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Author: Fehmi Tanrisever
Publisher:
ISBN:
Category :
Languages : en
Pages : 288
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Book Description
In today's marketplace, firms' exposure to business uncertainties and risks are continuously increasing as they strive to meet dynamically changing customer needs under intensifying competitive pressures. Consequently, modern supply chains are continuously evolving to effectively manage these uncertainties and the allied risks through both operational and financial hedging strategies. In practice, firms extensively use operational hedging strategies such as operational flexibility, capacity flexibility, postponement, multi-sourcing, supplier diversification, component commonality, substitutability, transshipments and holding excess stocks as operational means for risk management. On the other hand, financial hedging which involves buying and selling financial instruments, carrying large cash reserves or adopting conservative financial policies, changes the cash flow stream of the firms and may help to reduce the firms exposure to business risks and uncertainties. Overall, in this dissertation we explore how risk management can be integrated with operating decisions so as to improve the firm value creating more wealth for the shareholders. In the first essay, we focus on capacity flexibility as a means of operational hedging for risk management in an MTO production environment under demand uncertainty. We demonstrate that capacity flexibility may not only be used to hedge against the demand uncertainty, but may also be employed to effectively protect against possible suboptimal operating decisions in the future. In the second essay, we focus on operational hedging in financially constrained startup firms when making short-term production and long-term investment decisions. We provide an analytical characterization of the optimal investment and operating decisions and analyze the impact of market parameters on the operations of the firm. Our findings highlight an interesting operational hedging behavior between the process investment decisions and the short-term production commitments of the firm when they are faced with financial constraints. Our third essay focuses on the value of integrated financial risk management activities by publicly traded established firms under the risk of incurring financial distress cost. Different from the existing operations management literature, we study the risk management by a public corporation within the value framework of finance; hence our findings do not require any specific assumptions about the investors' utility functions. Moreover, we contribute to the operations management research by examining the impact of the costs of financial distress on hedging and operating plans of the firm. Overall, in this dissertation, we examine the effective integration of operational and financial risk management so as to improve the firm value creating more wealth for the shareholders.
Author: Fehmi Tanrisever
Publisher:
ISBN:
Category :
Languages : en
Pages : 288
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Book Description
In today's marketplace, firms' exposure to business uncertainties and risks are continuously increasing as they strive to meet dynamically changing customer needs under intensifying competitive pressures. Consequently, modern supply chains are continuously evolving to effectively manage these uncertainties and the allied risks through both operational and financial hedging strategies. In practice, firms extensively use operational hedging strategies such as operational flexibility, capacity flexibility, postponement, multi-sourcing, supplier diversification, component commonality, substitutability, transshipments and holding excess stocks as operational means for risk management. On the other hand, financial hedging which involves buying and selling financial instruments, carrying large cash reserves or adopting conservative financial policies, changes the cash flow stream of the firms and may help to reduce the firms exposure to business risks and uncertainties. Overall, in this dissertation we explore how risk management can be integrated with operating decisions so as to improve the firm value creating more wealth for the shareholders. In the first essay, we focus on capacity flexibility as a means of operational hedging for risk management in an MTO production environment under demand uncertainty. We demonstrate that capacity flexibility may not only be used to hedge against the demand uncertainty, but may also be employed to effectively protect against possible suboptimal operating decisions in the future. In the second essay, we focus on operational hedging in financially constrained startup firms when making short-term production and long-term investment decisions. We provide an analytical characterization of the optimal investment and operating decisions and analyze the impact of market parameters on the operations of the firm. Our findings highlight an interesting operational hedging behavior between the process investment decisions and the short-term production commitments of the firm when they are faced with financial constraints. Our third essay focuses on the value of integrated financial risk management activities by publicly traded established firms under the risk of incurring financial distress cost. Different from the existing operations management literature, we study the risk management by a public corporation within the value framework of finance; hence our findings do not require any specific assumptions about the investors' utility functions. Moreover, we contribute to the operations management research by examining the impact of the costs of financial distress on hedging and operating plans of the firm. Overall, in this dissertation, we examine the effective integration of operational and financial risk management so as to improve the firm value creating more wealth for the shareholders.
