Importance Of Risk Management Research Articles

РИЗИК-МЕНЕДЖМЕНТ ЯК СПОСІБ ЗАБЕЗПЕЧЕННЯ СТІЙКОГО ФУНКЦІОНУВАННЯ ПІДПРИЄМСТВА В УМОВАХ НЕВИЗНАЧЕНОСТІ

Modern conditions of operation of enterprises bring threats which frequently can be characterized by incomplete or inaccurate information about the business environment. They allow for the possibility of losing some resources, loss of income or additional costs as a result of doing business. This leads to the study of theoretical aspects and causes of uncertainty, the role and importance of risk management in ensuring the sustainable operation of the enterprise. As well as the need to identify ways to eliminate uncertainty and identify effective risk management instruments under these conditions. The article analyses the theoretical aspects of uncertainty that can be used by business leaders to detect and prevent this phenomenon. The work presents the stages of risk management, which are the basis of strategic management of the organization by its leaders. Entrepreneurs and managers can use suggestions on ways to eliminate uncertainty and choose effective risk management strategies under these conditions, adapting them to the needs of the enterprise. The results of this study can be used by enterprises of different types of economic activity under different unstable external and internal conditions. Other tools to ensure the sustainable operation of the enterprise in conditions of uncertainty should be explored in future studies.

Managerial Ability as a Mechanism for Creating Firm Value through Risk Management

This study investigates the role of managerial ability on the creation of firm value which is tested directly and indirectly through risk management. This r esearch model was built based on resource-based view theory dan stakeholder theory. The population in this study was all companies listed on the Indonesia Stock Exchange (IDX) in 2018-2020. The sample used in this study was 183 non-financial companies , which was selected by the purposive sampling method. This study uses documentary data, i.e., the annual report and financial statements. Path analysis was used to analyze the data, and the mediation hypothesis was analyzed using the Sobel mediation test. The results of this study indicate that 1). The managerial ability has a positive and significant impact on risk management; 2). The managerial ability has a positive and significant impact on firm value; and 3). The implementation of risk management can fully mediate the impact of managerial ability on firm value . The implications of this study are expected to provide theoretical implications for the development of science in the field of accounting and management regarding the factors that affect firm value. Implications practice of this research is as learning for companies and investors to consider the importance of risk management through managerial ability as a mechanism to create firm value.

Mergers and Acquisitions Risk Modeling

In the context of the dynamics of the modern external environment, the importance of risk management in general and the risks inherent in the processes of mergers and acquisitions has sharply increased. This is becoming one of the primary challenges in business, the solution of which will contribute to economic growth and development. In this article, based on a broad review of literature, the key risks of mergers and acquisitions are identified and classified, the level of their significance is assessed, the relevant management tools are selected for each risk and a computer program is developed that implements the selection of tools for each specific merger and acquisition transaction. A comprehensive automated methodology for the selection of risk management tools in the implementation of mergers and acquisitions can become an effective risk management tool for companies participating in such transactions. This will allow to identify and track risks in a timely manner, assess their significance, and, among other things, contribute to the adoption of effective management decisions regarding risk management.

Emerging digital economy companies and leading cryptocurrencies: insights from blockchain-based technology companies

