Kinds Of Risks Research Articles

Securities, A Way To Financial Guarantee of Companies having Abstract Properties and Human Capital

Securities, A Way To Financial Guarantee of Companies having Abstract Properties and Human Capital Ahmad Ali Mohassesi, Seyed Rouhollah Hosseini Moghaddam, Maryam Tork Abstract Changing properties into securities is a process in which companies and banks separate their properties from their balance sheet and through this method can issue bonds, consequently they can get new financial resources. Within the last two decades, lots of companies have taken steps to release bonds and raise finance. Using frozen properties and assets of companies to raise money, better risk management, more efficient agencies' activities, & reducing costs of finance have all been benefits to securities. Brand has been one of valuable properties of companies, especially in those knowledge based (companies in the IT & Advanced high-tech Technologies) & special human skills (for instance football clubs) which cannot be reflected in companies' financial statements as invisible/intangible assets. In this article it has been tried to introduce new way of issuing bonds named “Brand Beneficial Securities”, using general process of securitization. Also an executive structure has been suggested to release them for knowledge-based companies and those which are human skills-based having a well-known and famous brand. Then clarifying its benefits and risks have been focused on and also techniques and necessary tools to manage and minimize different kinds of risks on these bonds are explained. Finally, some advices are given to execute this financing tool. Full Text: PDF DOI: 10.15640/jfbm.v6n1a3

Osiguranje vrednosti proizvodnje celog gazdinstva kao novi model upravljanja rizikom u poljoprivredi

Since agricultural production takes place under the open sky and it is largely unprotected, the risk of occurrence of some harmful event (hail, flood, drought, cold, storm, fire, etc.) increases. In addition to natural and climatic factors, financial, market and institutional factors have a strong effect on agricultural production. The crop and fruit insurance is certainly the most effective risk management instrument in crop production in the open air. The aim of the paper is to present an entirely new insurance model that began to apply in 2015 in the United States of America. By its application, each farm ensures its expected total revenue that can be endangered by the effects of both natural and climate, as well as market risks, which are manifested through fluctuations in market prices. This way, all crops on the farm are insured from all kinds of risks under just one insurance policy. Analyzed farm has experienced revenue loss due to drought, therefore it has indemnity right in the amount of € 2,500. Premium cost borne by farmer amounts to € 330.

Risks in banks and its impact on volatility of market returns: an empirical approach

Banks have an extremely critical function in the process of financial intermediation by acting as engines of economic growth and in doing so they actively manage the various risks they are exposed to. During the periods of slowdown in the economy, it becomes important to identify how banks' operations affect their total risks so as to avoid any major crisis. The study tries to capture the different kinds of risks which a bank is exposed to and then relate it to volatility in the returns to shareholders of the bank. Accounting ratios have been used as a proxy for measuring the various categories of risks. Standard deviation of return on equity is used as a proxy for total risk. This total risk is then regressed against the accounting ratios so as to identify the important sources of total risk. Allowance for loan loss ratio, loan to asset ratio, total investment which is not held till maturity to total assets come out to be statistically significant variables explaining the volatility of return to equity in the study.

