Risk Of Financial Loss Research Articles

Energy Efficiency of the Office Buildings in Italy: Insights for the European Taxonomy.

Abstract Sustainable investments have led the Italian real estate market over recent years. Large enterprises invest in renovating their building stocks to optimize costs, respond to institutional pressures, and enhance their Environmental, Social, and Governance (ESG) scores. The ESG criteria orient the preferences of today’s investors by measuring a company’s sustainability and profitability; however, the ESG rating systems lack transparency, exposing investors to misleading sustainable initiatives (greenwashing) and risks of financial losses. The EU Taxonomy for Sustainable Activities (EU Regulation 2020/852) defines technical thresholds for sustainability that support investors in making informed decisions. In the building sector, the Taxonomy distinguishes (i) new building construction and (ii) retrofitting existing buildings; the latter is sustainable if it reduces the existing building’s primary energy use by 30% compared to ante-opera or follows the retrofitting guidelines established by the EU directive 2010/31. This work aims to estimate the potential for energy savings and CO2 reduction of the Italian office building stock according to the Taxonomy guidelines. The Energy Efficiency Directive 2012/27/EU (EED) establishes a legislative framework for achieving the European energy efficiency targets. Article 8 of the EED introduced the obligation for large enterprises to submit an energy audit of their production sites every four years, starting from December 2015, and the Italian National Agency for New Technologies, Energy, and the Sustainable Economic Development (ENEA) collects and reviews such energy audits. This study analyzes the energy audits of office buildings submitted by large enterprises in the insurance and banking sectors last year. The database associates the technical features of each building with the main characteristics of its location (e.g., the climate and urban landscape) and energy use. Data show the benefits of retrofitting office building portfolios following the Taxonomy, showing a reduction of energy use and CO2 emissions up to 20% from the current state. Electrification of heating loads is particularly effective in cold climates. At the same time, intense reconstruction produces the highest benefits, but it needs careful resource allocation, driven by cost-benefit analysis.

A techno-economic assessment of hydrogen and methane production from the anaerobic treatment of vinasse and glycerol: Single- vs. two-stage process

The best-case scenario for anaerobic digestion (AD) could include co-digestion and two-stage systems, a combination that has not yet been extensively studied. This study aimed at evaluating the effect of increasing the organic loading rate from 5 to 20 kg-COD/m3/d in second-stage thermophilic (55 °C, CH4-RThermo) and mesophilic (25 ± 5 °C, CH4-RMeso) anaerobic fluidized bed reactors (AFBR) fed with sugarcane vinasse and glycerol (1:1 on a COD basis) previously fermented in a thermophilic AFBR. AD was stable with high methane production and COD removal up to 20 kg-COD/m3/d for CH4-RThermo (4.53 L-CH4/L/d; 79 %) and CH4-RMeso (3.85 L-CH4/L/d; 66 %), respectively. At 20 kg-COD/m3/d, CH4-RMeso failed due to acid accumulation (1279 mg/L), which probably inhibited methanogenic activity. Results of two-stage thermophilic + thermophilic (H2-RThermo + CH4-RThermo) were compared with a thermophilic single-stage AFBR. In comparison to the two-stage system, for 10, 15, and 20 kg- COD/m3/d, the single-stage energetic yields were higher at 33, 26 and 22 %, respectively. A techno-economic assessment was conducted. The scale-up and economic analyses revealed that the single-stage would be the most compact system (17,820 vs. 20,560 m3) with the lowest initial investment (USD 45 M vs. USD 52 M), highest net present value (NPV) (USD 58 M vs. USD 47 M), and internal rate of return (IRR) (18 vs. 16 %) compared to the best two-stage system (thermophilic + thermophilic). A Monte Carlo simulation indicated a 12 % risk of financial loss at 20 kg-COD/m3/d for the single-stage system. Furthermore, it showed that variation on the capitalization rate, inflation, and the electricity sales price can significantly affect the NPV. Therefore, in addition to better laboratory performance, the single-stage system is simpler to operate, less costly, and would be more suitable for industrial scale implementation.

