Top Research Papers on Risk Management

Risk management is nothing new, despite the increased attention given to the subject over the past decade or two. For well over one hundred years farmers have engaged in risk management, hedging their risks against price fluctuations in commodity markets. Unlike a family farmer, however, a corporation is owned by shareholders, who can, if they so wish, greatly reduce or eliminate the risk of low prices simply by holding a diversified portfolio. ; Why, then, are managers doing for shareholders what shareholders apparently can do for themselves? This article provides a review of the rationales c...

Risk managers are playing a more prominent role in hospitals and regulatory mandates and quality and liability concerns are prompting an increase in their numbers and an elevation in their positions.

Methods to predict insurance risk must be retooled to prevent "cream skimming" discrimination against the sick, reduce stinting (undercare), and reward quality providers.

This paper will examine the issues in greater detail, explaining the existing problem and proposing a software system that addresses them, and the actual design and operation of ARMISTICE (Advanced Risk Management Information System: Tracking Insurances, Claims and Exposures), a successful RMIS case study.

The literature suggests that short-sellers mitigate the risk of large losses through the use of stop losses. This predictable behaviour exposes short-sellers to predatory trading risk. This paper examines a strategy of predatory trading against short-sellers and finds that positive abnormal returns can be earned by anticipating such short-covering.

Three major health policies in England are examined, the Health of the Nation strategy, community care and the Patient's Charter, demonstrating that effective risk assessment and risk management is an important component of each initiative.

The effective management of credit risk is a critical component of a comprehensive approach to RM and essential to the long-term success of any organisation.

The modern medical community appears to accept iatrogenesis as a fact of life, and to work diligently to manage the risks of its own risk management measures.

This article discusses the differences between risk management and enterprise risk management. Though the concept of risk management is very old, almost as old as the beginning of human existence the concept of ERM is new around two decades old. The importance of enterprise risk management increased over the period of time due to various crises and the emergence risk based capital in the banking and insurance industry. The article discusses the various factors necessary for the success of enterprise risk management.

This research book gives information about identification of risk factors and perceptions of Indian construction practitioners. i.e., Contractors, Owners, Project Managers and Engineers on the importance of different construction risks and how the risks should be assigned between the different parties of the contract. As the very common project styles, construction projects have so many characteristics likewise time limitation, specific items, financial restrictions and requirements, extraordinary structural and legal situations, complexity features. For this situation, every construction proj...

Statistically, it is common knowledge that flying is less dangerous than driving a car. But have you ever thought why people behave as if the opposite is true? Why is it safer on the roads now than when cars were first invented? And why did the government feel that killing so many cattle in the wake of the crisis surrounding bovine spongiform encephalopathy was justified? Risk is something that plays a part in everyone's life. Calculations about risk are …

The number and magnitude of computer controlled system consequences seems to be rising, and thus the risks seem to be going up at an alarming rate.

This series is designed to make available to a wider readership selected studies drawing on the work of the OECD’s Network on Fiscal Relations across Levels of Government. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language (English or French) with a short summary available in the other.

To study the impact of counter-party default risk of forward contracts on a firm’s production and hedging decisions, I use a model of a risk-averse competitive firm under price uncertainty. I find that if expected profits from forward contracts are zero, the hedge ratio is not affected by default risk under general preferences and general price distributions. My analysis shows that if the size of a firm’s forward position does not affect the counter-party’s default probability, default risk is no reason to reduce hedge ratios. However, a firm’s optimal output is negatively affected by default ...

Mankind has entered a risky society.However,most of the risks faced by mankind are made by the people in the central area.Since the structure of the industrial society is a center-edge one,the people in the center producing the risks also have the power of risk allocation,always dispatching them successfully,and making those in the fringes take more risks.In order to change this situation,it is necessary to break the center-edge structure,so that people can work together in dealing with the risks.

Over the past two decades, risk in education has stimulated increasing attention and prominence, with principals bearing responsibility and liability for ‘managing’ risk in schools. As a consequence, compulsory risk compliance régimes have become increasingly complex, technical and time-consuming. This article focuses on the responses of principals to issues surrounding ‘risk’ and suggests that some risk processes themselves may be inherently risky. Principals fear that risk management régimes can incur professional and personal danger while ignoring some commonly known, politically sensitive,...

A s has been highlighted in this and other research-focused publications, one trendy phrase making rounds for the last several years within the clinical research enterprise is “risk management,” which has of late been tied to the even hotter topic and practice of risk-based monitoring (RBM).

This paper is about project risk management. In the project environment, risk management is an effective and prevailing method to deal with project uncertainties. However, it is far from being a panacea. Worse, risk management is filled with pitfalls that we must be aware of and avoid. Otherwise, the process won't help much, on the contrary, significant waste of resources and opportunities could result. Categorically there are three types of risks that we normally face in a project. The first two types of risks are known unknowns. Once they are identified, they can be managed. The third kind i...

