M.Comm. (Financial Economics) / Enterprise risk management (ERM) is emerging as a risk management methodology that is seemingly superior to that of traditional, silo-based risk management. Although ERM implementation is on the increase, research into ERM is still limited. There is, for instance, a lack of clarity within the literature regarding which factors lead to companies embracing ERM, as well as a lack of consensus on ERM’s benefits. The purpose of this study was therefore to explore the drivers of ERM implementation, its inhibitors and enablers, the benefits that are realised through ERM, as well as the advantages and disadvantages associated with ERM as a risk management methodology. Data were gathered through semi-structured, face-to-face interviews with seven risk practitioners working in the South African mining industry. The study found that drivers of ERM implementation include regulatory pressure and compliance with corporate governance and listing requirements, but that there are other incentives. Inhibitors of ERM implementation include the large amount of managerial time needed, competition with other initiatives, resistance, and low initial buy-in levels, as well as a shortage of experienced ERM practitioners. Regarding ERM enablers, the design of the ERM framework is seen as critical, as is sound project discipline in planning and organising the implementation, along with visible support from executive and senior management, and ongoing training. Benefits derived through ERM include greater confidence that the company has a complete understanding of its risk profile, better decision-making, and improved tracking of risk mitigation. Disadvantages associated with ERM include the tendency of it being regarded as a corporate administrative function, subjectivity, and difficulty in aligning ERM to short- and medium-term priorities, as compared to longer-term strategic issues. This study makes a unique contribution to the existing body of knowledge on ERM by exploring the disadvantages associated with ERM as a risk management methodology. At a practical level and with reference to the South African mining industry, in particular, this study provides more clarity on the rationale for adopting ERM, as well as the challenges associated with implementing and sustaining ERM programmes. Recommendations are made with respect to ERM in practice, as well as for further research on ERM.

University of Technology, Sydney. Faculty of Engineering. / In today’s business environment, increased competition, market globalisation, increased customer demands and accelerated technologies require organisations to focus on efficiency in every aspect of their operations. Many studies in operations management have focused on the improvement of operational performance, including reduction of process variability, increasing flexibility or implementing controls in operations. However, managing the risk in operations seems to have been neglected by researchers. Hence, there are two major objectives of this study. The first objective is to investigate the use of the operational risk management (ORM) systems in Australia and study the factors that have an impact on effective operational risk management. Then, based on the identified factors, the second objective is to develop an ORM system implementation model and guideline for Australian organisations. A review of the ORM systems and its implementation was conducted. As a result of this investigation, a definition of ORM system in this study was formulated and the factors of effective ORM system implementation were identified as a basis for the next stage of this study. An investigation of the factors of ORM system implementation was then carried out. An extensive questionnaire survey was used to collect empirical data from Australian organisations. Statistical analysis results and feedback from experts was used to develop an applicable model and guideline for ORM system implementation. The main outcome of this study is a proposed model and guideline for ORM system implementation in Australian organisations, which will assist the organisation to manage operational risks more effectively and provide motivation for carrying out further research in ORM.

University of Technology, Sydney. Faculty of Engineering. / In today’s business environment, increased competition, market globalisation, increased customer demands and accelerated technologies require organisations to focus on efficiency in every aspect of their operations. Many studies in operations management have focused on the improvement of operational performance, including reduction of process variability, increasing flexibility or implementing controls in operations. However, managing the risk in operations seems to have been neglected by researchers. Hence, there are two major objectives of this study. The first objective is to investigate the use of the operational risk management (ORM) systems in Australia and study the factors that have an impact on effective operational risk management. Then, based on the identified factors, the second objective is to develop an ORM system implementation model and guideline for Australian organisations. A review of the ORM systems and its implementation was conducted. As a result of this investigation, a definition of ORM system in this study was formulated and the factors of effective ORM system implementation were identified as a basis for the next stage of this study. An investigation of the factors of ORM system implementation was then carried out. An extensive questionnaire survey was used to collect empirical data from Australian organisations. Statistical analysis results and feedback from experts was used to develop an applicable model and guideline for ORM system implementation. The main outcome of this study is a proposed model and guideline for ORM system implementation in Australian organisations, which will assist the organisation to manage operational risks more effectively and provide motivation for carrying out further research in ORM.

Thesis (MTech (Internal Auditing))--Cape Peninsula University of Technology, 2015. / Approximately 57% of the total population in South Africa lives under the poverty line. In this regard, Small, Medium and Micro Enterprises (SMMEs) which provide microfinance play a vital role to provide access for poor households to banking-related financial services. This service can only be delivered sustainably through means of deploying effective management practices, especially in terms of risk management. The purpose of this research is to identify risks faced by microfinance SMMEs and to establish the effectiveness of the current risk management practices deployed by them. This study aims at increasing the knowledge base and understanding of risk management practices by conducting a comprehensive literature review and field research. In order to establish a theoretical basis, a comprehensive literature review was performed and prior studies on various aspects relating to microfinance risk management were investigated. This was followed by a field research which studied the risk management of microfinance providers in the Cape Metropole; large financial service providers like commercials banks were excluded. Data were collected by means of a questionnaire from microfinance providers in the Cape Metropole. These microfinance providers were drawn from a list of credit providers that was obtained from the National Credit Regulator (NCR) public domain. A purposive sampling method was used to select the participants for this study. The information provided by participants is kept strictly confidential and anonymity of all respondents was guaranteed. This research noted that collaterals are absent in microfinance and instead, a close connection between microfinance SMMEs and their clients come into place. Risk management frameworks which provide an all-inclusive approach to risk management are largely absent in microfinance SMMEs. Much fewer microfinance SMMEs actively identify risks, categorise, prioritise and document them appropriately. The research further showed that the views on risk management depend on whether the respondent is an owner or a manager of the enterprise.