PurposeThe purpose of this study is to investigate the correlation between the price return of leading cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, Monero, Stellar, Peercoin and Dash, and stock return of technology companies' indices that mainly operate on the blockchain platform and provide financial services, including alternative finance, democratized banking, future payments and digital communities.Design/methodology/approachThis study employs a Bayesian asymmetric dynamic conditional correlation multivariate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) (BADCC-MGARCH) model with skewness and heavy tails on daily sample ranging from August 11, 2015, to February 10, 2020, to investigate the dynamic correlation between price return of several cryptocurrencies and stock return of the technology companies' indices that mainly operate on the blockchain platform. Data are collected from multiple sources. For parameter estimation and model comparison, the Markov chain Monte Carlo (MCMC) algorithm is employed. Besides, based on the expected Akaike information criterion (EAIC), Bayesian information criterion (BIC), deviance information criterion (DIC) and weighted Deviance Information Criterion (wDIC), the skewed-multivariate Generalized Error Distribution (mvGED) is selected as an optimal distribution for errors. Finally, some other tests are carried out to check the robustness of the results.FindingsThe study results indicate that blockchain-based technology companies' indices' return and price return of cryptocurrencies are positively correlated for most of the sampling period. Besides, the return price of newly invented and more advanced cryptocurrencies with unique characteristics, including Monero, Ripple, Dash, Stellar and Peercoin, positively correlates with the return of stock indices of blockchain-based technology companies for more than 93% of sampling days. The results are also robust to various sensitivity analyses.Research limitations/implicationsThe positive correlation between the price return of cryptocurrencies and the return of stock indices of blockchain-based technology companies can be due to the investors' sentiments toward blockchain technology as both cryptocurrencies and these companies are based on blockchain technology. It could also be due to the applicability of cryptocurrencies for these companies, as the price return of more advanced and capable cryptocurrencies with unique features has a positive correlation with the return of stock indices of blockchain-based technology companies for more days compared to the other cryptocurrencies, like Bitcoin, Litecoin and Ethereum, that may be regarded more as speculative assets.Practical implicationsThe study results may show the positive role of cryptocurrencies in improving and developing technology companies that mainly operate on the blockchain platform and provide financial services and vice versa, suggesting that managers and regulators should pay more attention to the usefulness of cryptocurrencies and blockchains. This study also has important risk management and diversification implications for investors and companies investing in cryptocurrencies and these companies' stock. Besides, blockchain-based technology companies can add cryptocurrencies to their portfolio as hedgers or diversifiers based on their strategy.Originality/valueThis is the first study analyzing the connection between leading cryptocurrencies and technology companies that mainly operate on the blockchain platform and provide financial services by employing the Bayesian ssymmetric DCC-MGARCH model. The results also have important implications for investors, companies, regulators and researchers for future studies.

O PROBLEMA DA POLUIÇÃO POR ÓLEO ORIUNDO DE NAVIOS NAS ÁGUAS DE JURISDIÇÃO NACIONAL: COMPREENSÃO DAS CAUSAS-RAIZ DOS ACIDENTES QUE PROVOCAM DERRAMAMENTO DE PETRÓLEO NO MAR

The present study has as a research theme the pollution of the national maritime waters caused by the operations of extraction, storage and transport of oil and its derivatives. Its general objective is to analyze how the understanding of the causes of pollution arising from the extraction, storage and transportation of oil and its derivatives helps to reduce the contamination of the Brazilian maritime waters, thus contributing to the improvement of the quality of these waters. It is the result of a bibliographical research based on the works of Eliane M. Octaviano Martins 2007 and 2009. Thus, the first chapter showed that accidents with oil spills are considered to be more harmful to the environment compared to other types of pollution in the sea. In addition, human error was highlighted as the most important error in maritime accidents and was related to the poor training of the professionals involved in the operation. The study facilitates understanding of the major flaws in the prevention of marine pollution from oil spills and shows the importance of risk management. It addresses the Brazilian position regarding international maritime safety standards and prevention of the marine environment. It evidences the importance of controlling the damage caused by an oil spill accident through efficient response in a timely manner to the distress. It exposes the condition of Brazil in the IMO, some Brazilian legislation and IMO codes and conventions. It shows how many standards are developed for the purpose of responding to major accidents both nationally and internationally. It demonstrates the harm caused by the lack of speed in enacting laws and enforcing standards. It presents some unilateral measures, some regional agreements and their effects. The overall goal is achieved through specific objectives. The paper concludes that oil production has sufficient economic and social relevance to assume its risks and that prevention of pollution is the best way to improve the quality of the Brazilian marine environment.

Artificial Intelligence for Identifying the Prevention of Medication Incidents Causing Serious or Moderate Harm: An Analysis Using Incident Reporters' Views.

The purpose of this study was to describe incident reporters’ views identified by artificial intelligence concerning the prevention of medication incidents that were assessed, causing serious or moderate harm to patients. The information identified the most important risk management areas in these medication incidents. This was a retrospective record review using medication-related incident reports from one university hospital in Finland between January 2017 and December 2019 (n = 3496). Of these, incidents that caused serious or moderate harm to patients (n = 137) were analysed using artificial intelligence. Artificial intelligence classified reporters’ views on preventing incidents under the following main categories: (1) treatment, (2) working, (3) practices, and (4) setting and multiple sub-categories. The following risk management areas were identified: (1) verification, documentation and up-to-date drug doses, drug lists and other medication information, (2) carefulness and accuracy in managing medications, (3) ensuring the flow of information and communication regarding medication information and safeguarding continuity of patient care, (4) availability, update and compliance with instructions and guidelines, (5) multi-professional cooperation, and (6) adequate human resources, competence and suitable workload. Artificial intelligence was found to be useful and effective to classifying text-based data, such as the free text of incident reports.