Risk exists whenever the future is unknown. This paper deals with the concepts of risk and uncertainty, risk attitudes and reaction to risk. It is explained the distinction between objective risk and subjective risk. Also, it presents risk attitudes and factors affecting them and the economic costs of risk: costs of unexpected losses and costs of uncertainty.

Professor Karen Starr, Foundation Chair, School Development and Leadership at Deakin University, recently spoke with Principals about risk management in schools. She argues for more open dialogue in schools to expose the full range of risks they face.

Basics of Environmental Science - ScienceSchool - Graduiertenschule fur Klima und Umwelt (GRACE)

Charles Dickens famously begins his A Tale of Two Cities with the lines, “It was the best of times, it was the worst of times . . . .”1 These lines might be applied with equal force to the large American law firm’s experience over the last two decades. Until the recent economic downturn that is the inspiration for the present symposium, law firm profits soared and elite lawyer ranks swelled.2 Yet, all has not been well in the glass towers of the mighty. A series of ethical scandals ensnared the best and the brightest, from Kaye Scholer in 1992,3 to Milbank Tweed in 1997,4 to those representing...

Risk and risk management with a patrimonial approach is introduced and it is shown how useful derivatives could be used.

Operational risk can build a case to support key initiatives required to position an organisation for the next growth cycle.

This paper draws on work by the author as part of a team undertaking an ARC Discovery project entitled: The Impact of Risk Management on Doctoral Research Policy and Pedagogy in Australian Universities. The team is Erica McWilliam, Peter Taylor, Terry Evans and Alan Lawson, with Eluned Lloyd and Karen Tregenza. Some of the ideas in this paper reflect our discussions, reading and other work as part of this project. Arguably, part of any manager’s work involves the identification and assessment of risks and then working to minimise or manage them. However, never has this been more important than...

Market risk management has traditionally been limited to banks and large financial institutions. However, market risk is also inherent in non-financial institutions.

Large fires pose risks to a number of important values, including the ecology, property and the lives of incident responders. A relatively unstudied aspect of fire management is the risks to which incident managers are exposed due to organizational and sociopolitical factors that put them in a position of, for example, potential liability or degradation of their image as a leader. This paper explores the hypothesis that the concept of risk in large fire management extends beyond the potential for physical harm and includes perceived potential damages in the form of social harm that can accrue ...

As with all risk management frameworks, effective risk management within a corporate group requires effective information flow between parent and subsidiary entities. As corporate groups become more complex, the challenge for parent companies is to foster a risk management culture which encourages information to flow across the gap, allowing risk issues to be identified early on and dealt with quickly and consistently.

ABSTRACT: Although the transferring of a firm's pure risk historically has been conducted through the insurance and reinsurance markets, risk managers of large corporations are reportedly becoming more sophisticated with regard to their risk financing strategies. This increased sophistication has come in the form of greater use of techniques such as captives, finite risk insurance, financial reinsurance, and risk retention groups. The purpose of this study is to assess the characteristics and extent of integrated risk management. Using survey data, we evaluate several aspects of risk managemen...

This brief provides a whole-systems perspective on two key elements of decision-making at regulatory agencies: risk and ethics. Risk management and ethics intersect in a number of ways but these intersections are not always obvious or explicit. I will argue that both risk management and ethics programs often suffer from an inward-looking focus–a focus on the organization itself rather than a more complete perspective that includes the impact of the organization on the world. Such a narrow, inward-looking focus cannot be defended from a whole-systems perspective. To put it succinctly, the ethic...

The expected utility approach to decision making advocates a probability vision of the world and labels any deviation from it ‘irrational’. This paper reconsiders the rationality argument and argues that calculating risks is not a viable strategy in an uncertain world. Alternative strategies not only can save considerable cognitive and computational resources, but are more ‘rational’ with view to the restricted definition of rationality applied by expected utility theorists. The alternative decision making model of risk management is presented and explained.

In this paper different risk management processes will be studied and their evaluation against the IEEE standard for risk management will be presented to highlight their strengths and weaknesses.

Two tools described here are a Showstopper Risks List and a Risk and Response Map that provide the tools for imbedding the discussion of Risk into the way an organization does business.

The Personal Property Securities Register presents lawyers with significant risks, even as it provides better protection for clients whose interests are registered.

In the new South African business landscape, emerging regulatory and good practice requirements are seeking to ensure that businesses' surface risk more explicitly than has been the case so far. Risk optimisation generally - and somewhat erroneously - has been perceived as a compliance issue. It is now starting to emerge as more than that - it is a survival issue.