Страхування морських перевезень вантажу: окремі організаційно-правові аспекти

In today's conditions of development of international relations, the leading role in the protection of rights and interests of trade entities plays a significant role in cargo insurance, the more so by sea transport is in demand by enterprises engaged in foreign economic activity. In the presence of an effective system of legal regulation, this type of activity is capable of ensuring stability and sustainable development of trade, protecting it from all kinds of risks. Сompensation for losses caused by insured events specified in the insurance contract An effective element of such a mechanism is marine insurance, as it provides Cargo insurance - one of the most common types of insurance operations. The fact that this type of insurance has arisen for a long time, explains the reason for a thorough and detailed development of it. Over the centuries, the choice of approaches and conditions of insurance has taken place, and today only those that fully take into account the interests of the participants in insurance relationships and most closely correspond to modern business requirements are existing and developing. These conditions all over the world are characterized by their uniqueness, which is a positive factor, since it facilitates the choice of the insurer and the insurer's work. The generally accepted conditions are widely used in the Ukrainian insurance market as well. Let's consider more detailed conditions of the contract of insurance of transported cargoes. An insured may be a person who has an insurance interest in the cargo: the sender and the recipient, the owner or the operator of the goods, a natural or legal person. An insurer in Ukraine can only be an insurance company that has obtained a license from UkrStrokhNadzor and has the right to carry out this type of insurance in accordance with its constituent documents. Insurance of cargoes in Ukraine today is only beginning to develop the potential of the market of domestic and transit cargo, which is perhaps the largest in Eastern Europe. The progress of further development of this type of insurance in Ukraine will depend primarily on the improvement of its infrastructure and the training of highly skilled domestic personnel. The subjects of sea insurance of cargo are: cargo owners, carriers, forwarders, operators of cargo transport terminals, which carry out activities in the field of transportation in accordance with the concluded contracts. The maritime sector for Ukraine is determined not only by its maritime location, but by its global challenges and trends. In Ukraine, where there is a low cost of production, the development of the international division of labor leads to an increase in labor in world trade and affects almost 93%, which, according to the IMO (International Maritime Organization), allocates sea trade. Significant volume of international connections of passenger and cargo transportation is increasing. The maritime transport complex of Ukraine is a multifunctional

Study on the Risk Evaluation of Government Purchasing Public Service Based on Matter Element Extension Model

The government purchase public service has the dual effect of performance and risk, and risk management should run through the purchase service. By identifying the key influencing factors, this paper constructs the risk evaluation index system of government purchasing public services, and introduces the matter element extension method to quantify all kinds of risks. The empirical test is based on the sample data of S province. The results show that the risk level of government purchase of public service is “high” and the trend of “medium” level is obvious. The institutional arrangement leads to a “higher” social risk, management risk and economic risk. It is mainly related to the factors such as voluntary failure, internal effect, social trust, power capital, information disclosure, rules and regulations, and management process. Based on this, this paper puts forward the corresponding policy recommendations.

Liquidity Gap Report for Stress Testing Structural Liquidity Risk

The need to focus on banks funding structure and stress testing in an explicit way arose as a consequence of the crisis of past decades. Liquidity risks usually occur as a consequence of other kinds of risks, hence analysing scenarios in a prospective manner is essential for the assessment if the bank can fulfill its obligations as they come due and if its funding costs are appropriate. The structural liquidity risk and the degree of the liquidity mismatch can be measured based on the liquidity gap analysis, where expected cash-in- and outflows, divided in different time-buckets are depicted. The liquidity gap report (LGR) shows if a liquidity shortcoming appears in the future and how high is the amount a bank would have to pay, if any hedging were not possible. This paper shows how to build a comprehensive LGR which is the base for both, liquidity and wealth risk evaluation. To improve the accuracy of the forecast, the counterbalancing capacity will be incorporated into the LGR. This tool is a methodological basis for quantitative and qualitative risk assessment and stress testing.

Linking ecological degradation risk to identify ecological security patterns in a rapidly urbanizing landscape

Ecological security patterns (ESPs) aim to provide an effective spatial approach for maintaining urban ecological security based on the relationship between landscape patterns and ecological processes. However, the methods of selecting ecological security sources and evaluating resistance surfaces for ESPs construction are not well developed and lack consideration of land degradation and spatial heterogeneity. Using Shenzhen City, a fast-growing city in a rapidly urbanizing region, as a case study area, this study evaluated two types of land degradation risk for ecological land: type transformation risk and functional damage risk. Both two kinds of risk were combined with ecological functional importance, which was composed of habitat quality and landscape connectivity, so as to quantify the comprehensive reserve value of ecological land to identify the ecological security sources. Ecological corridors were established with the application of remotely-sensed impervious surface area in the ecological resistance surface evaluation. In all, 477.43 km2 ecological land were identified as ecological security sources, with 278.1 km and 197.5 km for the length of group corridors and landscape corridors respectively. The ecological corridors spatially presented a radiation pattern of one axis and three strips. The majority of both ecological security sources and corridors was located within the existing ecological protection boundary, confirming its ecological significance. This study provided an effective quantification framework to identify urban ESPs, and ESPs mapping could make a fundamental support to urban planning.