Travel Insurance Prediction

Insurance is a contract whereby an individual obtains financial protection against losses from an insurance company against the risks of financial losses as mentioned in the insurance. Many types of insurance exist today and there are so many companies that offer insurance services. These companies always need to predict whether or not a person will buy insurance so that they can save time and money for the most profitable customers. The task of insurance prediction in which the travel insurance prediction can be taken into progress using the machine learning using python. We here get the data from the databases from the companies. Here our task is to train a machine learning model to predict whether an individual can purchase the insurance policy from the company or not. We also use CSV (comma separated value) files in the process.

INSURANCE IN TOURISM

The article is devoted to the definition of insurance in tourism, which will ensure that the tourist solves all problems and receives qualified medical, legal or administrative assistance. It was determined what insurance is, travel insurance, insurance in tourism. It has been proven that insurance in the tourism industry is used to insure against the risk of financial losses, both large and small, that may arise from damage to the insured or his property, or from liability for damage caused to a third party. The main categories of travel insurance have been revealed, namely: insurance against trip cancellation or interruption, insurance for luggage and personal belongings, medical insurance, accident insurance, in-flight accident insurance. The main sections of the travel insurance policy were also mentioned. During the pandemic, it has become more difficult to travel, so you need to understand the requirements of different countries, as well as protect yourself from risks due to the disease. Additional insurances against no-show and additional financial risks help protect tourists from illness if they have a travel permit. It was concluded that travel insurance provides some security and confidence for tourists to travel with peace of mind. Insurance is designed to cover financial risks.

The shattered "Iron Rice Bowl": effects of Chinese state-owned enterprise reformon depressive symptoms in later life.

The SOE reform was the first time that economic insecurity was introduced since 1949 in China, with hundreds of million employees affected by the laid off. This study took the State-Owned Enterprises (SOE) reform in China as a natural experiment to explore the impact of economic insecurity on depressive symptoms in later life. Data were obtained from the China Health and Retirement Longitudinal Survey (CHARLS), 2014 and 2015. CHARLS is a nationally representative survey covering 28 provinces in China. CHARLS used the probabilities proportional to size (PPS) sampling method and involved 450 villages/resident committees, 150 counties/districts and 12,400 households. A total of 5113 urban dwellers born earlier than 1971 (aged 25years old and above at the start of the SOE reform, 1995) were involved. Using the province-level economic loss from the layoffs, we examined the impact of economic insecurity exposure on the score of depressive symptoms using a difference-in-differences model (DID). Individuals with economic insecurity exposure had a significantly increased risk of higher depressive symptoms scores, in which a 1 percentage point increase in expected economic loss would increase the CESD-10 score by 0.10. For an individual at the median distribution (CESD-10 = 5), this implies a shift to the 58th percentile (CESD-10 = 6). Given that the average intensity of expected economic loss is 10.22% and the mean CESD-10 is 6.92, exposure to the SOE reform led to an average increase in the CESD-10 score by 1.02 and by at least 14.74%. The heterogeneity analyses showed that the role of SOE reform in depressive symptoms scores was robust in both female and male groups and groups with different educational attainment. Economic insecurity exposure increased the depressive symptoms score later in life in the context of China. Programs, such as adequate unemployment insurance benefits, can protect individuals against the risk of financial loss, thereby reducing their negative impact on depressive symptoms. Providing mental symptoms surveillance and psychological counseling to those experienced at a time of great uncertainty is important for preventing depression in times of economic insecurity.

