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1
Alghanmi, A. "Risk assessment and management of petroleum transportation systems operations." Thesis, Liverpool John Moores University, 2018. http://researchonline.ljmu.ac.uk/9160/.
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Petroleum Transportation Systems (PTSs) have a significant impact on the flow of crude oil within a Petroleum Supply Chain (PSC), due to the great demand on this natural product. Such systems are used for safe movement of crude and/or refined products from starting points (i.e. production sites or storage tanks), to their final destinations, via land or sea transportation. PTSs are vulnerable to several risks because they often operate in a dynamic environment. Due to this environment, many potential risks and uncertainties are involved. Not only having a direct effect on the product flow within PSC, PTSs accidents could also have severe consequences for the humans, businesses, and the environment. Therefore, safe operations of the key systems such as port, ship and pipeline, are vital for the success of PTSs. This research introduces an advanced approach to ensure safety of PTSs. This research proposes multiple network analysis, risk assessment, uncertainties treatment and decision making techniques for dealing with potential hazards and operational issues that are happening within the marine ports, ships, or pipeline transportation segments within one complete system. The main phases of the developed framework are formulated in six steps. In the first phase of the research, the hazards in PTSs operations that can lead to a crude oil spill are identified through conducting an extensive review of literature and experts’ knowledge. In the second phase, a Fuzzy Rule-Based Bayesian Reasoning (FRBBR) and Hugin software are applied in the new context of PTSs to assess and prioritise the local PTSs failures as one complete system. The third phase uses Analytic Hierarchy Process (AHP) in order to determine the weight of PTSs local factors. In the fourth phase, network analysis approach is used to measure the importance of petroleum ports, ships and pipelines systems globally within Petroleum Transportation Networks (PTNs). This approach can help decision makers to measure and detect the critical nodes (ports and transportation routes) within PTNs. The fifth phase uses an Evidential Reasoning (ER) approach and Intelligence Decision System (IDS) software, to assess hazards influencing on PTSs as one complete system. This research developed an advance risk-based framework applied ER approach due to its ability to combine the local/internal and global/external risk analysis results of the PTSs. To complete the cycle of this study, the best mitigating strategies are introduced and evaluated by incorporating VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) and AHP to rank the risk control options. The novelty of this framework provides decision makers with realistic and flexible results to ensure efficient and safe operations for PTSs.
2
Subramaniam, Kumaresan. "Human reliability assessment in oil tanker operations." Thesis, Liverpool John Moores University, 2010. http://researchonline.ljmu.ac.uk/5968/.
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This research is carried out to improve Human Reliability Analysis (HRA) in oil tanker operations in general, to extend and enhance in specific Cognitive Reliability and Error Analysis Method (CREAM), with the aim of reducing human error and thus subsequently preventing oil tanker spills. It is concentrated on oil tanker operations to address the limitation of availability of human reliability data in the maritime domain. The continual occurrence of oil tanker spills, which was substantiated with analysis of historical data of oil tanker incidents/accidents from 1970 to 2008, provides a judicious reason to conduct this research. The critical review of Formal Safety Assessment (FSA) and HRA results in the development of a conceptual framework of HRA facilitating FSA and incorporating Human Organisational Factors (HOF), which addresses the shortcomings of the generic HRA and FSA methodologies that exist independently in the management of oil tankers to prevent oil spills. The CREAM is reviewed due to its prominent use in identifying the root causes of human error. However, its inability of providing solutions to an incident/accident investigation and robust quantification of human reliability features stimulates the development of an advanced CREAM and a human reliability quantification model using a combined Analytic Hierarchical Process (AHP) and fuzzy logic approach in this research. In addition to facilitating identification of the root causes of human error, the advanced CREAM also provides the solutions to a quantification model, which enables the development of HRA data in the maritime domain. Furthermore, lack of CREAM studies on relationships among Common Performance Conditions (CPCs) is addressed by proposing a Decision Making Trial and Evaluation Laboratory (DEMATEL) model, which allows for a comprehensive understanding of relationships and interdependencies among the CPCs. The model could also be used toappreciate and assimilate the relationships and interdependencies among human factor variables involved in other transportation systems and industrial fields. Finally, the research is concluded with an integrated AHP and fuzzy Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS) model for determining the selection of an appropriate risk control option (RCO) while performing an incident/accident investigation by taking subjective judgments of decision makers into consideration. This research as a pioneer work in developing and applying advanced techniques to improve the generic CREAM in oil tanker operations establishes a foundation for future effort to improve the use of CREAM in other industries. The techniques developed can also be tailored to investigate and deal with an incident/accident effectively, resulting in the reduction of human error within the system management of any organisation.
3
Rodríguez, Pinhao Miessner Diego. "Production of AAV vectors for gene therapy : a cost-effectiveness and risk assessment." Thesis, Massachusetts Institute of Technology, 2016. http://hdl.handle.net/1721.1/104215.
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Thesis: S.M., Massachusetts Institute of Technology, Department of Chemical Engineering, 2016. In conjunction with the Leaders for Global Operations Program at MIT.<br>Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2016. In conjunction with the Leaders for Global Operations Program at MIT.<br>Cataloged from PDF version of thesis.<br>Includes bibliographical references (pages 51-56).<br>Gene therapy is a promising modality for the potential treatment of rare Mendelian diseases. To date a number of high profile proof-of-concept studies within the industry have demonstrated the significant disease-correcting promise of this therapeutic strategy. One of the major hurdles that remains for the commercialization of gene therapies is the lack of efficient manufacturing capabilities for the production of clinical-grade drug substance/drug product. The primary goals for this project were to decrease the biological contamination and cross-contamination risk associated with the biologic manufacturing process for viral gene therapy vectors and to adjust the process in order to optimize commercial profit. The project also included documenting the different existing processes for AAV production and developing a competitive analysis using information from ongoing clinical trials in the industry pipeline. The following process design steps were followed in order to fulfill the project objectives: (1) Define product specifications, analytical needs and market size, (2) Select production platform/process, (3) Collect data and create process flow diagram, (4) Perform material and energy balances, (5) Calculate costs: equipment and consumables, (6) Model the process in a spreadsheet, (7) Carry out sensitivity analyses, (8) Assess cost-effectiveness and risk, and (9) Develop recommendations. Five different AAV production platforms were identified and an AAV gene therapy landscape was generated. Also, the current process that Pfizer is planning to use was documented and an initial market sizing was performed. Finally, all the data necessary to model the process was collected and the cost-effectiveness and biological contamination and cross-contamination risk assessment were completed. This project confirmed that the use of a scalable line of single-use high cell density bioreactors for the production of AAV is cost-effective. This implies that sufficient AAV quantities can be manufactured for preclinical and clinical trials, using the process developed by Pfizer.<br>by Diego Rodríguez Pinhao Miessner.<br>S.M.<br>M.B.A.
4
Ung, Shuen-Tai. "The development of safety and security assessment techniques and their application to port operations." Thesis, Liverpool John Moores University, 2007. http://researchonline.ljmu.ac.uk/5831/.
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5
White, Seth Brian. "Emerging market entry and risk assessment process analysis in a biopharmaceutical supply chain organization." Thesis, Massachusetts Institute of Technology, 2013. http://hdl.handle.net/1721.1/81028.
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Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2013.<br>Cataloged from PDF version of thesis. Vita.<br>Includes bibliographical references (p. 69-70).<br>.Amgen is attempting to increase the impact that its products make in people's lives. To meet this goal, the company is aggressively working to reach more patients through growth opportunities in international markets and expects to significantly increase its existing footprint and product impact over the next several years. While the current market entry practices for emerging markets are meeting Amgen's needs, rapid expansion poses significant challenges. This thesis explores two primary aspects, the investigation of improvement opportunities in the commercialization of emerging markets and the development of a risk assessment model applicable to new market commercial entry. Both aspects relate to the larger problem of rapid international expansion and support its resolution in different forms. The assessment of improvement opportunities for emerging market commercialization strives to develop a tangible set of actions the organization can take forth in order to enhance the planning and execution of new market entry. The analysis is accomplished through an in depth study to determine the current level performance for commercial market entry. Based on the current state determination, a future vision is established which incorporates fundamental principles of operational excellence methodologies, integrating various techniques to develop a cohesive approach for improving current entry practices. An improvement roadmap is developed, detailing out specific actions, utilizing a phased implementation approach that allows for making incremental improvements. The risk assessment model establishes a tool the organization can utilize in order to properly identify risk associated with emerging market entry and enhance the decision making process that occurs at a senior leadership level as to whether or not a country should be entered. A scenario based evaluation methodology integrates cross-functional expertise across the organization assimilating information that is normally isolated to a small group within the company. The model determines risk levels for each scenario, generates a risk report and an output review is conducted with subject matter experts (SME) and functional leads. Scenarios that potentially require remediation are reviewed in a detailed risk assessment and resolved as necessary. Any substantial cost associated with control efforts are incorporated into the financial analysis for the target launch country, providing a better depiction of cost versus reward. Thus, the model increases the firm's ability to make agile risk-informed market entry decisions while providing a standardized method that is scalable cross-regionally.<br>by Seth Brian White.<br>S.M.<br>M.B.A.
