Cost Risk Management Research Articles

Competitive advantage and sustainability in Ghanaian microfinance institutions: the mediating role of strategic capabilities

This study explores the effect of competitive advantage on sustainability within Ghanaian microfinance institutions (MFIs), emphasizing the mediating role of strategic capabilities. We conducted a quantitative analysis using survey data from 500 managers representing 150 MFIs in Ghana, analyzed through structural equation modeling. Our findings indicate that competitive advantages and strategic capabilities have a positive significant influence on MFI sustainability. Additionally, strategic capabilities were found to mediate the relationship between competitive advantage and sustainability within Ghanaian MFIs. This study expands the theoretical framework by incorporating cost differentiation, pricing strategy, focus strategy, market strategy, efficient operations and risk management, innovation in product offerings, target market considerations, and client relationship management. We highlight how MFIs can maintain competitiveness through technology, partnerships, training, career development, and knowledge transfer. This mediated relationship underscores the crucial role of strategic capabilities in achieving sustainable operations. The study provides a conceptual framework for understanding MFI sustainability and offers a roadmap to enhance competitive advantage. By integrating elements from the competitive advantage theory and extending the resource-based view theory, this research contributes to the existing knowledge by clarifying the connections between competitive advantage and sustainability in the context of MFIs. Furthermore, the study addresses the dynamics of competitive advantage, strategic capabilities, and sustainability in a context with limited research. It offers practical implications for policymakers and practitioners, providing insights that can inform targeted interventions to enhance capacities and foster sustainability in the microfinance sector.

Exploring Cost Variability and Risk Management Optimization in Natural Disaster Prevention Projects

The purpose of this study is to analyze the causes of cost variation in natural disaster prevention projects (NDPPs) in Gyeongsangbuk-do, South Korea, and develop tailored cost and risk management strategies. Utilizing a binary logistic regression model, this research uniquely focuses on the Gyeongsangbuk-do region, gathering data from 244 stakeholders through an online survey. The study identifies critical variables influencing cost deviation, including project management risk (PMR), project costing and execution risk (PCER), project execution strategy risk (PESR), construction project risk (CPR), project cost and schedule risk (PCSR), project management challenges (PMCs), and construction project subcontractor and safety management (CPSSM). Significant findings revealed PMR (OR = 3.744, 95% C.I. [1.657, 8.457]), PCER (OR = 5.068, 95% C.I. [2.236, 11.484]), and PESR (OR = 3.447, 95% C.I. [1.853, 6.413]) as the primary causes of cost deviation, alongside the notable impacts of other factors such as CPSSM. The developed predictive model is instrumental for NDPP stakeholders in Gyeongsangbuk-do, providing advanced risk management capabilities and aiding in effective preventive measures. This study not only corroborates theoretical hypotheses from previous research but also offers new insights into cost deviation causes in NDPPs, thereby enhancing strategic decision-making and advancing risk management perspectives.

Cost Optimization and Risk Management Program for the Fuel Supply Network in an Oil & Gas Swamp Operation

Marine activity is a critical part of an oil & gas company that operates in the swamp area. The company utilizes rigs, barges, and boats to achieve maximum production. Fuel supply for marine fleets is highly essential to ensure smooth operation. Since fuel cost becomes one of the biggest components of operating expenses (OPEX), the stakeholders highly encourage cost optimization programs to ensure business profitability. However, any optimization program shall have a robust risk management program to avoid disturbance in the operation and potential financial losses. The research aims to select the best fuel supply network in the swamp operation area of an oil & gas company using four criteria (operational expenses, service reliability, value creation, and health safety & environment) based on the literature review and subject matter experts’ analysis. The study will analyze several alternatives using the Analytical Hierarchy Process (AHP) as a decision-making tool and Failure Mode Effect Analysis (FMEA) as the risk management method. The result shows that the hybrid network has the highest rating in AHP with a 33.7% rating and the lowest total risk priority number with 212 points.

