Operational Risk Mitigation Research Articles

The Role of Business Analysts in Enhancing Customer Satisfaction through Advanced Business Systems

Business Systems Analysts (BSAs) play a pivotal role in today's digital-first business environment, particularly in sectors such as insurance, fraud detection, and e-commerce. This article examines the critical function of BSAs in leveraging advanced business systems to drive operational efficiency, risk mitigation, and customer satisfaction. With the global business intelligence market projected to reach $33.3 billion by 2025, the demand for skilled BSAs continues to grow. Their unique ability to bridge technical capabilities with business needs positions them as key enablers of digital transformation. Through case studies and industry data, this research illuminates how BSAs contribute to project success, cost reduction, and enhanced customer experiences. The article also explores emerging trends and technologies that are shaping the future of business systems analysis, highlighting the evolving nature of the BSA role in an increasingly data-driven business landscape. This revised abstract provides a more condensed overview of the article's content, touching on the key points without duplicating the detailed information presented in the introduction. It also emphasizes the forward-looking aspects of the study and its relevance to current business trends.

The Critical Role of SREs in Safeguarding Healthcare Data Integrity and Availability

This article explores the critical role of Site Reliability Engineers (SREs) in the rapidly evolving landscape of healthcare technology. As healthcare organizations increasingly adopt digital solutions, SREs have become indispensable in ensuring data integrity, system availability, and regulatory compliance. The article discusses the unique challenges faced by SREs in healthcare environments, including managing vast amounts of sensitive patient data, implementing robust security measures, and maintaining high system reliability. It examines the key responsibilities of SREs, such as proactive monitoring, incident response, data consistency management, and security compliance. Furthermore, the article highlights the significant impact of SRE practices on healthcare delivery, including enhanced patient care, improved operational efficiency, risk mitigation, and cost reduction. Through a combination of statistical data and industry insights, this work underscores the growing importance of SREs in shaping the future of healthcare technology and improving overall patient outcomes.

Innovative Data Visualization for Business Intelligence: Enabling Ad-hoc Querying and Predictive Analysis

This comprehensive analysis explores the transformative impact of innovative Business Intelligence (BI) solutions that combine ad-hoc querying capabilities with advanced predictive analytics. The article examines the limitations of traditional BI tools and highlights the critical need for more flexible and powerful solutions in today's fast-paced business environment. It delves into the key features of modern BI solutions, including interactive visualizations, natural language processing, automated data preparation, multi-source data integration, and collaborative features. The study also investigates the far-reaching effects of these advanced BI tools on various aspects of business operations and strategy, such as operational efficiency, strategic planning, customer-centric approaches, risk mitigation, and innovation. Supported by extensive industry data and research, this analysis demonstrates how these cutting-edge BI solutions are reshaping the way organizations interact with data, make decisions, and compete in an increasingly data-driven marketplace.

Integrating Advanced Technologies in Financial Risk Management: A Comprehensive Analysis

This paper delves into the pivotal role of advanced technologies in enhancing financial risk management across various domains, including credit risk, market risk, operational risk, and liquidity risk. It meticulously explores the application of machine learning (ML) algorithms and artificial intelligence (AI) in developing sophisticated risk assessment models, portfolio diversification strategies, and regulatory compliance mechanisms, which collectively surpass traditional methodologies in accuracy, efficiency, and predictive power. Through a detailed examination of enhanced Value at Risk (VaR) models, dynamic hedging strategies, and the impact of geopolitical events on market risk, alongside innovative approaches to operational risk mitigation and liquidity planning, this study underscores the transformative potential of technological advancements in financial risk management. It highlights how these technologies facilitate real-time analysis, predictive modeling, and strategic planning, significantly contributing to the resilience and stability of financial institutions in the face of evolving risks and regulatory requirements.

Integrating Advanced Technologies in Financial Risk Management: A Comprehensive Analysis

This paper delves into the pivotal role of advanced technologies in enhancing financial risk management across various domains, including credit risk, market risk, operational risk, and liquidity risk. It meticulously explores the application of machine learning (ML) algorithms and artificial intelligence (AI) in developing sophisticated risk assessment models, portfolio diversification strategies, and regulatory compliance mechanisms, which collectively surpass traditional methodologies in accuracy, efficiency, and predictive power. Through a detailed examination of enhanced Value at Risk (VaR) models, dynamic hedging strategies, and the impact of geopolitical events on market risk, alongside innovative approaches to operational risk mitigation and liquidity planning, this study underscores the transformative potential of technological advancements in financial risk management. It highlights how these technologies facilitate real-time analysis, predictive modeling, and strategic planning, significantly contributing to the resilience and stability of financial institutions in the face of evolving risks and regulatory requirements.