6
Lee, Anne Lim. "Return on Investment of the CFTP Framework With and Without Risk Assessment." ScholarWorks, 2017. https://scholarworks.waldenu.edu/dissertations/3306.
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In recent years, numerous high tech companies have developed and used technology roadmaps when making their investment decisions. Jay Paap has proposed the Customer Focused Technology Planning (CFTP) framework to draw future technology roadmaps. However, the CFTP framework does not include risk assessment as a critical factor in decision making. The problem addressed in this quantitative study was that high tech companies are either losing money or getting a much smaller than expected return on investment when making technology investment decisions. The purpose of this research was to determine the relationship between returns on investment before and after adding risk assessment to the CFTP framework. Paap's CFTP framework and process to improve technology investments thus served as the theoretical framework for this study. Data were obtained from cloud computing companies using the companies' market risk data and actual returns on investment data. The results and findings of paired sample two-tailed t tests for means and equal variances showed that return on investment was positively related to adding a traditional risk assessment model to Paap's CFTP framework. These findings regarding the addition of risk assessment to the technology investment framework may be used by investors to (a) make better and more expeditious decisions, and (b) obtain a high return on technology investment by selecting the highest return value and lowest risk value.
7
Bärlocher, Christian. "Operational Risk Management und Anreizsysteme." St. Gallen, 2009. http://www.biblio.unisg.ch/org/biblio/edoc.nsf/wwwDisplayIdentifier/01648385002/$FILE/01648385002.pdf.
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Piaz, Jean-Marc. "Operational risk Management bei Banken /." Zürich : Versus, 2002. http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&doc_number=009595185&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA.
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9
Condez-Godziemba, Cyril. "Transmission System Operational Risk Assessment and Mitigation." Thesis, KTH, Elektroteknisk teori och konstruktion, 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-102076.
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As transmission networks are getting older and as their components are reaching their life span’s end, the number of maintenance outages for equipments reparation or replacement is destined to gradually increase in the coming years. These outages weaken system’s security and lead to highstress situations that often do not comply with N-k operation rules. Thus in-depth risk analysis have to be performed in those cases, to ensure system’s smooth operation and optimal maintenance planning. It requires a comprehensive knowledge of contingencies consequences on system and society, but also refined contingencies occurrence probability estimations. This integration of probabilistic issues in operational problematic is challenging as current doctrines are profoundly deterministic, however the methodology developed here aims to comply with those while preparing the ground for future risk-based doctrines. Finally, integration of curative and preventive risk mitigation means gives more visibility to contingency probability reduction means and measures their economic efficiency, which leads to more optimal decision-making than the only use of classic consequences reduction techniques. This easily implementable method makes accessible new information to operators, allowing them to limit the use of systematic conservative and costly risk mitigation strategies.
10
Stan-Maduka, Edna Ijeoma. "Operational risk management : determination of causal relationships and interdependencies of operational risk events." Thesis, University of East London, 2010. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.533016.
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The Basel II capital adequacy framework constitutes a very comprehensive regulatory approach to risk assessment in banks. A special feature of this new accord is that it is not only targeting banks' financial risk exposures in terms of credit risks and market risks, the scope has been widened to also explicitly incorporate banks' exposure to operational risks in the capital adequacy requirement. For banks this novelty means a major change. Unless they choose to use the highly unsophisticated basic indicator approach or the standardized approach proposed in the new Basel accord, it will put significant pressure on them to develop and design appropriate internal risk management frameworks and systems. This research explores banks' operational risk mitigation under Basel II in Nigeria. The overall aim is to propose, test and validate a detailed framework for operational risk mitigation and to determine the causal relationships and interdependencies of operational risk events. The research utilised information derived from qualitative risk analysis, questionnaires and interviews administered to operational risk experts selected from Nigerian banks. The data analysis used `Statplus' an excel based software for the determination of variances and correlations. The first category of findings revealed that (1) Nigerian banks do not have adequate frameworks to mitigate risks (2) the banks do not monitor key- risk indicators within their business lines and thirdly (3) there is no structured approach to operational risk management within Nigerian banks. The second category of findings from expert opinion suggested a significant relationship between individual key risks and operational loss events. The results also confirmed a relationship between a bank's overall approach to risk management, and its strategic objectives on risk mitigation given the interdependence of operational risk factors and sub-factors. The framework proposed, tested and validated in this research is both diagnostic and predictive in its approach to operational risk mitigation. It is expected that this framework will fill the gap which is existing within the Nigerian financial sector in terms of an adequate framework for operational risk mitigation.
11
Psarros, George Ad. "Operational risk management of bulk carriers." Thesis, University of Strathclyde, 2008. http://oleg.lib.strath.ac.uk:80/R/?func=dbin-jump-full&object_id=21970.
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The proposed study had been performed behind the premise of proposing a methodology for estimating the current operational risk of bulk carriers. Hence, a high level risk assessment has been conducted for evaluating the safety performance of dry bulk cargo transportation. This included the preparatory step for setting the problem's boundary limits, hazard identification for the prioritization of causes and effects, risk analysis for the quantification of risks and risk evaluation for assessing the significance and the acceptability of the estimated risk. The relevant aspects that are taken into account consist of the vessel's function (carriage of payload), operational phase (ocean transit), external (weather conditions, routeing) and internal (cargoes) influences, accident category (foundering) and the risk associated with crew (fatalities) and property (loss of vessel and cargo). Apparently, many factors were competing for attracting attention, and therefore, the Pareto principle was applied for narrowing the analysis where corrosion was identified as a main situation of causing harm. The attached uncertainty in the aforementioned operational domain is dealt with the Bayesian Networks technology and concurrently the construed prioritization to corrosion is verified by the developed risk model. The estimated risk was found As Low As Reasonably Practicable and the potential of improvement is considered by addressing preventive (design) and mitigating (operational) measures. Furthermore, their effectiveness as action implementing risk management decision is illustrated by employing Life Cycle Cost Analysis, a decision making technique for exploiting different investment opportunities.
12
Capelli, Giacomo <1991>. "Mathematical Models for Operational Risk Management." Master's Degree Thesis, Università Ca' Foscari Venezia, 2016. http://hdl.handle.net/10579/8599.
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The thesis presents the state-of-the-art mathematical statistical models for Operational Risk measurement and management as well as the organisational and managerial processes supporting the creation of risk OR measures. We emphasise the most interesting probabilistic ideas employed in the field and apply the models on real data; these are used in the actuarial modelling paradigm following a Loss Distribution Approach. Extreme Value Theory, convolution transforms and copulæ theory will all be part of OR analysis to arrive to a regulatory risk measure. The thesis accompanies the theoretical modelling part with the management processes that are needed to implement these models in financial institutions, along with the primary risk mitigation techniques used against OR events. Finally, in light of the recent consultations carried out by the Bank for International Settlements regarding the partial substitution of actuarial models, we will also reflect on the differences, commonalities, and limitations of present and future OR modelling.
The thesis is organised as follows. Chapter I introduces the major risk types institutions face. Chapter II describes the non-actuarial risk measurement techniques used by banks without internally developed actuarial models. The central mathematics of the thesis is presented and applied in Chapter III. Chapter IV compares the present modelling techniques with recently proposed modifications. Chapter VI treats the managerial aspects of OR and Chapter VI studies risk mitigation tools usually adopted. We conclude in Chapter VII with reflections and final comments.
13
Kayvan, Sadra. "Comparison of alternative methods for Operational Risk Assessment." Master's thesis, Alma Mater Studiorum - Università di Bologna, 2018.
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In the MIRMAP project, that was completed earlier this year, an improved method for doing risk analysis to support decision-making in operation was developed. The analysis is focused the activities that are taking place in the plant and how the risk level fluctuates with activity level. The individual activities and how they influence the risk is used as input to the risk model.
The Risk Barometer is another approach to calculating risk to provide support to decision-making in operation. This is based on using the existing QRA, carefully selecting relevant parameters from the QRA and updating the risk level based on updated information about these parameters. Both methods are based on using updated information from operation, but there is a difference in the underlying models.
The objective of this thesis is to compare these two methods:
-Do a literature survey on the topic of dynamic/operational risk analysis to identify important trends and developments in the field.
-Study the two methods, MIRMAP and Risk Barometer, and describe these. The methods should also be compared from a theoretical point of view, highlighting similarities and differences in the approaches
-Summarize the work and draw conclusions and make recommendations with regard to the two methods, how they can be developed further and their applicability, strengths and weaknesses.
14
Kallenberg, Kristian. "Business at risk : four studies on operational risk management." Doctoral thesis, Stockholm : Economic Research Institute, Stockholm School of Economics (EFI), 2008. http://www2.hhs.se/efi/summary/776.htm.
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Pitinanondha, Thitima. "Operational risk management (ORM) systems - An Australian study." Electronic version, 2008. http://hdl.handle.net/2100/600.