Analysis Of Service User Satisfaction With The Performance Of Supervisory Consultants Based On Implementation Allocations In The Housing And Settlement Area Activities Of East Java Province

To realize better infrastructure development for housing and settlement facilities in East Java province and the success of the project, the government, especially in the PRKP sector of East Java Province, collaborates with service providers, one of which is supervisory consultants. This encourages supervisory consultants to improve their understanding of customer satisfaction. This research has several objectives, namely identifying variables related to the project management performance in the PRKP sector activities in East Java Province, measuring the customer satisfaction level of project management performance in the housing sector activities in East Java Province, and identifying the variables in the project management performance of the PRKP housing sector activities in East Java Province that need to be proposed for improvement or maintenance to enhance customer satisfaction. The research stages include the background of the research, formulation of the problem and research objectives, literature review, preliminary survey, data collection, data testing, and data analysis. The analysis method used is the customer satisfaction index and importance-performance analysis. The customer satisfaction index analysis results show a CSI value of 93.55%, indicating satisfaction. Meanwhile, the importance-performance analysis (IPA) results reveal an overall gap score of -13 and an overall conformity percentage of 94.61%, indicating that the project owner is not satisfied with the project management performance of the supervisory consultant. The importance-performance analysis (IPA) in this study identifies variables with high importance and satisfaction to be maintained, namely Integration Management, Scope Management, Schedule Management, Resource Management, Communication Management, and Procurement Management. Meanwhile Cost Management, Quality Management, Risk Management, and Stakeholder Management have low priority and need improvement.

Resilient Chain: AI-Enhanced Supply Chain Security and Efficiency Integration

In most recent time, the global landscape of supply chain management has experienced unprecedented challenges during the COVID-19 pandemic, which has significantly impacted the routine and smooth operations of different firms in the United States. This paper explains about the importance of artificial intelligence (AI) and machine learning (ML) in the mitigation of these disruptions and possible ways of improving supply chain security and its efficiency. This research adopted a questionnaire survey involving 281 managers, with the aim to comprehensively examine the current state of AI integration across the U.S. supply chain sector, with focus on some key components like real-time tracking, cost optimization, and risk management. A mixed method approach was adopted for this research, utilizing both inferential and descriptive analyses to unravel insights and trends into the role of AI in enhancing supply chain security. The results indicate that integrating AI, most especially through cost optimization, real-time tracking, and risk management components, emerges as a significant determinant of supply chain security in the United States. Real-time tracking technologies are identified as crucial for monitoring shipments and assets, enabling quick responses to security incidents, and ensuring end-to-end visibility throughout the supply chain. Despite the potential benefits, the study highlights challenges that hinder the widespread integration of AI technologies in the U.S. supply chain. The high cost of AI adoption and the limited availability of skilled personnel are major obstacles. To address these challenges, the paper proposes practical recommendations. Firstly, real-time tracking technologies are recommended to monitor shipments and assets, facilitating rapid responses to security incidents, and ensuring visibility across the entire supply chain. Furthermore, the paper suggests optimizing costs by investing in cost-effective security solutions. This includes leveraging AI for automated monitoring systems and adopting secure packaging measures. These strategies aim to minimize vulnerabilities without compromising security standards, offering a balanced approach to enhancing supply chain security while mitigating the financial implications associated with AI adoption.

Digital Application of Construction Project Cost Risk Control and Management Based on BIM Technology

Abstract The core objective of this study is to explore the application of BIM technology in the whole process of cost management of construction projects and to assess the project risk. The study covers the key stages of project planning, design, transaction and construction, and focuses on analyzing the cost management process of investment decision, design estimate, transaction and construction. Through questionnaire surveys and expert interviews with 72 valid samples, this study collects data on green building and analyzes the quality of the risk assessment data. Through questionnaire survey and expert interviews with 72 good samples, this study collects data on green building and analyzes the quality of the risk assessment data. In establishing the BIM-based project cost risk model, the study analyzes the management elements of BIM and IPD in detail, including the quantification of technical and management components. three case projects show that the application of BIM and IPD technologies in different projects has different focuses, and produces other management effects. for example, the number of engineering changes (e.g., the number of changes to the project) exhibited by the project B For example, the number of project changes (NCO) is 35, the cost change rate (COP) is 0.93%, the duration change rate (DCP) is −10.25%, and the number of contract negotiations (NRFI) is 6. The risk evaluation model is applied in a mixed-use project in Xiamen, China, and the results of the simulation experiments show that the method is effective in realizing the risk assessment of the construction project, and the clustered nature of the output features is good. The average value of the risk fuzzy variable is 0.576, and the minimum value is 0.192.

