Long-term commodity procurement risk management using futures contracts : a dynamic stack-and-roll approach

2013 ◽  
Author(s):  
Li Shi
Keyword(s):  
Risk Management ◽  
Futures Contracts ◽  
Procurement Risk

Commodity Exchange-Traded Funds

2018 ◽  
Author(s):  
Christopher Milliken
Keyword(s):  
Portfolio Diversification ◽  
Futures Contracts ◽  
Spot Price ◽  
Exchange Traded Funds ◽  
Investment Strategies ◽  
Regulatory Structure ◽  
Commodity Exchange ◽  
Asset Class ◽  
Exchange Traded Fund

Commodity exchange-traded funds (ETCs), which debuted in 2004, enable investors to access an asset class previously difficult or expensive to access. Although a small segment of the overall exchange-traded fund (ETF) universe, ETCs have grown in popularity with both speculators and investors looking for long-term portfolio diversification. Examples of the types of commodities that are now accessible through ETCs include gold, oil, and agricultural. The literature on ETCs is limited, but academic and industry work has centered on using futures contracts to replicate the performance of the underlying commodities spot price as well as the effect additional capital has had on the integrity of the futures market. This chapter covers this topic by reviewing the growth, investment strategies, and regulatory structure of ETCs as well as the underlying effects these funds have had on the underlying markets with which they engage.

Stock Market Development And Economic Growth in Nigeria

1998 ◽  
Vol 2 (1) ◽  
pp. 33-38 ◽  
Author(s):  
John C. Anyanwu
Keyword(s):  
Economic Growth ◽  
Risk Management ◽  
Stock Market ◽  
Conceptual Framework ◽  
Corporate Control ◽  
Market Development ◽  
Political Environment ◽  
Stock Market Development ◽  
Long Run

Is the stock market development important for economic growth in Nigeria? One line of research argues that it is not; another line stresses the importance of stock market development in allocating capital, acquisition of information about firms, easing risk management, mobilization of savings, and exerting corporate control. Indeed, some theories provide a conceptual framework for the belief that larger, more efficient stock markets boost economic growth. This article examines whether there is a strong empirical association between Nigerian stock market development and long-run economic growth. Our empirical results suggest that the Nigerian stock market development is positively and strongly associated with long-term economic growth. This implies that Nigerian policymakers should make concerted efforts at removing obstacles to stock market development while creating and sustaining an enabling macroeconomic and political environment for the market’s development.

Enterprise risk management and sustainability of banks performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Babajide Oyewo
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Management Practice ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Banking Reform ◽  
Content Type ◽  
Enterprise Risk ◽  
The Impact

PurposeThis study investigates firm attributes (namely level of capitalisation, scope of operation, organisational structure, organisational lifecycle, systemic importance and size) affecting the robustness of enterprise risk management (ERM) practice, the extent to which ERM affects the performance of banks and the impact of ERM on the long-term sustainability of banks in Nigeria. This was against the backdrop that the 2012 banking reform was a major regulatory intervention that mainstreamed ERM in the Nigerian banking sector.Design/methodology/approachThe study employed a mixed methodology of content, trend and quantitative analyses. Ex post facto research design was deployed to analyse performance differential of banks, with respect to the implementation of ERM, over a 10-year period (2008–2017). A disclosure checklist developed from the COSO ERM integrated framework was used to assess the robustness of ERM by content-analysing divulgence on risk management in published annual reports. The banking reform periods were dichotomised into pre- (2008–2012) and post- (2013–2017) reform periods. Jonckheere–Terpstra test, independent sample t-test and Mann–Whitney test were applied to analyse a total of 1,036 firm-year observations over the period 2008–2017.FindingsResult shows that bank attributes significantly affecting the robustness of risk management practice are level of capitalisation, scope of operation, systemic importance and size. Performance of banks improved slightly during the post-2012 banking reform period. This suggests that as banks consolidate on the gains of ERM, benefits of the regulatory policy on risk management may be realised in the long run. Result also shows that ERM enhances long-term performance, connoting that effective risk management could serve as a competitive strategy for surviving turbulence that typically characterises the banking sector.Practical implicationsThe emergence of level of capitalisation, scope of operation, systemic importance and size as determinants of ERM provides empirical evidence to support the practice of reviewing the capital requirements for banking business from time to time by regulatory authorities (i.e. recapitalisation policy) as a strategy for managing systemic risk. Top management of banks may consider instituting mechanisms that will ensure risk management is given prominence. A proactive approach must be taken to convert risks to opportunities by banks and other financial institutions, going forward, to cope with the vicissitudes of financial intermediation.Originality/valueThe originality of the study stems from the consideration that it provides some new insights into the impact of ERM on banks long-term sustainability in a developing country. The study also contributes to knowledge by exposing the factors determining the robustness of risk management practice. The study developed a checklist for assessing ERM practice from annual reports and other risk management disclosure documents. The paper also adds to the scarce literature on risk governance and risk management.

