Risk Mitigation Tool Research Articles

The Resilience of Smallholder Livestock Farmers in Sub-Saharan Africa and the Risks Imbedded in Rural Livestock Systems

Smallholder livestock farmers (SLF) are important in research and policy development agenda because of the everlasting issue of food insecurity and the livelihoods in sub-Sahara Africa. Lack of access to technologies and information, poor infrastructure and lack of access to markets and environmental factors play a key role in deterring sustainable smallholder livestock farming. In recent years, studies have provided evidence that livestock species can play a role towards solving household food insecurity and enhancing Africa’s resilient livelihoods, particularly in rural settings. However, no studies have been conducted on the effectiveness of emerging technologies (available information technologies) as risk mitigation tools for smallholder livestock farmers. The study used survey data from 278 interviewer-administered questionnaires and 13 in-depth interviews village herds from Dumba, Mapayi, Old Nuli and Shabwe to explore whether rural SLF would use the emerging technologies to enhance their operations, and mitigate supply chain risk, exposures to stock theft and loss. Empirical results show the overwhelming need for the use of emerging technologies by the SLF, and that emerging technologies have significant and positive effects on the risk management activities. SLF indicated that, using digital technologies, they could enhance their risk mitigation and value chains. The results of the study have several policy implications. For instance, the agricultural comparative advantage should be improved through various emerging agricultural technologies. Moreover, the immediate rural development service networks for SLF could be strengthened through the Department of Rural Development and Land Reform to reduce livestock risk exposures, disasters and market reactions. Although rural livestock farming in Beitbridge has survived over the years at a subsistence level, the paper provides some interesting and pertinent findings, and projects some possible future research pathways.

Human Factors Approaches and Models in LOC-I Accident Analysis and Prevention: Flight Crew Resource Management Techniques as a Risk Mitigation Tool

Increased cockpit automation on modern jet aircraft aim to reduce the risk of Undesired Aircraft State (UAS) instances such as Loss of Control in Flight (LOC-I). Although LOCI globally accounts for only 9% of all analysed accidents IATA has reported that it was responsible for 58% of all accident fatalities in 2017. The focus of this paper is to answer whether Threat and Error Management and Crew Resources Management (CRM) techniques are an efficient risk management tool when facing a LOC-I threat. Three LOCI final aircraft accident reports were analysed to understand the structure of Human Factors (HF) during these flights. Methods from the HF field such as the Generic Error Modelling System (GEMS) and Skill-, Rule- and Knowledge-based (SRK) error approach provided invaluable insights to identify potential findings. A holistic investigation of cognitive structures in flight path management helped to visualise latent conditions and cognitively demanding tasks during LOC-I in routine operations. Bearing in mind the limited number of cases considered in this paper it should be considered as an overview in LOC-I accident analysis. It shows that leadership and teamwork, as essential aspects of CRM training, can serve as key strategies to mitigate HF problems and LOC-I risks.

Tracking implementation strategies in the randomized rollout of a Veterans Affairs national opioid risk management initiative

