Top PDF A Benchmark Framework for Risk Management

A Benchmark Framework for Risk Management

A Benchmark Framework for Risk Management

Abstract. The paper describes a general framework for con- tingent claim valuation for finance, insurance and general risk management. It considers security prices and portfolios with finite expected returns, where the growth optimal portfolio is taken as numeraire or benchmark. Benchmarked nonnegative wealth processes are shown to be supermartingales. Fair benchmarked values are conditional expectations of future benchmarked prices under the real world probability measure. Standard risk neutral and actuarial pricing formulas are obtained as special cases of fair pricing. The proposed benchmark framework covers the infinite time horizon and does not require the existence of an equivalent risk neutral pricing measure.
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A Risk Management Framework for Cloud Migration Decision Support

A Risk Management Framework for Cloud Migration Decision Support

This task identifies the possible control measures that could mitigate and eliminate the identified risks to the cloud environment. Figure 2 shows a possible risk control strategy for managing identified risks relating to cloud migration. In the context of cloud based systems, prevention measures should avoid or deter the occurrence of any event that can potentially have a negative consequence. We advocate a prevention strategy for the cloud migration decision that includes realistic preventative actions such as clear assignment of roles and responsibilities to support the adaptation actions during the migration, strong access control mechanisms, and a business continuity plan. These measures are effective in controlling risks during migration. No-control action strategy mainly does not follow an immediate control action for a risk, rather reviews and monitors the risk further by gathering information after migration. Such measures are necessary in cloud-based systems for collecting evidence to support the audit. For instance, audit trials, provenance, monitoring suspicious activities, complete deletion of data, and security incident reports are detective measures. Users should be able to customize the monitoring of resource use to support the detective measure, as application performance after migration is necessary to support the business. Once the potential control measures have been identified, it is necessary to determine who is responsible for implementing the control measures. Depending on the nature of the risk and control measure, both the user organization and CSP may be responsible for managing the risks. Furthermore, we also need to review the risk factors to determine whether the identified control measures are able to eliminate or reduce the risk factors and to improve the situation caused by the risk factors. At the end of this activity, the risk register is updated with all identified risks from the previous activity, risk level, possible risks control strategy and suitable control measures for the risk control.
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Generic Software Risk Management Framework for SCADA System

Generic Software Risk Management Framework for SCADA System

P.A.S. Ralstonet al. in [13] attempted to provide set of guidelines, best practices, security tools and new technologies developed by governmental agencies. They also, provide an update on the advances in probabilistic risk assessment that can be applied to estimate the risk (exposure or expected loss) from SCADA and DCS installations. They finally compared recently approaches used for quantifying the risk, threat impact and cyber-security of the industrial systems’ networks. Z. Anwaret al. in [14] proposed a security model which incorporated infrastructure descriptions and workflow activities of the SCADA systems. They improve existing techniques of attack graph generation for evaluating risks and give recommendation on safer workflows based on a cost- lattice. They developed a tool-chain that automates the process of generating their models from CIM specifications which can be dynamically updated to give accurate results. D.J. Kanget al. in [15] specified the threats to SCADA system based on general cyber threats on communication networks. They analyzed and defined the points of the system where the vulnerabilities can be occurred and possible attack types based on the results.
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A framework for process driven risk management in construction projects

A framework for process driven risk management in construction projects

The framework contains the cyclical risk managementprocess shown in Chapter 2, the approach to risk managementshown in Chapter 3, process-driven risk managementshown in Chapter 4, and is[r]

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DEVELOPING AN INTEGRATED RISK AND VALUE MANAGEMENT FRAMEWORK FOR CONSTRUCTION PROJECT MANAGEMENT

DEVELOPING AN INTEGRATED RISK AND VALUE MANAGEMENT FRAMEWORK FOR CONSTRUCTION PROJECT MANAGEMENT

quantitatively with the technical support of the risk analyst; secondly by generating the risk mitigating measures during creative phase; thirdly by carrying out further quantitative risk analysis of proposals and lastly by collating all the information on risk in the project risk management plan. Connaughton and Green (1996) advance that it is indeed possible to combine value and risk management in the same workshop without however overloading workshop participants by trying to achieve too much. More recently, Green (1997) argues that risk and value management can no longer be considered to be two separate entities, implying that integration is not only plausible but essential. He thus proposes the integration of risk and value management methodologies with concepts from the Strategic Choice Approach (see Friend and Hickling 1988).
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Strategic Options to Cultural Risk Management: A Theoretical Framework

