1Chapter 2 Steps 8 through 10: Manage Operational Risks

2009 ◽  
pp. 259-284
Keyword(s):  
Operational Risks

MODELING OF THE STRESS-STRAIN STATE OF A TRANSPORT TUNNEL UNDER LOAD AS A MEASURE TO REDUCE OPERATIONAL RISKS TO TRANSPORTATION FACILITIES

2020 ◽  
Vol 3 (8) ◽  
pp. 28-34
Author(s):  
N. V. IVANITSKAYA ◽  
◽  
A. K. BAYBULOV ◽  
M. V. SAFRONCHUK ◽  
◽  
...  
Keyword(s):  
Strain State ◽  
Moving Load ◽  
Element Model ◽  
Transport Infrastructure ◽  
Design Stage ◽  
Surface Load ◽  
Stress Strain ◽  
Stress Strain State ◽  
Operational Risks ◽  
Von Mises

In many countries economic policy has been paying increasing attention to the modernization and development of transport infrastructure as a measure of macroeconomic stimulation. Tunnels as an important component of transport infrastructure save a lot of logistical costs. It stimulates increasing freight and passenger traffic as well as the risks of the consequences of unforeseen overloads. The objective of the paper is to suggest the way to reduce operational risks of unforeseen moving load by modeling of the stress-strain state of a transport tunnel under growing load for different conditions and geophysical parameters. The article presents the results of a study of the stress-strain state (SSS) of a transport tunnel exposed to a mobile surface load. Numerical experiments carried out in the ANSYS software package made it possible to obtain diagrams showing the distribution of equivalent stresses (von Mises – stresses) according to the finite element model of the tunnel. The research results give grounds to assert that from external factors the stress state of the tunnel is mainly influenced by the distance to the moving load. The results obtained make it possible to predict in advance the parameters of the stress-strain state in the near-contour area of the tunnel and use the results in the subsequent design of underground facilities, as well as to increase their reliability and operational safety. This investigation gives an opportunity not only to reduce operational risks at the design stage, but to choose an optimal balance between investigation costs and benefits of safety usage period prolongation.

Basel II compliant mapping of operational risks

2007 ◽  
Vol 2 (1) ◽  
pp. 93-114
Author(s):  
Ingo Schäl ◽  
Wolfgang Stummer
Keyword(s):  
Basel Ii ◽  
Operational Risks

Risk identification and modeling for blockchain-enabled container shipping

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Son Nguyen ◽  
Peggy Shu-Ling Chen ◽  
Yuquan Du
Keyword(s):  
Design Methodology ◽  
Directed Acyclic Graph ◽  
Risk Identification ◽  
Container Shipping ◽  
Content Type ◽  
Acyclic Graph ◽  
Operational Risks ◽  
Systems Security ◽  
Event Risk ◽  
Potential Risks

PurposeAlthough being considered for adoption by stakeholders in container shipping, application of blockchain is hindered by different factors. This paper investigates the potential operational risks of blockchain-integrated container shipping systems as one of such barriers.Design/methodology/approachLiterature review is employed as the method of risk identification. Scientific articles, special institutional reports and publications of blockchain solution providers were included in an inclusive qualitative analysis. A directed acyclic graph (DAG) was constructed and analyzed based on network topological metrics.FindingsTwenty-eight potential risks and 47 connections were identified in three groups of initiative, transitional and sequel. The DAG analysis results reflect a relatively well-connected network of identified hazardous events (HEs), suggesting the pervasiveness of information risks and various multiple-event risk scenarios. The criticality of the connected systems' security and information accuracy are also indicated.Originality/valueThis paper indicates the changes of container shipping operational risk in the process of blockchain integration by using updated data. It creates awareness of the emerging risks, provides their insights and establishes the basis for further research.

scholarly journals How chief risk officers (CROs) can have meaningful and productive dealings with insurance agencies: a leading example

2021 ◽  
Vol 1 (5) ◽  
Author(s):  
Alberto Bettanti ◽  
Antonella Lanati
Keyword(s):  
Monte Carlo Simulation ◽  
Methodological Approach ◽  
Cost Effective ◽  
Third Parties ◽  
Computational Tool ◽  
Building Relationships ◽  
Total Cost ◽  
Retention Level ◽  
Operational Risks ◽  
Risk Appetite

