Toward an optimal risk retention strategy in high-risk industries: A case for Saudi cement firms

In spite of the fact that risk management has developed into an essential component of the process of developing medical devices, as mandated by both domestic and international regulations and standards, there is still no all-encompassing model that describes how risk management in the development of medical devices ought to be approached, particularly in terms of the types of risks that ought to be addressed. This is due to the fact that risk management has developed into an essential component of the process, which is mandated by both domestic and international regulations and standards. The present focus of risk management in the industry of developing medical devices is on technical risks, such as product, usability, and development process hazards. This is done in compliance with the norms and laws of standards. On the other hand, non-technical risks, such as those associated with businesses and projects, are not given nearly enough consideration. This review focuses on the risk management in medical device industry.

Risk management is a field that exists within the subject area of project management deals with the identification, monitoring and mitigation of risks. It is seen as the effect of uncertainty on objectives so this process serves as an optimization of the project delivery process to ensure that the project objectives are achieved. Risk results from a variety of factors like design problems, technological complexity and lack of experienced personnel. Managing these risks involves contemplating actions or measures. The study aimed at assessing risk management factors delaying construction project in Nigeria. The objectives were to examine the factors that influence the development of risk management in the construction industry and identify the level of knowledge, experience and barrier to risk management practice. The research approach adopted for this study was quantitative design. To cover the study area effectively, a field survey was utilized inform of a structured questionnaires for the major study population and anchored with semi-structured interviews for the secondary population and other relevant secondary data. 70 Professional Project Managers were sampled from different construction firm. Hence, 70 questionnaires were administered while 40 questionnaires were properly filled and returned for collation represents 57.1% response rate. Statistical tools was used for the study. The result confirms showed that Change in climactic condition is the major factor that influences the development of risk management in Nigerian construction industry. Result also suggests that majority of the respondents upheld the relevance of risk management practice in project management. The implication is that most though Professional Project Managers understood the relevance of risk management in the construction industry, they should always make provisions for uncertainties through effective risk management strategies.

This well-balanced introduction to enterprise risk management integrates quantitative and qualitative approaches and motivates key mathematical and statistical methods with abundant real-world cases - both successes and failures. Worked examples and end-of-chapter exercises support readers in consolidating what they learn. The mathematical level, which is suitable for graduate and senior undergraduate students in quantitative programs, is pitched to give readers a solid understanding of the concepts and principles involved, without diving too deeply into more complex theory. To reveal the connections between different topics, and their relevance to the real world, the presentation has a coherent narrative flow, from risk governance, through risk identification, risk modelling, and risk mitigation, capped off with holistic topics - regulation, behavioural biases, and crisis management - that influence the whole structure of ERM. The result is a text and reference that is ideal for graduate and senior undergraduate students, risk managers in industry, and anyone preparing for ERM actuarial exams.

The complexity of today's industrial production networks constitutes a new challenge for industrial risk and safety management. In order to handle potential risks to and emanating from industry and their respective impact on mankind as well as the environment, an integrated approach to industrial risk management is needed, since complex decision situations need to be resolved requiring input from diverse scientific disciplines and the consideration of various often conflicting criteria. Providing the basis for the evaluation of such conflicting criteria and for bringing together existing knowledge from different disciplines, approaches from Multi-Criteria Decision Analysis (MCDA) can be very helpful to resolve the complexity of the occurring decision situations. In order to address the various types of uncertainty, which may arise in a decision making process in industrial risk management, a framework for uncertainty handling is proposed. On the basis of a structured uncertainty classification, methods based on Monte Carlo simulation can be used for a consistent modelling, propagation and visualisation of the different types of uncertainty. Special focus is put on approaches that allow to explicitly illustrate the spread, i.e. the ranges in which the Multi-Attribute Decision Making (MADM) results can vary in consequence of the uncertainties. Umfang: X, 202 S. Preis: €30.90 | £29.00 | $55.00

Risk assessment and management in the offshore wind power industry: A focus on component handling operations in ports