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University of Technology, Sydney. Faculty of Engineering.<br>In today’s business environment, increased competition, market globalisation, increased customer demands and accelerated technologies require organisations to focus on efficiency in every aspect of their operations. Many studies in operations management have focused on the improvement of operational performance, including reduction of process variability, increasing flexibility or implementing controls in operations. However, managing the risk in operations seems to have been neglected by researchers. Hence, there are two major objectives of this study. The first objective is to investigate the use of the operational risk management (ORM) systems in Australia and study the factors that have an impact on effective operational risk management. Then, based on the identified factors, the second objective is to develop an ORM system implementation model and guideline for Australian organisations. A review of the ORM systems and its implementation was conducted. As a result of this investigation, a definition of ORM system in this study was formulated and the factors of effective ORM system implementation were identified as a basis for the next stage of this study. An investigation of the factors of ORM system implementation was then carried out. An extensive questionnaire survey was used to collect empirical data from Australian organisations. Statistical analysis results and feedback from experts was used to develop an applicable model and guideline for ORM system implementation. The main outcome of this study is a proposed model and guideline for ORM system implementation in Australian organisations, which will assist the organisation to manage operational risks more effectively and provide motivation for carrying out further research in ORM.
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JUNIOR, JOSE LUIS COUTO LYRA. "SOFTWARE IMPLEMENTATION FOR OPERATIONAL RISK MANAGEMENT SUPPORT." PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO, 2005. http://www.maxwell.vrac.puc-rio.br/Busca_etds.php?strSecao=resultado&nrSeq=7631@1.
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PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO<br>O gerenciamento de risco em instituições bancárias, mais
do que mera
imposição das agências reguladoras distingue-se como fator
de sucesso na
melhoria dos processos, aumentando o resultado financeiro.
Após o Acordo da
Basiléia, a gerência de riscos de mercado e de crédito,
cuja atuação se dá sobre
as receitas, passou a ser realizada. Entretanto, alguns
riscos atuam sobre as
despesas, destacando-se o operacional, que é o risco de
perdas oriundas de
problemas com controles internos, sistemas, pessoas e
eventos externos. O
objetivo deste trabalho foi elaborar uma revisão
abrangente da literatura e um
protótipo de sistema computacional que permite medir o VaR
do risco
operacional de uma unidade de risco, utilizando o Modelo
de Distribuição de
Perdas (LDA), e aplicar modelos causais que expliquem
estas perdas. Este
protótipo é uma aplicação Internet/intranet desenvolvida
na linguagem ASP e
utilizou o MS-Access como banco de dados. Para os cálculos
estatísticos,
implementou-se uma interface de comunicação
aplicação/MATLAB. A revisão da
literatura objetivou a familiarização com conceitos
básicos de risco operacional
descritos pelo Comitê da Basiléia. Adicionalmente,
apresentou detalhes técnicos
para implementação do LDA, tais como Distribuição de
Freqüência e de
Severidade, métodos para determinação da distribuição de
perdas operacionais
e construção da base de dados de perdas. Independente das
particularidades
institucionais, esse protótipo permite a visualização das
providências
estratégicas e operacionais a serem tomadas para
implementação e implantação
de um sistema similar. Marca um ponto de partida para o
desenvolvimento de
um produto abrangente de gerenciamento de risco
operacional nas mais
variadas instituições e segmentos de mercado.<br>The risk management in financial institutions, more than
just an imposition
of the regulatory agencies, represents a success factor in
the processes
enhancement, elevating the financial results. After Basel
Accord, credit and
market risks management, which acts over earnings, were
implemented.
However, some risks are associated to the expenses, such
as the operational
risk, related to the losses from internal control,
systems, human and external
events problems. The aim of the present study was the
elaboration of an
extensive literature review and the development of a
computation system
prototype able to measure the operational risk VaR of a
risk unit, using the Loss
Distribution Approach (LDA) and to apply causal models
that explain these
losses. This prototype is an Internet/intranet application
developed in ASP
language, using MS-Access as database. For statistical
evaluation, an interface
between the application and MATLAB was implemented. The
literature review
pretended to give a better understanding of the basic
concepts of operational risk
described by the Basel Committee. In addition, it
presented technical details for
LDA implementation, such as Frequency and Severity
Distribution, methods for
the distribution of the operational losses determination
and losses database
construction. Independent of institutional peculiarities,
this prototype allows the
observation of strategic and operational providences to be
taken for
implementation and implantation of a similar system. It
determines a startingpoint
in the development of an operational risk management
product valuable in
several institutions and market segments.
17
Snyman, Philippus. "Risk–based capital measures for operational risk management / Snyman P." Thesis, North-West University, 2011. http://hdl.handle.net/10394/7573.
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Basel II provides banks with four options that may be used to calculate regulatory capital for
operational risk. Each of these options (except the most basic approach) requires an
underlying risk measurement and management system, with increasing complexity and more
refined capital calculations under the more advanced approaches. Approaches available are
BIA, TSA, ASA and AMA.
The most advanced and complex option under Basel II is the AMA. This approach allows a
bank to calculate its regulatory and economic capital requirements (using internal models)
based on internal risk variables and profiles, rather than exposure proxies like gross income.
This is the only risk–sensitive approach allowed by and described in Basel II. Accompanying
internal models, complex and sophisticated measurement instruments, risk management
processes and frameworks, as well as a robust governance structure need to be
implemented.
This study focuses on the practical design and implementation of an AMA capital model.
This includes a beginning–to–end solution for capital modelling and covers all elements of
data analysis, capital calculation and capital allocation. The proposed capital model is
completely risk–based, leading to risk–sensitive capital calculations and allocations for all
business lines in a bank. The model was constructed to comply fully with all Basel II
requirements and standards.
The proposed model was subsequently applied to one South African bank’s operational risk
data, i.e. risk scenario and internal loss data of the bank were used as inputs into the
proposed capital model. Regulatory capital requirements were calculated for all business
lines in the bank and for the bank as a whole on a group level. Total capital requirements
were also allocated to all business lines in the bank. For regulatory capital purposes, this
equated to the stand–alone capital requirement of each business line. Calculations excluded
the modelling and incorporation of insurance, expected loss offsets and correlation. These
capital mitigation techniques were, however, proposed as part of the comprehensive capital
model.
AMA based capital calculations for the bank’s business lines resulted in significant capital
movements compared to TSA capital requirements for the same calculation periods. The
retail banking business line was allocated less capital compared to corresponding TSA
estimates. This is mainly attributable to lower levels of tail risk exposure given high income
levels (which are the bases for TSA capital calculations). AMA–based capital for the
investment banking business line was higher than corresponding TSA estimates, due to high
levels of extreme risk exposure relative to income generated.
Employing capital modelling results in operational risk management and performance
measurement was discussed and proposals made. This included the use of capital
requirements (modelling results) in day–to–day operational risk management and in strategic
decision making processes and strategic risk management. Proposals were also made on
how to use modelling results and capital allocations in performance measurement. It was
proposed that operational risk capital costs should be included in risk–adjusted performance
measures, which can in turn be linked to remuneration principles and processes. Ultimately
this would incentivise sound operational risk management practices and also satisfy the
Basel II use test requirements with regards to model outputs, i.e. model outputs are actively
used in risk management and performance measurement.<br>Thesis (Ph.D. (Risk management))--North-West University, Potchefstroom Campus, 2012.
18
Adefisoye, James Olusegun. "An Assessment of the Performances of Several Univariate Tests of Normality." FIU Digital Commons, 2015. http://digitalcommons.fiu.edu/etd/1858.
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The importance of checking the normality assumption in most statistical procedures especially parametric tests cannot be over emphasized as the validity of the inferences drawn from such procedures usually depend on the validity of this assumption. Numerous methods have been proposed by different authors over the years, some popular and frequently used, others, not so much. This study addresses the performance of eighteen of the available tests for different sample sizes, significance levels, and for a number of symmetric and asymmetric distributions by conducting a Monte-Carlo simulation. The results showed that considerable power is not achieved for symmetric distributions when sample size is less than one hundred and for such distributions, the kurtosis test is most powerful provided the distribution is leptokurtic or platykurtic. The Shapiro-Wilk test remains the most powerful test for asymmetric distributions. We conclude that different tests are suitable under different characteristics of alternative distributions.
19
Wolf, Elke. "IS risks and operational risk management in banks /." Lohmar : Eul, 2005. http://www.gbv.de/dms/zbw/480662231.pdf.
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Movshyn, Ludmilla. "Key risk indicators im Management operationeller Risiken." Frankfurt am Main Bankakad.-Verl, 2004. http://deposit.ddb.de/cgi-bin/dokserv?id=2650676&prov=M&dok_var=1&dok_ext=htm.
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Österlund, Joakim, and Rasmusson Jens. "Sensemaking Operational Risk Manager : a qualitative study on how to become successful as an operational risk manager in the Swedish financial sector." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-388955.
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This research sheds light on the nature of the role of the operational risk controller in the financial services industry. The focus is on understanding how operational risk controllers interact with different layers of the organisation and become influential with the business lines and senior management. Nine semi-structured interviews were conducted with operational risk controllers, and it was found that their work is becoming increasingly focused on managing people with a view to creating mutual understanding. To achieve this, operational risk controllers should work more as independent facilitators in their interactions with the first line and senior management, as engaged toolmakers when adapting and reconfiguring tools, and as non-financial risk controllers when attempting to enable business leaders to understand the magnitude of operational risks.