BackgroundIn 2018, the Department of Veterans Affairs (VA) issued Notice 2018-08 requiring facilities to complete “case reviews” for Veterans identified in the Stratification Tool for Opioid Risk Mitigation (STORM) dashboard as high risk for adverse outcomes among patients prescribed opioids. Half of the facilities were randomly assigned to a Notice version including additional oversight. We evaluated implementation strategies used, whether strategies differed by randomization arm, and which strategies were associated with case review completion rates.MethodsFacility points of contact completed a survey assessing their facility’s use of 68 implementation strategies based on the Expert Recommendations for Implementing Change taxonomy. We collected respondent demographic information, facility-level characteristics, and case review completion rates (percentage of high-risk patients who received a case review). We used Kruskal-Wallis tests and negative binomial regression to assess strategy use and factors associated with case reviews.ResultsContacts at 89 of 140 facilities completed the survey (64%) and reported using a median of 23 (IQR 16–31) strategies. The median case review completion rate was 71% (IQR 48–95%). Neither the number or types of strategies nor completion rates differed by randomization arm. The most common strategies were using the STORM dashboard (97%), working with local opinion leaders (80%), and recruiting local partners (80%). Characteristics associated with case review completion rates included respondents being ≤ 35 years old (incidence rate ratio, IRR 1.35, 95% CI 1.09–1.67) and having < 5 years in their primary role (IRR 1.23; 95% CI 1.01–1.51), and facilities having more prior academic detailing around pain and opioid safety (IRR 1.40, 95% CI 1.12–1.75). Controlling for these characteristics, implementation strategies associated with higher completion rates included (1) monitoring and adjusting practices (adjusted IRR (AIRR) 1.40, 95% CI 1.11–1.77), (2) identifying adaptations while maintaining core components (AIRR 1.28, 95% CI 1.03–1.60), (3) conducting initial training (AIRR 1.16, 95% CI 1.02–1.50), and (4) regularly sharing lessons learned (AIRR 1.32, 95% CI 1.09–1.59).ConclusionsIn this national evaluation of strategies used to implement case reviews of patients at high risk of opioid-related adverse events, point of contact age and tenure in the current role, prior pain-related academic detailing at the facility, and four specific implementation strategies were associated with case review completion rates, while randomization to additional centralized oversight was not.Trial registrationThis project is registered at the ISRCTN Registry with number ISRCTN16012111. The trial was first registered on May 3, 2017.

Financial reporting quality, audit fees and risk committees

PurposeThe purpose of this paper is to examine the association between the existence of a risk committee (RC) in a firm and financial reporting quality. We also investigate whether having an RC has an effect on audit pricing. We argue that the existence of an RC in a firm contributes to higher financial reporting quality and this, eventually, affects audit pricing.Design/methodology/approachThis study uses two different proxies for RC measures and investigates the impact on financial reporting quality and audit pricing. Multivariate regression analysis and propensity score matching techniques are both applied to data from the Australian Stock Exchange's listed companies for the years 2001–2013.FindingsThe results indicate that the existence of an RC reduces the discretionary accruals; this means the financial reporting quality improves when RCs are in operation. Our findings also indicate that the existence of an RC increases audit fees.Practical implicationsThe findings from this study will be beneficial to the regulatory authorities responsible for improving the compliance of corporate governance (CG). An RC can serve as a risk-mitigating tool in the investment decision-making process. Finally, the results are beneficial for the development of best practices in CG by promoting the existence of an RC.Originality/valueThis study goes beyond the traditional focus on CG as we use the existence of an RC as an indicator of better governance practices to mitigate financial and non-financial risk factors. To the best of our knowledge, this paper is among the first to investigate the consequences for firms operating with RCs. This issue has implications for investors, auditors, directors and regulators.

Mapping and analysis of maritime accidents in the Russian Arctic through the lens of the Polar Code and POLARIS system

Over the last decade, more than 500 maritime accidents have been reported in the Arctic, and the political will of the Russian government to develop the Northern Sea Route (NSR) for the exportation of raw materials may lead to a rise of such events. However, data on insurance claims in the Russian Arctic are rather sketchy and not up-dated which has hindered accurate analysis so far.Based on empirical data collection throughout the period 2004–2017, the study gathers, classifies and maps certain ‘marine casualties’ and ‘incidents’ that occurred along the NSR until the Polar Code enforcement. Three maritime events are scrutinized through the lens of the Polar Code risk mitigation tools and POLARIS system in order to determine if the joint use of these new prophylactic instruments would have prevented their occurrence.As preliminary results, the research identifies the primary causes of identified maritime accidents that occurred in the Russian Arctic and provides their categorization in accordance with IMO standards. It appears that serious ‘marine casualties’ represent the greatest number of insurance claims. Shedding light on the type of risk occurrence a ship may face along the NSR, it brings valuable implications for maritime operators who are still awaiting historical data for more realistic risk assessment. Finally, it demonstrates that the combination of the Polar Code and POLARIS system is an appropriate tool for risk mitigation and encourages stakeholders to implement best practices for Arctic shipping in their common interest.