Operational risk mitigation in credit operations

Operational risk mitigation in credit operations

The Influence of Operational and Financial Risk Mitigation Strate-gies in Enhancing The Survival of Small and Medium-Sized Entities in Zimbabwe’s Volatile Business Environment

The Influence of Operational and Financial Risk Mitigation Strate-gies in Enhancing The Survival of Small and Medium-Sized Entities in Zimbabwe’s Volatile Business Environment

Operational Risk Management and Project Success in Rwanda, A Case Study of Lake Victoria Water and Sanitation Project (LVWATSAN) in Nyagatare District, Rwanda

Lake Victoria Water and Sanitation Project (LVWATSAN) operations in Nyagatare District were particularly aimed at constructing a faecal sludge treatment plant with the ability to treat dirt water not only in Nyagatare District but also other two secondary cities namely, Nyanza, Kayonza (MINIFRA, 2015). The general objective of this study was to assess the impact of operational risk management on project success of LVWATSAN in the Nyagatare District; Specifically, the objectives of the study were to examine the impact of operational risk identification on the success of LVWATSAN project; To assess the impact of operational risk monitoring on the success of LVWATSAN project; To determine the impact of operational risk mitigation on the success of LVWATSAN project. The target population of the study was 42 respondents sourced from all the staff members undertaking project activities including project manager, engineers and operators; a census method was used where all 42-target population were considered as a sample size. The study used primary and secondary data collection methods. Primary data was collected using a survey questionnaire while secondary data was sourced from published and unpublished sources from library and peer- reviewed articles from journals of project management databases. Data was processed using statistical package for social sciences (SPSS) software. Data was analysed using descriptive statistics in frequencies, percentages, standard deviations and means. Correlation and regression analysis were used to evaluate the relationship between the independent and dependent variables. After analysing the data, findings concluded that the project lacked effective risk planning procedures due to the weaknesses in the approval and reviews of the risk management framework, had an outlined risk mitigation plan, however, the project team appeared unaware of the mitigation measures to adopt should risks present themselves. The study concluded that there is a significant relationship between operational risk management - identification, monitoring as well as mitigation and project success in terms of timely completion, cost performance and stakeholder’ satisfaction. The study recommended that; the senior leadership in Lake Victoria Water and Sanitation project should adopt operational risk management as a methodology and knowledge field when they start implementing new project. Keywords: Operational risk management, project success, LVWATSAN, Rwanda

Operational Risk Identification and Mitigation of the Chemical Production Process of PT. X Using Failure-Mode and Effect Analysis (FMEA) and Chemical Health Risk Assessment (CHRA) Methods

PT. X is a German-based multinational chemical company that produces surfactant as one of its products. As a chemical processing company, the operational activities of the production process in PT. X poses risks that could happen at any time. This research is conducted to identify, analyze, and propose mitigation plan for the risks in one of the plants operated by PT. X. Interviews are conducted to identify the risks using Fishbone diagram as the framework and the Ishikawa method to categorize the causes. There are 86 risks that are identified consisting of 51 operational risks and 35 risks of chemical exposure. To be more thorough, the identified operational risks are assessed using the Failure-Mode and Effect Analysis (FMEA) and the chemical exposure risks are assessed using the Chemical Health Risk Assessment (CHRA). From the 206 risk causes, 31% are caused by Man, 28% are caused by Machine, 22% are caused by Material, 15% are caused by Method, and 5% are caused by the Environment. The FMEA produces Risk Priority Number (RPN) which led to risk prioritizing using the Pareto diagram and risk mapping, resulting in 24 risks being prioritized that consists of 15 medium-level risks and 9 low-level risks with no high-level risk present. The CHRA produces Risk Rating (RR) and Level of Risk that resulted in 77 low-level and 19 moderate-level risks for risk for inhalation exposure, and 9 moderate-level risks and 86 high-level risks for the exposure through dermal contact. It produces the decision of 17 inadequate control measures for chemical exposures. These assessments are further processed to devise the appropriate contingency plan, mitigation plan, and action plan.