AbstractIn broad terms, risk management (RM) covers four conventional actions in addressing operational risks (OpRisks), i.e., actions to mitigate, eliminate, accept, and transfer operational risks. In relation to transferring OpRisks to external third parties, this study aids chief risk officers (CROs) in addressing issues related to the reduction of economic exposure to OpRisk. In this respect, the economic handling of OpRisks and their coverage through specific insurance programs are among the major challenges that CROs face within their roles. The aim of this paper is to provide CROs with an analytical pathway to addressing these challenges by applying the total cost of risk (TCoR) method tailored to their purposes. Through a leading example, this paper demonstrates that the TCoR approach meaningfully and productively supports CROs’ decisions when striving to deal with OpRisk. In fact, the TCoR approach implementation, together with the application of Monte Carlo simulation as a computational tool, drives TCoR value optimization when OpRisk is transferred to insurance agencies. In addition, by applying a TCoR framework, CROs can find the correct and cost-effective balance between the company’s retention level—consistent with the company’s risk appetite—and the premiums paid to insurance agencies. In conclusion, this paper provides CROs with a methodological approach for efficiently building relationships with insurance agencies by consistently addressing TCoR-based dealings.

scholarly journals Cyber operational risk scenarios for insurance companies

2019 ◽  
Vol 24 ◽  
Author(s):  
R. Egan ◽  
S. Cartagena ◽  
R. Mohamed ◽  
V. Gosrani ◽  
J. Grewal ◽  
...  
Keyword(s):  
Cyber Security ◽  
Operational Risk ◽  
Social Engineering ◽  
Insurance Companies ◽  
List Type ◽  
Operational Risks ◽  
Life Insurer ◽  
Cyber Risk ◽  
The Impact ◽  
Over Time

AbstractCyber Operational Risk: Cyber risk is routinely cited as one of the most important sources of operational risks facing organisations today, in various publications and surveys. Further, in recent years, cyber risk has entered the public conscience through highly publicised events involving affected UK organisations such as TalkTalk, Morrisons and the NHS. Regulators and legislators are increasing their focus on this topic, with General Data Protection Regulation (“GDPR”) a notable example of this. Risk actuaries and other risk management professionals at insurance companies therefore need to have a robust assessment of the potential losses stemming from cyber risk that their organisations may face. They should be able to do this as part of an overall risk management framework and be able to demonstrate this to stakeholders such as regulators and shareholders. Given that cyber risks are still very much new territory for insurers and there is no commonly accepted practice, this paper describes a proposed framework in which to perform such an assessment. As part of this, we leverage two existing frameworks – the Chief Risk Officer (“CRO”) Forum cyber incident taxonomy, and the National Institute of Standards and Technology (“NIST”) framework – to describe the taxonomy of a cyber incident, and the relevant cyber security and risk mitigation items for the incident in question, respectively.Summary of Results: Three detailed scenarios have been investigated by the working party:∙Employee leaks data at a general (non-life) insurer: Internal attack through social engineering, causing large compensation costs and regulatory fines, driving a 1 in 200 loss of £210.5m (c. 2% of annual revenue).∙Cyber extortion at a life insurer: External attack through social engineering, causing large business interruption and reputational damage, driving a 1 in 200 loss of £179.5m (c. 6% of annual revenue).∙Motor insurer telematics device hack: External attack through software vulnerabilities, causing large remediation / device replacement costs, driving a 1 in 200 loss of £70.0m (c. 18% of annual revenue).Limitations: The following sets out key limitations of the work set out in this paper:∙While the presented scenarios are deemed material at this point in time, the threat landscape moves fast and could render specific narratives and calibrations obsolete within a short-time frame.∙There is a lack of historical data to base certain scenarios on and therefore a high level of subjectivity is used to calibrate them.∙No attempt has been made to make an allowance for seasonality of renewals (a cyber event coinciding with peak renewal season could exacerbate cost impacts)∙No consideration has been given to the impact of the event on the share price of the company.∙Correlation with other risk types has not been explicitly considered.Conclusions: Cyber risk is a very real threat and should not be ignored or treated lightly in operational risk frameworks, as it has the potential to threaten the ongoing viability of an organisation. Risk managers and capital actuaries should be aware of the various sources of cyber risk and the potential impacts to ensure that the business is sufficiently prepared for such an event. When it comes to quantifying the impact of cyber risk on the operations of an insurer there are significant challenges. Not least that the threat landscape is ever changing and there is a lack of historical experience to base assumptions off. Given this uncertainty, this paper sets out a framework upon which readers can bring consistency to the way scenarios are developed over time. It provides a common taxonomy to ensure that key aspects of cyber risk are considered and sets out examples of how to implement the framework. It is critical that insurers endeavour to understand cyber risk better and look to refine assumptions over time as new information is received. In addition to ensuring that sufficient capital is being held for key operational risks, the investment in understanding cyber risk now will help to educate senior management and could have benefits through influencing internal cyber security capabilities.

scholarly journals How Can Enterprise Risk Management Help in Evaluating the Operational Risks for a Telecommunications Company?