Energy-efficient scheduling for a flexible job shop problem considering rework processes and new job arrival

Sustainable production is not limited to environmental concerns only; It also provides economic benefits for businesses. Businesses that adopt sustainability principles can gain advantages in matters such as cost savings, competitive advantage, risk management, legal compliance and corporate reputation. Therefore, sustainability is no longer an option but a strategic imperative for businesses. For this reason, studies on energy-sensitive scheduling have started to increase recently. Another important factor in sustainable manufacturing is the reduction of scrap. Rework operations are required to reduce scrap. In this study, the multi-objective flexible job shop scheduling problem (MO-FJSP) that considers energy efficiency is discussed. The created model aims to minimize the energy consumption, total machine workload and makespan. In this study, new job arrivals are considered as dynamic events. Another dynamic event added to the model is the addition of rework processes between operations to reduce the scrap rate when a scrap decision is made during the production stages. The enhanced NSGA II algorithm was applied to solve this problem. The enhanced NSGA II algorithm was applied to test instances and its performance was compared using some of the multi-objective performance indicators. These experimental results prove the effectiveness of the proposed solution method.

Retracted: Design of Project Cost Risk Management System Based on Improved Fuzzy Rule Weight Algorithm

Retracted: Design of Project Cost Risk Management System Based on Improved Fuzzy Rule Weight Algorithm

ESG Transformation Strategy Case Analysis: Taking Sands China Limited as an Example

Sands China Limited is a comprehensive entertainment company operating in Macau. This paper evaluates the sustainable development of Sands China by analyzing its performance in environmental, social, and governance (ESG) aspects, as well as financial performance indicators. In terms of the environment, Sands China has implemented multiple measures to improve energy efficiency, reduce carbon emissions, and prioritize water resource management. In the social aspect, the company focuses on employee welfare, community development, and social responsibility, enhancing its social impact through various projects and activities. Regarding governance, Sands China is committed to establishing a transparent and responsible corporate governance system. In terms of financial performance, Sands China achieved relatively stable growth from 2017 to 2019 and addressed market challenges through cost control and risk management measures. However, the company's performance was severely impacted by the COVID-19 pandemic. To adapt to the current uncertainty, Sands China needs to embrace market changes, diversify its business, strengthen risk management, and actively explore new markets. Through these efforts, Sands China will maintain a stable development trajectory and contribute to the economic recovery of Macau.

Strategy Selection of Healthcare Sector Development and Risk Management of its Implementation

Introduction. The topic of this study is the necessity to implement all stages of strategic planning for health sphere development, such as analysis of the internal and external environment, selection of a specific strategy for further development, and identification and management of risks associated with the implementation of the chosen strategy.
 Aim and tasks. The purpose of the study is to justify a comprehensive strategy for health sphere development based on the results of SWOT analysis, the characteristics of its main components, the identification of fundamental and specific risks of its implementation, and the development of their minimization directions.
 Results. The study offers an application of recovery, restructuring, and reengineering strategies based on a SWOT analysis of the health sector in Ukraine. It offers cost management and risk management strategies as additional strategies. This study analyzes the fundamental and specific risks of health sector strategic development based on expert assessments. It determines that socio-political (weighted score of 7.28 points), personnel (7.94 points), and production and financial risks (7.67 points) pose the greatest threat in 2023. In addition, social and political risks tend to increase during the next two years to 7.67 points, personnel risks to 8.12 points, and production and financial risks could decrease to 6.39 points.
 Conclusions. The strategy of functioning of socio-economic system could be chosen under both favorable and unfavorable external and internal conditions; the implementation of the recovery strategy is appropriate for solving the problem of unsatisfactory regulatory and legal support for functioning of industry; restructuring strategy envisages the implementation of organizational, economic, technological and social transformations aimed at improving quality of medical services and managing the assets of medical institutions; the implementation of reengineering strategy creates the necessary prerequisites for a fundamental rethinking of essence, tasks, techniques and methods of marketing activity of medical institutions in general, as well as the development of effective solutions for the formation and implementation of their assortment, communication and service policy in particular.