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Movshyn, Ludmilla. "Key risk indicators im Management operationeller Risiken /." Frankfurt am Main : Bankakad.-Verl, 2005. http://deposit.ddb.de/cgi-bin/dokserv?id=2650676&prov=M&dok_var=1&dok_ext=htm.
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Wang, Letian. "Global supply chain risk management through operational and financial hedges." Thesis, McGill University, 2010. http://digitool.Library.McGill.CA:80/R/?func=dbin-jump-full&object_id=95041.
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This thesis comprises two papers that investigate the impact of operational and/or financial hedging on risk management in a global supply chain environment. The problems are derived from the current climate in which many North American firms are heavily contracting overseas suppliers located in China, India, Vietnam and other countries. The theoretical and numerical results obtained in this thesis provide managerial insights to mitigate demand and exchange rate risks in outsourcing in the event that firms are risk averse. The first paper studies operational hedging strategy for firms that face both exchange rate and demand uncertainties. Operational hedging comes in the form of real option to switch production between domestic suppliers and offshore outsourcing suppliers. It demonstrates that these firms benefit from maintaining capacities with both suppliers. The value of the operational option increases as the exchange rate uncertainty or demand uncertainty increases. In addition, when firms become risk-averse, they may use domestic capacity as a hedge against offshore capacity. As a result, the firms may choose to sustain local capacity even if it exhibits negative marginal contribution to the profit. Furthermore, risk-averse firms may retain more total capacity than risk-neutral firms. The second paper expands on the first paper by including financial hedging strategy. It studies a capacity planning problem in which a risk-averse firm plans to reserve capacities with potential suppliers located in multiple countries to hedge demand and exchange rate risks. It provides both analytical and numerical results from a general model with n suppliers, as well as a special case with two suppliers in China and Vietnam. With financial hedging, the risk-averse firm has access to financial markets so that it is able to adjust capacity and production allocation decisions conditional on financial information, the result of which always increases optimal utility. In general<br>La thèse consiste en deux papiers qui étudient l'impact de la couverture opérationnelle et/ou financière sur la gestion du risque dans la chaine de distribution globale. Les problèmes proviennent du fait que beaucoup de firmes nord-américaine sous-contracte une bonne partie de leurs opérations à des fournisseurs situé outre-mer, notamment en Chine, en Inde, au Vietnam ainsi que dans d'autres pays. Les résultats théoriques et numériques obtenu dans cette thèse donnent un aperçu des méthodes de gestion pour mitiger le risque de demande et le risque de taux de change, lors de la sous-traitance à des firmes situés à l'étranger. Le premier papier étudie les stratégies de couverture opérationnelles pour les firmes qui font face à la fois à des incertitudes sur le taux de change et sur la demande. La couverture opérationnelle se présente sous la forme d'une option réelle de changer la production entre des fournisseurs locaux et outre-mer. Nous démontrons que les firmes bénéficient à conserver des capacités de production avec les deux types de fournisseurs. La valeur de l'option opérationnelle augmente avec l'incertitude sur les taux de change et sur la demande. De plus lorsque les firmes sont averse au risque, elles peuvent utilisées les capacités locales pour se couvrir contre les capacités outre-mer. Il en résulte que les firmes peuvent choisir de maintenir la capacité locale même si elle montre une contribution marginale négative au profit. De plus des firmes averses au risque peuvent maintenir encore davantage de capacité. Le deuxième papier étend le premier papier and incluant les stratégies de couverture financière. Dans ce papier nous étudions les problèmes de planification de la capacité de production, dans lesquels les firmes planifient de réserver des capacités de production avec des fournisseurs potentiels situés dans plusieurs pays afin de se couvrir contre le risque de demande et de taux de change. Nous off
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Reddy, Harry 1963. "Financial supply chain dynamics : operational risk management and RFID technologies." Thesis, Massachusetts Institute of Technology, 2005. http://hdl.handle.net/1721.1/33729.
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Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005.<br>Includes bibliographical references (leaves 81-83).<br>The banking industry is consolidating to streamline its operations through mergers and acquisitions, and is adopting new technologies to develop innovative products and services, thereby achieving both economies of scale and scope. Operational risk management has become a serious issue in the banking industry. Some reputed banks are either forced to close down their operations (eg., Citibank Private Bank in Japan) or faced cost overruns (eg., Barings Bank in England) due to poor operational risk management. In the supply chain industry, businesses are engaged in devising effective solutions using RFID technologies to locate and track the goods. We present the dynamics of banking industry in terms of operational risk management, innovation and business strategies. We also present the process mapping of RFID technology use in banking business areas to minimize operational risks. We further come-up with an effective operational risk management framework for banks to follow in improving their operational risk management.<br>by Harry Reddy.<br>M.Eng.in Logistics
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Bigdeli, Farah. "Risk Assessment and Risk Management of Nano-Material Toxicity." ScholarWorks@UNO, 2009. http://scholarworks.uno.edu/td/921.
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Increasing applications of nano materials in medicine, construction, textiles, computers, and other consumer goods have lead to increasing concerns of their effect on human health and ecology during synthesis, manufacturing, use, and disposal of nano-materials. Though much scientific progress has been made in nano material synthesis, manufacturing, and application in consumer goods and other sectors such as medicine, textiles and more, not much progress has been made in understanding the adverse effects of nano materials on human health and the environment. Physical, chemical, toxicological characteristics of these nano materials and their fate in the environment are important in understanding their adverse effects on the environmental and human health. This study is aimed at developing a preliminary framework for risk assessment (RA) and risk management (RM) of nano materials based on fundamental principles of chemistry, physics, toxicology, and other related disciplines.
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Esterhuysen, Ja'nel Tobias. "The management of operational risk in South African banks / by Ja'nel Esterhuysen." Thesis, North-West University, 2003. http://hdl.handle.net/10394/423.
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One of the biggest problems South African banks are experiencing when managing
operational risk is the lack of a single definition for operational risk. Operational risk
can take many forms; for example computer system failure, the malfunction of an
ATM or in same instances the long queues at a bank can be an operational risk It is
clear that banks lack sufficient information to distinguish between different
operational risk events as well as other risk events like credit risk, market risk, etc. In
other words, banks are experiencing great difficulties with the identification of
operational risk in South Africa
The study therefore aims to determine and construct a single definition of operational
risk that will be sufficient for the assessment of operational risk management in South
Africa. The study also aims to examine the existing as well as the possible methods to
identify, quantify and measure operational risk The main goal of this study is
therefore to investigate the feasibility of capital provisions as a way of managing
operational risk in South African banks, in other words the viability of the New Basel
Capital Accord on South African banks. The methodology used includes a literature
review, in-depth interviews and a case study on South African Retail Bank to
determine and evaluate some of the most renowned indicators of operational risk in
South Africa.
The first objective was to determine a single definition of operational risk in South
Africa. As mentioned, South African banks are having great difficulties to find a
single definition of operational risk and this is causing problems in identifying
operational risks in South Africa. It is the view of this study that the Basel
Committee's definition is not sufficient enough for operational risk management in
South Africa; therefore there is a great need to find a single definition of operational
risk in South African banks.
The second objective is to provide an overview of the Base1 Committee and its
Capital Accord, by focusing on one of the outstanding changes to the existing accord,
which is the proposed explicit capital requirement for operational risk. It has been
established that the Base1 Capital Accord is widely adopted around the world.
Consequently, from the viewpoint of being competitive, it is to the advantage of a
bank to adhere to the prescriptions of the Base1 Capital Accord. However, to stay
relevant, the Basel Capital Accord was due for a review. The Basel Committee
released a proposal to replace the existing Basel Capital Accord with a more. risk sensitive
framework. The new framework intends to improve safety and soundness in
the financial system by placing more emphasis on banks' own internal control and
management, the supervisory review process, and market discipline.
The third objective of this research was to present the theory of asset and liability
management (ALM) within the unifying theme of operational risk management. It
was indicated that capital is used to absorb an operational risk loss. The Asset and
Liability Committee (ALCO) is responsible for the strategic management of a bank's
balance sheet, therefore also ALM, and as capital forms part of the banks balance
sheet, it is also the responsibility of the ALCO to manage the capital that is used as
provision for an operational risk.
The fourth objective was to determine and evaluate the key risk indicators of
operational risk in South Africa theoretically and then also by means of a case study
on a South African Retail Bank and then to made some recommendations regarding
the effective identification of the key indicators of operational risk in South Africa. It
was indicated the challenge in identifying key operational risk indicators is to find
indicators that is not only business-specific but are also fm wide indicators of
operational risk. Recommendations on the effective identification of key operational
risk indicators were made.<br>Thesis (M.Com. (Economics))--North-West University, Potchefstroom Campus, 2004.