The culture of risk governance in financial institutions

Financial institutions increasingly need an integral and widespread culture, especially in terms of risks and relations with stakeholders, which guides corporate behaviour and organisation. When constructing this positive risk culture, financial institutions must be protagonists and not spectators. This means that risk governance professionals necessarily need to be involved in the process. In this paper, the importance of risk management in the organisational structure of financial institutions is analysed, taking into consideration the logical transition from risk culture to risk governance. The paper then examines how the main aspects of risk governance have been analysed in the recent literature in order to understand the possible relationship between bank profitability and risk. The paper finds that the governance literature has considerably developed since the outbreak of the global financial crisis, leading to the implementation of not only theoretical paradigms but also empirical analysis. Quantitative research generally makes use of multiple regression models — with or without fixed effects — but some innovative analysis techniques are also used for specific aspects of analysis such as the estimation of certain variables. The results of the literature review show a general trend towards greater attention by financial institutions to risk governance which tends to be linked to a better performance, although studies on the subject do not always agree. The importance of a well-structured, efficient and effective bank risk governance emerges as a key conclusion, although research into further risk governance analysis models is expected to continue, particularly in light of the recent international economic and financial context.

Non-linear relationship between foreign currency derivatives and firm value: evidence on Sharīʿah compliant firms

PurposeThis study examines the impact of hedging on firm value of Sharīʿah compliant firms (SCFs) in a non-linear framework.Design/methodology/approachThis study employs the system-GMM for dynamic panel data to examine the influence of derivatives usage on firm value (Tobin's Q, ROA and ROE). The sample comprised of 59 non-financial SCFs engaged in derivatives from 2000 to 2017 (18 years). The Sasabuchi-Lind-Mehlum (SLM) test for U-shaped is performed to confirm the existence of the non-linear relationship.FindingsThis study concludes that hedging significantly contributes to firm value of SCFs based on the non-linear framework. This study suggests that, first, the non-linear relationship occurs due to the different degree of derivatives usage and risk. Second, firms practice selective hedging to maintain the upside potential of firm value.Research limitations/implicationsThis study has important implications. First, the importance of risk management via derivatives to increase firm value, second, the evidence of selective hedging from the non-linear relationship between derivatives and firm value and third, the need for quality reporting on derivatives engagement by firms in line with the required accounting standard on derivatives.Originality/valueThis study fills the gap in the literature in relation to the risk management strategies of SCFs in three aspects. First, re-examines the relationship using recent data. Second, examines the relationship in the non-linear framework as the limited studies found in the literature on Malaysian firms are only based on linear relationship. Third, determines whether hedging undertaken by firms is optimal as this can only be addressed using the non-linear framework. This study is robust to the various definitions of firm value (Tobin's Q, ROA and ROE) and non-linear methodologies.

Strategic Risk and Lobbying: Investigating Lobbying Breadth as Risk Management

Despite many studies investigating how lobbying expenditures enhance performance outcomes, limited attention has been given to understanding the underlying mechanisms driving firm lobbying behaviors—and, particularly, where firms target their lobbying expenditures. We argue lobbying breadth serves as a risk management strategy to both hedge against possible government intrusion and minimize disapproval of firm actions from government officials. As such, we posit firms’ strategic risk will positively relate to breadth of lobbying firms’ target. Further, if lobbying breadth serves as risk management strategy, then other aspects that affect decisions about the amount of risk protection a firm may need should also affect this relationship. We argue that CEOs’ ownership and firms’ political uncertainty may exacerbate exposure from firm risk taking to government actions, thus strengthening the insurance relationship. Similarly, we argue available slack, as a form of internal insurance against government actions, will weaken the relationship between strategic risk taking and lobbying breadth. We find support for most of our arguments in a sample of U. S. manufacturing firms. This research extends understanding of lobbying beyond the predominant focus on expenditures and securing beneficial outcomes. Exploring how lobbying breadth serves an important risk management role also offers insights into firm nonmarket strategy.

