...Page 210 2/3/10 4:37:12 PM user-f498 /Users/user-f498/Desktop/03:02_evening/MHBR165:Larson:208 C H A P T E R S E V E N Managing Risk Estimate 5 Project networks 6 Schedule resources & costs 8 l iona rnat Inte ojects pr 15 Define project 4 Reducing duration 9 Introduction 1 Organization 3 Managing risk 7 Monitoring progress 13 Project closure 14 16 Oversig ht 17 Agile P M Strategy 2 Leadership 10 Teams 11 Outsourcing 12 18 Career paths Managing Risk Risk Management Process Step 1: Risk Identification Step 2: Risk Assessment Step 3: Risk Response Development Opportunity Management Contingency Planning Contingency Funding and Time Buffers Step 4: Risk Response Control Change Control Management Summary Appendix 7.1: PERT and PERT Simulation 210 Lar03342_ch07_210-251.indd Page 211 1/30/10 4:54:39 PM user-f501 /Users/user-f501/Desktop/Tempwork/JANUARY 2010/30-01-10/MHBR165:Lars You’ve got to go out on a limb sometimes because that’s where the fruit is. Will Rogers Every project manager understands risks are inherent in projects. No amount of planning can overcome risk, or the inability to control chance events. In the context of projects, risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives. A risk has a cause and, if it occurs, a consequence. For example, a cause may be a flu virus or change in scope requirements. The event is...
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...Managing Risk: A New Framework By: Robert S.Kaplan and Anette Mikes When Tony Hayward became CEO of BP, in 2007, he vowed to make safety his top priority. Among the new rules he instituted were the requirements that all employees use lids on coffee cups while walking and refrain from texting while driving. Three years later, on Hayward’s watch, the Deepwater Horizon oil rig exploded in the Gulf of Mexico, causing one of the worst man-made disasters in history. A U.S. investigation commission attributed the disaster to management failures that crippled “the ability of individuals involved identifying the risks they faced and to properly evaluate, communicate, and address them.” Hayward’s story reflects a common problem. Despite all the rhetoric and money invested in it, risk management is too often treated as a compliance issue that can be solved by drawing up lots of rules and making sure that all employees follow them. Many such rules, of course, are sensible and do reduce some risks that could severely damage a company. But rules-based risk management will not diminish either the likelihood or the impact of a disaster such as Deepwater Horizon, just as it did not prevent the failure of many financial institutions during the 2007–2008 credit crisis. In this article, we present a new categorization of risk that allows executives to tell which risks can be managed through a rules-based model and which require alternative approaches. We examine the individual and organizational...
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...Managing Weather Risk in Seed Business Weather Risks of a Seed Company Weather risk for a seed company is the risk of drop in sales volume on account of adverse weather conditions like excess / deficit in rainfall, extreme temperature and humidity conditions etc. Indian agriculture is predominantly dependent upon monsoon rains, with more than 60% of cultivated area in Kharif being rainfed. This rainfed nature of Indian agriculture makes the business of agri-input company completely dependent upon weather. Very often seed companies find themselves holding large unsold stock because of adverse weather conditions like insufficient or untimely rainfall. Seed companies also find it difficult to move stock from one location to the other because of very short time-period available for selling seeds. Environmental changes happening across the world have made weather more unpredictable. Seed companies are becoming increasingly vulnerable to weather vagaries because of frequent occurrence of extreme weather conditions. Out of last 5 years, India has faced extreme weather conditions in 3 years – drought in 2002, delayed monsoon in 2005 and excess and abnormal rainfall in Western Rajasthan, Gujarat, Maharashtra and MP in 2006. Financial Impact of Weather Risks Extreme weather conditions would throw awry any sales budgeting and planning exercise, and would seriously impact sales and profitability targets of the company. Weather risk increases vulnerability in income statement of the company...
