Chapter 1 sets out the background to enterprise- wide risk management (EWRM). Chapter 2 examines literature on EWRM and Chapter 3 assesses key theoretical approaches to EWRM. Chapter 4 sets out the research design while Chapter 5 presents and discusses the results of an empirical investigation which explores the views of 16 Chief Executive Officers drawn from 16 Zimbabwean short- term insurance companies. Research evidence shows that whilst risk awareness seems good in most Zimbabwean short-term insurance companies, a significantly lower number take adequate measures to reduce risks to their lowest practical levels. It might be suggested that the Zimbabwean short-term insurance industry has limited capabilities to consistently identify, measure and manage risk exposures across the company and thereby limit exposures. Execution of EWRM is sporadic and losses have not been limited in accordance with predetermined risk tolerance guidelines. Therefore, the Zimbabwean short-term insurance industry might be viewed as having weak EWRM. Therefore this research provides a wide range of recommendations to address the identified weaknesses.
The introduction of a new framework by the Institute of Internal Auditors has extended the role of internal auditors to include the monitoring function of risk management.This research examines the mediating effect of role ambiguity on the relationship between individual and organizational factors and performance of internal auditors in risk management functions using role theory as the theoretical basis. Data for the study are obtained through questionnaire survey administered on internal auditors from companies listed on Bursa Malaysia. Structural Equation Modelling (SEM) is used for analysis. The results suggest that role ambiguity is a strong mediator for the relationship between individual and organizational factors and performance of risk management function. In addition the study finds significant negative relationship between competency, autonomy, mechanistic organizational structure and in-house auditing with role ambiguity. Further, a significant negative relationship is found between role ambiguity and performance of risk management function.This study also adds evidence to support the application of role theory in a professional role.
In the estimating, planning and management of any project, large or small, an understanding of the impact of risk is critical. This book explains how the growing number of people choosing to or forced to organise their work as projects can make realistic assessments of the uncertainty affecting costs, timescale and revenue, before commitments are made. A clear analysis of the role of uncertainty is combined in this concise and practical handbook with simple, cost-effective techniques for measuring and modelling the overall risk to a project's budget and schedule. There is advice and help here for the whole project team, including project managers; bid managers; project sales professionals; planners; estimators; managers running a project-based business; and consultants and auditors advising a projects business. Drawn from the author's extensive experience on projects ranging in scale from a few man-months to hundreds of man-years, the book will beelevant to anyone involved in a project-based business. Examples are presented as simple models, built in spreadsheets using the @Risk software package. No more than basic knowledge of Lotus 1-2-3?? or Excel?? will be required by the reader.
The study sought to analyse the extent to which prediction models are used as a management tool by bank managers in the Zimbabwean’s banking sector. In this study, nineteen banks were sampled. Financial statements of these banks were used as research subjects. Tests and observation guide were used as research instruments. The study showed that managers of banks do not use prediction models in managing their business and predicting the going concern of banks. It was evident that managers were not aware that the businesses they manage were sinking into unsafe zone and no strategies were put in place to save the business. The study therefore recommends that managers include prediction models techniques in their management. This will enhance their management skills and ensures the viability of an organisation as a going concern without risk to shareholders investments. Finally, it is recommended that further research be carried in order to establish ways of reviving companies whose K-score is in the unsafe zone by way of working on the elements of K-score. This further study should touch on analyzing the budgets from the onset weather they ensure success of an organisation.
Financial globalization has given an impetus to the development and innovation in financial products. However, at the same time, it has complicated banking regulations and its consequent risk management mechanisms. The GFC and consequent Basel III have accentuated the importance of operational risk management manifold by adding new perspectives to the concept which was not identified properly under sophisticated and graded risk assessment processes in the years before the financial crisis of 2008. The main contribution of this book is providing a comprehensive analysis on various aspects of operational risk including: the evolution of the concept, its development and its treatment under Basel I, II and now under Basel III Accords. Historical operational risk events, evidence from case laws and regulatory responses to the crisis have been analysed to assess the procedural justice and distributive equity of various decisions made and regulations enforced. The ultimate objective is to make recommendations for a sound banking regulatory mechanism that supports stability and can reconcile with financial innovations in the globalized financial markets.