Strategic Options to Cultural Risk Management: A Theoretical Framework

Fraser and Simkins (2010) [34] classify risks according to their nature, either financial or non-financial. Financial risk involves the relationship between an individual or an organization and an asset or the expectation of an income that may be lost or damaged (Vaughan, 1997 [122]). This risk reflects the firm’s profitability level, its debt load and interest coverage, the firm’s capacity for indebtedness, its financing contracts (such as redemption dates and restrictive clauses), the firm’s capacity for reinvesting by the current owners (St-Pierre and Bahri, 2006 [112]), and is related to credit or the market. However, financial risks are not the only risks faced by organizations. Risks that are not related to credit or the market are non-financial. Events such as the Brexit vote (political and economic risk), the Fort McMurray wildfire (disaster risk), hacking and cyber-attacks (technology risk) or the Home Depot commercial failure in China (cultural risk) serve to highlight the fact that the scope of risks extends beyond credit and the market. While financial risks are well defined and accounted for in a company’s records, many of the non-financial risks are less precise and, therefore, much harder to describe, predict, and measure (Andersen and Schroder, 2010 [2]).
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Applying a Risk Management Framework to the Thai Massage Businesses

Applying a Risk Management Framework to the Thai Massage Businesses

Abstract: This research developed a risk management framework based on ISO 31000:2009 for the Thai massage industry. The Thai massage standard is regulated by Thai Ministry of Public Health. Nevertheless, this standard should include a risk management for reassessing the current ones. The risk perspective was characterized by customer, massage staff, service, competitor and place. Next, risks were identified by interviewing the spa operators and in some cases, the spa service operator also. The required number of sample interviewees were calculated using Yamane’s formula in a finite population. A draft version of the framework included 23 Key Risk Indicators (KRIs). After a consistency check by two specialists, two KRIs were eliminated, leaving 21 KRIs in the study framework. The risk level of each indicator was determined by multiplying the likelihood, impact and detection scores; each of these three dimensions were rated on a five-point scale. Of the 21 KRIs, four were extremely high risks, three were high, six moderate and eight low. At the step of risk treatment, one indicator shall be accounted in terminate type, seventeen indicators were carried in treat type. Treatment was selected potential action for others. During all steps were done along with appropriate active communication and oversight.
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Risk-based framework for ballast water safety management

Risk-based framework for ballast water safety management

Six key treatment systems will be selected from these technologies and applied as evaluation criteria and decision alternatives in the hazard identification, risk assessm[r]

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Developing a framework of Islamic bank operational risk management:

‘people risk’

Developing a framework of Islamic bank operational risk management: ‘people risk’

Operational risk (OR) is considered as a relatively new risk category being emphasized in the risk management framework of banking institutions in Basel Capital Accord (Basel II and Basel III) 1 . Although OR is already inbuilt in banking activities ever since bank was established, the danger of failure in managing it appeared in the 1990s. It emerged in the wake of a series of financial institutions’ failure in 1990s such as Daiwa Bank’s branch in New York, Barings Bank in London, and Ihlas Finance House in Turkey to name a few. In this context, financial distress is resulted from weak corporate governance, contributed by ‘people risk’ (Abdullah, Shahimi & Ismail 2011a). While the bankruptcy of Barings bank and more than USD 1 billion loss in Daiwa Bank were clearly due to frauds by a single person (Nicholas William Leeson for Barings and Toshihide Iguchifor for Daiwa), the loss in Ihlas Finance was associated to mismanagement by a group of unethical or greedy people. Similar to the case of Daiwa bank, the declining performance of the bank in the aftermath of 1997 Asian financial crisis was due to weak corporate governance in terms of the monitoring and controlling system of the risk management framework, particularly in overseeing liquidity and market risk. Specifically, these losses were mainly attributed to various causes: primary rogue and unethical traders (e.g. Nicholas William Leeson & Toshihide Iguchi); and the lack of monitoring mechanism for Barings and Daiwa bank. In addition, there were also weaknesses in internal control, poor management, regulatory failures, weaknesses of outside support institutions, and the attitude of the monetary authorities toward Ihlas Finance and bank failures during the 1997 financial crisis. Notwithstanding the mixture of various causes of financial distress, the common threat across those cases is the absence of risk- management policies. These policies are controlled by the principle employees, which may lead to ‘people risk’ (PR). Due to the aforementioned series of bank losses and misconduct, the Bank of International Settlement (BIS), 2011 has required capital charged for OR be included as part of regulatory capital requirement under Basel II and Islamic Financial Services Board (IFSB) (Appendix 1).
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Enterprise Risk Management: Framework Presence and Effectiveness