Purpose This research seeks to systematically review studies on risk management (RM) in the construction industry, tracing its evolution from traditional approaches focused on risk identification, assessment, and mitigation to modern approaches that prioritize sustainability, resilience, and adaptability. It aims to develop a clear definition of sustainable risk management (SRM) and propose a framework for its implementation to ensure cost-efficient, resilient, and flexible operations. Design/methodology/approach A systematic literature review, guided by the PRISMA framework, analyzed 79 peer-reviewed articles (2014–2024) from Scopus, IEEE Xplore, Wiley, and other databases. Thematic grouping was used to categorize key SRM components, identifying emerging trends, gaps, and challenges in its adoption. Findings The study identifies key SRM pillars and attributes, demonstrating how SRM enhances the sustainability and resilience of RM practices. The proposed framework provides a structured approach to integrating SRM principles into construction operations, addressing implementation barriers such as regulatory misalignment, industry resistance, and technological integration. The findings also highlight the broader impact of SRM on shaping proactive and future-proof RM strategies. Practical implications Construction firms and policymakers can benefit from the findings of this study by understanding the key pillars, attributes, and challenges of SRM. The proposed framework provides practical guidance for firms to evaluate and improve their current RM practices, particularly in addressing complex industry challenges and enhancing resilience and sustainability. Policymakers can use these insights to align regulations with SRM principles, supporting RM processes that are both effective and future-proof. Additionally, the study equips industry professionals with tools to enhance adaptability and long-term RM effectiveness. Originality/value As one of the first comprehensive reviews of SRM in the construction industry, this study consolidates key insights and provides a structured framework for both researchers and practitioners. It advances discussions on integrating sustainability within RM and highlights the need for empirical validation, particularly in assessing the role of digital transformation in SRM. By bridging theoretical gaps and practical applications, this research establishes a foundation for future studies on sustainable and technology-driven RM strategies.

This well-balanced introduction to enterprise risk management integrates quantitative and qualitative approaches and motivates key mathematical and statistical methods with abundant real-world cases - both successes and failures. Worked examples and end-of-chapter exercises support readers in consolidating what they learn. The mathematical level, which is suitable for graduate and senior undergraduate students in quantitative programs, is pitched to give readers a solid understanding of the concepts and principles involved, without diving too deeply into more complex theory. To reveal the connections between different topics, and their relevance to the real world, the presentation has a coherent narrative flow, from risk governance, through risk identification, risk modelling, and risk mitigation, capped off with holistic topics - regulation, behavioural biases, and crisis management - that influence the whole structure of ERM. The result is a text and reference that is ideal for graduate and senior undergraduate students, risk managers in industry, and anyone preparing for ERM actuarial exams.

This well-balanced introduction to enterprise risk management integrates quantitative and qualitative approaches and motivates key mathematical and statistical methods with abundant real-world cases - both successes and failures. Worked examples and end-of-chapter exercises support readers in consolidating what they learn. The mathematical level, which is suitable for graduate and senior undergraduate students in quantitative programs, is pitched to give readers a solid understanding of the concepts and principles involved, without diving too deeply into more complex theory. To reveal the connections between different topics, and their relevance to the real world, the presentation has a coherent narrative flow, from risk governance, through risk identification, risk modelling, and risk mitigation, capped off with holistic topics - regulation, behavioural biases, and crisis management - that influence the whole structure of ERM. The result is a text and reference that is ideal for graduate and senior undergraduate students, risk managers in industry, and anyone preparing for ERM actuarial exams.

This well-balanced introduction to enterprise risk management integrates quantitative and qualitative approaches and motivates key mathematical and statistical methods with abundant real-world cases - both successes and failures. Worked examples and end-of-chapter exercises support readers in consolidating what they learn. The mathematical level, which is suitable for graduate and senior undergraduate students in quantitative programs, is pitched to give readers a solid understanding of the concepts and principles involved, without diving too deeply into more complex theory. To reveal the connections between different topics, and their relevance to the real world, the presentation has a coherent narrative flow, from risk governance, through risk identification, risk modelling, and risk mitigation, capped off with holistic topics - regulation, behavioural biases, and crisis management - that influence the whole structure of ERM. The result is a text and reference that is ideal for graduate and senior undergraduate students, risk managers in industry, and anyone preparing for ERM actuarial exams.