Author: Giampiero Beroggi
Publisher: Springer Science & Business Media
ISBN: 146155747X
Category : Business & Economics
Languages : en
Pages : 220
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Book Description
Advanced communications and information technologies provide the basis for operational risk management. In order to support managers in real-time risk assessment and decision-making, the advanced technologies must be complemented by an appropriate reasoning logic. This book presents such a reasoning logic for operational risk management. Chapter 1 discusses the need for operational risk management and the feasibility of its use based upon advances in sensing, mobile communications, and satellite positioning technologies. Chapter II presents a reasoning logic for operational risk management that capitalizes upon these developments. Chapter III illustrates the integration of the reasoning logic in hypermedia, multimedia, and virtual reality systems, coupled with the capabilities provided by the Internet. Chapters IV-VI illustrate the realism of operational risk management for hazardous material transportation, emergency response, air raid command, and emergency response at a nuclear power generation facility. The book closes with an experimental assessment of the logic and associated decision aids in Chapter VII. Audience: Researchers, who will find the most recent advances in operational risk management with experimental assessments. Practitioners, who are provided with a detailed description of operational risk management and the latest advances in information and communications technologies to implement this new approach for managing risks in operational settings, such as transportation of hazardous materials and emergency response. Students, who will learn the basic concepts in theory and practice of building models for decision and risk analysis, and embedding them into commercial software as decision support systems.
Author: Preetam Basu
Publisher:
ISBN:
Category : Electronic dissertations
Languages : en
Pages :
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Book Description
Successful implementation of business strategy requires proper integration of operations and financial management. This dissertation is aimed at applying optimization techniques to solve real-life problems that are at the interface of operations and working capital management. The first essay focuses on different outsourcing arrangements for back-office operations between a financial services firm and an outsourcing vendor. To meet dynamic and stochastic demand requirements, the financial services firm complements in-house operations with outsourcing. The second essay analyzes inventory and advertising policies of a start-up firm. Risk exposure is a critical aspect in start-up operations. It is imperative for the management to have a perception of the risks involved in any decision they plan to implement. We develop a heuristic that provides us a mechanism to construct efficient risk-reward curves in a stochastic dynamic setting. Important managerial insights are deduced based on the risk-reward for a set of policies. The third essay explores the emerging field of Supply Chain Finance (SCF). The physical side of supply chains has been a subject of much research. However, when it comes to their trade operations, the goals of the buyer and their suppliers, in many cases, are not aligned. This leads to suboptimal decisions for the supply chain as a whole. Recently financial intermediaries have come up with innovative trade solutions that are providing financial win-wins for all the supply chain partners. Here we examine the payables management problem of a buying firm in a supply chain scenario with SCF enabled Early Payment Program in place. Finally, the fourth essay studies risk-reward trade-offs in finite-horizon stochastic dynamic programming models. The objective in these models is to deduce optimal policies based on expected reward criteria. However, in many cases, managers are concerned about the risks or the variability associated with a set of policies and not just the expected reward. Here we develop heuristics that systematically track the variance and the average reward for a set of policies in a stochastic dynamic setting, and instead of identifying one policy to achieve the stated objective, finds the set of policies that form the efficient frontier.
Author: Michael Power
Publisher: Oxford University Press
ISBN: 0198753225
Category : Business & Economics
Languages : en
Pages : 322
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Book Description
This collection of essays deals with the situated management of risk in a wide variety of organizational settings - aviation, mental health, railway project management, energy, toy manufacture, financial services, chemicals regulation, and NGOs. Each chapter connects the analysis of risk studies with critical themes in organization studies more generally based on access to, and observations of, actors in the field. The emphasis in these contributions is upon the variety of ways in which organizational actors, in combination with a range of material technologies and artefacts, such as safety reporting systems, risk maps and key risk indicators, accomplish and make sense of the normal work of managing risk - riskwork. In contrast to a preoccupation with disasters and accidents after the event, the volume as whole is focused on the situationally specific character of routine risk management work. It emerges that this riskwork is highly varied, entangled with material artefacts which represent and construct risks and, importantly, is not confined to formal risk management departments or personnel. Each chapter suggest that the distributed nature of this riskwork lives uneasily with formalized risk management protocols and accountability requirements. In addition, riskwork as an organizational process makes contested issues of identity and values readily visible. These 'back stage/back office' encounters with risk are revealed as being as much emotional as they are rationally calculative. Overall, the collection combines constructivist sensibilities about risk objects with a micro-sociological orientation to the study of organizations.
Author: Antonio Borghesi
Publisher: Springer Science & Business Media
ISBN: 8847025311
Category : Business & Economics
Languages : en
Pages : 139
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Book Description
The increasingly risky environment in which companies operate is characterized by a rising number of risk components, factors, sources, and drivers. The identification, evaluation, and management of these risks require the capability to coordinate various skills within a company and in upstream and downstream relationships. This handbook provides an integrated approach to the assessment, transfer, and communication of critical risks and highlights emerging methodologies that can help to protect businesses from adverse events and their effects. It explains how different risk management perspectives should be combined, and in particular how the corporate governance vision should be integrated with the perspectives of operations management, financial management, and business continuity management. In this sense the handbook provides concrete directions on how to develop a risk management team and culture, taking into account business challenges and employing appropriate managerial tools.