Enterprise Risk Management: Framework Presence and Effectiveness

The first of these surveys performed since finalization of the COSO ERM framework, the 2004 fourth edition reported survey responses from 162 financial institutions across five continents. Researchers reported the most compelling finding to be the dramatic rise in the role of the CRO, with 81% of respondents indicating the appointment of this individual in their organization. Three-quarters of these CROs reported to the board of directors or CEO, an indicator of the level of influence held by these individuals, with 59% of organizations reporting board responsibility for risk oversight. At this early stage of ERM evolution, less than one-quarter of respondents indicated an ability to integrate risks across business units, geography, or risk types. Participants reported technology and data concerns to be the primary barrier to achieving a holistic risk approach. This elusive integration signified the likelihood that ERM would be a primary focus in the foreseeable future, particularly in light of regulatory pressures in the post-Enron environment (Hida II & Goodspeed, 2005).
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Conceptual Framework on Risk Management in IT Outsourcing Projects

Conceptual Framework on Risk Management in IT Outsourcing Projects

Abstract: - Outsourcing is becoming a trend nowadays. Malaysia also takes this opportunity and embraces in IT outsourcing. As a result, Malaysia has been ranked as the third most attractive destination for outsourcing after India and China. Despite increasing number of organizations that involve in IT outsourcing, it should be noted that IT outsourcing is not a panacea. It comes together with risks. The risks, if not managed, will lead to outsourcing failure. Even though other areas have adopted risk management as their patching material, the application of risk management in IT outsourcing was not quite accomplished. Risk management should be conducted in IT outsourcing as it will foresee risks that might disturb the smooth flowing of IT outsourcing and prevent or reduce the impact of risks if they occur. It should be conducted at early stage and should be continuously performed until the end of outsourcing life cycle. This paper presents a conceptual framework to manage risk in IT outsourcing. The framework will cover the process in risk management in IT outsourcing as well as the risk management principle that should be conducted at each and every phases of IT Outsourcing life cycle. A set of questionnaire was distributed to organizations to validate the conceptual framework. The findings showed that the consequences of not practicing risk management would result in poor controlling and managing of IT outsourcing projects. Based on the findings, future empirical and exploratory survey will be conducted and risk management in IT outsourcing framework will be developed.
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Benchmark Framework for a Load Balancing Single System Image

Benchmark Framework for a Load Balancing Single System Image

The main goals of SSI clusters are complete transparency of the resources management, scalable performance and system availability [12]. Furthermore, it provides a dilution of a single powerful computer to users or programmers. From the performance point of view in SSI, the main feature is the strategy it takes to balance the load around the nodes. The implemented and simulated strategies of load balancing fall mostly in to either one of two classes static or dynamic. With static load balancing a single system image like any multi computer system, distributes tasks across nodes by using priory known information of the tasks and the load distribution remains unchanged during running time. In contrast with this, by dynamic load balancing there is no priory information about the tasks, as a result the task distribution decision held during running time. In turn, dynamic load balancing can be either centralized or decentralized. In the centralized load-balancing scheme, there is a single node responsible for all the decisions in the whole system. While in decentralized load balancing, the central node can be removed in a way that each node communicates to each other and can decide directly [11]. Dynamic load balancing becomes an attractive technology now days because of its use in SSI operating systems widely [1].
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A Wildfire Risk Assessment Framework for Land and Resource Management

