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Author: Serge Darolles
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
Is it really possible to control for the downside risk when the market environment is in constant evolution? If so, what would be the long-term growth prospects of such a strategy? We show in this article that when the dynamics of the variance and correlation terms are properly taken into account, downside risk can be mitigated without compromising long-term growth prospects. But robustness checks suggest that these benefits only hold true for fast moving investors dealing with liquid instruments, as large and unforeseen events may necessitate swift and potentially major adjustments of the portfolio structure.
Author: Serge Darolles
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
Is it really possible to control for the downside risk when the market environment is in constant evolution? If so, what would be the long-term growth prospects of such a strategy? We show in this article that when the dynamics of the variance and correlation terms are properly taken into account, downside risk can be mitigated without compromising long-term growth prospects. But robustness checks suggest that these benefits only hold true for fast moving investors dealing with liquid instruments, as large and unforeseen events may necessitate swift and potentially major adjustments of the portfolio structure.
Author: Stephen Asbury
Publisher:
ISBN: 9781138168534
Category : Risk assessment
Languages : en
Pages : 0
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Book Description
How to effectively integrate and embed dynamic risk assessment into business management processes.
Author: Stephen Asbury
Publisher: Routledge
ISBN: 1317937562
Category : Business & Economics
Languages : en
Pages : 203
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Book Description
Dynamic Risk Assessment is the key tool to support a holistic risk management framework. This book aims to help employers, managers and staff alike to understand how they can effectively integrate dynamic risk assessment into business management processes and systems to improve safety. With tips, examples and solutions throughout, this multi-disciplinary text delivers an effective and comprehensive approach to help you to understand how dynamic risk assessment (DRA) can be integrated into predictive (PRA) and strategic risk assessments (SRA) to enhance your organization’s effectiveness. The 3-Level Risk Management Model fully supports and complements the systematic ‘five steps to risk assessment’ process A multi-disciplinary approach to dynamic risk assessment that covers workers operating in teams and those working alone within the public, private and third sectors Contains practical examples, tips and case studies drawn from a wide range of organizations The book comes with access to downloadable materials from an accompanying website at: www.routledge.com/cw/dynamic-risk-assessment
Author: Howard Kunreuther
Publisher: University of Pennsylvania Press
ISBN: 0812251326
Category : Political Science
Languages : en
Pages : 416
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Book Description
Whether man-made or naturally occurring, large-scale disasters can cause fatalities and injuries, devastate property and communities, savage the environment, impose significant financial burdens on individuals and firms, and test political leadership. Moreover, global challenges such as climate change and terrorism reveal the interdependent and interconnected nature of our current moment: what occurs in one nation or geographical region is likely to have effects across the globe. Our information age creates new and more integrated forms of communication that incur risks that are difficult to evaluate, let alone anticipate. All of this makes clear that innovative approaches to assessing and managing risk are urgently required. When catastrophic risk management was in its inception thirty years ago, scientists and engineers would provide estimates of the probability of specific types of accidents and their potential consequences. Economists would then propose risk management policies based on those experts' estimates with little thought as to how this data would be used by interested parties. Today, however, the disciplines of finance, geography, history, insurance, marketing, political science, sociology, and the decision sciences combine scientific knowledge on risk assessment with a better appreciation for the importance of improving individual and collective decision-making processes. The essays in this volume highlight past research, recent discoveries, and open questions written by leading thinkers in risk management and behavioral sciences. The Future of Risk Management provides scholars, businesses, civil servants, and the concerned public tools for making more informed decisions and developing long-term strategies for reducing future losses from potentially catastrophic events. Contributors: Mona Ahmadiani, Joshua D. Baker, W. J. Wouter Botzen, Cary Coglianese, Gregory Colson, Jeffrey Czajkowski, Nate Dieckmann, Robin Dillon, Baruch Fischhoff, Jeffrey A. Friedman, Robin Gregory, Robert W. Klein, Carolyn Kousky, Howard Kunreuther, Craig E. Landry, Barbara Mellers, Robert J. Meyer, Erwann Michel-Kerjan, Robert Muir-Wood, Mark Pauly, Lisa Robinson, Adam Rose, Paul J. H. Schoemaker, Paul Slovic, Phil Tetlock, Daniel Västfjäll, W. Kip Viscusi, Elke U. Weber, Richard Zeckhauser.