Court rules no presumed malice occurred in pharmacy error case

The complexities of tapered dosing can lead to pharmacy liability if the directions given to patients are unclear or incomplete. Exposure to liability may increase when the error is not discovered at the time a prescription is refilled. This type of error was the basis of a lawsuit filed by a patient's estate against the patient's pharmacy, alleging that the patient died due to an amiodarone overdose. The patient was a 71-year-old male with chronic ischemic heart disease and atrial fibrillation. His cardiologist prescribed amiodarone 200-mg tablets. The signatura in the prescription stated: “1 TAB PO UD For Heart Rhythm 400mg 2x/day x 1 week, then 200mg 3x/day x 2 wks, then 200mg 2x/day x 2 wks, then 200mg daily” The pharmacist generated a label that read: “Take 2 tablets by mouth twice daily for 1 week – [800 mg]Then 1 tablet by mouth three times daily for two weeks – [600 mg]Then 1 tablet by mouth twice daily for 2 weeks – [400 mg]”The pharmacist omitted from the label the final part of the instructions to “then take 200 mg daily.” The pharmacist had only 60 tablets in stock, so he dispensed that number of tablets initially. He entered into the computer a quantity of 514 tablets for the prescription. Several days later, a different pharmacist dispensed the remainder of 454 tablets. The second pharmacist did not catch that the patient was to use only one tablet daily after the first 5 weeks. Six months later, a third pharmacist refilled the prescription for 514 tablets, without catching the original error. The patient died, allegedly due to “amiodarone-induced hepatotoxicity.” In the lawsuit that followed, the pharmacy did not contest liability but did move for dismissal of the plaintiff's claim for punitive damages. The court first noted that punitive damages can be awarded to a plaintiff only when there is either actual or presumed malice by the defendant. The plaintiff had not alleged actual malice by the pharmacists, so the court examined the allegation of presumed malice. Prior case law established that presumed malice requires a person to have acted “willfully or wantonly” in causing injury to another person. To prove willful or wanton misconduct, the plaintiff must prove that the defendant “knew or should have known of the substantial probability of serious physical harm and acted with a culpable mental state.” The plaintiff contended that since the pharmacists knew the adverse effects of amiodarone, the error they made was willful and wanton. The court ruled that while the pharmacists were aware of the risk of amiodarone toxicity, “awareness of the risk in and of itself does not constitute presumed malice or willful or wanton misconduct.” The court concluded that “none of the pharmacists—regardless of how irresponsibly neglectful they were or the seemingly dire consequences resulting—had the required culpable mental state by acting in some appreciable nature deliberately or intentionally.” The punitive damage allegations against the pharmacy were dismissed. Although the punitive damages claim has been dismissed, this case will continue based on the allegation of negligence and may result in an award of compensatory damages. Pharmacists can learn several important risk management lessons from the case: □When a complex tapered dose is prescribed, patient counseling can prevent misunderstandings by the patient and can correct errors by the pharmacy.□At the first refilling of prescriptions for a drug that is usually started with a loading dose, it's important to verify the maintenance dose.□Be sure to corroborate a large number of dosage units that would extend beyond a 90-day supply, particularly for a drug that is usually dosed once or twice daily.□To detect and prevent dosing errors, pay special attention to prescriptions for a drug that is labeled with a boxed warning.

Aspiration of Public-Private Partnership Projects’ Risk Management Supported on Probabilistic Linguistic Terms amid Weakened Hedges

The provision of risk involved in a deal for a public-private partnership (PPP) is an essential aspect of triumph that should be based on the best smart party’s opinion to organize it. This study anticipated the importance of risk management in PPP projects to adjust the risk management dilemma of the PPP projects’ pedestal on the P-LTWHs with a new notion of FMEA. The dynamic linguistic expressions, P-LTWHs, were suggested in the theoretical aspect to articulate decision-makers’ assessments, who take the reluctant information with weakened hedges and the likelihood of the linguistic information into account. Besides, the biprojection technique was used to rank risk management problem failure modes in a PPP project. The probabilistic linguistic terms with compromised hedges evaluate the risk management of the novel failure mode and impact analysis (NFMEA) and rank failure modes with the biprojection technique (P-LTWHs). This study also shows that it is possible to spread risks based on fuzzy set theory among public-private parties effectively. Likewise, with the biprojection practice of LTWHs with the VIKOR technique of P-LTWHs, the predicted model is estimated.