Regulation of Synthetic Biology: Developments Under the Convention on Biological Diversity and Its Protocols.

The primary international forum deliberating the regulation of “synthetic biology” is the Convention on Biological Diversity (CBD), along with its subsidiary agreements concerned with the biosafety of living modified organisms (LMOs; Cartagena Protocol on Biosafety to the CBD), and access and benefit sharing in relation to genetic resources (Nagoya Protocol to the CBD). This discussion has been underway for almost 10 years under the CBD agenda items of “synthetic biology” and “new and emerging issues relating to the conservation and sustainable use of biological diversity,” and more recently within the scope of Cartagena Protocol topics including risk assessment and risk management, and “digital sequence information” jointly with the Nagoya Protocol. There is no internationally accepted definition of “synthetic biology,” with it used as an umbrella term in this forum to capture “new” biotechnologies and “new” applications of established biotechnologies, whether actual or conceptual. The CBD debates are characterized by polarized views on the adequacy of existing regulatory mechanisms for “new” types of LMOs, including the scope of the current regulatory frameworks, and procedures and tools for risk assessment and risk mitigation and/or management. This paper provides an overview of international developments in biotechnology regulation, including the application of the Cartagena Protocol and relevant policy developments, and reviews the development of the synthetic biology debate under the CBD and its Protocols, including the major issues expected in the lead up to and during the 2020 Biodiversity Conference.

Risk preferences of commodity crop producers and specialty crop producers: An application of prospect theory

AbstractProducers’ decisions, such as crop insurance, contract agreement, and technology adoption, involve considerable risk and uncertainty. Particularly, specialty crop production is more vulnerable to risk and requires more intensive management than commodity crop production, while risk mitigation tools for specialty crop production are comparatively limited. We apply Prospect Theory (PT) to analyze risk preferences of U.S. producers, and further compare the preference differences between commodity crop and specialty crop producers. Reference dependent, diminishing sensitivity, loss aversion, and probability weighting, as well as certain farm characteristics and producer demographics, are found to have a significant impact on grower risk attitudes. In addition, we do not observe significant differences in the base PT estimates between commodity crop and specialty crop producers. However, the relationships between risk behavior and individual characteristics vary between the two types of producers, which shed lights on the development of agricultural policies and provide implications for the design of contract and insurance.

Hong Kong’s landslip warning system—40 years of progress

Early warning systems have often been considered an effective risk mitigation tools for landslides. In 1977, the Geotechnical Engineering Office (GEO) of Hong Kong government established the world’s first territorial-wide early warning system for landslide disaster. The Landslip Warning System (LWS) has then been continuously enhanced and upgraded in response to the enrichment of rainfall and landslide database, advancement in instrumentation techniques and change in public perception of landslide risk over the last 40 years. This article consolidates the extensive experience of Hong Kong in using the landslip early warning system (LEWS) as a landslide risk management tool. A comprehensive review on the development process of the rainfall-landslide prediction models is presented. The landslide prediction model evolved from a rainfall duration-intensity model (late 1970) to a simple rainfall threshold model (middle 1980 to late 1990), then to a rainfall-landslide density model (early 2000) and rainfall-landslide frequency model (middle 2000s onward). Through regular review and update of the prediction model taking into account the availability of more recent data and activities that alter landslide risks, the performance of prediction model could be enhanced. The number of rain gauges expanded from 20 to 92 to support the operation of different generations of LWS. The GEO is currently adopting internet of thing (IOT) and cloud computing technology to enhance the resilience of the LWS, especially during extreme weather condition.