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Wheatley, Sharon. "Operational risk assessment in a higher education institution : a social systems perspective." Thesis, King's College London (University of London), 2011. https://kclpure.kcl.ac.uk/portal/en/theses/operational-risk-assessment-in-a-higher-education-institution(d57f6388-6dd8-45f7-8746-b29fb1e5bd52).html.
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The Higher Education Funding Council for England (HEFCE) has recommended the implementation of operational risk management in universities since 2001. This case study investigated risk assessment in this context, aiming to critically examine variety in different groups in a single institution. Social Systems Theory formed a framework to create new insights into reflexive understandings of risk, utilising data from interviews, and group discussions during risk assessment training. The study makes a significant contribution to knowledge about real-life risk assessment practices, revealing two parallel and unrelated systems. Firstly, the formal process exhibited calculative difficulties. Assessment discussions relied on qualitative data, historical events and narrative accounts to assess potential severity and frequency, with 19 of 20 participants unwilling to assign risk ratings. Secondly, existing management controls demonstrated successful mitigation of risks, particularly in relation to funding access, but were not recognised as ’risk management’, hampering the integrated approach recommended by HEFCE. The influence of group illustrated that the rating of risk could vary, as could the type of risk that caused concern. In addition, boundaries associated with group roles influenced the attribution of responsibility, illustrated by academic unwillingness to be involved with formal risk management processes. Risk acceptability differed between groups and individuals, making it difficult to establish a single risk appetite that reflected all organisational views. Uncertainty was evident in the formal process in lack of clarity of strategic aims, absence of data and unpredictability of future events, particularly in relation to the actions of others. Most significantly, risk prioritisation had to contend with conflicting perspectives and competing organisational aims, including those of the regulator.
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Esterhuysen, Ja'nel Tobias. "The management of operational value at risk in banks / Ja'nel Esterhuysen." Thesis, North-West University, 2006. http://hdl.handle.net/10394/1676.
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Bakheet, Moataz Talaat. "Contractors' risk assessment system." Diss., Georgia Institute of Technology, 1995. http://hdl.handle.net/1853/23163.
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Mitra, Amlan. "Developing an integrated risk management system in emergency management process /." This resource online, 1992. http://scholar.lib.vt.edu/theses/available/etd-12232009-020038/.
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Alcaraz, Bosca Neus. "Lean project management. Assessment of project risk management processes." Thesis, KTH, Industriell ekonomi och organisation (Avd.), 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-97888.
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Traditional methods of project management are not appropriate for complex projects anymore. Since projects are becoming increasingly complex and uncertain, interaction between activities and resources is growing in ways not considered by these methods. Nowadays, managers need more agile project management methods that are able to recognize and deal with uncertainty and to produce the expected results. Lean project management, the most recent approach of lean methodology, appears as an alternative approach capable of dealing with complexity and uncertainty. The latest investigations in the field show that traditional methods are still adequate for simple projects, while lean methods are more appropriate for complex projects. This thesis aims to investigate the nature of lean project management and to examine project risk management processes so that managers can assess the complexity of projects before their beginning and decide which method to apply in order to manage them.
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Schutte, Juane. "The role of an administrator in hedge fund operational risk management." Thesis, Nelson Mandela Metropolitan University, 2008. http://hdl.handle.net/10948/891.
Full textAbstract:
With the financial crisis of 2008 and more retirement funds and insurance companies entering the hedge fund industry, the safety of investor assets has become vital. According to a worldwide study by Kundro and Feffer (2002:42), operational risk factors account for almost half of hedge fund failures. The issues that underlie the operational risk factors relate to valuation of the fund’s assets and liabilities. Unless certain valuation practices become more widespread, hedge funds face a potential crisis of confidence with institutional and high net worth investors (Kundro and Feffer, 2002:42). Despite the improvements made by administrators to deal with the complexities of hedge fund investments, the accuracy of some valuations remains open to question (McVea 2008:135). Hedge fund manager inputs into valuations compromise the degree of independence exercised, particularly with regard to complex and/or illiquid instruments. The perception that administrators lack the required technical expertise to value complex and/or illiquid assets exacerbates the issue of administrator’s reliability to provide independent valuations. Therefore, the reliance on administrators to guarantee the quality of valuations of complex instruments is in question. The aim of the study was to identify ways to improve operational risk management practices, particularly valuations, in hedge funds through identifying ways of promoting effective functioning of independent third-party administrators. This was achieved through a case study approach using a South African leading administrator, Investment Data Services, as the object of study. The literature highlighted the changing functions of administrators, the challenges facing them and ways of addressing those challenges. The empirical study measured the extent of IDS’ valuation practices in managing operational risk in hedge funds. Four key members of IDS’ management team and one hedge fund manager with considerable insight were interviewed. The data obtained was then reduced into meaningful results. The empirical findings were compared with the theory provided in the literature scrutiny to identify ways of improving the valuation function. The conclusion was that the challenges faced by the administrator were addressed through proper independence, consistency and transparency of the valuation process. A crucial cog in IDS’ wheel is the employment of staff with the required technical skills to understand complex financial instruments. In addition, investment in advanced systems and technology is important in managing the risks involved. Consequently, IDS’ valuation practices can be used as template for other administrators in their efforts to manage the operational risks in hedge funds.
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Larrimore, Nancy Page. "Risk Management Strategies to Prevent and Mitigate Emerging Operational Security Threats." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/4866.
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Dependence on technology brings security compromises that have become a global threat that costs businesses millions of dollars. More than 7.6 million South Carolinians incurred effects from the 162 security breaches reported in 2011-2015. The purpose of this multiple case study was to explore the risk management strategies small business leaders use to prevent and mitigate operational security threats that produce financial losses. The population for this study consisted of 6 business leaders in South Carolina who have demonstrated successful experience in preventing and mitigating operational security threats. Transformational leadership theory provided the conceptual framework for exploring the overreaching research question. Data collection consisted of semistructured interviews with each participant and the collection of company documents that pertained to security procedures, audits, and reviews. Conducting semistructured interviews allowed participants to provide details of real-life experiences. Recorded interviews and transcriptions were analyzed through Moustakas's modified van Kaam method of analysis to identify emerging topics. The 4 themes that emerged were: (a) operational security training and awareness, (b) operational security culture and behavioral effects, (c) operational security policy and compliance, and (d) operational security challenges and risk management. By developing strategies and processes that reflect these themes, small business leaders can reduce financial losses to improve profitability and reduce unemployment, achieving social changes that can benefit society as a whole.
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Smit, Charmaine. "Measuring operational risk in the ALCO process / by Charmaine Smit." Thesis, North-West University, 2008. http://hdl.handle.net/10394/2318.
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Nyathi, Mandla. "A cost benefit analysis of operational risk quantification methods for regulatory capital." Master's thesis, University of Cape Town, 2016. http://hdl.handle.net/11427/21756.
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Operational risk has attracted a sizeable amount of attention in recent years as a result of massive operational losses that headlined financial markets across the world. The operational risk losses have been on the back of litigation cases and regulatory fines, some of which originated from the 2008 global financial crisis. As a result it is compulsory for financial institutions to reserve capital for the operational risk exposures inherent in their business activities. Local financial institutions are free to use any of the following operational risk capital estimation methods: Advanced Measurement Approach (AMA), the Standardized (TSA) and/ the Basic Indicator Approach (BIA). The BIA and TSA are predetermined by the Reserve Bank, whilst AMA relies on internally generated methodologies. Estimation approaches employed in this study were initially introduced by the BCBS, largely premised on an increasingly sophisticated technique to incentivise banks to continually advance their management and measurement methods while benefiting from a lower capital charge through gradating from the least to the most sophisticated measurement tool. However, in contrast to BCBS's premise, Sundmacher (2007), whilst using a hypothetical example, finds that depending on a financial institution's distribution of its Gross Income, the incentive to move from BIA to TSA is nonexistent or marginal at best. In this thesis I extend Sundmacher (2007)'s work, and I test one instance of AMA regulatory capital (RegCap) against that of TSA in a bid to crystalise the rand benefit that financial institutions stand to attain (if at all) should they move from TSA to AMA. A Loss Distribution Approach (LDA), coupled with a Monte Carlo simulation, were used in modelling AMA. In modelling the loss severities, the Lognormal, Weibull, Burr, Generalized Pareto, Pareto and Gamma distributions were considered, whilst the Poisson distribution was used for modelling operational loss frequency. The Kolmogorov-Smirnov and Akaike information criterion tests were respectively used for assessing the level of distribution fit and for model selection. The robustness and stability of the model were gauged using stress testing and bootstrap. The TSA modelling design involved using predetermined beta values for different business lines specified by the BCBS. The findings show that the Lognormal and Burr distributions best describes the empirical data. Additionally, there is a substantial incentive in terms of the rand benefit of migrating from TSA to AMA in estimating operational risk capital. The initial benefit could be directed towards changes in information technology systems in order to effect the change from TSA to AMA. Notwithstanding that the data set used in this thesis is restricted to just one of the "big four banks" (owing to proprietary restrictions), the methodology is representable (or generalisable) to the other big banks within South Africa. The scope of this study can further be extended to cover Extreme Value Theory, Non-Parametric Empirical Sampling, Markov Chain Monte Carlo, and Bayesian Approaches in estimating operational risk capital.
