organization through better understanding of the operational environment, improved moni- toring of the effectiveness of controls and a more robust response to compliance auditors. There is the danger however that they detract from the skills and experience of the corpo- rate Risk Managers and business unit manag- ers. The use of these tools within an organi- zation must be clearly understood and the roles and areas of responsibilities for the various individuals defined ensuring the out- put is accurate and accepted. Like other secu- rity controls, a riskmanagement tool will not be effective unless it is used and maintained properly. It is worth spending the time at the outset to determine exactly what is needed and following the accepted approach for ap- plication testing and procurement. This can be a major expense so the return on invest- ment must be clearly demonstrated. This is only possible through a well-structured, well- managed and well-understood process. References
ERM is a proactive approach to minimise threats, maximise opportunities, and optimise achievement of objectives (Pearce and Robinson, 2000; Hillson and Murray-Webster, 2004; Gray and Larson, 2006; Rejda, 2011). Basically, managing a business successful entails minimising bad risks and taking advantage of good ones. Consequently, organisational threats cannot be completely eliminated; hence, the best managed business may still experience losses due to unaccounted threats. Three examples of otherwise successful companies that fell victim to some unmitigated risks are: JPMorgan, Merrill Lynch and MF Global. The financial institution's London branch made a bet on illiquid corporate credit-derivative indices to help manage overall exposure to markets. The trades ended up costing JPMorgan nearly $6 billion and resulted in a severe hit to its public reputation. The backlash was so severe that the o pa s chief information officer left the company (Lundgren, 2012). Similarly, in 2007 and 2008 Merrill Lynch lost approximately $30 billion on the back of soured mortgage investments due to riskmanagement failure. Consequently, the company was sold Bank of America. In addition, In 2009 Bank of America Chief Officer was forced to step down because he was not transparent with investors as to the severity of Merrill Lynch's financial situation (Lundgren, 2012). Likewise, MF Global was accused in 2011 of misappropriating $1.6 billion of customer money as it filed for bankruptcy. This was after revelations of large exposures to troubled European bonds (spurred) credit-rating agencies to slash its rating (Lundgren, 2012). This further emphases the importance of ERM, and firms need to engage tools at their disposal to prevent threats from damaging their business.
For every business, development of a Corporate Foreign Exchange, Payments and RiskManagement Policy Manual is an essential step for structuring critical cross-border corporate payments, to ensure their effectiveness. Such a Policy Manual has to be accepted and signed by the Board of Directors as a strategic document that defines corporate and outsourcing activities for cross-border multi-currency payments. For an SME actively involved in the international trade, the only realistic alternative is haphazard ‘hit-and-miss’ currency exchange, money wiring and reporting, which would inevitably lead to substantial loss in profits and, perhaps, to endangering the very corporate existence.
Flying to remote places, sometimes, lead to works being carried out in locals without maintenance dedicated stands or hangars and so works had to be performed in ramp with all the operations happening around. Off course, we are talking about airports with less traffic and places without huge air transportation system. These are the kind of places where nobody wants to fly and companies specialized in ACMI operations found their bigger business opportunities. RiskManagement of this kind of operations has a great role, once operation must be performed but has to be profitable. In the case of M&E department, safety advisor must have in consideration place conditions in case of works that have to be carried out (mainly the unscheduled ones!) and also information regarding equipment and tools (e.g. stairs, ground power units for the case of inoperative APU ...).
The problems of last period caused in global finance markets have yielded new evidence for the importance of liquidity riskmanagement as a sound business practice. A phenomenon that started as a narrow-minded financial market innovation regarding to increased riskiness in the subprime segment of real estate mortgage lending has since widened its effects to result in a worldwide liquidity crisis. As the Financial Stability Forum puts it, “The turmoil has brought to light interactions between credit, market liquidity, and funding liquidity risks that many regulated financial institutions did not anticipate.” (Preliminary Report to the G7 Finance Ministers and Central Bank Governors, 15 October 2007)
The acceptance of risk is an inevitable part of providing asset management products and services and riskmanagement is an important responsibility of any bank engaging in these activities. Sound risk, management is especially critical in banks undergoing mergers and consolidations. Strong risks controls and sophisticated monitoring system are essential in large, diversified companies to ensure effective riskmanagement across a company‘s entire organizational framework. Riskmanagement represents a variety of challenges for commercial banks offering asset management services. This is a partly because it is difficult to develop relevant analytical and statically risk measure for many asset management lines of business. In addition, a purely analytical system may not be sufficient to assess and monitor all risks in this business. Consequently, riskmanagement objectives and functions for asset management may vary significantly between banks. Because market conditions, risk strategies and organizational structures vary, there is no single riskmanagement system that works for all companies. Each bank should establish a riskmanagement program suitable for its own needs and circumstances. The formality of the process should be commensurate with the complexity of the organization‘s structure and operations. An effective riskmanagement system ensure that a ‗comprehensive risk profile of a bank‘s asset management activities is developed and maintained by supervising, assessing, controlling, and monitoring the many different risks associated with asset management product and services.
