Use Of Risk Management Techniques Research Articles

A Study on Behaviour of Arrivals and Prices of Cotton in Different Markets of Haryana

The goal of the current study was to examine the growth, seasonal variation, and volatility of cotton prices and arrivals in a few key cotton markets in Haryana. The monthly data on cotton arrivals and prices were gathered from 2005–2006 through to 2021–2022. The study employed the Compound Growth Rate, Moving Average technique, and Coeffi cient of Variation measure. The results revealed that cotton prices in the selected markets were found on the increasing side which ranged from 7.13 to 8.01. Among the three districts the maximum growth rate of cotton prices was recorded in Adampur (8.01%) followed by Uklana (7.95%) of Hisar district and minimum growth rate of cotton prices was recorded in Uchana (7.13%) of Jind district. Results of a seasonal analysis revealed that cotton arrivals in the targeted markets were higher during the peak period of months from October to January and showed decreasing trend during the subsequent months from February to May. (Lean period). The Coeffi cient of Fluctuation ranged from 1.11 to 20.97% in the selected cotton markets, demonstrating the presence of not signifi cantly increased volatility during the study period, although the intra-year prices in those markets remained nearly stable with less than 10% of variation. Through stock management and the use of risk management techniques like crop insurance, futures markets, etc., the increased volatility can be reduced. Farmers should sell their cotton in lean period to get better price of cotton.

Currency Risks in Foreign Trade as Challenges for Enterprises Management System in Poland and Ukraine

Purpose: The aim of the paper is to study the impact of currency risks on the activities of Ukrainian business entities as well as the necessity of the introduction of certain elements of the currency risk management system.Design/methodology/approach: Scientific methods used in the study are: systematic analysis of economic phenomena and com-parison (for assessment of foreign trade in Poland and Ukraine), systematization and generalization (for dividing the exchange risks into categories), sample survey and grouping (for research of companies’ reporting), analysis and synthesis (for identifying areas of cooperation of the Polish and Ukrainian business).Findings: Identified types of currency risks enabled to outline the zone of high currency risk in transactions of foreign trade, which requires the use of risk management techniques. Based on research of the companies’ reports the absence of mechanisms of currency risk management use in practice of Ukrainian business entities has been found as well as advisability of transferring experience of Polish companies has been proved.Research and practical limitations/implications: The practical significance of scientific results is substantiation of approach to currency risk management in companies and providing recommen-dations for the improvement of Ukrainian enterprises’ activities in terms of application of currency risk management. The coopera-tion of Polish and Ukrainian business is one of the areas of sharing experience.Originality/value: The estimation of the current status of foreign trade of Ukraine and Poland is given, on the basis of which the influence of exchange rate changes on the activity of enterprises has been substantiated. The experience of Poland in the field of currency risk management is considered to be reasonable for implementation in Ukrainian enterprises in order to develop per-formance indicators that will be comparable. On the basis of this, the directions of development of Polish and Ukrainian cooperation have been identified in regard to the development of business consortiums and formation of joint Polish-Ukrainian business incubators.Paper type: original research.

Towards a new Integrated Beach Management System: The Ecosystem-Based Management System for Beaches

Massive use of beaches has forced traditional management of these systems to focus on the service offer to users. Consequently, human activity and behavior prevailed over other biological and physical processes and functions. Mirroring this tendency, the use of Performance Awards (Blue Flag) and Environmental/Quality Management Systems (ISO 14001, EMAS, and Q of Quality) were popularized as standards of environmental quality. In parallel to this process, recent international coastal and marine policies have emphasized the need to develop sustainable strategies for implementing the principles of the Ecosystem Approach into management with the overarching goal to maintain ecosystem integrity while enabling the sustainable use of ecosystem goods and services in systems under management. As Performance Awards and Environmental/Quality Management Systems do not follow the Ecosystem Approach, an Ecosystem-Based Management System for beaches (EBMS-Beaches) is introduced to overcome this issue. The EBMS-Beaches is intended as a formal standard framework that add new aspects not considered in a classical beach management process by the introduction of the principles of the Ecosystem Approach, between them: a) a clear vision-driven process; b) a holistic approach from a geographical perspective; c) pressure analysis and institutional coordination inside clear participatory planning; d) use of risk management techniques in planning; e) the ecosystem service concept as the central piece of the system; f) use of the DPSWR as accountable framework of indicators, g) desired vision based on state indicators and using BQI partial indices; and h) timely participation by local population. The EBMS is structured along three pillars (managerial, informative and participatory pillars) working in an adaptive management way. Based on these three pillars, existing management practices can be standardized into a viable, systematic means of implementing, in an integrated way, the new international policies for beach social-ecological systems. An initial experience of EBMS implementation in a particular beach (S'Abanell beach, Girona-Catalonia, Northwestern Mediterranean) has been initiated and it is presented.