Decision-Making of Discretionary Goodwill Impairments—Evidence from Publicly Listed Firms in China

ABSTRACT With the wave of M&A, total amount of goodwill balances has been accumulated to an enormous number in Chinese capital market. This study uses new independent variables to examine the determinants of goodwill impairments and to study the decision-making of discretionary goodwill impairments. First, this study investigates short-term and long-term market reaction of goodwill impairment announcements from 2019 to 2021 by using the event study method. Results indicate that goodwill impairments are only significantly associated with short-term cumulative abnormal return, on average. Then, based on the panel data of companies with goodwill balance from 2007 to 2020, logistic regression findings indicate that the companies without risk of financial loss have a higher probability of withdrawing goodwill impairments, on average; companies with stable operation have a higher probability of withdrawing goodwill impairments, on average. Result shows the discretion was used in goodwill impairments decision-making.

Predicting financial losses due to apartment construction accidents utilizing deep learning techniques

This study aims to generate a deep learning algorithm-based model for quantitative prediction of financial losses due to accidents occurring at apartment construction sites. Recently, the construction of apartment buildings is rapidly increasing to solve housing shortage caused by increasing urban density. However, high-rise and large-scale construction projects are increasing the frequency and severity of accidents occurring inside and outside of construction sites, leading to increases of financial losses. In particular, the increase in severe weather and the surge in abnormal weather events due to climate change are aggravating the risk of financial losses associated with accidents occurring at construction sites. Therefore, for sustainable and efficient management of construction projects, a loss prediction model that prevents and reduces the risk of financial loss is essential. This study collected and analyzed insurance claim payout data from a main insurance company in South Korea regarding accidents occurring inside and outside of construction sites. Deep learning algorithms were applied to develop predictive models reflecting scientific and recent technologies. Results and framework of this study provide critical guidance on financial loss management necessary for sustainable and efficacious construction project management. They can be used as a reference for various other construction project management studies.

Risk management in the organization of physical culture and sports

Relevance. The article is devoted to financial and economic risks in the field of physical culture and sports. Financial and economic risks in the FKiS organization were identified, their significance was determined. Conclusions are drawn as risks affect the effectiveness of the training process.Purpose. Increasing the training effect by means of optimizing the organization's activities, taking into account risks.Methods and organization of research. The risks inherent in the organization of FC and C. The presented algorithm for performing the analysis is universal, but each of the stages has different features depending on the scope of the research.The results of the research. During the research work, 24 financial and economic risks were identified. Experts have developed a gradation of financial and economic risks of a physical culture and sports organization that characterizes the probability and severity of consequences from the onset of a particular financial and economic risk in the organization's activities.Conclusions. The system of financial and economic risk management developed by us in a physical culture and sports organization will reduce the likelihood of risks and minimize the consequences of such risks as the risk of bankruptcy, liquidity and the risk of financial losses and lost profits.

Правовые проблемы системы защиты неквалифицированных инвесторов – физических лиц на рынке ценных бумаг Российской Федерации

The article considers the dynamics for forming the retail investment segment in the Russian Federation, the regulatory acts in force to regulate it, and the measures taken by the state to provide additional legal protection for individuals on the securities market. There is an acute issue of the low level of financial literacy of Russian citizens. As a result of the analysis of the current system for protecting the rights and legitimate interests of unqualified investors, the author identified existing problems and proposed possible ways to solve them. It is noted that a distinctive feature of the stock market is the extremely high level of risk of financial losses. Due to the fact that only professionals are allowed to trade, regular citizens are forced to use the broker services. The brokerage agreement, despite its significance, is the most undeveloped area of legal regulation of investors’ activities in the securities market. The rights and guarantees of the legitimate interests of unqualified investors in the provision of brokerage services are also not clearly established. According to the author, a possible solution would be the introduction of a special regulation of the brokerage contract at the legislative level and the consolidation of minimum guarantees of compliance with the interests of clients.