2021 ◽  
Vol 14 (3) ◽  
pp. 139
Author(s):  
José Ruiz-Canela López
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Operational Risk ◽  
Field Work ◽  
Risk Identification ◽  
Enterprise Risk Management ◽  
Management Tool ◽  
Self Assessment ◽  
Operational Risks ◽  
Enterprise Risk

Operational risk is defined as the potential losses resulting from events caused by inadequate or failed processes, people, equipment, and systems or from external events. One of the most important challenges for the management of the company is to improve its results through its operational risk identification and evaluation. Most of Enterprise Risk Management (ERM) scholarship has roots in the finance/risk management and insurance (RMI) discipline, mainly in the banking sector. This study proposes an innovative operational risk assessment methodology (OpRAM), to evaluate operational risks focused on telecommunications companies (TELCOs), on the basis of an operational risk self-assessment (OpRSA) process and method. The OpRSA process evaluates operational risks through a quantitative analysis of estimates which inputs are the economic impact and the probability of occurrence of events. The OpRSA method is the “engine” for calculating the economic risk impact, applying actuarial techniques, which allow estimation of unexpected losses and expected losses distributions in a TELCO. The results of the analyzed business unit in the field work were compared with standardized ratings (acceptable, manageable, critical, or catastrophic), and contrasted against the company’s managers, proving that the OpRSA framework is a reliable and useful management tool for the business, and leading to more research in other sectors where operational risk management is key for the company success.

Frontiers in Service Science: Fintech Operations—An Overview of Recent Developments and Future Research Directions

2021 ◽  
Vol 13 (1) ◽  
pp. 19-35
Author(s):  
Baile Lu ◽  
Shuai Hao ◽  
Michael Pinedo ◽  
Yuqian Xu
Keyword(s):  
Future Research ◽  
Algorithmic Trading ◽  
Payment Systems ◽  
Research Directions ◽  
Operational Risks ◽  
Technology Industry ◽  
Recent Developments ◽  
Future Research Directions ◽  
Conclusion Section ◽  
Financial Technology

In this paper, we provide a survey of recent developments in the fintech (financial technology) industry, focusing on the operational structures, the technologies involved, and the operational risks associated with the new systems. In particular, we discuss payment systems, algorithmic trading, robo-advisory, crowdfunding, and peer-to-peer lending. In the conclusion section, we discuss various promising research directions.

Toe Initiation Sleeve With Time-Delay Functionality Improves Operational Efficiency of Offshore NCS Wells

2021 ◽  
Author(s):  
Cathrine Mehus ◽  
Vijay Kumar Keerthivasan ◽  
Tom Rune Koløy ◽  
Dustin Young ◽  
Tore Sørheim
Keyword(s):  
Time Delay ◽  
Technology Development ◽  
Scale Validation ◽  
Cost Savings ◽  
Field Trials ◽  
Operational Efficiency ◽  
Delay Function ◽  
Operational Risks ◽  
The North ◽  
Test Pressure

Abstract A toe initiation sleeve is a tool installed in the toe of a completion liner and is used to establish a flowpath to the reservoir without the use of intervention. Conventional toe initiation sleeves require either intervention or increasing pressure to higher than the liner test pressure to activate. These methods have inherent cost and operational risks. This paper will present the development, qualification, and deployment of a multicycle, time-delay cementable toe initiation sleeve that allows for interventionless activation without exceeding the liner test pressure. This development greatly improves operational efficiency and eliminates risk associated with conventional toe initiation sleeves. A major operator in the North Sea required an ISO V0 rated toe initiation sleeve to be developed and qualified. Design criteria for the tool was identified, and the design was developed based on field-qualified seal technology. Individual component and full-scale validation testing was performed to complete the product qualification, followed by field trials in 2019. With its unique time-delay feature, the newly developed ATS (Advanced Toe Sleeve) allows for an unlimited number of pressure cycles to be performed while also keeping the well V0 barrier in place, and activates at below liner test pressure. This paper will discuss the technology development and implementation project, resulting in ISO 14998 V0-qualified cemented ATS being installed in nearly 40 wells in the same field. This paper will also provide insight into how the ATS provides unique benefits to the operator during various phases of the well's life. Cementing: One moving part and opening sleeve isolated from the inside diameter (ID) allow for pumping darts through the ATS without the risk of opening Setting liner/testing liner: Time-delay features allow for setting liner and testing the liner at higher pressures than ATS opening pressure. Well cleanup/displacing to lower density fluid: Time-delay function allows for opening the ATS at lower pressure than the well has seen during previous operations. Completion: ATS design and qualification grade reduce completion steps and costs for the operator. Stimulation: ATS eliminates the need for intervention, reducing the operational steps and costs for the operator. The advanced toe sleeve with built-in time-delay features maintains the liner integrity throughout the various well operations. The number of available pressure cycles can be predetermined, and the activation of the various cycles can be precisely controlled thereby also controlling when the tool is activated to achieve injectivity. This paper will present the development and field-wide implementation of the ATS technology, which has rapidly gained operator acceptance and resulted in significant time and cost savings.

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