The impact of risk on the financial performance of small medium enterprises in the construction industry in Eastern Cape, South Africa

Risk management has become the driving force for business success due to the everchanging business environment. The purpose of this study is to investigate the impact of the level of awareness and use of risk management techniques on the financial performance. The data was collected from 82 of Small Medium Enterprises (SMEs) owners/managers in the construction industry in Eastern Cape, South Africa. The results show that the level of awareness and use of risk management techniques have a significant impact on the financial performance of SMEs in the construction industry. The study recommends that the government, tertiary institutions, construction industry development board, and SME owners or managers in the construction industry should work together in improving the level of awareness and use of risk management techniques.

Optimisation of the mine closure process

The excitement and fanfare that surrounds the opening of a new mine is never present when it finally closes. Closure may be planned but most commonly, it is premature, occurring before ore (or coal) reserves are exhausted. The reasons why mines close are diverse and include economic, geological, geotechnical, regulatory, community and other pressures. Premature and planned mine closures can result in significant adverse impacts on the environment and community and need to be managed appropriately. The use of risk management techniques can help reduce these impacts. The closure risk model has significant potential as a tool for decision-makers to assess the major closure risks at individual mine sites in a structured, systematic manner both qualitatively and quantitatively. This, in turn, facilitates comparisons between the closure issues at a single site as well as between different mines. A team-based approach is essential to ensure that all of the risks are incorporated, and the use of an external facilitator, as is standard practice in risk assessments, helps to reduce subjective bias. The importance of community engagement during operation and the inevitable mine closure phases cannot be overstated. If ignored, an optimal closure outcome will not be achieved. The consequences of a poor consultation strategy are potentially severe in terms of community impacts. Mining companies that get it right will benefit from the support they receive from employees, landholders, local and state governments, and other stakeholders. Other benefits include significant cost savings and a competitive advantage for future exploration/mining activities. Even though closure issues are unique from mine-to-mine, it is possible to develop a series of principles to assist the company, government and community involved in the closure process to ensure maximum benefit for all parties involved.

TERRORISM, ENGINEERING AND THE ENVIRONMENT: THEIR INTERRELATIONSHIPS

The study of countering terrorism came to the fore following the terrorist attacks of 11 September 2001 in New York. The study has taken many paths. These include looking at the sociology/psychology of the terrorist or terrorist group, the understanding of terrorist organisations, the use of risk management techniques to identify targets that may be of interests to terrorists, the design of security infrastructure to counter or ward off terrorism and the consideration of how built infrastructure/environment may be strengthened to mitigate the effects of terrorism.

Governmental management of chemical risk: regulatory processes for environmental health

Well-documented, organized and written for ready comprehension, this new book covers managerial, legal and financial strategies that are or can be employed to manage the health risks posed by technology. It demonstrates how each strategy is used and which ones are more valuable to decision-makers in different situations. More than a dozen laws are reviewed through the legislative process, providing a clear understanding of governmental processes for risk management. Non-regulatory and regulatory approaches to risk management are covered from both a theoretical and practical perspective. New financial instruments that reduce or prevent consequences of chemical risks are examined. Serves a dual purpose: GOVERNMENTAL MANAGEMENT of CHEMICAL RISK first provides a comprehensive coverage of components of risk management; second, it analyzes, through case studies, emerging patterns of use of risk management techniques to determine what makes a success or failure. This book deals with:

