A Threat to the Viability of the SGL Retirement System: The Risk Management Mitigation Necessary for the Creation of a Viable Lifetime Annuity Market in Australia

2015 ◽  
Author(s):  
John R. Evans ◽  
Amandha Ganegoda ◽  
Toby Razeed
Keyword(s):  
Risk Management ◽  
Retirement System ◽  
Annuity Market ◽  
The Creation

scholarly journals Derivative products and innovation in Islamic finance

2014 ◽  
Vol 7 (3) ◽  
pp. 242-257 ◽  
Author(s):  
Seng Kiong Kok ◽  
Gianluigi Giorgioni ◽  
Jason Laws
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Supervisory Board ◽  
Management Tool ◽  
Islamic Finance ◽  
Management Tools ◽  
Content Type ◽  
Risk Transfer ◽  
Financial Framework ◽  
The Creation

Purpose – The purpose of this paper is to highlight the possibility of structuring an Islamic option which includes an element of risk sharing as opposed to risk transfer. Design/methodology/approach – The approach adopted in this research involved a combination of a wa’ad (promise) and murabaha (cost plus sale) and examining if they could form a risk-sharing Islamic option. The payoffs were assumed to be dependent on bi-period outcomes. Findings – The paper attempted to create a hybrid risk-sharing option by combining elements of both wa’ad (promise) and murabaha (cost plus sale). The results yielded are dependent on the eventual direction of the market (in-the-money, at-the-money and out-the-money). While the results are not definitive, they do provide arguments for the adoption of a risk-sharing, as opposed to a risk-transfer, methodology when it comes to structuring risk management instruments. Research limitations/implications – One of the major limitations of this research is the inability to assess the Shariah compliance of the proposed instrument. Shariah compliance is determined by a Shariah Supervisory Board, and every effort has been made to ensure that Shariah financial principles are adhered to in the creation of this structure. Practical implications – The structure provides some interest arguments in the creation of risk management tools under a Shariah financial framework. The structure illustrates the benefits of having a risk-sharing mode over the conventional risk-transfer stances of most risk management tools. Originality/value – The paper offers a new way of structuring a risk management tool in Islamic finance. It explores the highly debated area of derivatives in Islamic finance and proposes a new way of creating a risk management tool that involves some elements of risk sharing.

scholarly journals Creation of a Risk Management Culture on the Example of MNS Investment LLC

2021 ◽  
Vol 8 (3) ◽  
pp. 31-38
Author(s):  
Iryna V. Fedulova Fedulova ◽  
Anastasiia Y. Havryliuk ◽  
Karl Ricketts
Keyword(s):  
Risk Management ◽  
Success Factors ◽  
Methodological Approach ◽  
Risk Groups ◽  
Risk Identification ◽  
Management Culture ◽  
Complex Concept ◽  
Success Indicators ◽  
The Creation ◽  
System Of Parameters

Creating a risk management culture is an important task for any enterprise in a changing and unpredictable external environment. The purpose of this study is to consider the theoretical foundations of determining the essence of the risk management culture and practical aspects of its creation in the enterprise. The article discusses the methodological provisions of the creation of a risk management culture at the enterprise, according to which a system of parameters for risk management is built: a list of key success factors and risk management indicators in the context of the main risk groups, the activity scope of the company under study, and the areas of influence on risks. Risk management culture is considered a complex concept that determines how much all employees of an enterprise are aware of the values within the risk management system and how much the results of their activities are associated with achieving the lowest risk targets. For that purpose, the company must provide risk identification, risk analysis, risk response, and risk control. The creation of a risk management culture involves combining all these stages into an united company management chain. The methodology for creating a risk management culture was tested at MNS Investment LLC. As a result of the analysis, a risk rating was constructed in terms of the degree of their impact on the main key success indicators. The relationship of identified risks with the main activity fields of the company and the areas of influence on risks is analysed. It was discovered that the greatest risk to the company's activities in terms of impact on the purpose achievement is the risk of violating the reliability and financial status of suppliers. The use of this methodological approach is of practical value since it allows integrating the stages of risk management into the company's activities