Hedging, managerial ownership and firm value

PurposeThis study investigates the impact of derivatives as risk management strategy on the value of Malaysian firms. This study also examines the interaction effect between derivatives and managerial ownership on firm value.Design/methodology/approachThe study examines 200 nonfinancial firms engaged in derivatives for the period 2012–2017 using the generalized method of moments (GMM) to establish the influence of derivatives and managerial ownership on firm value. The study refers to two related theories (hedging theory and managerial aversion theory) to explain its findings. Firm value is measured using Tobin's Q with return on assets (ROA) and return on equity (ROE) as robustness checks.FindingsThe study found evidence on the positive influence of derivatives on firm value as proposed by the hedging theory. However, the study concludes that managers less hedge when they owned more shares based on the negative interaction between derivatives and managerial ownership on firm value. Hedging decision among managers in Malaysian firms therefore does not subscribe to the managerial aversion theory.Research limitations/implicationsThis study focuses on the derivatives (foreign currency derivatives, interest rate derivatives and commodity derivatives) and managerial ownership that is deemed relevant and important to the Malaysian firms. Other forms of ownership such as state-/foreign owned and institutional ownership are not covered in this study.Practical implicationsThis study has important implications to managers and investors. First is on the importance of risk management using derivatives to increase firm value, second, the influence of derivatives and managerial ownership on firm value and finally, the quality reporting on derivatives exposure by firms in line with the required accounting standard.Originality/valueThere is limited empirical evidence on the impact of derivatives on firm value as well as the influence of managerial ownership on hedging decisions of Malaysian firms. This study analyzes the influence of derivatives on firm value during the period in which reporting on derivatives in financial reports is made mandatory by the Malaysian regulator, hence avoiding data inaccuracy unlike the previous studies on Malaysia. This study therefore fills the gap in the literature in relation to the risk management strategies using derivatives in Malaysia.

Managing Tail Risk Part I: Option-Based Hedging

There is nothing like a market crash to focus the mind on the importance of risk management and, more specifically, tail risk management. Because tail events are generally systemic in nature and are characterised by elevated correlations and liquidity squeezes, effective tail risk management is not just a diversification exercise but rather requires explicit and specialised strategies. The natural question that arises then is how do you create an optimal tail risk management strategy? Most studies identify four categories of tail risk management strategy: option-based hedging, asset allocation, dynamic trading and defensive equity. Within each category, we then find a number of strategies available to investors for managing tail risk. Unfortunately, it remains an open question as to which strategy works best for a given investment scenario, or if there even exists a universally optimal strategy to begin with. We attempt to answer this question by analysing a range of commonly used tail risk management strategies in a South African market setting. However, given the breadth of the four available strategy categories, we split our research on this topic into two parts. In this Part I, we firstly examine and quantify the tail risk inherent in South African markets. This is done through a review the long-term history of equity and bond market drawdowns. Thereafter, we discuss nine core principles that are applicable to all candidate strategies and that define good tail risk management. Finally, we provide a comprehensive analysis of option-based tail hedging strategies. The concepts of defensive, offensive, active and indirect tail hedging are discussed at length and examples of each are implemented on historical market data.

The Insured's Post-Contract Duty of Notification of Increase of Risk: Comparative study in Iranian, Chinese insurance law and principles of European insurance contracts

Risk management in insurance contract is very important due to the continuous and onerous nature of such a contract. Considering the importance of risk management in insurance contracts; insurance law systems have established institutions for managing such a risk. Warranties in common law and the alteration or increase of risk in the civil law countries are the institutions which assist the insurer to control risk increase. However, benefiting from such right requires the insured’s subordinate duty to inform the insurer about the increased risk. The question that come to mind in this regard is: what are the conditions of establishment and the sanction for breaching this duty? In this respect, the insurer's obligation must be determined in a way that it does not entail the imposition of the burdensome obligation on him and meanwhile, it must be determined by considering the degree of insured’s fault and proper application of causal connection. By using descriptive-analytical method in line with explaining insured’s duty to notify, realization conditions of this duty, and sanctions of breaching such a duty; this article is seeking to provide a proper sanction template in order to modify the bugs and eliminate deficiencies in the Iranian insurance act and regulations of Supreme Insurance Council.

An insurance risk process with a generalized income process: A solvency analysis

In ruin theory, an insurer’s income process is usually assumed to grow at a deterministic rate of c>0 over time. For instance, both the well-known Cramér–Lundberg risk process and the Sparre Andersen risk model have this assumption built in the construction of their respective surplus processes. This assumption is mainly considered for purposes of mathematical tractability, but generally fails to accurately model an insurer’s income dynamics. To better characterize the variability and uncertainty of an insurer’s income process, several papers have studied insurance risk models with random incomes where the main emphasis is placed on carrying the related Gerber–Shiu analysis. However, a systematic and quantitative understanding of how the more volatile income processes impact an insurer’s solvency risk is still lacking. This paper aims to fill this gap in the literature by quantitatively assessing the impact of the choice of income process on some finite-time and infinite-time ruin quantities. To carry this analysis, we consider a generalized Sparre Andersen risk model with a random income process which renews at claim instants. For exponentially distributed claim sizes, we derive explicit expressions for some joint distributions involving the time to ruin and the number of claims until ruin. As special cases of the proposed insurance risk process, we consider income processes modelled by a subordinator or a particular varying premium rate model. Numerical examples are then carried to draw important risk management implications of a solvency nature for the insurer.