Author: National Research Council
Publisher: National Academies Press
ISBN: 0309181615
Category : Transportation
Languages : en
Pages : 102
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Book Description
Effective risk management is essential for the success of large projects built and operated by the Department of Energy (DOE), particularly for the one-of-a-kind projects that characterize much of its mission. To enhance DOE's risk management efforts, the department asked the NRC to prepare a summary of the most effective practices used by leading owner organizations. The study's primary objective was to provide DOE project managers with a basic understanding of both the project owner's risk management role and effective oversight of those risk management activities delegated to contractors.
Author: Rick Nason
Publisher: Business Expert Press
ISBN: 1631575422
Category : Business & Economics
Languages : en
Pages : 176
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Book Description
Risk management has become a key factor of successful organizations. Despite risk management's importance, outdated and inappropriate ideas about how to manage risk dominate. This book challenges existing paradigms of risk management and provides readers with new concepts and tools for the current dynamic risk management environment. The framework for the book is a series of questions that allows for an interesting and thought-provoking look at current ideas and forward-looking concepts. This book, intended for senior managers, directors, risk managers, students of risk management, and all others who need to be concerned about risk management and strategy, provides a solid base for not only understanding current best practice in risk management, but also the conceptual tools for exploiting emerging risk management technologies, metrics, regulations, and ideas. The central thesis is that risk management is a value-adding activity that all types of organizations, public, private as well as not-for-profit, can use for competitive advantage and maximum effectiveness.
Author: Brenda Babalwa Stacia Didi-Quvane
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In a fast-moving business environment open to global competition and with the proliferation of new technology, risk management is fundamental to doing business, especially considering the dynamic nature of the environment in which organisations now exist. Organisations are subject to constant change and therefore require the capabilities to quickly and successfully respond to aggressive competitors and navigate volatile markets. Risk management as a tool that supports organisations in their decision making is fundamental to the delivery of value-adding products, solutions and services through effective identification, assessment, monitoring and reporting of risks that may affect an organisation's ability to meet both their strategic and business objectives. The challenge faced by the risk management function operating in a dynamic and rapidly changing organisational environment is the capability to continuously innovate, evolve and transform its risk management processes to meet the needs of the organisation. Strong dynamic capabilities such as sensing, seizing, manage and transform are therefore required to foster agility and resilience within the risk management practices, supported by a foundation of risk management principles that promote business facilitation. In today's dynamic organisational environment, to prevent or reduce the likelihood of undesirable events from occurring or to decrease the severity of the consequences should an event occur, a dynamic risk management framework and principles should ideally be established. A dynamic risk management framework and principles enables an organisation to continuously sense and respond to risks (opportunity and threats), continuously transforming the risk management function to meet the dynamic risk management nature of the organisation. In this research a dynamic risk management framework has been developed considering the agility attributes (responsiveness, speed, potential and flexibility) as well as the dynamic capabilities (sense, seize, manage and transform). Dynamic risk management principles (integrate, internal and external context, business facilitation and inclusive) as the foundation of the framework have been defined; having a fundamental impact on the establishment of a dynamic risk management framework and processes within an organisation. The dynamic risk management framework developed enables an organisation to map the risk management processes (identify, assess, evaluate, monitor and report) to the organisation's dynamic capabilities and agility attributes that may assist in conducting dynamic risk management. The framework also assists in identifying characteristics of dynamic capabilities and factors influencing agility in the risk management process applied. Lastly, the dynamic risk management framework can be used to assess organisation's maturity in conducting dynamic risk management and understand the organisation's risk identification and mitigation capabilities by considering both dynamic capabilities and agility attributes.