Forecasting vault cash with an extreme value long short-term memory network

Effective cash management is key in banking operations and has implications for cost control, customer service, and risk management. As transactions become more diverse, manual forecasting methods have become inadequate for accurate vault cash forecasting, which involves extensive data analysis. To address this challenge, the banking industry has adopted FinTech tools based on big data and deep learning for various client services. These methods are generally accurate but perform poorly in cases with extreme events, for which data are scarce. In this study, we propose a time series prediction model with long short-term memory and an attention mechanism that effectively predicts the presence of extreme values. We applied extreme value theory to define the extreme value loss for extreme situations and use a sliding window to process time series data. The enhanced extreme value loss function in our model yields improved prediction accuracy for time series data.We evaluated the proposed model against previous methods in evaluation experiments on data from three branches of a commercial bank in Taiwan, where the vault cash data of each exhibited extreme values. The proposed model was highly accurate: it had a lower mean absolute percentage error and higher trend accuracy than competing methods on a majority of time series, and it was also more accurate in predicting extreme values in time series data.

A Study in Government Procurement System: Public-Private Partnership for Infrastructure in Energy Sector

Public-private partnerships scheme are increasingly being employed as an alternative government procurement for delivering public services for the past two decades. The collaboration between public and private in the energy infrastructure development has become an interesting topic to be researched especially in the implementation of PPP in energy sector. This study aims to analyze what are the main theme of research in PPP in energy infrastructure development. Using Systematic Literature Review, this qualitative research wants to discuss further about what are the trend of research theme from 2010 to 2020, in different continents and the impact of Accounting to PPP and the connection of PPP research to Accounting and Finance theory. The data were taken from journals that already published from highly selected international journal. The study found that research quality was 48% published in Q1 Scopus Indexed journals. The most popular topics in the body of research are PPP challenges; the importance of the PPP project; Project Management and Regulatory Implications; Risk Management and PPP Financing. In PPP studies there are several topics relate to accounting and theory and Finance which are Cost and Management Accounting and Risk Management on allocating risk and PPP Financing for setting the project implementation more efficient and to create Value for Money.

GLOBAL OUTSOURCING DYNAMICS: A COMPREHENSIVE ANALYSIS OF FACTORS DRIVING BUSINESS PROCESS OUTSOURCING (BPO) TO INDIA AND BANGLADESH, WITH A FOCUS ON INFLUENCING FACTORS FOR LEADING COMPANIES IN INDONESIA AND SINGAPORE

This study examines the complexities of offshore outsourcing undertaken by important corporations in Singapore and Indonesia, whereby they engage in subcontracting their activities to Business Process Outsourcing (BPO) firms located in India and Bangladesh. The objective of this study is to comprehensively examine the various factors that drive, shape, and impact the strategic decision-making process. This study utilises a content analysis approach to thoroughly examine textual data obtained from annual reports, press announcements, business statements, and industry publications. This systematic approach facilitates the provision of qualitative insights pertaining to the determinants of offshore outsourcing decisions, hence contributing to a thorough comprehension of the complex offshore outsourcing environment. The primary conclusions of this study highlight the prevailing rationale behind offshore outsourcing, which is the pursuit of cost effectiveness. Prominent corporations place a high emphasis on the reduction of operational expenses by leveraging the cost advantages associated with lower labour prices in India and Bangladesh. Concurrently, they endeavour to get entry to a proficient pool of talent, acknowledging the presence of specialised talents and domain expertise within certain geographical areas. Additionally, the study emphasises the growing tendency to prioritise core capabilities, resulting in improved productivity and operational efficiency. Furthermore, there is a growing emphasis on the implementation of efficient business continuity planning and risk mitigation techniques, which serve as crucial measures to counteract unexpected interruptions by offering geographic diversity and redundancy. The firms employ many tactics in offshore outsourcing that involve cost optimisation, talent recruiting, risk management, and quality control. Notwithstanding the benefits, overseas outsourcing poses various problems, encompassing cultural and linguistic hurdles, ongoing quality control and data security apprehensions, as well as intricate legal and ethical deliberations. The future implications underscore the need for a balanced approach that effectively reconciles considerations of both cost and quality. In order to effectively navigate the intricate offshore outsourcing landscape, it is advisable to employ strategies that handle cultural and language obstacles, as well as demonstrate vigilance in resolving compliance and ethical problems. This study provides practical recommendations for organisations, while also acknowledging its limitations, particularly the reliance on textual data analysis, which may not fully capture real-time nuances. This study highlights the wider economic and social consequences associated with offshore outsourcing choices, which have an impact on employment markets and corporate strategies in both the nations that outsource and those who receive the outsourced work. This research makes a valuable contribution to the current knowledge of offshore outsourcing by highlighting its varied nature within the context of the global business landscape.