Machine learning techniques for credit risk evaluation: a systematic literature review

Credit risk is the risk of financial loss when a borrower fails to meet the financial commitment. While there are many factors that constitute credit risk, due diligence while giving loan (credit scoring), continuous monitoring of customer payments and other behaviour patterns could reduce the probability of accumulating non-performing assets (NPA) and frauds. In the past few years, the quantum of NPAs and frauds have gone up significantly, and therefore it has become imperative that banks and financial institutions use robust mechanisms to predict the performance of loans. The past two decades has seen an immense growth in the area of artificial intelligence, most notably machine learning (ML) with improved access to internet, data, and compute. Whilst there are credit rating agencies and credit scoring companies that provide their analysis of a customer to banks on a fee, the researchers continue to explore various ML techniques to improve the accuracy level of credit risk evaluation. In this survey paper, we performed a systematic literature review on existing research methods and ML techniques for credit risk evaluation. We reviewed a total of 136 papers on credit risk evaluation published between 1993 and March 2019. We studied the implications of hyper parameters on ML techniques being used to evaluate credit risk and, analyzed the limitations of the current studies and research trends. We observed that Ensemble and Hybrid models with neural networks and SVM are being more adopted for credit scoring, NPA prediction and fraud detection. We also realized that lack of comprehensive public datasets continue to be an area of concern for researchers.

Legal Regulation of Cross-Border Shipping of Dangerous Goods in the Conditions of Digitalization

The author explores the legal aspects of network space risks, when legal imperatives are laid for the transportation and stay of a consignment of dangerous goods on board a ship. It is concluded that it is difficult to choose the law to be applied. In this regard, the material norms that make up the operational risk space can serve as a guide. Their selection is often a precursor to earning assets net operating profit. At the same time, the variety of legal facts with which the acquirer on arrival of property associates his right to file an ownership claim is formulated either in the contract of connection or accession. Therefore, separate prerequisites for the emergence of business and legal risks at the stage of abandoning consumer insurance in favor of its property qualification are highlighted. The paper shows types of encumbrances that accompany the problems of optimizing the costs of insurance against cyber risks. Even if insurance companies find their offer profitable for customers, the basis of the risk of financial loss is still the recovery of lost data. The insurer is forced to dispose of advanced analytical developments, such as, for example, blockchain or smart contracts that are very common today. Policyholders, in turn, use digital distribution and other virtual service models to not only reduce costs to a minimum, but also gain competitive advantages. The author analyzes the norms of the Convention acts on the transboundary shipping of dangerous goods. The International standards of TV and radio communications ISO/IEC 11801 and ISO/IEC 27001 (ISMS — 2018) are studied, and the conclusion is made that the threat to technological resources is identified with a comprehensive legal strategy for owner protection.

Empirical Data on Mobile Money Hesitation Factors in Somalia

Mobile money is an electronic system of transferring money from person to person. The mobile money service has expanded its coverage all over the world and there is hardly any country that do not practice any form of mobile money transfer. Somalia is one of the countries that embraced mobile money unconditionally as there is lack of traditional financial institutions providing financial services since the collapse of central government in 1991. Somalians accepted mobile money because it has made money transfer easier for them to pay bill and shopping. However, there are hesitation factors that hinder the full scale functioning of the system and makes people hesitate to use mobile money. Currently mobile money users practice very limited mobile money functions such as sending and receiving, withdrawal, top up and internet recharge. Other mobile money functions such as pay tuition fees, payrolls, payments for purchase t, utility payment and saving money into mobile money account are lagging behind. This empirical study explores the inconvenience factors that lead people to hesitate to use mobile money in a large scale. In this study, 650 survey questionnaire were distributed among mobile money users in Somalia. The questionnaires were distributed through online Google form. A total of 375 respondents submitted their responses and all the answers were recorded into SPSS. IBM-SPSS statistics 22 were used to statistically analyses the data. Factor analysis for data validity and scale analysis for data reliability, frequency and descriptive statistics were conducted to analyze the data. The study found that there are numerous mobile money hesitation factors that make Somalian people to hesitate fully practicing the system. These hesitation factors include perceived risk of financial loss, perceived risk of system error, perceived risk of authentication weaknesses, lack of regulation and policy and interoperability between the mobile money service providers. This study concludes that hesitation factors needs to be addressed that will improve the level of mobile money usage into full scale. Among factors that may reduce hesitation factors of the usage of mobile money services in Somalia are high level accuracy of mobile money authentication system, operative interoperability platform, highly effective compensation system and functioning mobile money regulations and policy.