A Wildfire Risk Assessment Framework for Land and Resource Management

In a complete assessment of wildfire hazard, wildfire occurrence and spread are simulated in order to characterize how temporal variability in weather and spatial vari- ability in fuel, topography and ignition density influence wildfire likelihood across a landscape. In such cases, the hazard assessment includes modeling of burn probability, which quantifies the likelihood that a wildfire will burn a given point—typically a single grid cell (pixel)—during a specified period of time. Burn probability assessments can quantify the likelihood of wildfire of any intensity occurring or the likelihood of wildfire occurring at different fire intensity classes. Burn probability for fire management plan- ning applications is often reported on an annual basis—the probability of burning during a single fire season. A distinguishing factor of modeling annual burn probability is the additional simulation of ignition probability and fire duration, in order to account for the relative frequencies and spatial patterns of historical ignitions. Alternatively, some planning applications report the burn probability conditional on a fire occurring during a specified “problem fire” weather scenario. Wildfire incident management applications, by contrast, express burn probabilities for a single fire over a matter of days or weeks. Although some approaches to characterizing wildfire hazard do not include likeli- hood, burn probability modeling plays a major role in characterizing the potential for wildfire to cause effects, especially where analysts are interested in modeling fire spread with variable combinations of ignition location and weather conditions. Some wildfire modeling systems output fire behavior metrics in terms of probabilities, and therefore quantification of wildfire hazard will essentially have a probabilistic component. Typi- cal outputs of probabilistic hazard assessment include summaries and maps of overall burn probability, burn probability by fire intensity level, mean wildfire intensity or flame length (that is, averaged over all simulations, incorporating non-heading spread direction and a range of simulated weather conditions), and the expected value of wild- fire intensity/flame length calculated as the sum-product of burn probability and mean wildfire intensity/flame length.
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Enterprise Risk Management Integrated Framework. Executive Summary

Enterprise Risk Management Integrated Framework. Executive Summary

The period of the framework’s development was marked by a series of high-profile business scandals and failures where investors, company personnel, and other stakeholders suffered tremendous loss. In the aftermath were calls for enhanced corporate governance and risk management, with new law, regulation, and listing standards. The need for an enterprise risk management framework, providing key principles and concepts, a common language, and clear direction and guidance, became even more compelling. COSO believes this Enterprise Risk Management – Integrated Framework fills this need, and expects it will become widely accepted by companies and other organizations and indeed all stakeholders and interested parties.
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Risk management framework for highway construction projects in Nigeria

Risk management framework for highway construction projects in Nigeria

Questionnaire is one of the most widely used data collection method in construction project risk management research. Questionnaires can be in closed question form (each question having a pre-determined number of responses determined by the researcher) or open questions form (having no pre-determined number of responses determined by the researcher). Questionnaires can be used for both quantitative and qualitative research strategy but they are not particularly suitable or recommended for research that involves a large number of open-ended questions (Saunders et al., 2016). They work best with standardized questions. Therefore, they tend to be used for descriptive or explanatory research. Descriptive research will enable the researcher to identify and describe the variability in different phenomena, while in explanatory research, it will enable the researcher to examine and explain relationship among variables. They are different kinds of questionnaires, as shown in figure 4-7. A questionnaire survey was mainly adopted in this research. The choice of questionnaire will be influence by the factors relative to the research questions and objectives. Internet questionnaires administered through an emailed hyperlink, give greater control, as most people read and respond to their email. For delivery and collection questionnaires, the researcher could check who has answered the questions at the collection point. On the other hand, an interviewer- completed questionnaire enables the researcher to ensure that the respondent is the targeted participant. This offers the advantage of improving the reliability of the data.
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Internal Control and Risk Management A Basic Framework FOREWORD