Covid19 syndrome, risk mitigation and containment tools, from China to USA &amp; Europe, the potentials of social medicine

Covid19 syndrome, risk mitigation and containment tools, from China to USA &amp; Europe, the potentials of social medicine

Mitigating risk for floodplain agriculture in Amazonia: a role for index-based flood insurance

ABSTRACT The fertile floodplain of the Amazon river offers considerable potential for agriculture, yet it is a risk-filled environment with heightened vulnerability due to climate change. The annual flood pulse deposits nutrient-rich sediment on the floodplain enabling increased agricultural productivity during the low water season. However, crops growing on the floodplain are at high risk of loss due to flood dynamics. Drawing on data from household surveys (n = 83), focus group discussions, and key informant interviews, this study assesses potential flood risk mitigation tools for floodplain rice farmers along the Amazon river near Iquitos, Peru. Farmers’ risk mitigation preferences are explored through willingness to pay (WTP) methods for flood-tolerant rice varieties, river information services, and index-based flood insurance. Results indicate that measured ambiguity aversion is a key driver in the decision to mitigate flood risk. The study suggests that the environmental risk context may be appropriate for an index-based flood insurance product, and farmers and local institutions see the promise of flood insurance. With climate change scenarios predicting greater variability in the flood regime, mitigating flood risk is paramount to reducing the vulnerabilities and unlocking opportunities for floodplain farmers in Amazonia.

Quantifying local seismic amplification from regional charts and site specific numerical analyses: a case study

Three levels of seismic microzonation are considered in the Italian guidelines: 1st level allows to qualitatively recognise those areas characterised by the same seismic performance, while 2nd and 3rd levels quantify the modification of the reference signal due to the specific site conditions. The paper summarises and compares the results of 2nd and 3rd level seismic microzonation studies for the Dovadola urban area (Emilia-Romagna, Italy). The site was selected due to the availability of in situ and laboratory investigations for the definition of a detailed geotechnical seismic model of the subsoil. The 2nd level study was conducted adopting the regional charts for the quantification of the stratigraphic amplification phenomena and the regional procedures for assessing the influence of topography. The 3rd level analysis was developed through mono- and two-dimensional seismic site response analyses adopting a numerical non-linear approach. Amplification factors for the peak ground acceleration and for the velocity spectrum intensity (i.e. the integral of the pseudo-spectral velocity of a ground motion from 0.1–0.5 to 0.5–0.1 s) were determined along two geotechnical sections of the site, both characterised by a central large and surficial valley bordered by irregular topography. The study indicates a general satisfactory match between the results of the simplified regional approach and the advanced numerical tool, especially when one-dimensional seismic site conditions prevail. Further comparative studies are encouraged to validate the 2nd level microzonation as a reliable tool for seismic risk mitigation.

Towards Large Scale Seismic Risk Assessment in Algeria: Case Study to the City of Blida

In recent years, the use of large scale seismic risk assessment has become increasingly popular to evaluate the fragility of a specific region to an earthquake event, through the convolution of hazard, exposure and vulnerability. These studies focus on the vulnerability of the built environment of the region and the evaluation of the human social dimension, which has great importance when determining the ability of a community to attend to a disaster and to eventually resume normal activities. This study, developed within the scope of the EU-funded project ITERATE (Improved Tools for Disaster Risk Mitigation in Algeria), focuses on the development of a web-based framework for integrated seismic risk assessment in Northern Algeria, primarily focused on the city of Blida, chosen as first case-study. For this purpose, alliances with local institutions, web-based data mining techniques and specifically developed research were used to obtain: an updated seismic hazard model, and exposure and vulnerability models for local buildings and bridges, which are proposed and implemented in a web-based platform which allows the calculation of the seismic risk at a municipal level in terms of probabilistic losses. Furthermore, a social vulnerability assessment is implemented at the same level and combined with the physical vulnerability to enable the identification of the regions that are more vulnerable to earthquakes. Such framework will, in turn, empower Algerian stakeholders to perform the evaluation of earthquake scenarios at a regional scale and provide valuable information to decision makers for the implementation of risk mitigation measures in vulnerable areas.