OIL INDUSTRY RISKS AND TRENDS

2021 ◽  
Vol 2 (6) ◽  
pp. 54-57
Author(s):  
V. O. ZUBKOV ◽  
Keyword(s):  
Risk Management ◽  
Management Strategy ◽  
External Environment ◽  
Oil Industry ◽  
Risk Management Strategy ◽  
High Quality ◽  
Quality Risk Management ◽  
The Creation ◽  
Quality Risk

The article discusses the need to use risk management for the productivity of companies, and also considers the key risks inherent in the oil industry. This topic is becoming more relevant every year, since the volatility of the external environment leads to a new challenge, for which the creation of a high-quality risk management strategy can be prepared.

Formation of a student managed investment fund: risk management and oversight

2019 ◽  
Vol 46 (5) ◽  
pp. 685-691
Author(s):  
Derek Horstmeyer
Keyword(s):  
Risk Management ◽  
Tracking Error ◽  
Board Of Trustees ◽  
Investment Policy ◽  
Policy Statement ◽  
Investment Fund ◽  
Content Type ◽  
Short Sale Constraints ◽  
Short Sale ◽  
The Creation

Purpose The creation and formation of a student managed investment fund (SMIF) is a risky proposition for all stakeholders involved in the process. These risks include reputational risks for the individuals involved, fiduciary risks for the school’s Board of Trustees and monetary risks for the university itself. The purpose of this paper is to explain and detail how these risks can be mitigated through specific oversight committee (OC) construction, distributional/benchmarking requirements for the fund and detailed trading rules (exit points, short sale constraints, loss provisions, etc.) for fund managers, which can all be codified in the bylaws of the SMIF. Design/methodology/approach This investigation is done through a specific case study – the 2017/2018 formation of the George Mason University SMIF. As head of the OC for the fund and lead architect in the creation of the fund for the GMU faculty, the statements below come from firsthand accounts of dealing with all parties of interest and firsthand knowledge of the year-long process of managing all risks, which culminated in being granted endowment capital from the Board of Trustees to officially begin the SMIF on May 1, 2018. Findings First, this paper details how a complete investment policy statement can be used to mitigate the fears and concerns of all parties that have a fiduciary duty to the university’s endowment (which the students will now be partially managing). These bylaws include statements on the risk characteristics of the fund, distributions back to the endowment, oversight features and benchmarking. Next, written into the bylaws of the fund can be several benchmarking and distributional requirements to mitigate the risk exposure of the SMIF’s holdings. Finally, aside from benchmarking constraints, another successful risk management technique can be rules written directly into the investment policy statement that define exit points, tracking error, short sale constraints and other rules for trading. Originality/value This paper offers a roadmap by which these risks can be mitigated through the content of an investment policy statement/bylaws. The author details several techniques that eventually led to all stakeholders at GMU in signing off on the formation of an SMIF, and endowment capital being given to the fund as a seed investment. This is a firsthand account of this process and the author has not seen it documented in the literature anywhere else.

Experience Feedback on Implementing and Using Human-Robot Collaboration in the Workplace

2017 ◽  
Vol 61 (1) ◽  
pp. 1690-1694 ◽  
Author(s):  
Sabrina Jocelyn ◽  
Damien Burlet-Vienney ◽  
Laurent Giraud
Keyword(s):  
Risk Management ◽  
Residual Risk ◽  
Collaborative Robotics ◽  
Collaborative Robots ◽  
The Future ◽  
Design Requirements ◽  
The Creation ◽  
Human Robot Collaboration

With the rise of collaborative robotics, workers are exposed to new risks, not necessarily because of the creation of new hazards, but due to the duration of their exposure to some well-known hazards associated with robots in general (e.g., risk of collision). The total or partial absence of fences at all times allows collaborative robots and humans to share the same workspace even in production, which increases exposure to those risks. To manage the risks, designers follow inherently safe design requirements to make the robot safe for use. However, when the designer delivers the cobot to the user, there is still a residual risk that needs to be managed in the future workspace. This paper presents experience feedback on six cobotic applications in four companies. Observations revolving around residual risk management are presented. Based on the observations, preliminary recommendations are made to help stakeholders with the implementation and use of cobots.

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