Labor Market Chances of Whistleblowers - Potential Drivers of Discrimination

Whistle-blowers frequently face retaliation after reporting law-breaking activities and end up leaving their employing organization. Our study uses a controlled lab experiment to examine how whistle-blowing affects the chances of future employment when respective employees re-enter the labor market. Our results reveal that their chances differ depending on the manager making the hiring decision: while honest managers do not discriminate, managers with a past fraud record discriminate against whistle-blowers. This discrimination pattern is robust across different treatments. Even when recruiting for an employee who attaches importance to moral integrity and whose behavior reduces the risk of financial losses for the managers, fraudulent managers still discriminate against whistle-blowers. Our study has important implications for whistle-blowing protection as employees not only face retaliation in the immediate aftermath of whistle-blowing but also encounter reduced long-term career prospects in the labor market.

Compliance with the Rule of Law in the EU and the Protection of the Union’s Budget : Further reflections on the Proposal for the Regulation of 18 May 2018

Strengthening the rule of law – and in particular judicial independence – has been on the EU agenda for several years and it is still a high priority. The situation in Poland and Hungary has confirmed that the measures provided in the Treaties are not sufficient to effectively counteract certain risks or infringements of the rule of law that may occur in the Member States. On May 2018, the Commission presented the Proposal for a Regulation on the protection of the Union’s budget in cases of generalised deficiencies as regards the rule of law in the Member States. In general, the proposed Regulation allows activation of a system to block access to EU funds in order to protect the Union’s financial interests from the risk of financial loss in the event of “generalised deficiencies” as regards the rule of law are detected. This paper will discuss the justification of this proposed Regulation and highlight the difficulties in assessing risks for the rule- of- law affecting the financial interests of the Union and the perils that the proposed monitoring procedure could entail. The issue is not whether the rule of law needs to be protected more effectively, the question is how to do it, without endangering other equally important values in the European Union.

Management of interest risk in a commercial bank under the conditions of the modern market

In the economy of our country, under the influence of the wave of economic crisis, a situation has developed that has significantly affected the activities of commercial banks that are participants in the financial market. In recent years, there has been a consistently high amplitude of global changes in financial markets, due to the crisis and instability of the political situation in the country. All this affects the functioning of commercial banks, especially in the regulation of interest rates. The banking sector is constantly faced with all sorts of risks. Interest rate risk is rightly recognized as the most important bank risk. According to the Central Bank of theRussian Federation, interest rate risk is the risk of financial losses (losses) that arise as a result of an unfavorable change in interest rates on assets, liabilities and off-balance sheet instruments. Interest rate risk management in commercial banks has become complicated due to the current economic and political situation in our country, as well as the instability of market conditions. The development of practical recommendations aimed at improving the interest rate risk management system in a commercial bank is an urgent task for any commercial bank.

Web-based tool for calculating field-specific nutrient management for rice in India