This well-balanced introduction to enterprise risk management integrates quantitative and qualitative approaches and motivates key mathematical and statistical methods with abundant real-world cases - both successes and failures. Worked examples and end-of-chapter exercises support readers in consolidating what they learn. The mathematical level, which is suitable for graduate and senior undergraduate students in quantitative programs, is pitched to give readers a solid understanding of the concepts and principles involved, without diving too deeply into more complex theory. To reveal the connections between different topics, and their relevance to the real world, the presentation has a coherent narrative flow, from risk governance, through risk identification, risk modelling, and risk mitigation, capped off with holistic topics - regulation, behavioural biases, and crisis management - that influence the whole structure of ERM. The result is a text and reference that is ideal for graduate and senior undergraduate students, risk managers in industry, and anyone preparing for ERM actuarial exams.

This well-balanced introduction to enterprise risk management integrates quantitative and qualitative approaches and motivates key mathematical and statistical methods with abundant real-world cases - both successes and failures. Worked examples and end-of-chapter exercises support readers in consolidating what they learn. The mathematical level, which is suitable for graduate and senior undergraduate students in quantitative programs, is pitched to give readers a solid understanding of the concepts and principles involved, without diving too deeply into more complex theory. To reveal the connections between different topics, and their relevance to the real world, the presentation has a coherent narrative flow, from risk governance, through risk identification, risk modelling, and risk mitigation, capped off with holistic topics - regulation, behavioural biases, and crisis management - that influence the whole structure of ERM. The result is a text and reference that is ideal for graduate and senior undergraduate students, risk managers in industry, and anyone preparing for ERM actuarial exams.

This paper addresses the design of a system to facilitate individual environmental risk assessment and long-term risk management in the Industry 4.0 work context. The solution is based on IoT to provide data related to workers’ exposure to hazardous agents (dust, noise, ultraviolet radiation, poor lighting, and inappropriate temperature and humidity) through a simple interface for employees and employers. The system includes a monitoring device and a server and performs employee registration, receives secure messages from the monitoring devices, shows information about the workers’ exposure, and triggers alarms when the measures reach or exceed the limits established by applicable legislation and/or standards. The system was tested in a controlled environment, and the results are presented in this work. Our solution is still under development, and in future stages, it will include a smartphone app for employees to check their exposures and the use of artificial intelligence on the server, which is expected to enable long-term planning by companies based on the analysis of employees’ health history and their exposures to hazardous agents.

PurposeThe authors consider the mutual benefits of the ceding company and reinsurance company in the design of reinsurance contracts. Two objective functions to maximize social expected utilities are established, which are to maximize the sum of the expected utilities of both the ceding company and reinsurance company, and to maximize their products. The first objective function, additive, emphasizes the total gains of both parties, while the second, multiplicative, accounts for the degree of substitution of gains of one party through the loss of the other party. The optimal price and retention of reinsurance are found by a grid search method, and numerical analysis is conducted. The results indicate that the optimal solutions for two objective functions are quite different. However, optimal solutions are sensitive to the change of the means and volatilities of the claim loss for both objective functions. The results are potentially valuable to insurance regulators and government entities acting as reinsurers of last resort.Design/methodology/approachIn this paper, the authors apply relatively simple, but in the view significant, methods and models to discuss the optimization of excess loss reinsurance strategy. The authors only consider the influence of loss distribution on optimal retention and reinsurance price but neglect the investment factor. The authors also consider the benefits of both ceding company and reinsurance company to determine optimal premium and retention of reinsurance jointly based on maximizing social utility: the sum (or the product) of expected utilities of reinsurance company and ceding company. The authors solve for optimal solutions numerically, applying simulation.FindingsThis paper establishes two optimization models of excess-of-loss reinsurance contract against catastrophic losses to determine optimal premium and retention. One model considers the sum of the expected utilities of a ceding company and a reinsurance company's expected utility; another considers the product of them. With an example, the authors find the optimal solutions of premium and retention of excess loss reinsurance. Finally, the authors carry out the sensitivity analysis. The results show that increasing the means and the volatilities of claim loss will increase the optimal retention and premium. For objective function I, increasing the coefficients of risk aversion of or reducing the coefficients of risk aversion of will make the optimal retention reduced but the optimal premium increased, and vice versa. However, for objective function 2, the change of coefficient of risk aversion has no effect on optimal solutions.Research limitations/implicationsUtility of the two partners: The ceding company and the reinsurance company, may have different weights and different significance. The authors have not studied their relative significance. The simulation approach in numerical methods limits us to the probability distributions and stochastic processes the authors use, based on, generally speaking, lognormal models of rates of return. This may need to be generalized to other returns, including possible models of shocks through jump processes.Practical implicationsIn the recent two decades, reinsurance companies have played a great role in hedging mega-catastrophic losses. For example, reinsurance companies (and special loss sharing arrangements) paid as much as two-thirds of the insured losses for the September 11, 2001 tragedy. Furthermore, large catastrophic events have increased the role of governments and regulators as reinsurers of last resort. The authors hope that the authors provide guidance for possible balancing of the needs of two counterparties to reinsurance contracts.Social implicationsNearly all governments around the world are engaged in regulation of insurance and reinsurance, and some are reinsurers themselves. The authors provide guidance for them in these activities.Originality/valueThe authors believe this paper to be a completely new and original contribution in the area, by providing models for balancing the utility to the ceding insurance company and the reinsurance company.