GLOBAL OUTSOURCING DYNAMICS: A COMPREHENSIVE ANALYSIS OF FACTORS DRIVING BUSINESS PROCESS OUTSOURCING (BPO) TO INDIA AND BANGLADESH, WITH A FOCUS ON INFLUENCING FACTORS FOR LEADING COMPANIES IN INDONESIA AND SINGAPORE

This study examines the complexities of offshore outsourcing undertaken by important corporations in Singapore and Indonesia, whereby they engage in subcontracting their activities to Business Process Outsourcing (BPO) firms located in India and Bangladesh. The objective of this study is to comprehensively examine the various factors that drive, shape, and impact the strategic decision-making process. This study utilises a content analysis approach to thoroughly examine textual data obtained from annual reports, press announcements, business statements, and industry publications. This systematic approach facilitates the provision of qualitative insights pertaining to the determinants of offshore outsourcing decisions, hence contributing to a thorough comprehension of the complex offshore outsourcing environment. The primary conclusions of this study highlight the prevailing rationale behind offshore outsourcing, which is the pursuit of cost effectiveness. Prominent corporations place a high emphasis on the reduction of operational expenses by leveraging the cost advantages associated with lower labour prices in India and Bangladesh. Concurrently, they endeavour to get entry to a proficient pool of talent, acknowledging the presence of specialised talents and domain expertise within certain geographical areas. Additionally, the study emphasises the growing tendency to prioritise core capabilities, resulting in improved productivity and operational efficiency. Furthermore, there is a growing emphasis on the implementation of efficient business continuity planning and risk mitigation techniques, which serve as crucial measures to counteract unexpected interruptions by offering geographic diversity and redundancy. The firms employ many tactics in offshore outsourcing that involve cost optimisation, talent recruiting, risk management, and quality control. Notwithstanding the benefits, overseas outsourcing poses various problems, encompassing cultural and linguistic hurdles, ongoing quality control and data security apprehensions, as well as intricate legal and ethical deliberations. The future implications underscore the need for a balanced approach that effectively reconciles considerations of both cost and quality. In order to effectively navigate the intricate offshore outsourcing landscape, it is advisable to employ strategies that handle cultural and language obstacles, as well as demonstrate vigilance in resolving compliance and ethical problems. This study provides practical recommendations for organisations, while also acknowledging its limitations, particularly the reliance on textual data analysis, which may not fully capture real-time nuances. This study highlights the wider economic and social consequences associated with offshore outsourcing choices, which have an impact on employment markets and corporate strategies in both the nations that outsource and those who receive the outsourced work. This research makes a valuable contribution to the current knowledge of offshore outsourcing by highlighting its varied nature within the context of the global business landscape.

Contribution of Project Management Knowledge Areas on the Performance of Affordable Housing Projects; a Case of Kigali City

The research aimed to scrutinize the contribution of project management knowledge areas on the performance of affordable housing projects in Rwanda, case of Kigali City. The specific objective of the study was to examine the contribution of project cost management, to find out the contribution of project risk management, and assess how project quality management contributes on the performance of affordable housing projects. Institutional theory, resource-based view and dynamic concept of formation of business knowledge were used in theoretical review. A sample of 93 respondents among 121 of total population was engaged. For data alysis, SPSS version 23 was used. The findings indicated that cost management, risk management and quality management can influence the performance of affordable housing projects. It was recommended that there should be housing for different categories of people and their status; if it is for single person, small family or large family. The City of Kigali should advocate for the benefit of beneficiaries to get access to finance from different financial institutions in order to facilitate them getting those affordable houses. The cost of housing should be considered but without forgetting their quality. Keywords: Project management knowledge area, performance, affordable housing projects

Deterioration Models for Bridge Pavement Materials for a Life Cycle Cost Analysis