Site-specific nutrient management (SSNM) can be an alternative to a recommendation for uniform fertilizer use across a rice (Oryza sativa L.) production system within a country or region of a country. We developed a web-based decision support tool named Nutrient Manager for Rice (NMR), which used principles of SSNM to calculate fertilizer N, P, and K rates for individual fields based on a target yield set for each field. It also used expected growth duration of the rice variety, crop establishment method, and age of transplanted seedlings to calculate days after rice establishment for each of three applications of fertilizer N. NMR enabled P rates to match estimated removal of P with harvested grain and crop residue for the target yield set for each field. We compared field-specific fertilizer recommendations from NMR with uniform application of fertilizer provided by an existing blanket fertilizer recommendation for irrigated inbred rice (BFR) and farmer’s fertilizer practices (FFP) in on-farm trials conducted in 74 irrigated rice fields across three growing seasons in the Cauvery Delta, Tamil Nadu, India. Grain yield was 0.6–0.7 Mg ha−1 higher (P ≤ 0.05) with NMR than FFP in two of the three seasons, even though total fertilizer cost was comparable or less with NMR. Yield was comparable for NMR and BFR, but NMR reduced fertilizer N and P rates and total fertilizer cost compared to BFR. Use of NMR rather than BFR also had less risk of financial loss for a farmer. The likelihood of financial loss with a switch from FFP to BFR averaged 31%. It reduced to 18% with a switch from FFP to NMR. NMR facilitated the calculation of field-specific fertilizer N, P, and K management practices, which increased fertilizer use efficiency without loss in rice yield compared to a recommended uniform fertilizer management across fields.

Determinants of satisfaction with campus transportation services: Implications for service quality

Background: In a number of countries, buses are a critical element of public transportation, providing the most inclusive and sustainable mode of transportation to all forms of citizenry, including staff and students of universities.Objectives: The study examines the determinants of satisfaction with campus bus transportation. The article is primarily discursive and based on the synthesis of existing service literature supported by data obtained from a survey of 847 respondents.Method: Structural equation modelling is undertaken using AMOS 19, allowing for the examination of compound relationships between service engagement variables.Results: Results show statistically significant differences between perceived service quality and travel routes. The authors argue that managerial attention to service user experiences does not only hold the key to ongoing competitive success in campus transportation services but also that those services can be significantly enriched through greater managerial attention to the interface between risk of financial loss (which increases when the campus bus transportation service provider becomes less able to compete) and service quality.Conclusion: The authors argue that if providers of campus bus transportation services are to rise to their service delivery challenges and also maintain or improve upon their market positions, they must conceptualise their services in a manner that takes into consideration the two-way interrelationship between risk of financial loss and service quality. It must also be noted that, although this study may have relevance for firm–firm scenarios, its focus is primarily on service supplier firm–customer service engagements.Keywords: Modelling; Transportation; Service

Risk Constrained Scheduling of Energy Storage for Load Serving Entities Considering Load and LMP Uncertainties

Abstract: With the substantial technique development, energy storage (ES) is becoming a promising resource to improve the flexibility and reliability of power system operation. Consequently, ES is obtaining increasing attention from both academia and industry. Due to the increasing fluctuation of locational marginal prices (LMP) as a result of the high penetration of variable wind generation, obtaining the deterministic scheduling decision for ES, i.e., charging/discharging, becomes more complex for load serving entities (LSEs). To address this challenge, a risk constrained scheduling model is proposed in which the objective is to maximize the LSE’s profit by optimially scheduling ES charging/discharging profile and considering the possible financial loss risk. Conditional value at risk (CVaR) term has been included in the objective function to negate the risk of associating the uncertainties from forecasting the market price and load. Numerical examples verify the proposed method in ES scheduling considering risk.

Developing an automated process of uploading immunoglobulin batch numbers to the UK National Immunoglobulin Database

ObjectivesTo develop a more efficient and robust process for entering patient-specific, immunoglobulin batch number data onto the UK National Immunoglobulin Database.MethodsA manual method of input, which relied on paper records,...

The value of risk reduction: new tools for an old problem

The relationship between willingness to pay (WTP) to reduce the probability of an adverse event and the degree of risk aversion is ambiguous. The ambiguity arises because paying for protection worsens the outcome in the event the adverse event occurs, which influences the expected marginal utility of wealth. Using the concept of downside risk aversion or prudence, we characterize the marginal WTP to reduce the probability of the adverse event as the product of WTP in the case of risk neutrality and an adjustment factor. For the univariate case (e.g., risk of financial loss), the adjustment factor depends on risk aversion and prudence with respect to wealth. For the bivariate case (e.g., risk of death or illness), the adjustment factor depends on risk aversion and cross-prudence in wealth.