Poverty risk trend in Slovakia: Changes in time and space

Abstract Poverty is a serious problem in Slovakia, and it is concentrated in a few regions. The aim of this paper is to capture the spatial differences in poverty in order to identify the poorest districts and to point to the change in the development of poverty in regions during one decade (2001–2011). It was an important period, because it was when Slovakia joined the EU (2004) and the euro zone (2009), that the financial crisis appeared. Our approach to the topic of poverty is based on an aggregated poverty indicator. The indicator reflects three kinds of risks and a broad spectrum of poverty aspects.

THE SAFETY OF USING GENETICALLY ENGINEERED ORGANISMS: EMPIRICAL EVIDENCE AND VALUE JUDGMENTS

Abstract Are claims made about the safety of using genetically engineered organisms (GEOs) well enough supported by available empirical data to justify the many uses of GEOs and the priority increasingly being given to developing and expanding GEO-oriented agriculture? I will explore the ways in which empirical results and value judgments are entangled when making appraisals of these claims. I will discuss specifically how value judgments play roles in defining what counts as sufficient empirical evidence to support them, in identifying what kinds of risks need to be investigated empirically in order to obtain that evidence, and in deciding what forms of agriculture constitute the appropriate points of comparison when considering the risks of using GEOs.

Efficiency and Sustainability of CSR Projects

The progressive expansion of Corporate Social Responsibility (CSR) has been accompanied by an increasing interest from regulators and market analysts. Governments and supra-national organisations have issued guidance rules on CSR, while market analysts have created a set of gatekeepers focused on its evaluation, publishing rankings and comparative reports. The UN Global Compact and the sustainability indexes are two relevant examples. The complexity and some of the functions of this CSR infrastructure have common features with the financial system. Information is at the core of both. The distinction between information and noise is central for building up efficient financial markets. The aim of this paper is to analyse how information can be separated from noise in CSR. To this end, we develop a qualitative model that centres on the following variables: the CSR features of the project under consideration, its financial features, its relationship with corporate strategy, the performance metrics for its analysis, the different kinds of risk it involves, and its impact on value creation. This model relies on two common functions that we identify in the CSR infrastructure and the financial system: the defining function and the performance information function. The model is applied to Adidas’ CSR policy.

Maintenance strategy selection with risky evaluations using RAHP

AbstractIn recent years, maintenance, especially its preventive type, has been seen as an effective and considerable factor in improving the functions of machines. Maintenance plays a vital role in organizations by keeping and increasing the reliability, accessibility, the quality of products, risk mitigation, return improvement, and safety. An effective maintenance programme can be realized by implementing a proper maintenance strategy. Therefore, maintenance and its strategies have a special status in industries. However, selecting a proper maintenance strategy has always been a complex process because maintenance is a nonrepetitive task. Likewise, the lack of failure records and constant changes in the conditions of machines makes it further complicated. Hence, the decision‐making also depends on experts' opinions and because some kind of risk and uncertainty are always there in experts evaluations, the reliability of evaluations is questionable. The present study was aimed to develop a risk‐based model grounded on the analytical hierarchical process, namely, RAHP, to meet this need of maintenance. A case study from a steel rolling company was considered to evaluate the effectiveness of this model.

Influencing rural livelihood switching through equipment assets for agroecosystems to alleviate pressure on resources

Abstract Equipment provision influences livelihood choice by rural communities since it conditions their capacity to produce goods even with limited labor resources. This study examines how variations in equipment levels for fishing, rice cultivation, and copra farming affect the conditional probabilities of households in a rural Philippine community to adopt different livelihood strategies, particularly, to veer away from fishing and to adopt farming. A household survey profiled diverse income sources alongside available agricultural or fishing equipment. To determine a household’s equipment index and rank its sophistication, the medoid clustering algorithm from data mining was used. Diverse farming equipment was classified into groups according to technology and ownership. Medoid clustering generated five different livelihood profiles comprising agricultural and non-agricultural work. An ensemble of decision trees created from nonparametric random forest regression predicted the conditional probabilities of a household’s livelihood choice depending on equipment levels. Results revealed heterogeneity between the effects of rice and copra equipment − with rice exerting a stronger influence over households to choose farming over fishing. Rice is a potentially greater income earner and typically represents a primary form of livelihood. However, a threshold level of available equipment must be exceeded before households are strongly encouraged to choose rice farming, representing the minimum amount of capital needed to generate sufficient annual income and become a primary form of sustenance. Ultimately, the ideal configuration that will influence households to focus on agriculture is a combination of adequate levels of both rice and copra equipment, since both crops are complementary, addressing the need for agricultural diversification to mitigate various kinds of risk. A greater focus on agriculture would help address chronic food shortages, as well as hopefully alleviate fisheries overexploitation. For this strategy to be effective, however, issues of land ownership, access to irrigation and land degradation must also be addressed.