Author: Bloomsbury Publishing
Publisher: A&C Black
ISBN: 1849300267
Category : Business & Economics
Languages : en
Pages : 242
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Book Description
Approaches to Enterprise Risk Management is a multi-author book written by leading experts in the field of risk management including Aswath Damodoran, John C. Groth and David Shimko. It is a valuable tool that enables you to assess the potential business threats, both from within your organization and from external sources. It comprises over 25 chapters covering the range of risks your organization might face including financial, strategic, operational risks. It offers you over 20 practical step-by-step guides on the required steps to cope with any detrimental event that could impact on your company's financial health. There are also a range of checklists including Balancing Hedging Objectives with Accounting Rules (FAS 133) , Creating a Risk Register, What Is Forensic Auditing? And Managing and Auditing the Risk of Business Interruption, Captive Insurance Companies: How to Reduce Your Costs, Hedging Credit Risk-Case Studies and Strategies.
Author: Preetam Basu
Publisher:
ISBN:
Category :
Languages : en
Pages : 296
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Book Description
Author: Walter Baets
Publisher: World Scientific
ISBN: 9814544108
Category :
Languages : en
Pages : 338
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Book Description
A tendency exists in management theory and practice today to accept that our linear and deterministic ways of thinking about managerial problems create more problems than they solve. In the field of strategy studies, for instance, one can observe a growing interest in learning and organisational flexibility — IT gives importance to distributed cognition and adaptive systems. Management theorists are keenly observing developments surrounding complexity and chaos theory in science, and management researchers are attempting to apply emerging theories to managerial problems.Although there are still a limited number of applications in the managerial world, the Santa Fe Institute and the Los Alamos Center for Nonlinear Studies (both in the US) have been active for several years in closely related fields and, more important, adopt a multidisciplinary approach. Such applied research is seldom present in academic management journals. It seems, however, that the business community is interested in the implications of chaos and complexity for management as well as adopting a multidisciplinary approach to strategy and organisational change.This volume, constituting the proceedings of the Summer School on Managerial Complexity, held in Granada, Spain, on 11-25 July 1998, will benefit students and researchers in chaos and dynamical systems.
Author: Giampiero E. G. Beroggi
Publisher:
ISBN:
Category : Decision support systems
Languages : en
Pages : 207
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Book Description
Advanced communications and information technologies provide the basis for operational risk management. In order to support managers in real-time risk assessment and decision-making, the advanced technologies must be complemented by an appropriate reasoning logic. This book presents such a reasoning logic for operational risk management. Chapter 1 discusses the need for operational risk management and the feasibility of its use based upon advances in sensing, mobile communications, and satellite positioning technologies. Chapter II presents a reasoning logic for operational risk management that capitalizes upon these developments. Chapter III illustrates the integration of the reasoning logic in hypermedia, multimedia, and virtual reality systems, coupled with the capabilities provided by the Internet. Chapters IV-VI illustrate the realism of operational risk management for hazardous material transportation, emergency response, air raid command, and emergency response at a nuclear power generation facility. The book closes with an experimental assessment of the logic and associated decision aids in Chapter VII. Audience: Researchers, who will find the most recent advances in operational risk management with experimental assessments. Practitioners, who are provided with a detailed description of operational risk management and the latest advances in information and communications technologies to implement this new approach for managing risks in operational settings, such as transportation of hazardous materials and emergency response. Students, who will learn the basic concepts in theory and practice of building models for decision and risk analysis, and embedding them into commercial software as decision support systems.
Author: Christian Nitschke
Publisher: GRIN Verlag
ISBN: 363827764X
Category : Business & Economics
Languages : en
Pages : 22
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Book Description
Essay from the year 2003 in the subject Business economics - Investment and Finance, grade: 1,7 (A-), Stellenbosch Universitiy, language: English, abstract: The objective of an Integrated Risk Management System is to maximise shareholder value. Shareholder Value is mainly determined by t he Market Value (MV) which is the most aggregated measure for the value of a company. MV is influenced by future cash flows which are exposed by the risk of Exchange Rate changes. This risk can be hedged by using financial instruments such as derivatives or it can be minimized by applying operational hedging which involves strategic considerations like plant locations and sources of input. The business of the company assumed in this case consists of Export & Import trades to a variety of countries as well as of Equity Investments in Africa and Asia. An assessment of the countries and areas shows actual economical and political developments to evaluate the most efficient Risk Management decisions. By looking at the Direct Economical Exposure the extent by which the company is threatened by Exchange Rate changes is examined. Furthermore the Value at Risk approach and the Scenario method is explained and applied to draw a picture of the size and likelihood by what extent the enterprise is exposed to Financial Risks. It is suggested to use the Dynamic Hedging technique to overcome fluctuating cash flows. Another proposal is to apply Multi-Currency Accounting which supports the company to comply with regulatory standards and provide management information to efficiently control foreign business.