Impact of global changes in the business environment in relation to risk management

Research background: Entrepreneurial activity is largely affected by negative changes in the global business environment, as evidenced by the huge impact of the COVID 19 pandemic on the entrepreneurial activity of Slovak enterprises. It is here that the importance of proactive risk management is reaffirmed, which should be an integral part of the enterprise’s management and thus preventively assess possible risks and their consequences and be prepared to manage them and not just respond to a crisis situation. Purpose of the article: The purpose of the article is to point out the importance of risk management in business and project management in connection with the globalization of the business environment. Assess the readiness of Slovak enterprises to ensure the continuity of business activities in connection with negative changes in the business environment such as the COVID 19 pandemic. Methods: The article will be processed using basic scientific methods. The qualitative and quantitative aspects of the researched problem, comparison and generalization of conclusions will be processed through observation, analysis, comparison and synthesis, including several managerial methods for risk assessment and management. Findings & Value added: Successful implementation of risk management in the enterprise and within the project activities from the point of view of prevention of crisis situations in the enterprise caused by interruption of operation as well as premature termination of projects is a means to maintain continuity and competitiveness of business activities and achieve project goals in the global market.

Perceptions and experiences of risk management by managers of residential aged care facilities: a qualitative study from Hunan Province, China

ABSTRACT Background With adverse events and injuries recurring in residential aged care facilities (RACFs), older adults’ safety in residential age care settings has attracted extensive attention from governments, researchers, and healthcare providers. Risk management is of utmost importance in reducing risks and improving the quality of care for older adults in long-term care. Although previous studies have made great efforts to explore risk management methods and technologies in RACFs, little is known about how managers identify and respond to risks in practice. Purpose This qualitative study aimed to elucidate the perceptions and experiences of managers involved in risk management in RACFs in China. Participants and methods This study used a phenomenological research design. We conducted semi-structured interviews with 13 managers across 11 RACFs in Changsha City, Hunan Province, China. Data were analysed using Colaizzi’s seven steps and NVivo 12 plus software. Results “Facilitation of an error-free culture” emerged as a central theme of managers’ perceptions of risk management. Four sub-themes were revealed, namely “creating an age-friendly physical environment,” “paying close attention to frail older adults,” “improving the competence of nursing staff,” and “building effective management programs.” Conclusion Facilitation of an error-free culture was of prime importance in risk management. Managers’ experiences can help RACFs to better manage risks, as well as provide new perspectives and approaches for RACFs to improve the quality and outcomes of care. This study developed initiatives for improving resident safety in RACFs and may foster interest in the developing these initiatives.

МЕХАНИЗМЫ УПРАВЛЕНИЯ РИСКАМИ В ХОДЕ РЕАЛИЗАЦИИ ИНВЕСТИЦИОННЫХ ПРОЕКТОВ

The article reflects the elements of risk management during the implementation of investment projects, shows the role and importance of risk management in ensuring the implementation of programs, reveals organizational and methodological aspects of risk assessment that affect individual stages of project implementation.

Perception and risk management strategies for ranchers and their determinants: a case study from Turkey

ABSTRACT: In this study, beef cattle farmers’ perceptions of risk and risk management strategies, and their determinants were analyzed using factor analysis and partial least squares regression analysis. The data set used in this study came from a survey conducted in Erzurum Province. The results demonstrated that variability in fodder price, insufficient farm income, uncertainty in government policies were perceived as the most important risks. Clean cattle shelter, off-farm income, monitoring and preventing livestock diseases were perceived as the most important risk management strategies. Results, also, demonstrated that some characteristics of farmers affected farmers’ perceptions. In this study, it was identified that the most important risk sources were economics-based. So, it was recommended that the government policy should be focused on preventing the fluctuations in input/output prices.

Determinants of livestock insurance adoption in Nepal

Livestock insurance, an important risk management tool, is becoming popular in Nepal after Crop and Livestock Insurance Directives, 2013, came into action. To widen the adaptability of the insuranc...