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...Managing Compliance Risk in a Tight Economy The aspect of this article is about some of the main challenges that the compliance teams in the United States is up against. These challenges are mainly for global and larger corporation with several locations and diverse, transient workforces. Professional’s responsible for compliance has been severely affected by tight economy and limited budgets, the cost of failing to recognize and alleviate risks of illegal activities like corporate fraud and increase in corruption. However, process automation and smart technology have been accomplished by the professionals to be successful in assessing and managing risks. “A growing number of compliance teams now recognize that managing compliance risks effectively in a resource constrained environment requires the use of smart technology (Nunez, Roger 2010)”. “According to” Nunez and Rogers the challenge for many companies is how to identify and reduce the Foreign Corrupt Practice Act (FCPA) risks posed by employees and non-employees who may not understand the many nuances of anti-corruption and anti-bribery laws and policies. The Foreign Corrupt Practice Act Risk Mitigation Solution considers which agents and workers have a need for corrective action and training, and afterward process both the delivery of targeted communication and education to each worker, plus instant delivery of information on critical risk activities to his or her chief compliance officer. The tools needed by Kaplan...
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...factors, political risk is the most important one. Especially emerging market. Political risk is influenced by the passage of laws, the foibles of leaders and the rise of popular movements. All the factors that might politically stabilize or destabilize a country. The significance of any given risk depends on the context of the investment decision. Strategists evaluating emerging markets must be especially vigilant. But even those businesses active only in developed nations should factor political risk into their planning scenarios. From this article we can know that the type of political risk, how to analyze the potential risk, and how to deal with it. Armed with that understanding, business strategists can minimize risks and seize opportunities far beyond their home shores. There are five key points in this article. The first one is Politics is everyone’s business. Any company with exposure in foreign markets needs early, accurate information on political developments. There are four reasons. First, international markets are more interconnected than ever before. Second, for good of ill the United States is making the world a more volatile place and that has changed risk calculations everywhere. Third, the offshoring trend is growing. Fourth, the world is increasingly dependent for energy on states troubled by considerable political risk. The second is What economics can’t tell you. In this point we can know that economic risk analysis and political risk analysis address...
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...managing risks in international strategic alliances Risks and guidelines to manage them MANAGING RISK Emphasise protectionof the firm’s own primary resource ♣Risks are relatively low in protecting physical and financial resources, including patents, contracts, logos, and trademarks (ownership protected by law) ♣Risks are high in protecting technological, managerial, and organizational resources ♣Be careful about unintended transfer of knowledge and imitation; you have little legal protection here Introduction: We now discuss the ways in which firms with particular resource orientations can manage the two kinds of risks—relational and performance— inherent in strategic alliances. This will involve managing issues such as control, flexibility, security, and productivity MANAGING RISK Exercise controlthrough contracts, equity, and management. Employ, as appropriate: • Managerial control (have one's own staff in key positions, regular meetings, frequent interactions and communications) • Contractual control(specify usage of properties) • Equity control(majority or shared ownership) Control: When a partner firm contributes primarily property resources and considers relational risk to be the major risk, its concern is that its properties may be misused and that the other party may reap undue benefits. Although properties are protected through legal ownership—and cannot be taken away without the owner's consent—these can still be employed in unintended...
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...Article: Strategically Managing Risk in Today’s Perilous Markets. Topic: Risk Assessment and Prevention Cost Risk assessment is very important function in management activities. By understanding and valuing each department risk level, management can reduce or control the prevention cost. The reason for that is management could know which department in the company needs to improve to reduce any predictable cost that can happen in the future. However, ERM is one of the management tools that can help any organization to manage and control risk assessment. By applying ERM, management could know where in the company’s departments they should improve the quality of the activities. That improvement will help to prevent any extra cost. Also, this improvement will proved stable work environment in the company. Moreover, ERM would be a very helpful tool for management in making operational and strategies decisions. One of the great benefits in ERM is involving every employee in the company in planning and decision making. Everyone will do some effort in the company management. Article: “Creating an Ethical Culture: Values-Based ethics programs can help employees judge right from wrong” By Gebler, David Topic: Accounting fraud. According to “Creating an Ethical Culture: Values-based ethics programs can help employees judge right from wrong” By David Gebler, The author presented the Culture Risk Assessment Model. This model would help companies to reduce the risk of unethical conduct...