Internal Control and Risk Management A Basic Framework FOREWORD

Enhancing corporate governance is not simply a matter of imposing rules and laws but about promoting and developing an ethical and healthy corporate culture. I hope that this guide makes it abundantly clear that establishing a sound system of internal control and reviewing its effectiveness is not an exercise in learning how to comply with unwelcome and onerous regulatory requirements but, rather, it is about implementing mechanisms that will help a company to achieve its corporate objectives and fulfil the expectations of its shareholders and stakeholders. At the basic level, the guide emphasises that, as a precondition for having effective controls, a company must ensure that it has clear objectives that are agreed by the board and well-understood by the senior management and employees. The company should then identify, assess and prioritise the risks that could prevent it from achieving those objectives, and establish processes to manage them effectively. It must also have in place early warning indicators so that if things go off course, the situation is quickly identified and brought to the attention of the appropriate people for action. For this to happen, there also needs to be good communication and an effective flow of information, both internally and with external parties, such as auditors and regulators. Finally, ongoing monitoring and reviews of the system are required because the business environment and conditions continue to change.
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A Security Risk Management Framework for Networked Medical Devices

A Security Risk Management Framework for Networked Medical Devices

Medical device accompanied by tailored assurance case detailing the security capability of the product. HDO Risk Management[r]

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Risk Management Framework for IT-Centric Micro and Small Companies

Risk Management Framework for IT-Centric Micro and Small Companies

Based on the International standard for Risk Management – ISO31000, risk is defined as: ―effect of uncertainty on objectives‖[1], where the uncertainties include events (which may or not happen) and uncertainties caused by ambiguity or a lack of information, while the objectives can have different aspects (health and safety, financial, IT, environmental) and can apply at different levels (such as strategic, organizational, project, process). It also includes both negative and positive impacts on objectives. The risk is often expresses as a combination of the consequences of an event and the associated likelihood of occurrence. As we discuss risks management frameworks for IT-centric micro and small companies, the main focus are the organizational risks. There are various types of organizational risks such as program management risk, investment risk, budgetary risk, legal liability risk, safety risk, inventory risk, supply chain risk, and security risk. [2]
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Enterprise Risk Management Integrated framework for Cloud Computing

Enterprise Risk Management Integrated framework for Cloud Computing

or in the due diligence process. Management should also attempt to include a right-to-audit clause in the contract with each CSP. As part of assessing the CSP’s internal environment, management should (preferably before the CSP is engaged) conduct interviews to determine how the CSP would address certain risk events. For further knowledge about the risks and quality of the CSP’s internal control environment and cloud solutions, management could have its internal audit function perform an evaluation, or management could require the CSP to provide independent audit reports such as those defined by the American Institute of Certified Public Accountants (AICPA) with respect to the Statement on Standards for Attestation Engagements 16 (SSAE16) and the Service Organization Control 2 (SOC 2) reports including areas of security, availability, processing integrity, confidentiality, or privacy.
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Risk Ownership Framework for Emergency Management Policy and Practice

Risk Ownership Framework for Emergency Management Policy and Practice

Strategic planning can also assist identifying where values are important in a particular context so that resources can be focused to protect these and support better recovery and resilience building. Developing strategic objectives is a key part of being able to implement strategy at an operational level. This is a long-term proposition, so expenditure on short-term programs can be assessed for their contribution towards the strategic outcomes. This can improve resources use by reducing the projects that do not contribute to this outcome while also ensuring that investment is not wasted through ‘piecemeal programs’ that only partially address issues. Mapping the ownership of longer term recovery actions is particularly important if risk is to be managed effectively beyond the time limits of current funding arrangements. This is because in some cases communities or organisations may experience ongoing impacts as a result of an event, taking several years before they recover. An example of this is Black Saturday bushfires, when the thriving town of Marysville (of 700 hundred residents) lost 39 people and 590 homes. Following the event, there was a marked decrease in visitor numbers, which impacted significantly on the town’s tourism industry. From June 2009 to June 2013, only 19 properties sold – 12 of those in 2012 to 2013 (Argoon, 2014). Six years later, the population had dropped to 250. (Teague, et al. 2010; Morris, 2015). (For the full case study, see Appendix B.)
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