As the Framework Act on Sustainable Infrastructure Management has recently been enacted in Korea, it has become mandatory to establish a medium-and long-term plan for managing social infrastructure and evaluating the feasibility of maintenance projects. However, road agencies are experiencing problems due to a lack of deterioration models which are essential to conducting a life cycle cost analysis. Thus, this study developed deterioration models for bridge pavements as the first step to secure the power of execution of the Infrastructure Management Act. The deterioration model subdivided pavement materials into asphalt, conventional concrete, and latex-modified concrete. This study analyzed the data on diagnosis for the last 12 years in Korea by applying the Bayesian Markov Hazard Model. The average life expectancy by pavement type was analyzed as follows: 12.8 years for asphalt pavement; 23.4 years for concrete pavement; and 9.8 years for latex-modified concrete pavement. For the probabilistic life cycle cost analysis and risk management, probability distributions of life expectancy, effective range by confidence level, and Markov transition probability were presented. This study lays a foundation for deterministic and probabilistic life cycle cost analysis of bridge pavement. Future studies need to develop deterioration models standardized for all components of bridges and all types of social infrastructure.

Analysis and Design of the Project Risk Management System Based on the Fuzzy Clustering Algorithm

In order to effectively control the cost risk of power grid construction projects, the author proposes a cost risk management system for power grid construction projects based on the fuzzy clustering algorithm. The system introduces the fuzzy clustering maximum tree algorithm, and by constructing a mathematical model, combined with the empirical analysis, the key risk factors in the cost risk of power grid construction projects are identified. Through the analysis, it can be concluded that the key risks in the cost risk of power grid construction projects are the planning risks of infrastructure projects, the research risks of infrastructure projects, and the cost risks of infrastructure projects. Experimental results show that combined with expert experience and the actual situation of power grid engineering, the classification result at threshold λ = 0.785 becomes more realistic. At this λ level, 6 risk factors are grouped into 4 categories as follows: class I x 1 , x 2 , x 4 , class II x 3 , class III x 5 , and class IV x 6 . Through research, the identification of key risks can enable project managers to control the cost of power grid construction projects, targeted, so that risks can be minimized and investment returns can be improved.

BIM-augmented reality integrated approach to risk management

Despite the acknowledged promises of adopting technologies such as BIM and AR, research addressing the challenges and opportunities of such synergies in cost and schedule risk management is still limited. This paper contributes to the literature by presenting an integrated, proactive BIM-Augmented Reality (AR) risk management system enabling an online inspection of project cost and schedule risks. This system records the actual risk data (e.g., risk type and likelihood) using AR on commercial smartphones, runs an online Risk Failure Mode and Effects Analysis (RFMEA), and updates the project's BIM model to provide informed risk-related solutions. A case study is provided to demonstrate the implementation of the proposed system in a real project. Despite the challenges cited in the post-implementation survey (e.g., system ergonomics and synchronizations of automated/non-automated subsystems), 67% of the users acknowledged the improvement in cost and schedule risk management owing to enhancement in communication, timeliness, and risk perception.

Aircraft Insurance Costs Management for Sustainable General Aviation: Insights From General Aviation Enterprises in China

Little research has examined how to effectively reduce general aviation aircraft (GAA) insurance costs (premiums), even though it has grown to be a heavy financial burden adversely affecting the sustainable development of general aviation (GA). In contrast to previous research that dealt solely with airline insurance, this research studies the insurance cost management issue of GAA from the perspective of supply and demand. Specifically, this paper focuses on analyzing significant factors influencing GAA insurance premiums and the degree of incidence with the risk system. This empirical research is based on a unique dataset of GA enterprises in China during 2017 to 2019 and utilizes the second synthetic of gray incidence analysis (SSDGIA) model and entropy weight analysis. First, it is found that the fleet profile, loss record, and individual GA operational performance are the critical elements related to premiums. Additionally, there is an increasing dependence of premiums on direct loss performance. Second, the degree of incidence between premiums and the risk system (<0.8) constructed within the Human Factors Analysis and Classification System (HFACS) framework is below the expected level. The latent risk factors related to loss make a small contribution. Such findings will contribute to GA development through cost reduction and risk management. GAA operators and owners could save premium expenses by optimizing their risk management decisions and operations. The results also provide an important theoretical basis for the regulatory agency to speed up the optimization of GA risk information analysis and disclosure system. With complete GA risk information support, insurers could further improve GA risk assessment and determine long-term competitive premium rates.

Brief Analysis of Project Cost and Project Cost Risk Management

Brief Analysis of Project Cost and Project Cost Risk Management