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...Summary and Analysis of Zsidisin &Hartley’s (2012) Managing Commodity Price Risk Summary As every organization and business in the market is exposed to price risks due to the commodity price volatility, it’s imperative for managers to predict those risks and make strategies to mitigate the damages brought by price volatility. This book not only shows us the importance of commodity price management, but also teaches organizations how to adapt and adjust themselves to commodity price volatility and provides approaches to decrease the exposure to risks for managers. Therefore, this book is a necessary one to manage commodity price risk for managers and organizations. Why is the commodity price risk management so important for companies? The book gives us the answer. Since prices fluctuations of goods are based on changes in supply and demand in the market and such fluctuations of prices are out of the direct control of any company, understanding companies’ exposure to price risk and making decisions on how to manage the risk become pivotal to supply chain mangers. The book points out that the risk exposure of business might be impacted directly by purchases of raw materials and indirectly by costs from energy and transportation. According to the authors, commodity price volatility affects industries’ performance both negatively and positively. It is obvious that fluctuations of raw materials or transportation cost can directly influence the profitability of companies...
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...(a) Using a well articulated example show how currency options can be used to manage currency risk. Graphically illustrate the payoffs of the selected case. A. CURRENCY RISK Currency risk is the type of risk that is derived changes in the apparent value of currencies. These changes incur a loss when the profit or the dividends of the investment are calculated from the local currency into the U.S. Dollar. “For example, suppose that a U.S.-based investor purchases a German stock for 100 euros. While holding this bond, the euro exchange rate falls from 1.5 to 1.3 euros per U.S. dollar. When the investor sells the bonds, he or she will realize a 13% loss upon conversion of the profits from euros to U.S. dollars.” ( http://internationalinvest.about.com) MANAGING CURRENCY RISK There are many options when it comes to managing currency risk, these things include options like currency futures, forwards and options. The choice varies from each individual. Most of these options to reduce short term FX risk may be not available in some places and too expensive to be useful in the other places. CURRENCY OPTIONS In general, currency options (Foreign- exchange options) is a derivative financial tool that gives the owner the right but not the obligation to exchange money from one currency to another at a pre- determined exchange rate on a specified date. The appreciation/depreciation of the foreign currencies are indirectly proportional to the exporters profit/loss. If...
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...Managing Risk in Information Systems Lab 9 Assessment Questions 1. How does documented back-up and recovery procedures help achieve RTO? a. By having effective backup and recovery procedures you should have the necessary resources to restore systems from backups and a repeatable process that is known to succeed in achieving RTO. By documenting and implementing backup and recovery procedures, the process for recovery is much more efficient, helping with the time portion of RTO. 2. True or False. To achieve an RTO of 0, you need 100% redundant, hot-stand-by infrastructure (i.e., IT system, application, and data, etc.). b. True 3. What is most important when considering data back-up? c. Registry, directories, and imperative operating data as well as licensing. 4. What is most important when considering data recovery? d. Most current, working recovery and in a timely manner (fast). 5. What are the risks of using your external e-mail box as a back-up and data storage solution? e. First, you are at the mercy of the provider. If it is a large recovery you may not be able to have internet access to download it. File corruption could be an issue as well as back up size allowable for email. 6. Identify the Total Amount of Time Required to Recover and Install the Lab #9 Assessment Worksheets on Your Student VM Hard Drive and open the file in Microsoft Word to verify integrity. {Insert your timed RTO using your computer...
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...Tools for managing weather risk Characterization Weather derivatives, unlike the financial and stock are used to hedge quantity rather than price risks. As commodity futures have underlying price of the commodity and weather derivatives are based on a measured weather index, depending on the specifics of the contract. For this purpose, relevant weather variables can be measured quantitatively. Most weather contracts – 69% Degree Days are based on indices which measure the deviation of the average daily temperature from a base temperature (mostly 65 ° F or 18 ° C). These indices occur within the energy industry and are designed to correlate well with the consumption of electricity for heating (Heating Degree Days, HDD) or cooling (Cooling Degree Days, CDD). The indices are calculated for each day of the contract and in effect a measure of how cold (HDD) or how warm (CDD) is one day. The index value for the contract period is the cumulative sum of the measured daily deviations from the benchmark. The same principles of aggregation of reported daily values (deviation from a benchmark average and cumulative value) is applied to calculate indexes based on the amount of rain and snow, wind power, etc.. Specific type of indexes are indexes threshold ("event" or called "critical day" index), which report the number of cases (of days) during the contract, which occur in certain weather events, such as average daily temperature exceeds (or falls below) threshold. Types of derivatives ...