SWAPS-Customized Long-Term Risk Management

Natural Gas ◽  
2008 ◽  
Vol 8 (3) ◽  
pp. 26-28
Author(s):  
Lance W. Schneier ◽  
Gary J. Morsches
Keyword(s):  
Risk Management

scholarly journals PROACTIVE CONTRACTING IN FINNISH PPP PROJECTS

2009 ◽  
Vol 13 (3) ◽  
pp. 219-228 ◽  
Author(s):  
Antti Tieva ◽  
Juha-Matti Junnonen
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
Private Sector ◽  
Contract Law ◽  
Public Private Partnership ◽  
Private Partnership ◽  
Contractual Arrangements ◽  
Main Target

Public‐private‐partnership projects are long term, complex and very challenging contractual arrangements and relationships. They bring new roles for public sector and also for private sector in terms of construction and services. This paper will go through some features of the Finnish PPPs. Proactive law focuses in practical views as regards contract law and contractual issues. The main target is to prevent problems instead of confronting them. This paper will clarify what proactive law is about in terms of contract law and contracting especially in PPPs. For instance, 20–40 years’ partnership relation with PPPs brings up also dozens of different risks into the picture. This paper will discuss the risks and risk management in terms of proactive law and after that, focus on PPPs in Finland. Santruka Viešojo ir privataus sektoriu partnerystes (VPP) projektai ‐ tai ilgalaikiai, sude tin gi ir itin daug pastangu reikalaujantys sutartiniai susitarimai ir santykiai. Ne tik viešajame, bet ir privačiajame sektoriuje jie sukuria naujus, su statyba ir paslaugomis susijusius, vaidmenis. Šiame darbe apžvelgiami kai kurie Suomijos VPP bruožai. Iniciatyvi teise glaudžiai susijusi su prak ti nemis pažiūromis, sutarčiu teise ir pan. Pagrindinis tikslas ‐ išvengti problemu užuot jas sprendus. Šiame darbe paaiškinama iniciatyvios teises esme sudarant sutartis, ypač VPP. Pavyzdžiui, kai VPP trunka 20–40 metu, susiduriama su daugybe ivairiu rizikos rūšiu. Todel straipsnyje pirmiausia aptariamos rizikos rūšys ir rizikos valdymo būdai taikant iniciatyvia teise, o po to ‐ Suomijos VPP.

scholarly journals Paleoenvironmental Reconstructions Improve Ecosystem Services Risk Assessment: Case Studies from Two Coastal Lagoons in South America

Water ◽  
2018 ◽  
Vol 10 (10) ◽  
pp. 1350 ◽  
Author(s):  
Maria Velez ◽  
Daniel Conde ◽  
Juan Lozoya ◽  
James Rusak ◽  
Felipe García-Rodríguez ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Ecosystem Services ◽  
South America ◽  
Coastal Lagoons ◽  
Holistic Approach ◽  
Assessment Process ◽  
History Of ◽  
Paleoenvironmental Reconstructions

Paleoenvironmental reconstructions are increasingly being used in conservation biology, ecosystem management, and evaluations of ecosystem services (ES), but their potential to contribute to the ES risk assessment process has not been explored. We propose that the long-term history of the ecosystem provides valuable information that augments and strengthens an ES risk assessment and that it should be considered routinely when undertaking risk assessments. We adjusted a standard ecosystem-based risk management (EBRM) protocol to include paleoenvironmental data, and tested the modified approach on two coastal lagoons in South America. Paleolimnological reconstructions in both lagoons indicate that salinity and nutrients (in Laguna de Rocha), and salinity (in Ciénaga Grande de Santa Marta), as controlled by hydrologic connectivity with the ocean and freshwater tributaries, have been the key variables behind ecosystem’s function. This understanding, applied to inform various components and steps in the EBRM protocol, suggests that the maintenance of hydrological connections should be a management priority to minimize risk to ES. This work illustrates the utility of including paleoenvironmental data in an EBRM context and highlights the need for a more holistic approach to risk management by incorporating the long-term history of ecosystem function.

scholarly journals Warranty of Misinforming as an Option in Product Utilization Process

10.28945/3501 ◽  
2016 ◽  
Author(s):  
Dimitar Grozdanov Christozov ◽  
Stefanka Chukova ◽  
Plamen S. Mateev
Keyword(s):  
Risk Management ◽  
Smart Phones ◽  
Fixed Cost ◽  
Strike Price ◽  
Underlying Asset ◽  
Learning Function ◽  
Time To Learn ◽  
Definition Of ◽  
The Right

The following definition of “option” is given in Wikipedia - “In finance, an option is a contract which gives the buyer (the owner or holder) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date, depending on the form of the option.”. Option as a risk management (mitigation) tool is broadly used in finance and trades. At the same time it introduces asymmetry in the sense that, probabilistically, it limits the level of loses (i.e., the price of option) and allows for unlimited gains. In the market of sophisticate devices (as smart phones, tablets, etc.), where technologies are rapidly advancing, customers usually do not have the experience to use all features of the device at the time of purchasing. Due to the lack of appropriate expertise, the risk of misinforming leading to not purchasing the "right" device is high, but given enough time to learn the capabilities of the device and map them to the problems faced could provide the client with substantial long term benefits. Warranty of misinforming is the mechanism to provide the client with the opportunity to explore the device and master its features with a limited risk of loses. Thus, the warranty of misinforming could be considered as an option - the customers buys it (at a fixed cost) and may gain (theoretically) unlimited benefit by realizing (within the warranty) that the device can be used to solve variety of problems not considered at the purchase time. The paper investigates the learning function of warranty of misinforming, when used as an option.

Sign in / Sign up

Export Citation Format

Share Document