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Mu, Yuan. "Chinese bank's credit risk assessment." Thesis, University of Stirling, 2007. http://hdl.handle.net/1893/210.
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This thesis studies the Chinese banks’ credit risk assessment using the Post Keynesian approach. We argue that bank loans are the major financial sources in emerging economies and it is uncertainty, an unquantifiable risk, rather than asymmetric information about quantifiable risk, as held by the mainstream approach, which is most important for the risk attached to credit loans, and this uncertainty is particularly important in China. With the universal existence of uncertainty, borrowers and lenders have to make decisions based on convention and experience. With regard to the nature of decision-making, this implies the importance of qualitative methods rather than quantitative methods. The current striking problem in Chinese banking is the large amount of Non-Performing Loans (NPLs) and this research aims to address the NPLs through improving credit risk management. Rather than the previous literature where Western models are introduced into China directly or with minor modification, this work advocates building on China’s conventional domestic methods to deal with uncertainty. We briefly review the background of the Chinese banking history with an evolutionary view and examine Chinese conventions in the development of the credit market. Based on an overview of this history, it is argued that Soft Budget Constraints (SBC) and the underdeveloped risk-assessing mechanism contributed to the accumulation of NPLs. Informed by Western models and experience, we have made several suggestions about rebuilding the Chinese convention of credit risk assessment, based on an analysis of publications and interviews with Chinese bankers. We also suggest some further development of the Asset Management Companies (AMCs) which are used to dispose of the NPLs.
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Rad, Alexander. "Bank risk management : How do bank employees deal with risk at the strategic and operational levels?" Doctoral thesis, Mittuniversitetet, Avdelningen för ekonomivetenskap och juridik, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:miun:diva-30734.
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Mabwe, Kumbirai. "Investigating the significance of people risk in the context of operational risk management in UK banks." Thesis, Glasgow Caledonian University, 2015. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.687412.
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The aim of this thesis is to investigate operational risk management with a special emphasis on people risk. The motivation to implement research in this particularly challenging area of risk management is twofold: Firstly, the increasing magnitude of operational losses as a result of people over the last decade and their negative effect on the banking industry. Secondly, literature on operational risk in banking has focused on measurement of operational risk and capital adequacy, and is therefore inconclusive on several vital questions regarding the qualitative elements of operational risk, particularly people risk management. By way of interviewing operational risk managers, junior bank operatives and operational risk consultants with regard to operational risk management in general and people risk in particular, this thesis contributes to the existing research on operational risk in several ways. This study enhances understanding of the effect of the limited definitions, processes and practice with regard to both operational risks in general and people risk in particular. The study also provides a detailed account of the regulatory influence on ORM and also draws attention to the role of the Board and senior management particularly the tone at the top and in the process highlights, the difference between what they say and what they do, and the effect that this has on operational risk and people risk management. The current study also extends present understanding in relation to the contradictions between the three lines of defence in theory, and as discussed in the industry, and in the process also highlight how it operates (or does not) in practice. In particular the study identifies and examines the development of sub-lines of defence (la and Ib) which are filling gaps within the three lines of defence, particularly the qualitative elements and specifically people risk. More importantly the study proposes and examines a framework for people risk management and in the process also proposes an intermediary people risk management function which sits in the three lines of defence and, is staffed by human resources and operational risk which are currently managing elements of people risk separately.
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Cannel, Wayne. "Collaboration to support implementation and embedment of evolving operational risk management practices." Diss., University of Pretoria, 2015. http://hdl.handle.net/2263/52362.
Full textAbstract:
Despite there being a vast array of literature available on operational risk management, literature on industry collaboration and communication to support the implementation and embedment of operational risk management practices is negligible. The banking industry s activities and risk profiles are becoming more diverse and complex due to deregulation and globalisation and banks therefore need to manage the change by continually evaluating their operational risk management practices to ensure that it remains relevant and aligned to evolving practices. This can be achieved through industry collaboration.
Purpose
The purpose of this research is to determine whether collaboration and communication within the South African banking industry can support the implementation and embedment of evolving operational risk management practices which include the Sound Practices principles.
Method
Exploratory research using quantitative techniques, a questionnaire, to collect data from a sample consisting of sixteen banks and analsyed using computer-aided quantitative data analysis software (CAQDAS); IBM SPSS Statistics version 23. The sample size was small and not sufficient to perform any statistical analysis but instead SPSS s descriptive statistics tool was used to determine frequency.
Finding
The literature reviewed and the quantitative study findings provided adequate evidence and answers to the four research questions confirming that collaboration can support the implementation and embedment of evolving operational risk management practices.<br>Mini Dissertation (MBA)--University of Pretoria, 2015.<br>pa2016<br>Gordon Institute of Business Science (GIBS)<br>MBA<br>Unrestricted
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Kapofu, Desmond. "An operations management perspective of knowledge management : towards a knowledge management assessment and improvement tool." Thesis, University of Bradford, 2009. http://hdl.handle.net/10454/5709.
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This thesis describes the development of a Knowledge Management (KM) Assessment tool for the Operational level of the organisation. Its main focus is to help organisations to identify the KM activities and mechanisms that they could improve in order to improve their operational efficiency. Current KM literature is lacking in guiding organisations in what they need to do in order to implement and formalise KM in their operations with a view to improving operational efficiency. Therefore the aim of this thesis is to fill this gap in the literature and also to influence the manner in which KM is practiced. The research project has three distinct stages: the model development, modification and testing stages. The model development stage synthesises KM literature and a pilot study in order to develop a conceptual model of the KM assessment tool. The second stage of the research project describes the application of the tool in three organisations and details the modifications that were made as a result. Finally, the third stage tests the final version of the KM Assessment tool using four case organisations. The KM Assessment tool presented in this thesis is not a prescriptive KM solution; it emphasises the need to approach KM from a process and task specific perspective. Put another way, KM improvements should be implemented to reflect the processes and task charactaristics of each individual organisation. However, the thesis presents a method of evaluation of such that is unform across organisational types
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BASTOS, CAMILA CRISPIM. "OPERATIONAL RISK MEASUREMENT AND ASSESSMENT: A CASE STUDY OF HEDGE OPERATION IN PETROLEUM INDUSTRY." PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO, 2010. http://www.maxwell.vrac.puc-rio.br/Busca_etds.php?strSecao=resultado&nrSeq=17095@1.
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Até meados dos anos 90 medidas para mensurar os riscos de mercado e
crédito foram as maiores fontes de pesquisas acadêmicas em finanças,
impulsionadas principalmente pela indústria financeira. Foi então que alguns
eventos envolvendo fraudes e erros humanos causaram perdas catastróficas,
inclusive a bancarrota de grandes instituições pelo mundo. Em decorrência destes
eventos, surge um imenso e ainda pouco explorado campo de pesquisa para outro
tipo de risco, o risco operacional. Entende-se que o Risco Operacional está
associado à possíveis perdas como resultado de sistemas e/ou controles
inadequados, falhas de gerenciamento e erros humanos. Em função de suas
características, o risco operacional está presente em qualquer indústria, porém a
maior parte de pesquisas acadêmicas e metodologias no âmbito prático estão
voltadas para instituições financeiras. Após uma vasta pesquisa, não encontramos
nenhuma referência bibliográfica semelhante à desenvolvida pelo setor bancário
que pudesse elucidar o nível de maturidade de gestão de riscos operacionais em
outros setores. Não encontramos sequer uma definição e classificação difundida
dos riscos operacionais para demais indústrias. Desta forma, este trabalho explora
os frameworks e metodologias desenvolvidas pela indústria financeira para
avaliação e mensuração de riscos operacionais com objetivo de estender estes
métodos para outras indústrias. Adicionalmente, aplicam-se os conceitos e
metodologias levantados através de um estudo de caso em uma empresa no ramo
de óleo e gás.<br>Before 1990, market and credit risk measures were the major sources of
academic research in finance field, motivated by finance industry. However as a
consequence of recent financial scandals in the banking industry, involving fraud
and human errors, which caused catastrophic losses and even bankruptcy of many
institutions around the world, a new and unexplored kind of risk has started to be
studied which is called the operational risk. It is defined as the risk of loss
resulting from inadequate or failed internal processes, people and systems or from
external events. Due to its risk characteristics, it is present in all kind of industry
but most academic researches and methodologies are developed for financial
institutions. After an extensive search, we didn’t find bibliographic references
similar to those in banking sector which could elucidate the operational risk
management level of maturity for other sectors. We could not even find a
commom definition and classification of operational risks for other industries.
Thus, this work intends to explore frameworks and methodologies, developed by
financial industry for evaluation and measurement of operational risk, to see how
this method can be extended for other industries. Additionally, we applied these
concepts and methodologies for a sector of an oil and gas company.
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Kythreoti, Stella. "Earthquake risk assessment and management : case study, Cyprus." Thesis, University of Sheffield, 2002. http://etheses.whiterose.ac.uk/3417/.