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...should have the necessary resources to restore systems from backups and a repeatable process that is known to succeed in achieving RTO. By documenting and implementing backup and recovery procedures, the process for recovery is much more efficient, helping with the time portion of RTO. 2. True or False. To achieve an RTO of 0, you need 100% redundant, hot-stand-by infrastructure (i.e., IT system, application, and data, etc.). b. True 3. What is most important when considering data back-up? c. Registry, directories, and imperative operating data as well as licensing. 4. What is most important when considering data recovery? d. Most current, working recovery and in a timely manner (fast). 5. What are the risks of using your external e-mail box as a back-up and data storage solution? e. First, you are at the mercy of the provider. If it is a large recovery you may not be able to have internet access to download it. File corruption could be an issue as well as back up size allowable for email. 6. Identify the Total Amount of Time Required to Recover and Install the Lab #9 Assessment Worksheets on Your Student VM Hard Drive and open the file in Microsoft Word to verify integrity. {Insert your timed RTO using your computer clock – following your documented instructions and steps}. f. N/A. Was not asked to do this portion of the lab and cannot finish this question. 7. Did you achieve your RTO? What steps and procedures can you...
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...1. What is the Principle of Least Privilege? In information security, computer science, and other fields, the principle of least privilege requires that in a particular abstraction layer of a computing environment, every module must be able to access only the information and resources that are necessary for its legitimate purpose. 2. What does DACL stand for and what does it mean? DACL stands for Discretionary Access Control List. Discretionary access control lists (DACLs, but often shortened to ACLs) form the primary means by which authorization is determined. An ACL is conceptually a list of pairs, although they are significantly richer than that. 3. Why would you add permissions to a group instead of the individual? To grant hierarchical access to teams or groups such as company departments or development teams. 4. Why would you allow shared access to groups instead of to everyone? Allowing shared access to groups rather than to everyone limits access to only those added to that group. This helps keep the information secured to only those who need access. 5. List at least 3 different types of access control permissions you can enable for a file. read, write, execute 6. Which access control permissions allow you to delete files and/or folders? modify and full control 7. What is the lowest level permission needed in order to view the contents of a folder? read 8. If you don't remember the syntax when using iCalcs.exe what command do you type in to see...
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...1 ANNUAL REPORT 2014 Table of contents ABOUT THE COMPANY Letter of Transmittal Corporate Information Milestones Board of Directors and Management Brand Values Products 3 4 5 6 -8 9 10 OPERATING RESULTS Summary of Key Operating & Financial Data 11-12 AGM & COMPANY PERFORMANCE Notice of 35th Annual General Meeting Chairman’s Message to Shareholders Report of the Board of Directors 13 14 ANNUAL REPORT 2014 15 - 19 1 Table of contents COMPLIANCE REPORT Corporate Governance Compliance Report 20 - 38 FINANCIAL RESULTS Auditors’ Report to the Shareholders Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Shareholders’ Equity Statement of Cash Flows Notes to the Financial Statements Unit-wise Working Result Schedule of Non- Current Assets Certificate on Review of financial statements PROXY FORM 39 - 40 41 - 42 43 - 44 45 46 - 47 48 - 80 81 - 82 83 - 84 85 ANNUAL REPORT 2014 2 Letter of Transmittal December 6, 2014 Esteemed Shareholders Bangladesh Securities and Exchange Commission Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Registrar of Joint Stock Companies and Firms Dear Sir or Madam, Subject: Annual Report for the year ended June 30, 2014 It is our pleasure to inform you that the 35th Annual General Meeting of Olympic Industries Limited will be held on Wednesday, December 24, 2014 at 10:00 AM at our 2nd biscuit factory premises at Lolati, P.S. Sonargaon, District...
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