“Soft law” and innovations: empirical analysis of ICO-related statements

PurposeThe purpose of the paper is to explore the initial coin offering (ICO) statements as “soft law” instrument used to regulate disruptive innovations.Design/methodology/approachThe research is based on the qualitative content analysis of 40 ICO statements issued by regulators in 37 countries by applying a custom-made coding table.FindingsThe research shows that “soft law” is used predominantly by high-capacity jurisdictions. “Soft law” allows for more flexibility and less technological and business neutrality. The findings also show the contradiction between empirical evidence and public sentiment: it seems that the widespread notion that virtual currencies have connotations with money laundering/financing of terrorism (ML/FT) is not shared by the regulators, who are more concerned by the fraud. Finally, it was found that the standard-setting bodies are lagging behind in providing guidance on the emergence technologies.Research limitations/implicationsThe content analysis is based on 40 statements, which is a limited set of data. The method might be subject to interpersonal bias, although arrangements were made to ensure the uniformity of coding process.Practical implicationsThe findings imply that soft law is an attractive risk-mitigation tool when the object of regulation is still evolving but the risks are present. Soft law also might contradict with the “technology and business neutrality” principle which requires further research. Finally, the findings show the need for more active involvement of the standard setting bodies.Originality/valueThis is the first in-depth research of the ICO-related statements as “soft law” instruments. It also offers a new perspective on the issue of financial innovations regulation.

Managing Capital Market Risk for Retirement

We offer an overview of solutions available to pension plans to manage capital market risk in order to meet their obligations. We outline the main drivers behind the evolution of asset-liability management (ALM) for pension plans and the emergence of liability-driven investment (LDI) in the last decade. We look at some of the most popular pension de-risking tools and at recent innovations prompted by the Global Financial Crisis. We offer examples based on the rise of cross-asset correlation, the use of hybrid products to mitigate tail risk, and the increasing relevance of counterparty risk mitigation tools such as collateralization. We conclude by outlining some of the main challenges ahead, including developments in pension regulation, centralized clearing of over-the-counter (OTC) instruments, and risk taking incentives in delegated asset management for long term retirement obligations.

Risk Governance of Nanomaterials: Review of Criteria and Tools for Risk Communication, Evaluation, and Mitigation.

Nanotechnologies have been increasingly used in industrial applications and consumer products across several sectors, including construction, transportation, energy, and healthcare. The widespread application of these technologies has raised concerns regarding their environmental, health, societal, and economic impacts. This has led to the investment of enormous resources in Europe and beyond into the development of tools to facilitate the risk assessment and management of nanomaterials, and to inform more robust risk governance process. In this context, several risk governance frameworks have been developed. In our study, we present and review those, and identify a set of criteria and tools for risk evaluation, mitigation, and communication, the implementation of which can inform better risk management decision-making by various stakeholders from e.g., industry, regulators, and the civil society. Based on our analysis, we recommend specific methods from decision science and information technologies that can improve the existing risk governance tools so that they can communicate, evaluate, and mitigate risks more transparently, taking stakeholder perspectives and expert opinion into account, and considering all relevant criteria in establishing the risk-benefit balance of these emerging technologies to enable more robust decisions about the governance of their risks.

Identification, Assessment and Mitigation of Environment Side Risks for Malaysian Manufacturing

Malaysia has faced many supply chain issues that not only have affected enterprises but also the overall economy. Natural disasters that badly affect the performance of Malaysian enterprises strongly demand a comprehensive investigation of supply chain risks. Effective mitigation strategy can only be operationalized when risks are appropriately identified and assessed. Supply chain collaboration has been verified to have a positive impact on the performance but only a limited number of studies investigate it as a risk mitigation tool. The current study presents a guiding framework for identification, assessment, and migration of environment side risks for Malaysian manufacturing. A questionnaire has been developed and distributed by systemic probability sampling. Data have been collected from the Federation of Manufacturing Malaysia through an online survey. The data were purified from missing values and outliers and were analyzed through structural equational modeling through Smart PLS. A total of nine environment side risks were identified. In risk assessment, it has been found that an environment side risk has negative effects on supply chain performance. While these risks can be mitigated through supply chain collaboration, they cannot be mitigated completely. This study will help managers to understand how environment side risks are affecting enterprise performance and how they can avoid these risks. This study covers only environment side risks while future research can be on operational risks and various other approaches that can be proposed for mitigation.