development of their operations and equal participation in the robust market competition, banks have to include them in their strategic objectives and strategies of banking riskmanagement. Application management and riskmanagement in the banking sector promote a necessary process of expansion of a stable and sound banking system. Avoiding insolvency of banks and maximizing the rate of return on risk adjusted capital are the two main objectives of the riskmanagement policy in the banking business. Without the presence of relevant rules in the banking sphere it's unlikely that the banking system can operate adequately. Reinhart and Rogoff (2009) researched the historical experience that regulation, surveillance and macroeconomic policy aren't enough to prevent crisis. Many authors highlight importance of financial regulatory framework and reform (Goodhart, 2009; Dewatripont et al., 2010; Kotlikoff, 2010; Duffie, 2011; Admati et al., 2013; Myerson, 2014). Dewatripont et al. (2010) defined banking as one of the handful industries subject to prudential regulation on top of consumer protection. They notice that banks are faced with accelerating financial innovations which incurred as a result of customers' desire and pure regulatory arbitrage. Some financial institutions used weakness of regulatory framework which was inadequate designed to achieve abnormal high profits wherein they didn't respect basic principles of ethics and endangering social interests. Myerson (2014) determined that banks are vital financial institutions which intermediate between surplus and deficit units. In particular, banks get substantial funds from deposits and therefore security has to be one of the top principle in banking operations.
Within the curricular units of Education for Entrepreneurship or Entrepreneurship and Project Management, students are challenged to generate ideas that are sufficiently creative, innovative, viable and sustainable. So, students need to acquire the essential skills of entrepreneurship , the tools for generating and describing a business model, the knowledge at the level of market studies, the legal aspects and other formalities in the process of creating a company, as well as the knowledge of models of financing and other incentives to facilitate the development of business models . Afterwards, the students, organized in working groups, plan their micro-business and present it, mainly to the IPB community. No less important were the aspects related to project management evidenced by the Project Management Institute (2004), namely the integration of subprojects, scope management, time management, cost management, quality management, communication management, human resources, riskmanagement and procurement management .
This article highlights the risk analysis within management, focusing on how a company could practicaly integrate the risks management in the existing leading process. Subsequently, it is exemplified the way of manage risk effectively, which gives numerous advantages to all firms, including improving their decision-making process. All these lead to the conclusion that the degree of risk specific to companies is very high, but if managers make the best decisions then it can diminish it and all business activitiy and its income are not influenced by factors that could disturb in a negative way .
From the original company, ANA inherits a simpler and more efficient organizational structure and a more decentralized management with more decision capability at the various business areas, namely the airports, the commercial activities and the infrastructures projects and studies area, as the result of a vast restructure imposed by an eventful decade. Indeed, the 90s began with an oil crisis, followed by some political instability along with the USA’s economic slowdown. These circumstances meant to ANA the very end of a self- financed investments cycle, forcing it to resort to credit to support its development - a huge turning point for the company. Moreover, the European market was profoundly liberalized and both monopolies and tariff controls were ended, measures that brought upon big challenges that ANA faced by rethinking its positioning, thus then reorienting the company towards a more competitive focus, electing Client and Efficiency as the key-words to orient future company growth. As so, when ANA – Aeroportos de Portugal, SA borns, had already very clearly defined objectives: optimize resources, improve productivity, create more and better infrastructures and to advance the success of airport marketing.
Based on figure 1 and the model proposed by Venkatra- man (1994), analysis of the cases studied for this work suggests that companies A and B are more aligned to the Internal Integration stage. In these two companies the efforts are mostly focused on risk consolidation and integration, although in both cases the processes were redesigned in accordance with initial assessments. In cor- porate terms, company C might be at a more advanced stage (transition to Stage 4) as the firm, or more precisely its supply chain, is more concerned with business networ- ks as shown in the individual analysis of the case. Finally, it is important to highlight that the model aims towards companies aligning their expectations and making more conscious choices, as in practice they can end up at diffe- rent stages for each particular aspect.
appears on the chart with 77%. Indeed, 77% of the respondents have selected “Having a succession planning” in their choices among the five factors asked. Then, 65,5% of the respondents would define, “Starting the succession process early” as a main factor just as much “Fostering family harmony” for 67,2% of them. “Preserving the family’s values & vision” remains a fundamental factor for the family businesses in terms of succession process. Finally, they selected for 57,3% of them, “Doing a smooth transfer of power” as a key success factor also. The chart (Appendix 24) shows clearly 5 distinctive factors, called by this study, the key success factors necessary to a successful and viable family businessmanagement succession. These results, interpret the choices of the leaders questioned through their experiences and their personal opinions. The choice of these 5 factors is not anodyne, but reveals as indicated by some authors and studies the necessity to start as soon as possible the succession process with a clear succession planning thought by all the stakeholders. These results also underline the importance of family unity in the succession process and the transmission of values through generations of leaders and the fact to execute the process with a real accompaniment and a smooth transfer of power.