SSeCloud: Using secret sharing scheme to secure keys

With the use of cloud storage services, one of the concerns is how to protect sensitive data securely and privately. While users enjoy the convenience of data storage provided by semi-trusted cloud storage providers, they are confronted with all kinds of risks at the same time. In this paper, we present SSeCloud, a secure cloud storage system that improves security and usability by applying secret sharing scheme to secure keys. The system encrypts uploading files on the client side and splits encrypted keys into three shares. Each of them is respectively stored by users, cloud storage providers and the alternative third trusted party. Any two of the parties can reconstruct keys. Evaluation results of prototype system show that SSeCloud provides high security without too much performance penalty.

RISK MANAGEMENT ANALYSIS ON THE CAR DRIVERS IN INDONESIA

Car drivers in Indonesia will always face many kinds of risks. This research contains the context determination of this research, identifies all the significant risks, measures the frequency and impact of all the risks, draws all the identified risks in the chart, and describes how to manage or mitigate the risks. The dangerous risks which have high frequency and high impact are: 1) Many car drivers get the driving license without taking a driving course and without learning carefully the theory of driving a car; 2) Many car drivers get the driving license through illegal procedure; 3) Many car manufacturers eliminate some car safety equipment to lower the sales price; 4) The ingredients of the gasoline cannot fulfill/match the need of the car (e.g. RON number); 5) In some places the traffic is too crowded; 6) Many damaged roads may cause accidents; 7) Many roads and transportation modes cannot fulfill the demands of transportation. The recommendation (mitigation) for Risk Controlling is that all stakeholders (legislative, executive, judicative, manufacturers, people, car drivers, schools and universities, researchers, etc) should obey the regulations, moral, ethics for car riders. It is mandatory that every candidate of car driver take a course in a certified car driving ourse. Police should arrange a complete and comprehensive reference book for car driver candidates to get a driving license.

Trust and the risk of consuming polluted water in Shanghai, China

It is commonly understood that political trust reduces public perceptions of various kinds of risk. However, this knowledge largely comes from research conducted in liberal democratic states, and so may have little explanatory power in China. Though it has an authoritarian government, China has enjoyed relatively high levels of political trust, and so is a unique case from which to advance knowledge about political trust and risk perception. We describe the relationship between risk perception and political trust in China through analysis of results from a survey of 5007 residents in Shanghai asking about people’s perceptions of the risk of consuming tap water (a key public good), and their levels of trust in the public water authorities. Findings reveal that political trust in general, and trust in the perceived fairness, honesty and capability of water authorities significantly reduces the perception of the risk of consuming tap water. This suggests that the inverse relationship between trust and risk perception applies regardless of whether a society is democratic or authoritarian.

The police, social services, and psychiatry (PSP) cooperation as a platform for dealing with concerns of radicalization

The police, social services, and psychiatry (PSP) is a structured cooperation between the police, social services, and the psychiatric system in Denmark. The aim of PSP is to ensure that relevant information is shared and supportive measures enhanced concerning citizens at risk, and it involves PSP representatives from each sector meeting frequently. PSP is implemented nationwide by law. In recent years, dealing with radicalization and the threat of terrorism have become key issues in society. The PSP cooperation already facilitates the identification of citizens at many kinds of risk (e.g. suicide, substance abuse, social decline, mental illness), and coordinates relevant intervention and treatment. The existing PSP cooperation is, therefore, an obvious forum for identifying and handling concerns of radicalization and extremism. The new working model includes an upgrade of all local PSP groups and an implementation of a nationwide evaluation of the initiative. This is a presentation of the working model and the experiences in practice.