Author: John R. S. Fraser
Publisher: John Wiley & Sons
ISBN: 0470499087
Category : Business & Economics
Languages : en
Pages : 600
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Book Description
Essential insights on the various aspects of enterprise risk management If you want to understand enterprise risk management from some of the leading academics and practitioners of this exciting new methodology, Enterprise Risk Management is the book for you. Through in-depth insights into what practitioners of this evolving business practice are actually doing as well as anticipating what needs to be taught on the topic, John Fraser and Betty Simkins have sought out the leading experts in this field to clearly explain what enterprise risk management is and how you can teach, learn, and implement these leading practices within the context of your business activities. In this book, the authors take a broad view of ERM, or what is called a holistic approach to ERM. Enterprise Risk Management introduces you to the wide range of concepts and techniques for managing risk in a holistic way that correctly identifies risks and prioritizes the appropriate responses. This invaluable guide offers a broad overview of the different types of techniques: the role of the board, risk tolerances, risk profiles, risk workshops, and allocation of resources, while focusing on the principles that determine business success. This comprehensive resource also provides a thorough introduction to enterprise risk management as it relates to credit, market, and operational risk, as well as the evolving requirements of the rating agencies and their importance to the overall risk management in a corporate setting. Filled with helpful tables and charts, Enterprise Risk Management offers a wealth of knowledge on the drivers, the techniques, the benefits, as well as the pitfalls to avoid, in successfully implementing enterprise risk management. Discusses the history of risk management and more recently developed enterprise risk management practices and how you can prudently implement these techniques within the context of your underlying business activities Provides coverage of topics such as the role of the chief risk officer, the use of anonymous voting technology, and risk indicators and their role in risk management Explores the culture and practices of enterprise risk management without getting bogged down by the mathematics surrounding the more conventional approaches to financial risk management This informative guide will help you unlock the incredible potential of enterprise risk management, which has been described as a proxy for good management.
Author: Frank Fehle
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We present and test an infinite-horizon, continuous-time model of a firm that can dynamically adjust the use of risk management instruments whose purpose is to reduce product price uncertainty thereby mitigating financial distress losses and reducing taxes. The dynamic setting relaxes several restrictive assumptions common to static models. In the model, 1) the firm can adjust its use and the hedge ratio and maturity of risk management instruments over time, 2) risk management instruments expire as time progresses and the available maturity of the risk management instruments is shorter than the life time of the firm, and 3) there are transaction costs associated with initiation and adjustment of risk management contracts. The model produces a number of new time-series and cross-sectional implications on how firms use short-term instruments to hedge long-term cash flow uncertainty. Numerical results describe the optimal timing, adjustment, and rolling-over of risk management instruments, and the choice of contract maturity and hedge ratio in response to changes in the firm's product price. The results show that the structure of transaction costs can have an important effect on the firm's risk management strategy. The model predicts that firms that are either far from financial distress or deep in financial distress neither initiate nor adjust their risk management instruments, while firms between the two extremes initiate and actively adjust and/or roll-over their risk management instruments. Using quarterly panel data on gold mining firms between 1993 and 1999, the paper finds evidence of a non-monotonic relation between measures of financial distress and risk management activity consistent with the model. We also provide evidence supportive of the model's predictions with respect to the maturity choice of risk management contracts.
Author: Torben Juul Andersen
Publisher: OUP Oxford
ISBN: 0191511676
Category : Business & Economics
Languages : en
Pages : 204
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Book Description
This book promotes good risk governance and risk management practices to corporate managers, executives, and directors wherever they operate around the world. The major corporate scandals have their roots in governance failure pointing to the link between risk governance and good performance outcomes. This topic is timely and of interest both to the academic community as well as to practicing managers, executives, and directors. The volume focuses on contemporary risk leadership issues based on recent research insights but avoids excessive technical language and mathematical formulas. The book is framed around the challenges imposed on executives and directors in dealing with an increasingly complex and unpredictable world. This requires a new risk leadership focus that not only avoids the downside risks but also considers ways to exploit the upside potential offered by a dynamic environment. The underlying logic is built on the principles of financial economics where benefits derive from reducing bankruptcy costs and increasing future cash inflows. This provides a stringent framework for analyzing the effect of different risk management actions and behaviors in effective risk-taking organizations. Hence, the book addresses the potential for upside gains as much as the threats of downside losses that represent the conventional risk perspectives. It states the simple fact that you must be willing to take risk to increase strategic responsiveness and corporate manoeuverability. The text builds the arguments in logical steps explicating relevant techniques and practices along the way that invite to immediate applications and practical thinking