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Earthquakes are amongst the worst natural disasters on Earth, resulting in an annual average of around 10,000 fatalities last century and progressively increasing in the amount of economic damage they cause, reaching US $20 billion per annum this decade. The mitigation of the unwanted consequences of earthquakes is normally achieved by Risk Management Strategies (RMS), which rely on the development of Earthquake Risk Assessment (ERA) techniques. This thesis aims to develop a framework for ERA for medium seismicity regions that incorporates the spatial aspects of the hazard and risk evaluation. The framework is used to undertake ERA for the island of Cyprus, and the information is used to propose RMS. The ERA framework relies on comprehensive data on the location, value and vulnerability of buildings and the population distribution. These data were collected from the various Cyprus Government Departments. Various hazard and attenuation models are examined, and the effect of their variability is taken into account through Monte Carlo simulations. The estimated annual risk for Cyprus is just below £ 10 million CY. This value was estimated based on the use of the re-appraised historical data for the past-century. Comparisons with other seismic hazard assessment methods, such as recurrence relationships, have revealed that, without a spatial distribution model, such approaches are unsuitable for ERA. Though the maximum intensities predicted are in line with the ones that underpin the aseismic code of Cyprus (CCEAA-CFEE, 1994), the predicted design accelerations are higher than given in the code. Hence, new seismic accelerations are proposed. Despite that, the current reduction in risk is comparable to the additional cost of aseismic design. Seismic retrofitting was also examined and it was found that as part of a general modernisation scheme seismic upgrading is cost effective. However, whatever the state of the building, it is recommended that earthquake insurance should be made mandatory. The current seismic insurance rates appear to be fair, though they seem to underestimate the risk in the areas of high seismicity. The number of likely human losses is also estimated. This study concludes that the result of ERA is heavily dependent on the models and data used, and both require constant updating for the ERA results to remain meaningful.
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Alzahmi, M. "The collaborative risk assessment environment in disaster management." Thesis, University of Salford, 2015. http://usir.salford.ac.uk/38030/.
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In the past century the occurrence of natural disasters and man-made disasters have steadily increased with a significant loss of life, damage caused to infrastructure and property, and destruction of the environment. There is much evidence that natural disasters are growing on a global level. Dealing with disasters demand the involvement of a range of agencies collaborating and making collaborative decision. This research has identified the need for a collaborative platform to bring together a variety of information to enable multi-agencies to prepare for disasters and to enhance the resilience of cities. Risk assessment is a crucial aspect within the activities of multi-agencies. Risk assessment enhances emergency planning which can then be tested by detailed appraisals and exercises. Whenever risk assessment is updated, plans are revised and additional tests are carried out. Risk assessment helps multi-agency planners decide what resource requirements they need and what multi-agency activities need to be planned collaboratively in order to prepare for disaster. The aim of this research is to investigate the nature of an interactive map that can enhance multi-agency team collaboration in the risk assessment process in disaster management. This research uses the six-step risk assessment process used in Australia and New Zealand which is widely recognized as being good practice. These steps are Contextualization, Hazard Review, Risk Analysis, Risk Evaluation, Risk Treatment and Monitoring and Reviewing (Standards Australia/Standards New Zealand Standard Committee, AS/NZS ISO 31000:2009). In this research, the characteristics of a suitable interactive map for risk assessment was defined in collaboration with the senior practitioners within a multi-agency team in the UK. Semi-structured interviews were conducted with the senior managers of Category 1 responders in The Greater Manchester Local Resilience Forum (GMLRF) to capture the requirements for a multi-agency collaboration platform. The outcome of these interviews were used to capture the characteristics and develop the a prototype of the interactive map that can support risk assessment. Once implemented, the validation of the interactive map prototype was conducted involving senior practitioners of stakeholders in the GMLRF development group. The experiment was held in the THINKpod in ThinkLab, at the University of Salford. A total of 23 senior practitioners took part in the evaluation experiment. After a demonstration of a scenario and using the interactive map, the participants evaluated the prototype as a group and then completed questionnaires that xv featured range of open, closed and rating scale questions. These questionnaires were designed to evaluate the perceived effectiveness and impact of the interactive map on strengthening collaboration among the multi-agency teams during risk assessment. The outcome of the evaluation shows a good level of satisfaction among the practitioners. The overall result suggests that the professionals view the interactive map as a good platform to support collaboration multi-agency teams in risk assessment activity.
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Bashlai, S., and O. Podoliaka. "Operation risk management of the bank." Thesis, Таврический национальный университет им. Вернадского В.И, 2010. http://essuir.sumdu.edu.ua/handle/123456789/60122.
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The of these deals with actual question of implementation of risk-oriented approach to corporate; methods of evaluation of operational risks, the procedure for coordination and approval procedures for operations, general requirements for the control procedures are in banks of Ukraine<br>Тези присвячені актуальнім питанням впровадження ризик-орієнтованих підходів до корпоративного управління; визначенню методик оцінки операційних ризиків, порядку погодження та затвердження процедур проведення операцій, загальним вимогам до контрольних процедур в банках України.
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Glas, Michael, and Henrik Fredriksson. "Operational Disturbances in Supply Management : Sources and Managerial Approaches." Thesis, Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Centre of Logistics and Supply Chain Management, 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-18146.
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Nowadays global companies view the world as a single entity, sourcing materials fromanywhere and performing operations to create the optimal supply chain for their products.This leads to an increasing complexity which is driving supply management to becomea core capability of businesses. As supply chains are inherently vulnerable to disturbances,supply management will have to play a key role in the field of risk analysisand risk management. An increased awareness of sources of disturbances is essential tocreate significant improvements in the handling and prevention of disturbances.The purpose of this thesis is to identify and classify sources of disturbance which canhave a negative influence on a company’s supply management. This is achieved by theinvestigation of theories available in literature, as well as identifying and analyzing thedisturbances in the supply management of an international manufacturing company.Additionally, the theories on disturbance management are reviewed to create a foundationfor managerial implications.The company studied is Husqvarna, which currently is in a situation with several disturbancesin its supply management. The performed case study aims at both, describingthese phenomena, as well as testing of the theories. The chosen qualitative approachmakes it possible to gain in-depth knowledge and investigate different aspects ofsources of disturbances in this case study. The interviews performed are standardizedopen ended questionnaires in order to get in-depth knowledge of the situation.The empirical findings are then analyzed in regard to the purpose of the thesis. The goalof this analysis is to compare the sources of disturbances of the classification schemecreated in the literature review to the respondents’ answers from the interviews. Moreover,inputs and opinions from the respondents on how to manage disturbances are connectedwith the theories provided in the literature review within this field.Various sources of disturbance with a negative influence on the supply management ofcompanies are identified. It was also possible to compare the classification schemewhich was created based on the theoretical findings with the finding of the case study ofHusqvarna. Consequently a holistic overview of potential and actual sources of disturbancein supply management has been created. Furthermore, it is possible to contribute tothe body of knowledge on how to manage disturbances in supply management. Theprovided insights highlight implications that can help companies to successfully managedisturbances and hence improve their performance.
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Johnson, Peter F. "Risk Assessment in Telephone Exchanges." Digital WPI, 2005. https://digitalcommons.wpi.edu/etd-theses/277.
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A systematic framework has been developed to assess what it is that is at risk in any given telephone exchange. This critical area procedure is designed to identify high risk areas, both in terms of potential property damage and business interruption. This procedure utilizes a functionally based approach that is pictorial in presentation n and well suited to management decision making processes.
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Ballot, Christiaan Conrad. "An investigation into the operational budget risk approach of business units in Exxaro resources." Thesis, Stellenbosch : Stellenbosch University, 2008. http://hdl.handle.net/10019.1/80776.
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Thesis (MBA)--Stellenbosch University, 2008.<br>ENGLISH ABSTRACT: The budgeting process is an integral part of the annual business cycle of most organisations. The budget consists of numerous uncertain inputs, which are frequently used to produce a single EBIT figure. This implies that there is a risk of not achieving the budget that is not quantified and apparent from the prepared budget. In this report, the differences between the budgets of two business units of Exxaro Resources were analysed to gain a better understanding of the information hidden beyond the figures quoted on the surface.
The budgets of Exxaro KZN Sands, a heavy minerals producer, and Zincor, a zinc refinery, were analysed to compare the respective risk approach of each. Simplified deterministic models were first constructed that contained the most important budget risk drivers. These were validated with comparisons to the official budgets. Historical actual data from 2006 and 2007 was then obtained from the business archives for the risk drivers. Probability distributions were then generated that fit the distributions of the historical data. These risk distributions were then used as input variables in a Monte Carlo simulation, performed in Crystal Ball. The EBIT for each business was thus simulated as a probability distribution.
The simulation showed that the two business units applied very different approaches to budget risk. The actual budgeted EBIT of Exxaro KZN Sands of a loss of R167 579 945 had a more than 99% chance of being exceeded, showing a very conservative, worst case approach to budgeting. Zincor had only a 29% probability of exceeding their budgeted EBIT of R202 783 091, and incorporated a much larger risk of not achieving EBIT into the budget. The budgets of both business units were not suitable for the most important functions of budgeting, namely target setting, strategic planning and valuation of the business.