Development and Experiment of Lifting Platform for Orchards in Hilly Area

At present, pruning of fruit trees on hills is mainly completed by climbing on trees or ladder, which could cause injury due to poor landform. In order to avoid such kind of risks, it is important to develop a lifting platform for orchards in hilly area. In this paper its structure and working mechanism were introduced. This lifting platform, as a machine, is comprised of power device, elevating mechanism, leveling mechanism, slewing mechanism, supporting mechanism and hydraulic control system, and is driven by a small four-wheel tractor. Its hydraulic system can control hydraulic cylinders to extend and retract so as to lift, lower, rotate or keep platform at horizontal position. By analyzing the machine’s kinematic model, the mode of hydrostatic triangle leveling was determined. In order to simplify the machine’s structure, a cantilever beam was used as a supporting mechanism. After carried out the performance test for the machine, the results show that the machine has the following features: stable working performance, the maximum load up to 150 kg, the lifting height 1.5 m, the rotating speed 1 r/min, the lifting velocity 0.1 m/s, and leveling error in lifting process no more than 2° (no matter on horizontal plane or on slopes). So the machine can be suitable for sloped terrain, and the design requirements are well satisfied.

A very public mess: Problematizing the “participative turn” in energy policy in Chile

Nowadays, a growing number of initiatives are being enacted to increase direct public participation on energy policymaking, a move that is seen as almost automatically granting more effectiveness and social acceptance to energy policy. Seeking to establish a counterpoint to such enthusiasm, this paper argues that there is nothing simple and automatically rewarding in the practical enactment of such “participative turn” in energy policy. As the current critical literature on the challenges of enacting public engagement shows, public participation is beset with all kind of risks and uncertainties, usually producing results that are quite different from the ones expected. In order to ground this point, this paper analyzes the case of a participative policy carried out by the Ministry of Energy in Chile. The rather messy results of such initiative will be used to show how the proper materialization of the “participative turn” in energy policy needs policymakers to radically change their notions about what public participation is, who are the ones participating, and what could be expected from them.

The integration of standardized management systems: managing business risk

PurposeProtecting business value is regarded to be the cornerstone of any organization. The purpose of this paper is to investigate and explore the potential contributions of the integration of standardized management systems (MSs) into an integrated MS. This will support a better coordinated management of different kinds of risks that exist in organizational processes.Design/methodology/approachThe findings are based on literature as well as empirical case studies conducted by the authors. It focuses on the potential results of integration of MSs.FindingsIt is found that the integration of MSs leads to a more coherent, extensive, consistent, and harmonized process of identification of hazards. Also, it is found that from integration also results in the minimization of associated risks that affect key aspects of business, considering the organizational context vs requirements of each relevant stakeholder, as defined in related management systems standards.Research limitations/implicationsThis research, investigate the risk management (RM) and the integration of MSs from existing research papers about empirical studies for the period 2000-2014, including case studies in which the authors are involved. The number of enterprises can be larger.Originality/valueAlthough there is some research regarding RM in organizations related to isolated implementations of MSs, this paper stands in a different perspective, since it addresses the issues emerging from the integration of standardized MSs in a broader perspective.

Approximations for finite-time ruin probability in a dependent discrete-time risk model with CMC simulations

Consider a discrete-time risk model in which the insurer is allowed to invest its wealth into a risk-free or a risky portfolio under a certain regulation. Then the insurer is said to be exposed to a stochastic economic environment that contains two kinds of risks, the insurance risk and financial risk. Within period i, the net insurance loss is denoted by Xi and the stochastic discount factor from time i to zero is denoted by θi. For any integer n, assume that X1,…,Xn form a sequence of pairwise asymptotically independent but not necessarily identically distributed real-valued random variables with distributions F1,…,Fn, respectively; θ1,θ2,…,θn are another sequence of arbitrarily dependent positive random variables; and the two sequences are mutually independent. Under the assumption that the average distribution n−1∑i=1nFi is dominatedly varying tailed and some moment conditions on θi,i=1,…,n, we derive a weakly equivalent formula for the finite-time ruin probability. We demonstrate our obtained results through a Crude Monte-Carlo simulation with asymptotics.