Any investment comes with a risk attached to it. It is always up to the investor to know very well his target market and how much risk to absorb in order to get the expected returns. This book focuses on the effectiveness of loan portfolio risk management in financial institutions, specifically in Micro finance institutions. Turyaheebwa Paul is the author of this book and he graduated with an MBA from the University of Wales Institute Cardiff. Paul carried out an extensive study on how to address credit risk issues in MFIs. The major elements of credit risk management in the management of credit in micro finance institutions were examined, as well as loan portfolio management strategies. This book also puts forward factors that hinder MFIs to effectively deliver products and services to their customers, hence, making it more difficult to manage credit risk.Paul further puts forward what constitutes sound credit risk management practices in financial institutions. Many scholars or researchers, financial institutions, investors and other business people will find this book useful in many aspects.
Advances in Fixed Income Valuation Modeling and Risk Management
Having started in the end of 2007, the recent financial crisis forced many banks into bankruptcy and triggered multiple bail-outs as well as the set up of guarantee funds and liquidity injections. One was under the impression of watching ''Domino Day'' with the two differences being that banks were the falling stars of the show and that the plan according to which the banks were supposed to go down was not known even to the people being part of the game. I shed some light on this plan and examine the amount of contagion risk being present in the American and European banking systems. For this purpose, a sample of 15 US and 15 European banks is examined and several extreme value theory techniques are applied. The empirical evidence indicates that the American banking system is more prone to spillover risk than the European banking system. Despite particular cross-Atlantic differences, systemic risk has increased substantially on both continents over time. The evidence provided is calling for regulators'' and bank managers'' attention and action.
Natural hazard, risk management, good governance are very common in research and development arena. Several studies can be found on disaster risk management while very few are dealt with risk management by local governments in context of socio-economic and political factors. A disaster always means a huge death toll, displacement and inconceivable destruction for any poor country. This study argues that the causes of extensive losses from natural hazards can be effectively addressed and reduced by local governments. Successful example of disaster management in Cuba is an example of the good governments in disaster risk management. Risk management, local governments, self-organisations are analyzed here in respect of Pressure and Release Model, and N-K model. This book presents the perception of community people of two coastal sub-districts of Bangladesh and should help to understand disaster risk in respect of social, political, and economic factors.
Human body has the natural ability to protect and heal itself, like all the systems which existing in the nature. It means that, Immune System which is one of the main systems in humans that protects them from illness. In other words, it is a network of cells, tissues, and organs designed complexly for preventing the body against germs, viruses, and other form of body toxins. As microbial invasions attempt to pass through the body’s natural barriers, immune system alerts body's defenses and calls to action the natural processes that keep the body safe and healthy.On the other hand, Risk Management in the organizations includes the processes concerned with identifying, analyzing and evaluation the factors that might adversely affect project outcomes which is important as one of the main items in security management. Because of these many methodologies are created for risk management, but some failures are specified in these methodologies. In other words, they are not complete. Hence the research wants to find a relationship between Immune System as one of the complete management systems in nature and current methodologies of risk management, by comparison of them with each other.
The book studies in detail various approaches and models which are used in the Russian equities market to evaluate market risk exposure based on VaR metric. It uncovers strengths and weaknesses, reasons and purposes, problems and solutions for VaR application in the special environment of the emerging market. Managerial recommendations are given for each model described in the book based on the thorough comparative analysis of the produced results. The book is intended for wide audience including treasury and market risk management specialists who works in emerging markets, students and researches of equities exposure to market risk.
A number of authorities in the field of enterprise risk management (ERM) consistently show that higher educational institutions in general show very little commitment to the implementation of ERM despite numerous enterprise risks these institutions face in their operations on a day to day basis. Private higher education institutions (PHEIs) are especially susceptible to a myriad of enterprise risks which include unreliable sources of revenue, low enrollments, high staff turnover, a highly regulated higher education environment, ad stiff competition for students and staff between higher education institutions among others. This book therefore is an investigation of how effectively private higher education institutions in Botswana implement ERM practices with regards to how they assess, respond to and monitor enterprise risk. A review of some of the theoretical underpinnings of enterprise risk management including examples of best practice is included in this book. It is concluded in this book and against best practice that ERM practices of private higher education institutions in Botswana are not effective enough to mitigate enterprise risk.