Gamification has emerged as a trend within the business and marketing sectors, and has recently gained the notice of academics, educators, and practitioners from a variety of domains. Even so, gamification is not a new concept, having roots in marketing endeavors, such as points cards and rewards member- ships, educational structures, most not ably scholastic levels, grades, and degrees, and workplace productivity (Nelson, 2012). The rise (or re-emergence) of gamification is thought to have been brought about by a number of converging factors, including cheaper technology, personal data tracking, eminent successes, and the prevalence of the game medium (Deterding,2012). To this list we suggest the addition of the game studies movement generally, which continues to develop a methodically considered framework of the nature, design and impact of games, and particularly relevant to gamification – those essentials aspects that make game(ful) experiences immersive, engaging and fun.
In this study, a simple yet effective two-period hedging strategy is proposed for a risk-averse small-and-medium- sized firm to minimize the volatility of the utility with respect to the terminal wealth. The volatility arises from the contingent payment received from the buyer, which depends on the commodity spot price on the day when the order is satisfied. The optimal positions of the futures contracts are the same for the firm with respect to exponential utility and mean-variance utility. In other words, the firm’s optimal hedging strategy is independent of these two risk preferences. This happens because the only uncertainty comes from the volatile commodity spot price which can be fully hedged in the proposed model. It is also worth noting that the strategy is quite general because it does not involve any specific models for price evolution of the futures contracts and the underlying commodity. Also, the results can be readily extended to a multi-period hedging model. For further study, other realistic issues such as transaction cost and basis risk might be taken into account.
Tendo em perspectiva o estado actual do m´odulo SiagBI e a sua integrac¸˜ao com o sistema SIAG, assim como as lic¸˜oes aprendidas atrav´es da metodologia do Agile Business Intel- ligence introduzida pela Pentaho, creio que o primeiro grande passo ser´a a passagem das restantes interfaces das funcionalidades de BI para a nova plataforma de interfaces GWT — nomeadamente o explorador de cubos e os ecr˜as de criac¸˜ao de indicadores e gr´aficos sobre os dados de um cubo. Isto permitir´a, tendo em conta as funcionalidades da plata- forma SiagGWT de integrac¸˜ao recursiva de formul´arios no mesmo ecr˜a, novas maneiras de integrar as funcionalidades do m´odulo de BI, assim como abrir as portas ao mercado mobile (os ecr˜as de GWT s˜ao compat´ıveis com browsers de dispositivos m´oveis). Neste novo paradigma, seria f´acil agregar as funcionalidades de BPM num ´unico dashboard universal, aumentando a produtividade do utilizador final e a simplicidade de uso com a reduc¸˜ao do n´umero de ecr˜as necess´arios. Numa perspectiva ideal, este dashboard univer- sal, `a semelhanc¸a dos dashboards de dados de um cubo e o m´odulo de desenho perso- nalizado de ecr˜as GWT, poderia vir a ser personalizado pelo pr´oprio utilizador de acordo com as suas necessidades espec´ıficas.
The risks related with the general success of an organizations project were application intricacy, lack of user participation and absence of role clarity of individuals on the project. Absence of user support was substantial for the organizational impact; while technological innovation affected system quality satisfaction. Systems development was affected by the team’s general capability, application intricacy and user support and systems use was affected by role clarity and user knowledge. While these previous studies are related, none clearly examined the environment of ERP systems. In order to capitalize on the probability of success, the risks related with a task must be minimized. As stated above, review firms reduce the threat of review failure through the identification of distinctive, control and detection risks followed by the formation of a suitable, specified level of overall assessment risk that is a function of those other risks. The same logic holds for the application of an ERP system. In order to improve the chance of success, the risks must be acknowledged and success factors should be identified to minimize those threats.
Portfolio is a set of assets (for example in a non accountant sense: suppliers). The theory of portfolio management is based on the rate of advantages drawn from buying from particular supplier, informing about the relation of advantage generated by such a purchase to the outlay related to such a purchase.