It is recommended that Exxaro implements a procedure to standardise the risk approach to budgeting in the organisation. The budget process must firstly have guidelines to indicate how risk drivers’ values should be chosen for the official budget. Recommendations regarding average values, best three months or any other methodology will ensure that different business units follow a comparable approach. Secondly, Monte Carlo simulation must be performed on simplified business models. The KPI trees currently being used for continuous improvement provide a base model for this purpose. The Monte Carlo simulation will provide a more sophisticated and quantified analysis of risk, and give a further indication of the inherent variability of a specific business unit. Lastly, scrutiny of the Monte Carlo can indicate the biggest drivers of risk. Measures can then be implemented to better understand, or reduce, the variability of the main risk drivers. This will lead to more accurate budgeting, and a better understanding of the inherent budget risk.<br>AFRIKAANSE OPSOMMING: Die begrotingsproses is ‘n integrale deel van die jaarlikse besigheidsiklus van meeste organisasies. Die begroting bestaan uit etlike onseker insette, maar word meestal gebruik om ‘n enkele syfer vir inkomste te bereken. Dit beteken dat daar ‘n risiko is dat die begroting nie behaal gaan word nie, wat nie duidelik na vore tree in die begroting nie. In hierdie verslag word die verskille tussen die begrotings van twee besigheidseenhede van Exxaro Resources geannaliseer om insig te verkry rakende die inligting versteek agter die ooglopende getalle.
Die begrotings van Exxaro KZN Sands, ‘n swaar minerale produsent, en Zincor, ‘n zink rafinadery, is geannaliseer om die onderskye risikobenaderings te vergelyk. Die eerste stap was om vereenvoudigde deterministiese modelle te bou wat die belangrikste begrotingsrisikodrywers bevat het. Die modelle is gevalideer deur die winste te vergelyk met die amptelike besigheidsbegrotings. Historiese data van 2006 en 2007 is versamel van die risikodrywers. Verdelings van waarskynlikheid is toe gekies wat die historiese data beskryf het. Die verdelings is gebruik as inset veranderlikes in ‘n Monte Carlo simulasie, gedoen in Crystal Ball. Die wins van elke besigheid is dan as ‘n waarskynlikheidsverdeling gegenereer.
Die simulasie het aangetoon dat die twee besighede uiteenlopende benaderings tot begrotingsrisiko het. Die begrote verlies van R167 579 945 van Exxaro KZN Sands het ‘n hoër as 99% kans gehad om behaal te word. Dit dui op ‘n uiters konserwatiewe benadering, met die mees pessimistiese waardes vir risiko drywers in die begroting. Zincor het sleg ‘n 29% waarskynlikheid gewys om die begrote wins van R202 783 091 te behaal, en het aansienlik meer risiko in die begroting ingebou. Beide die benaderings was nie geskik vir meeste van die funksies waarvoor begrotings gebruik word nie, naamlik doelwitstelling, strategiese beplanning en waardasie van die besigheid.
Dit word aanbeveel dat Exxaro ‘n prosedure implementeer om die risikobenadering te standariseer. Die begrotingsproses moet eerstens riglyne hê rakende die benadering tot risikodrywers. Daar moet aanbeveel word of gemiddelde waardes, beste drie maande of ‘n ander benadering gevolg moet word, om seker te maak dat verskillende besigheidseenhede dit vergelykbaar uitvoer. Tweedens moet Monte Carlo simulasie gedoen word op vereenvoudigde besigheids modelle. Die KPI bome wat tans vir deurlopende verbetering gebruik word is ‘n ideale basis vir die proses. Die Monte Carlo simulasie bied ‘n meer kwantifiseerbare benadering tot risiko analise, en dui ook aan wat die verwagte afwyking in ‘n besigheid se inkomste is. Laastens gee die Monte Carlo simulasie ‘n aanduiding oor wat die groot risikodrywers in die besigheid is. Stappe kan dan geimplimenteer word om die risikos te bestuur. Die resultaat sal meer akurate begrotings wees, asook meer insig in die inherente risiko in die begroting.
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Rouah, Fabrice. "Essays on hedge funds, operational risk, and commodity trading advisors." Thesis, McGill University, 2007. http://digitool.Library.McGill.CA:80/R/?func=dbin-jump-full&object_id=103290.
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Hedge funds report performance information voluntarily. When they stop reporting they are transferred from the "live" pool of funds to the "defunct" pool. Consequently, liquidated funds constitute a subset of the defunct pool. I present models of hedge fund survival, attrition, and survivorship bias based on liquidation alone. This refines estimates of predictor variables in models of survival, leads to attrition rates of hedge funds to be roughly one half those previously thought, and produces larger estimates of survivorship bias. Survival models based on liquidated funds only, lead to an increase in survival time of 50 to 100 percent relative to survival based on all defunct funds.<br>In addition to refining estimates of survival time, it is useful to examine how the double fee structure of hedge funds and Commodity Trading Advisors (CTA) affects the incentives of their managers. Young CTAs are usually very small --- they hold few financial assets --- and may not meet their operating expenses with their management fee alone, so their incentive is to take on risk and post good returns. As they grow, their incentive to take on risk diminishes. CTAs in their fifth year diminish their volatility by 25 percent relative to their first year, and diminish returns by 70 percent. We find CTAs to behave more like indexers as they grow, concerned with more with capital preservation than asset management.<br>Operational risk is a major cause of hedge fund and CTA liquidation. In the banking industry, regulators have called upon institutions to develop models for measuring capital charge for operational losses, and to subject these models to stress testing. Losses are found to be inversely related to GDP growth, and positively related to unemployment. Since losses are thus cyclical, one way to stress test models is to calculate capital charge during good and bad economic regimes. We find loss distributions to have thicker tails during bad regimes. One implication is that banks will likely need to increase their capital charge when economic conditions deteriorate.
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Wang, Yung-Shun, and 王勇順. "A Risk Assessment Study on the Operational Management of the Taipei City Sports Centers." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/74737137191077197719.
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碩士<br>國立體育大學<br>休閒產業經營學系碩士班<br>100<br>This study probed into the possible risk factors that operating and managing a sports center in Taipei City could encounter. It also aimed at finding the right risk management strategy and the difficulties that one encounters when adopting a certain risk management strategy. The methodology included document analysis and interview method. The results were as follows:
1. Mainly, there were 12 main sorts of risks that a sports center encountered in Taipei includes personnel, financial situation, hardware and installation, management, social needs, regulations, economic situation, political situation, technology evolution, threat of competitors, international situation as well as others.
2. Taipei City sports center adopted several risk management strategies when encountering risks to deal with. There are 6 categories of risk management strategies. These strategies include risk avoiding, risk preventing, risk restraining and diminishing, risk scattering, risk self-sustaining and risk transferring. The sport centers would choose combinations of different strategies to obtain the best result when managing a risk.
3. The difficulties that Taipei City’s sports centers have encountered when using risk management strategies mostly come from government authorities, internal administration and consumers.
Finally, the author of this research suggested that the sports center managers are encouraged to enhance the risk management competencies all in the concepts, skills, and experiences, they could obtain a more satisfying outcome when understanding the factors that trigger the risks within the operation and management as well as external situations. Giving importance to consumers’ loyalty and using marketing to increase the number of people doing sports would also lead to a better result.
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MORETTI, JACOPO. "Fewer is better: the cases of portfolio selection and of operational risk management." Doctoral thesis, 2018. http://hdl.handle.net/11573/1125508.
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This thesis aims to show that in some applications the appropriate selection of a small number of available items can be beneficial with respect to the use of all available items. In particular, we focus on portfolio selection and on operational risk management and we use operations research techniques to identify the few important elements that are needed in both cases. In the first part of this work - based on an article published in Economics Bulletin [Cesarone et al (2016)], we show that, for several portfolio selection models, the best portfolio which uses only a limited number of assets has in-sample performance very close
to that of an optimized portfolio which could include all assets, but generally obtains better out-of-sample performance. This is true for various performance measures, and it is often possible to identify a "golden range" of sizes where the best performances are obtained. These general empirical findings are consistent with theoretical results obtained by Kondor and Nagy (2007) under very restrictive assumptions. We also note that small portfolios are preferable for several practical reasons including monitoring, availability for small investors, and transaction costs. In the second part of the thesis, we develop an operational risk
management framework for the assessment of the exposure of a company (with particular reference to a financial institution) to potential risk events arising from the launch of a new product. This framework is based on the Analytic Hierarchy Process and on the 80/20 rule which allows one to rank and to identify the
most relevant risk events, respectively. By means of appropriate integer programming models we then address the problem of identifying the mitigation actions that secure the internal processes of a company with minimum cost. This corresponds to the primary goal of an operational risk manager: reducing the exposure to potential risk events. An alternative approach, when the budget is fixed, consists in selecting the subset of mitigation actions that provide the greatest reduction in operational risk exposure for that budget. A parametric analysis with respect to the budget level provides additional information for the management to take decisions about possible budget adjustments.