Interpreting CSEM data in complex resistivity regime

CSEM has been applied as a risk mitigation tool in the Krishna-Godavari Basin, East Coast India. A workflow for application of CSEM in a portfolio ranking process is described, ranging from feasibility assessment to interpretation and post-drilling analysis. Data interpretation was based on relative response analysis, unconstrained inversion and 3D modelling. A major challenge, encountered in the data interpretation was the lack of suitable calibration areas for the interpretation model. Nevertheless, several robust resistivity anomalies were identified, which were then prioritised for drilling. The drilling of a CSEM positive prospect yielded commercial hydrocarbons. This additional calibration information, obtained from the well, was then fed back into the integration work-flow and robustness analysis for the previously lower-ranked resistors. Even using this more complex model, the presence of the resistors was confirmed. This motivated Reliance to review the seismic to upgrade the CSEM leads to prospects.

Managing risk through dependency: How do mining MNEs strategise to legitimise business continuity?

This paper explores how mining multinational enterprises (MNEs) manage risk in local communities with weak institutional environments by providing public good services to nearby towns and villages. When MNEs support institutions, community dependence grows stronger as they become increasingly reliant on the resource commitment. This is the case even though the study finds that local communities are experiencing serious health and social issues directly linked to the local mining project. The paper argues that, by solidifying their legitimacy in support of the institutional environment, MNEs reduce the risk that communities will engage with civil society actors who can threaten business continuity. The resource commitment thus serves a dual purpose by making communities reliant on MNEs that strengthen the institutional environment in the absence of a fully functioning state and acting as an effective risk mitigation tool that keeps civil society actors from collaborating with local communities. While the strategy does not guarantee a ‘license to operate’, it is seen as an effective risk mitigation tool and a precondition for ensuring legitimacy. Using cases from the Armenian mining industry, the paper contributes to the MNE risk management literature by highlighting the role of institutions.

Cyber negotiation: a cyber risk management approach to defend urban critical infrastructure from cyberattacks

ABSTRACTTechnical tools dominate the cyber risk management market. Social cybersecurity tools are severely underutilised in helping organisations defend themselves against cyberattacks. We investigate a class of non-technical risk mitigation strategies and tools that might be particularly effective in managing and mitigating the effects of certain cyberattacks. We call these social-science-grounded methods Defensive Social Engineering (DSE) tools. Through interviews with urban critical infrastructure operators and cross-case analysis, we devise a pre, mid and post cyber negotiation framework that could help organisations manage their cyber risks and bolster organisational cyber resilience, especially in the case of ransomware attacks. The cyber negotiation framework is grounded in both negotiation theory and practice. We apply our ideas, ex post, to past ransomware attacks that have wreaked havoc on urban critical infrastructure. By evaluating how to use negotiation strategies effectively (even if no negotiations ever take place), we hope to show how non-technical DSE tools can give defenders some leverage as they engage with cyber adversaries who often have little to lose.

Blockchain Technology as a Risk Mitigation Tool in Supply Chain

The main purpose of this paper is to investigate the research development in supply chain risk management (SCRM) and to connect the new emerging digital technology Blockchain that could help to mitigate risks in any supply chain. Emerging literature, case studies, citations are used to fulfil this the task. The study will explore Blockchain and supply chain risks in details and will compare, how Blockchain based supply chain can mitigate these risks. There are many risks associated to supply chains but we will limit our study to only supply risk and study different areas of Blockchain application in supply chain with supply risk. Blockchain technologies have a potential to upgrade current supply chains. This will not only increase its performance in terms of speedy flow of raw material, finished goods, information and money flow but also help to mitigate current risk in supply chain by increasing visibility and transparency of supply chain. Smart contracts, IoT and Blockchain can serve together to achieve maximum efficiency and effectiveness in SCM. This research contributes to explore further research fields of Blockchain technology in different areas of supply chain risk management.