Thesis (Ph.D.)--University of Texas at Arlington, 2009.

This dissertation provides a review of the relevance of operational risk in the banking industry and attempts to determine whether operational risk management is perceived as a moderating factor on the relationship between critical success factors and competitive advantage in banking industry. A survey was of 399 senior managers of fully licensed banks in Hong Kong. They were asked to indicate the perceived critical success factors, which include operational risk management as one of the variables in the banking industry. In addition, they were also asked to evaluate the relevance of operational risk in their industry and describe their bank's operational risk management practice. / Thesis (DBusinessAdministration)--University of South Australia, 2006.

In this thesis, we are concerned with the finite-time ruin probabilities in two alternative dependent risk models, the insurance risk model and the dual risk model, including the numerical evaluation of the explicit expressions for these quantities and the application of the probabilistic results obtained. We first investigate the numerical properties of the formulas for the finite-time ruin probability derived by Ignatov and Kaishev (2000, 2004) and Ignatov et al. (2001) for a generalized insurance risk model allowing dependence. Efficient numerical algorithms are proposed for computing the ruin probability with a prescribed accuracy in order to facilitate the following studies. We then propose a new definition of alarm time in the insurance risk model, which generalizes that of Das and Kratz (2012), expressed in terms of the joint distribution of the time to ruin and the deficit at ruin. The alarm time is devised to warn that the future ruin probability within a finite-time window has reached a pre-specified critical level and capital injection is required. Due to our definition, the implementation of the alarm time highly relies on the computation of the finite-time ruin probability, which utilizes the previous results on computing the ruin probability with a prescribed accuracy. The results of the ruin probability and the alarm time are then transferred nicely to a generalized dual risk model, whose name stems from its duality to the insurance risk model, through an enlightening link established between the two risk models. Finally, based on the two alternative risk models, we introduce a framework for analyzing the risk of systems failure based on estimating the failure probability, and illustrate how the probabilistic models and results obtained can be applied as risk analytic tools in various practical risk assessment situations, such as systems reliability, inventory management, flood control via dam management, infection disease spread and financial insolvency.

This thesis applies an ethnographic, qualitative research approach to a central question: In what ways does the presence of cognitive biases impact negatively on project management decision-making in the film industry? Are there ways that biases can best be avoided or at least reduced? This thesis cites evidence that managers are consistently unable to devise ways of effectively escaping the impact of cognitive bias, and that the majority are unaware of potential negative bias. My study explores whether and in what ways a deep knowledge of cognitive bias helps surmount the apparent limitations it imposes. My findings suggest that strategies involving cognitive behavioural theory provide researchers with significant insights into our understanding of creative management strategies to manage projects. Building on an extensive body of literature focused on biases in decision-making and their impact on forecasting, implementation and strategy, my thesis explores the concept that deep-seated cognitive habits have a direct impact on entrepreneurs’ ability to manage creative projects successfully. Drawing on my ethnographic and participant observer data over two decades of film industry research and practitioner-derived experience, I examine how useful cognitive bias theory is from a practical perspective. The film industry provides a rich seam of research and an intriguing case site. It provides a relevant environment to interrogate because film companies are essentially organised around projects. I cite evidence that suggests that managers capable of ‘switching gears’ and who openly acknowledge and embrace the role cognition plays in the leadership process gain both a creative and a competitive advantage. By testing this concept through the lens of the value chain model, we can begin to develop a cognitive methodology that inspires practical tools capable of navigating uncertainty and capturing value and knowledge.

published_or_final_version / Business Administration / Master / Master of Business Administration

Every business faces risks and the first step in managing risk is making an inventory of the risks that a business faces and getting measure of the exposure to each risk. There are several risks that can affect an oil refinery. Generally recognized risks related to refineries are as follows: crude oil price, crack spread, marketing margin, sales volume, exchange rate, costs, credit and counterparty risk, and hazard risk. In this thesis, among these risk factors, major market price variables, such as crude oil price and crack spread, are regarded as risks or simulation variables; some of the other risks, such as marketing margin, utilization rate, and energy cost, are treated as uncertainties; the others are excluded or fixed. This thesis develops a hypothetical refinery financial model that reasonably approximates real models encountered in practice. To measure the impacts of risk factors on the refinery, three criteria are adopted; present value of net income for ten years, present value of net cash flow, and return on capital employed (ROCE). For sensitivity analysis, five variables are selected: crude oil price, crack spread, marketing margin, utilization rate, and energy cost. In order to measure the risk exposure of an oil refinery, this thesis makes Monte Carlo simulation 10,000 times, by using @RISK software. / Energy and Earth Resources / text