Importance of risk exposure and risk management practices have attracted the attention of companies, investors, and all other parties who benefit from performances of companies. Competitive environment and global effects force the companies to pay attention to manage their risks. Therefore, governmental bodies and international associations embarked on researches in risk management and as a result of these efforts regulations have been put in place. Germany, USA, and UK are the leading countries that made significant progress in risk management field by enacting laws, regulations, and issuing ...

Operational risk is defined as a consequence of critical contingencies most of which are quantitative in nature and many questions regarding economic capital allocation for operational risk continue to be open. Existing quantitative models that compute the value at risk for market and credit risk do not take into account operational risk. They also make various assumptions about ’normality’ and so exclude extreme and rare events. In this paper we formalize the definition of operational risk and apply extreme value theory for the purpose of calculating the economic capital requirement against u...

We survey and analyze risk management goals, policies, and perceptions of risk managers in businesses and organizations around the world. With more than 1,100 responses and a global scope, we ask specific questions about risk management behavior in six risk areas: interest rate, foreign exchange, commodity, energy, credit, and geopolitical risk. We question risk managers about their firm's exposures to these risks areas as well as their financial and operational methods used to in risk management. In addition, we pose specific questions about the interaction between risk management and the fir...

The management of risk factors requires three key elements: a common terminology for risk, in a continuous and future-oriented process of identification, research and measurement of risks and opportunities, and finally managers skilled in risk management and responsible for coordinating and continuously implement the risk strategy with pre-established risk objectives. These elements are applied consistently within the company. The work will focus on the current view of corporate risk and risk management. Finally we will focus on enterprise-wide risk management.

Aiming at project cost risk management, cost risk management is divided into compensatory risk management and punitive risk management. Compensatory risk management is a positive interaction, but punitive risk management tends to lead to differences and disputes. Punitive risk management is decided by the dominance in the bidding and contracting process, and punitive risks can become compensatory risks. The partition of compensatory risk management and punitive risk management contributes to the positive interaction of cost management.

Using a systematic review of the last 55 years of research within risk management this paper explores how risk management as a management technology (methodologies, tools and frameworks to mitigate or manage risks) singles out risks as an object for management in order to make action possible. The paper synthesise by developing a framework of how different views on risk management enable and constrain the knowledge about risk and thus frame the possibilities to measure, analyse and calculate uncertainty and risk. Inspired by social studies of finance and accounting, the paper finally develops ...

By using credit risk tools, banks, lending firms and other financial institutions can protect themselves against defaults.

The MARA Rising Risk model arose from the need for a more precise method to proactively identify individuals for early intervention and care management that promotes appropriate and efficient use of limited resources.

The purpose of this essay is to explore the normative implications of risk management practices for lawyers, law firms, and professional regulation. The thesis of the essay is that the widespread adoption of risk management mechanisms (e.g., in house advisors and internal controls, outside consultants and external audits, conflicts of interest protocols and continuing legal education training) actually diminishes the appreciation of the moral choices facing lawyers in practice and the other-regarding obligations of lawyers in society. Indeed, the technology of risk assessment and regulation, i...

Versicherung spielt fur Unternehmen eine wichtige Rolle. Teilweise ist es fur Unternehmer uberhaupt erst moglich, Risiken einzugehen, weil sie Risiken an Versicherungsunternehmen transferieren konnen. Aus wissenschaftlicher Sicht ist Versicherungsnachfrage in die Entscheidungstheorie unter Unsicherheit einzuordnen und die individuelle Versicherungsnachfrage von Personen ist mittlerweile weit reichend erforscht. Diese Ansatze sind allerdings nicht einfach auf die unternehmerische Versicherungsnachfrage ubertragbar, sodass die okonomischen Theorien in diesem Bereich der okonomischen Realitat hin...

textabstractThis article demonstrates that systematic biases occur in (near-)accident reporting. This conclusion is based on a quantitative document analysis of 208 reports recently written by employees of an industrial company. The effectiveness of accident reporting, as an instrument for risk management, is hampered because employees take the relationship with their colleagues into account when reporting. The way of reporting proves to vary with the horizontal and vertical relational distance of the reporting employee to the person who is held responsible for the reported event. These find...

Email has not just revolutionized the way the authors communicate, it has transformed the way business today and added a significant layer of security risk, but most corporations lack policies to help mitigate the potentially costly problems of unmanaged email.

The management of sustainability risks is being adopted by leading organisations as a methodology for developing a value-driven approach.

Any project entails risk factors that pose a potential threat to the successful implementation. Attempts must be made to pre-empt potential issues through good risk management.

The goal of the study is to analyze the gynecological system in Maccabi HMO in the aspect of risk management and to define points for improving patient safety and minimalization of the risk of lawsuits.