PurposeThe purpose of this study is to investigate the key issues and challenges in risk management and insurance in the Chinese construction industry and propose solutions to improve risk management.Design/methodology/approachThe study is based on surveys which target people who have direct or relevant experience of risk management and construction insurance in China. Surveys were conducted by e‐mail, mail and fax to selected clients, contractors (project director, project managers, and contract managers/administrators), insurers, brokers, consultants, claim advisors, and academics; and e‐mails to Chinese researchers in the construction management field. Descriptive analysis is used for data analysis.FindingsIt is found that cultural considerations inhibit proper implementation of risk management in China's construction industry. It is also found that the perception and attitude of contractors play an important role in developing risk management. Accordingly, an organizational learning of a risk management model is designed and proposed as an organizational learning process through collaborative teamwork to improve risk management and create a learning organization.Research limitations/implicationsThe major limitation is the sample size. A much larger sample size allows comparisons among different groups of contractors, regions, etc.Originality/valueThis empirical research identifies the real challenge of application of risk management in China's construction industry. It proposes a realistic organizational learning model through collaborative teamwork which could help Chinese contractors to improve their risk management.

This concept paper explores the conceptual framework for developing and implementing communication strategies tailored to the unique challenges of high-risk environments. Drawing insights from the energy sector, the paper identifies the importance of clear communication, stakeholder engagement, and proactive risk management. By establishing a robust conceptual framework, organizations can enhance safety, mitigate risks, and improve overall performance. Effective communication strategies are paramount in high-risk industries, particularly in the energy sector, where safety and operational efficiency are non-negotiable. This paper delves into the intricacies of crafting and executing communication strategies that address the specific challenges prevalent in such environments. Leveraging insights gleaned from the energy sector, it underscores the pivotal role of lucid communication, active stakeholder engagement, and preemptive risk management. Through the establishment of a sturdy conceptual framework, organizations stand to bolster safety protocols, mitigate potential risks, and elevate their overall performance. In high-risk industries like energy, effective communication serves as the linchpin that binds together various operational facets, ensuring seamless coordination and alignment with overarching objectives. Amidst the complex operational dynamics characteristic of the energy sector, clarity in communication emerges as a foundational element for averting potential hazards and facilitating smooth operations. This paper navigates through the nuances of communication strategies tailored to high-risk environments, advocating for a strategic approach that not only disseminates information but also fosters understanding and accountability across all levels of the organization. Drawing from experiences within the energy sector, it becomes evident that effective communication transcends mere transmission of messages; it embodies a holistic approach that encompasses proactive engagement with stakeholders and meticulous risk assessment. In the energy sector, stakeholders encompass a diverse spectrum ranging from employees and regulatory bodies to local communities and environmental advocates. Effective communication entails not only disseminating information but also soliciting feedback, fostering transparency, and nurturing trust among stakeholders. By fostering open channels of communication, organizations can cultivate a culture of collaboration, thereby enhancing operational efficiency and engendering stakeholder buy-in for initiatives aimed at risk mitigation and sustainability.