except creative significantly affected marijuana use. Sports and school showed relatively small negative effects, while fun activities had a distinctively large and positive effect on marijuana use. The authors also find after analysis that the net effect of risk perception on marijuana use was statistically insignificant. "
Abstract The paper defines "risk management" and examines seven ways to deal with risk and outlines the components of a risk management process for any given organization. The paper describes and explains a risk management process to individuals possessing no prior knowledge of the process.
Outline:
Objective
Introduction
Risk Management Defined
Components of Risk Management
Risk Management Scenario for a Public Library
From the Paper "The work entitled: "The Owner's Role in Project Risk Management" states that the "ultimate purpose of risk identification and analysis is to prepare for risk mitigation. Mitigation includes reduction of the likelihood that a risk event will occur and/or reduction of the effect of a risk event if it does occur." (Committee for Oversight and Assessment of U.S. Department of Energy Project Management, National Research Council, 2005) Risk mitigation plans include characterization of the "root causes of risks that have been identified and quantified in earlier phases of the risk management process." (Committee for Oversight and Assessment of U.S. Department of Energy Project Management, National Research Council, 2005) Further, evaluation of the risk interactions and common causes is an important part of risk management strategy. Third, identification of alternative mitigation strategies, methods and tools is critical in risk mitigation. Fourth, it is important to make an assessment and prioritize mitigations alternatives." (Committee for Oversight and Assessment of U.S. Department of Energy Project Management, National Research Council, 2005) Fifth, selection and commitment of the required resources for specific mitigation of risk alternatives is necessary. (Committee for Oversight and Assessment of U.S. Department of Energy Project Management, National Research Council, 2005) Last of all, it is important to "communicate planning results to all project participants for implementation."
Abstract This paper discusses risk management first as a concept and then as applied to health care in the United States, noting that any human action involves a degree of risk, and managing that risk begins with identifying what the risk may be in each case. The paper shows that once this has been done, the next task involves deciding what to do about it, through a process of risk mitigation or risk reduction.
From the Paper "Risk is a condition of life and is noted and measured and addressed in all human endeavors. Risk is encountered in financial matters, health matters, safety issues, the workplace, the home, and so on. Risk cannot always be predicted precisely, but risk management is an effort to ascertain risks and to prepare for them in whatever field in which it is applied. Any human action involves a degree of risk, and managing that risk begins with identifying what the risk may be in each case. Once this has been done, the next task involves deciding what to do about it, through a process of risk mitigation or risk reduction. The risk may also be transferred, such as takes place when a person or company buys insurance, an act which does not prevent the harmful outcome but which does compensate for it."
Abstract This paper analyzes the risks involved in a municipality sponsoring a pop concert. It is organized into three parts in order to describe the precise risks and necessary management measures involved. Firstly, the precise details of the risks are described. Secondly, a plan is described for the mitigation of risks before, during and after the event. Thirdly, conclusions and recommendations are offered in terms of risk management.
Outline:
Introduction
Corporate Risks Program of Action
Before the Event
During the Event
After the Event
Conclusions and Recommendations
From the Paper " During the event, the organizer's reputation may be damaged by a number of factors associated with the nature of the event and its attendees. The noise level may for example damage the reputation of the organizers in terms of maintaining the peace in the neighborhood. Because a large number of attendees are expected, it is also expected that the music presentations will have to be loud in order to be audible to the entire crowd. Furthermore, it is also expected that the crowd will produce a high level of noise. This could be perceived as a bad influence on the community and carry with it an unfavorable impression in the eyes of the community."
Tags: corporate, risk, assessment, music, festival, pop, festival
Abstract This paper analyzes the theory development, underlying causes and consequences for the practice of risk management. The paper focuses on three periods; the early 20th century and the development of the insurance buyer concept, the 1950s to 1990s and the advance of the theory and practice of traditional risk management, and the period since the 1990s characterized by the development and implementation of the enterprise risk management (ERM) concept. The paper concludes with a brief analysis of the future of ERM as a holistic approach in the field of risk management.
Outline:
Abstract
Introduction
Early 20th Century: Development and Expansion of the Insurance Buyer Concept
1950s - 1990s: Theory and Practice of Traditional Risk Management
1990s-2008: Development and Implementation of ERM
Conclusion: The Future of Risk Management
From the Paper "A very basic form of managing risk was performed in manufacturing and engineering departments as early as 1920s (Marshall, 2007). At this time, the only major risk was damage to property, and it could be dealt with relatively easily via unsophisticated insurance. It was not until the Second World War (WWII) that the management sciences, including risk management, received significant attention. As Young & Tippins explain it, WWII was "required extraordinary efforts in logistics, material management, strategy and tactics, operations, and even applied statistics" (2002, p.4). As a result, American universities responded by expanding the studies of strategic management, operations management, logistics, and operations theory. Although the concept of risk management was not yet advanced into a separate field of study, interest in this area was increasing as demonstrated by schools offering courses in insurance, risk, and uncertainty. The emphasis was primarily on managing insurable risks by purchasing corresponding insurance coverage (p.5)."
Abstract This paper discusses the task and risk management plan for a small company in which customer complaints need to be addressed in a timely manner. The paper also discusses specific tasks required for the project, the risks involved in the project, the impact of those risks, and changes required for the company in relation to the problem. Risk management determines the risk factors involved in a particular situation, the tasks that will be included in resolving that issue, and how both of these elements will impact the future of the business over time.
From the Paper "Risk management determines the risk factors involved in a particular situation, the tasks that will be included in resolving that issue, and how both of these elements will impact the future of the business over time. The ultimate concept behind risk management is to reduce or eliminate the amount of risk a company must endure, and to change the course of the business, if necessary, to ensure that there will be little to no risk involving the same situation in the future. The research indicates that "there are always risks associated with any project" ("Project", 2002). The key to the successful completion of the project, therefore, is determining the risks and addressing them effectively prior to those issues having a detrimental affect on the business. "
Abstract The author of this paper examines both the outdated and current methods used in measuring the costs and benefits of short and long-term risk management. This paper explores current examples of the advantages of risk management by analyzing TennCare, a privatized medical program instituted in Tennessee which replaced the federal Medicaid system and proved to be successful, resulting in at least 22 other states adopting similar programs while being studied by many more as a model of risk management, both short-term and long-term.
Topics covered in this report include:
Thesis Statement
The TennCare System
Current State of Risk Management in Light of the Example
Bibliography
From the Paper "An example of one of the early results of this Risk Management approach became apparent rather quickly after initiation of the program. In Tennessee, as in other states, any indigent person can walk into an Emergency Room and expect to receive medical care for whatever problem confronting them regardless of one's ability to pay for such services. This is an expensive and wasteful use of vital resources. It, in Tennessee, too was the mainline of funding for many of the smaller and rural hospitals scattered throughout the state."
Tags: business, risk, management, finance, economy, health, care
Abstract This paper forecasts the exposure for transaction risk, translation risk and economic exposure in Chile, and discusses methods for mitigating those risks. It looks at the background of the Chilean economy and its volatile currency.
From the Paper "The Chilean peso has been somewhat volatile over the past year. Since January the peso has gained strength against the dollar overall moving from pesos to the dollar to pesos to the dollar. However the peso ..."