Operational Risk Mitigation in Credit Operations

Operational Risk Mitigation in Credit Operations

Sustainability game

AbstractThis paper describes a dynamic multistage game in which sustainability is a value that is shared between companies and stakeholders in a competitive market. The game solution could move from a Nash equilibrium to a higher equilibrium, the MES equilibrium, because of the presence of stakeholders who influence the choice and the set of sustainable strategies. Stakeholders provide feedback to companies (by way of awards, ratings, rankings, rebukes, etc.) at every stage of the game. Positive feedback gives a company the chance to expand its business opportunities, leveraging on good reputation, customer loyalty, operational risk mitigation, resilience, employees' cohesion, etc. The interaction between companies and stakeholders also allows companies to seize market opportunities (e.g., supplying sustainable products for responsible customers, sustainable investments for investors, etc.). The sustainability game demonstrates how sustainability can engage the economic system in a market shift.

Blockchain-Enabled Deep-Tier Supply Chain Finance

Problem Definition: For many supply chains, deep-tier suppliers, due to their small sizes and lack of access to capital, are most vulnerable to disruptions. In this paper, we study the use of advance payment (AP) as a financing instrument in a multitier supply chain to mitigate the supply disruption risk and compare the traditional system (deep-tier financing with limited visibility) with the blockchain-enabled system (financing with perfect visibility). The main goal of this paper is to shed light on how blockchain adoption impacts agents' operational and financial decisions as well profit levels in a multitier supply chain. Academic/Practical Relevance: Traditionally, because of the limited visibility in the deep-tiers, powerful downstream manufacturers' financing schemes offered to their immediate upstream suppliers are not effective in instilling capital into the deep-tiers. Advancements in blockchain technology improve the supply chain visibility and enable the manufacturer to better devise deep-tier financing to improve supply chain resilience. Methodology: We develop a three-tier supply chain model and take a game-theoretic approach to understand a financially constrained supply chain's optimal operational and financial strategies. Results: We find that the improved supply chain visibility (by blockchain adoption) always benefits the manufacturer by enabling her to induce the desired operational risk-mitigation investment from the tier-1 and tier-2 suppliers. However, depending on the directional change in the operational risk-mitigation investment, which depends on the suppliers' initial wealth levels, the tier-1 and tier-2 suppliers can be worse-off. The win-win-win outcome takes place only when all operational risk-mitigation measures increase, that is, when the tier-1 supplier is severely capital constrained but the tier-2 supplier is moderately capital constrained. Comparing the two types of blockchain-enabled deep-tier financing schemes, adjacent-tier delegated financing versus cross-tier direct financing, the manufacturer strictly prefers the latter. In contrast, the tier-1 supplier strictly prefers the former because the former endows the tier-1 with financial leverage over the manufacturer. The tier-2 supplier prefers the latter only when the emergency source is expensive. Managerial Implications: Our insights help firms assess opportunities and challenges associated with enhancing supply chain visibility via blockchain adoption.

Investigating Determinants of Bay’ Salam Financing Product for Agricultural Sector in the Sultanate of Oman

The purpose of this study is to investigate the determinants of Bay’ Salam financing product for the agricultural sector in Oman. A survey is conducted using wellstructured questionnaires to identify the factors that determines viability of Bay Salam financing product for the agricultural sector. The statistical tools used for the analysis are factor analysis and descriptive statistics. The factor analysis results demonstrate that operational costs, profitability and risk mitigation strategies are the most important factors that banks need to take into consideration when financing the agricultural sector using Bay’ Salam. Therefore, we suggest that Islamic banks in Oman should adopt Bay’ Salam as an alternative Islamic product to finance the agricultural sector. Moreover, the Central Bank is encouraged to allow Islamic banks to adopt this product given that it will assist the government in achieving its 2040 vision.