The use of PC-based risk management software in the process industries

Abstract The use of Risk Management techniques by the Chemical Process Industries (CPI) is growing, largely in response to new regulations that are directed at reducing the risk to the public caused by releases of hazardous chemicals. The purpose of this paper is to show how the use of risk management techniques in the CPI will be enhanced if software that is designed to meet the needs of the industry is developed and marketed. This involves addressing the following specific issues. 1. • Hazard and Operability Studies (HAZOP) have developed into a widespread and standard method of improving safety in the CPI. New risk management initiatives in the CPI need to understand the reason for the success of the HAZOP method, and to ensure that it is included in the overall software package. 2. • The nuclear Power Industry and CPI are similar to one another in many ways. It is natural to take the successful Probabilistic Risk Assessment (PRA) software techniques that are used in the nuclear industry and to apply them to the CPI. However, in order to do so successfully, the differences as well as the similarities between the two industries need to be fully examined and understood. 3. • Although engineers working in the CPI have a strong, practical training in safety, their training in formal risk management is usually quite limited, indeed it is often non-existent. For example, until recently, very few chemical engineering courses included a section on risk management.

1. The Use of Risk Management to Provide Cost‐effective Water Supplies

ABSTRACTMajor benefits can be derived from the comprehensive use of risk management techniques in water supply distribution management.The paper identifies particular areas where financial benefits can be gained and examines savings, risks, and consequences of failure of critical supply links, recommending contingency planning to minimize the impact of occasional failures.Better management of service reservoirs is identified as a key element in improved management and methods of realizing savings are illustrated. Suggestions are made on how the inherent robustness of the distribution system can be exploited to meet high diurnal and seasonal peaks.Emphasis is placed on the value to be derived from sensible use of network analysis simulation and the control of pressure in the distribution system.

Managing the Risks of International Agreement

Treaties and other international agreements are the principal means by which nations resolve their differences and arrange to cooperate with each other. But such agreements frequently involve uncertainty and risks — in particular, risks that the agreement may turn out to be less desirable or more costly than expected or that the other participant or participants may not carry out their side of the bargain. Unless diplomats and lawyers negotiating international agreements can find ways to design their proposed agreements so as to meet these concerns, negotiations may fail and the potential benefits of cooperation may be lost. The premise of this book, written by a former attorney in the Office of the Legal Adviser of the U.S. Department of State, is that nations can overcome the obstacles that risks pose for cooperation through more effective treaty design and the appropriate use of risk management techniques. This book suggests a framework for analyzing the risks of international agreement and discusses a broad array of timeless techniques and treaty design strategies that can help states to manage such risks and achieve mutually advantageous cooperation.The author first examines the nature and importance of international agreements, the different kinds of risks such agreements pose, and the broad options open to nations in dealing with problems of risk. He then turns to a detailed classification and analysis of various kinds of risk management and compliance-enhancing devices, including tacit and other nonbinding arrangements, deliberate ambiguity, third-party dispute settlement, waiver and withdrawal provisions, reservations, verification (including surveillance and inspection), order of performance, sanctions, escrow, hostage devices, and third-party guarantees. The author gives real-world examples of the various techniques and discusses their advantages and disadvantages. In conclusion, he points out limits of risk management techniques, discusses the relevance of attitudes of trust and distrust to problems of risk management, suggests ways in which risk management techniques can be made more effective, and emphasizes the need for further research and analysis — particularly empirical research — if we are to more fully understand these problems and help nations cooperate. An Appendix presents a checklist of the risk management techniques discussed.

Risk Management Practices: A Critical Diagnosis of Some Selected Commercial Banks in Bangladesh

The paper is about risk management practices of commercial banks in Bangladesh based on five commercial banks operating in Bangladesh. The number of respondents was 25, five from each bank. While collecting the requisite data, five points Likert Scale has been used. The objective of the study was to critically examine risk management practices of Bangladeshi banks i.e., types of risk facing a bank, procedure and techniques used to minimize the risk etc. The study also examines how far the banks follow the guidelines of Bangladesh Bank regarding risk management. The study reveals that credit risk, market risk and operational risk are the major risks to the bankers which are managed through three layers of management system. The Board of Directors performs the responsibility of the main risk oversight, the Executive Committee monitors risk and the Audit Committee oversees all the activities of banking operations. In the context of opinions regarding use of risk management techniques, it is found that internal rating system and risk adjusted rate of return on capital are relatively more important techniques used by banks. Key Words: Risk; Risk Management; Risk Management Techniques; Banking.DOI: http://dx.doi.org/10.3329/jbt.v6i1.9992 Journal of Technology (Dhaka) Vol. 6(1), January-June, 2011 15-35