Financial Risk Management and Profitability of Deposit Taking Savings and Credit Cooperative Societies in Nyeri County, Kenya

Profitability is a key aspect of organization financial performance. Kenya SACCOs have been rated fastest growing SACCOs in Africa. However, this growth is largely attributed to growth in membership and penetration. On the other hand the sub sector has recorded irregular trend on the profitability over the last half a decade. Though past literature has tried to link financial risk management to profitability levels, a range of knowledge gaps remain undressed. The current study therefore sought to establish the effect of financial risk management on profitability targeting deposit-taking SACCOs in Nyeri County. To address this objective, the study targeted the following specific objectives; to examine the effect of credit mitigation, liquidity risk controls operational risk mitigation and finally compliance risk mitigation on profitability of deposit taking SACCOs in Nyeri County. Descriptive study design adopted targeting a population of 8 deposit-taking SACCOs. A census study approach was used to subject all the SACCOs to study. The respondents comprised of deposit taking SACCO managers or operational manager. Thus, in total, the study targeted 8 respondents from the management of the SACCOs. Questionnaires were adopted as a tool for data collection. The researcher administered questionnaires to the respondents by dropping to the respondent office and collected at convenient date agreed by both parties. Before undertaking the study, the researcher conducted a reliability test to assess the consistency of the tool using Cronbach’s Alpha. The study used descriptive and inferential statistic in summarizing the data. Under descriptive statistics, the researcher used mean and standard deviation. To test the significance of study variables, the researcher used Pearson correlation and simple linear regressions. The researcher adhered to research ethic during data collection period. The study findings are presented in charts and tables. The study found compliance risk control; liquidity risk control and operational risk control had significant effect on the performance of Saccos in Nyeri while credit risk control was found insignificant in predicting performance of Saccos in Nyeri County. The study recommends Saccos to intensify the compliance risk control, liquidity risk control and the operational risk control practices in enhancement of Sacco’s performance.

Armed, unmanned, and in high demand: the drivers behind combat drones proliferation in the Middle East

ABSTRACT Current dynamics in UCAV proliferation in the Middle East signal that combat drones have become key strategic enablers for state actors in the region, and are no longer seen as an optional asset. With the development of a multitude of indigenous UCAV projects, and the arrival of Chinese-made armed drones on the international market, military procurement in the Middle East has entered a new phase, in which possessing armed drone capabilities is becoming the norm. This article examines the operational and strategic considerations driving Middle Eastern states’ UCAV procurement policies, analysing those countries who have been focusing on armed drones for combat purposes and additional intelligence, surveillance, target acquisition, and reconnaissance (ISTAR) needs. The main drivers behind this trend are the operational and strategic advantages brought about by UCAVs, where the benefits related to cost, reliability, and operational risk mitigation are matched by the increased ability to project power that the platform allows, either through deniability or by making UCAVs available to proxies and allies.

Snabdevanje municijom - novi predlog ovezbeđenja zaliha

Introduction/purpose:The paper is one of the outcomes of the project in the area of ammunition supply and standard day of supply (SDOS) design for ACR needs. It discusses the current approach of determining the amount and composition of ammunition stocks. Possible solutions to increase efficiency are considered. The aim is to achieve greater objectivity of the planning process where operations management and crisis management are included. Methods: Basic scientific methods were used together with specific methods such as the target-oriented method (TOM) and the effort level method (LoE). Results: The result of the scientific research is to determine the effective ammunition stock of the battalion level in order to achieve higher objectivity of the planning process of conducting operations and coping with crisis situations. The authors deal with a description of the current system of ammunition supply creation in the Czech Armed Forces and NATO, strengths and weaknesses included. A new consolidated system is proposed to improve a stock pile planning process for effective provision and sustainment to achieve operational success and risk mitigation. Objectives from NATO and EU task forces and current operations have been taken into account. The research used the target-oriented method (TOM) and the effort level method (LoE). Conclusion: The result of the scientific research is to achieve higher objectivity of the planning process of conducting operations and coping with crisis situations.

Operational risk evaluation and mitigation for palm oil supply chain: a case study at x co.

Risk analysis in the palm oil suppy chain is essential to achieve the optimum efficiency and effectiveness of the supply chain flow. One of the most common types of risk found in the palm oil supply chain is operational risk. The objectives of the research were to model palm oil supply chain risk identification and to model its risk mitigation. Measurement of operational risk required in an effort to improve the performance of the palm oil supply chain, the method used in the assessment of this type of risk is Failure Mode and Effect Analysis-House of Risk (FMEA-HOR) through two stages of modelling, the analysis and evaluation stages used to know the risk event and risk agent known as HOR 1. Meanwhile the stages of risk mitigation measures applied to handle the potential risk types known as HOR 2. Based on the results of operational risk identification in the palm oil supply chain, 31 types of risk events and 20 risk agents were obtained. Furthermore, risk mitigation measures were based on the potential risk agents generated, converged into 8 risk proactive actions that are prioritized based on costs and resources effectiveness. The results of priorities proactive actions show that 1) maintenance’s labor training, 2) committing routine preventive and predictive maintenance, and 3) preparing alternate stand by equipment and machine units were necessary mitigation actions to be done.

The Effectiveness of Investing in Stock Exchange Markets in Central and Eastern European Countries with Regard to NYSE2‑LSE‑HKSE2. a Comparative Risk Analysis

The aim of this paper is to assess the effectiveness and risk in the stock exchange market in Central and Eastern Europe countries (CEE) in view of the largest stock exchanges: NYSE2‑LSE‑HKSE2. The implementation of this objective was based on an analysis of basic stock market indicators and a discussion of the investment effectiveness of the stock exchange and the risk and investment effectiveness analysis in the stock exchange market in CEE with regard to NYSE2‑LSE‑HKSE2 – assumptions, test method, tests results. The following working hypothesis was adopted in the analysis: Despite high vulnerability to investment risk, the stock exchanges in CEE, due to dynamic development, are improving their investment position with regard to global stock exchanges. The relative indices of stock market attractiveness and an autoregressive model for forecasting changes in the stock market index were used to verify this thesis. The results from the tests make it possible to state that the stock exchanges in CEE are constantly improving their position with regard to operational effectiveness and risk mitigation when compared to the largest global stock exchanges analysed, ambitiously striving to become significant financial centres within Europe and worldwide.

Operational supply risk mitigation of SME and its impact on operational performance

PurposeThe purpose of this paper is to investigate how buyer–supplier social capital may help mitigate operational supply risk (OSR) of small- and medium-sized enterprises (SMEs). It empirically examines a framework that posits the direct and mediated impacts of three dimensions of buyer–supplier social capital – structural, relational and cognitive – and supplier integration on the OSR of SMEs and consequently their operational performance.Design/methodology/approachThis study uses data collected via a questionnaire from 485 manufacturing SMEs in Bangladesh for analysis using structural equation modeling.FindingsThe analysis reveals that all the three dimensions of buyer–supplier social capital can effectively reduce the OSR of SMEs, either directly or indirectly through supplier integration. The mediating role of supplier integration in the relationship between social capital and OSR is confirmed and the negative impact of OSR on operational performances of SMEs is verified.Research limitations/implicationsGeneralization of the findings needs to be prudent since the study gathered information only from manufacturing SMEs in Bangladesh on the buyer side of the buyer–supplier dyad.Practical implicationsFindings of this study can provide references for SME practitioners to formulate their OSR mitigation strategies for enhancing operational performance.Originality/valueThis study adds to the currently scarce literature on OSR of SMEs by combining antecedents and consequences of OSR in a single framework. It also extends the use of buyer–supplier social capital to risk mitigation research.

Risk Evaluation, Design, Implementation, Instrumentation, and Verification for Crown Pillar Extraction at Pinos Altos Mine

The Santo Nino ore body at Pinos Altos Mine has been in production since 2009 using both open pit and underground mining methods. Between 2015 and 2017, an extensive study evaluated extraction strategy of the Santo Nino crown pillar. The Agnico Eagle project team evaluated geomechanical, operational, safety and economical risks before developing a comprehensive plan to extract the Santo Nino crown pillar by underground stoping. The geomechanical aspects of that study focused on interpreting in situ rock mass conditions and understanding the mechanical and hydrological/hydrogeological mechanisms influencing ground reaction during open pit and underground mine operations to make meaningful forward predictions for crown pillar extraction. Numerical modeling played a significant role in making forward predictions. To minimize uncertainty in those predictions, the model parameters were calibrated using measured pit slope deformations, back analysis of historical slope instabilities and underground observations of rock mass conditions. Ultimately, it was decided that long-hole stoping would be utilized for crown pillar extraction. The pit floor would be used as a drilling horizon, and the upper most level of the underground operations served as the mucking horizon. Various safety and operational risk mitigation strategies were developed and implemented; this included geomechanical monitoring using the in-pit radar system and numerous borehole extensometers installed underground to monitor ground deformations. The calibrated numerical model results provided valuable input for the design of the instrumentation program, and once the crown pillar came into production in late 2017, the instrumentation provided valuable data for model verification and stope design adjustments.