...David Carrick – Vice President, Hill International Northern Region Risk in the NEC3 contract There is no doubt that NEC is a world class contract and I do not intend that this article should suggest otherwise. The contract has now reached its third edition. Certainly for me the high water mark for drafting clarity was edition 2 but edition 3 introduced new concepts, most of which are improvements to the contract. However, in my opinion some of these lack the elegant simplicity of earlier versions. I am actively involved in advising parties in the use of NEC3 both at procurement and when disputes arise. The views expressed herein are based on that experience. There can be no doubt that although NEC is increasingly used in many disciplines its main use is in civil engineering. Civil engineering is inherently a risky business. Contractors appreciate that and most are not totally risk averse. What they are opposed to is unquantifiable risk and risk uncertainty. Historically much of the success of NEC is down to clear and simple drafting. Subjectivity was reduced to a minimum and the inclusion of a project management system within the conditions was a novel feature at the time. The question is has NEC 3 lost the clarity and simplicity of its younger brothers when dealing with risk? My tentative response is “yes” but much could be restored very easily...
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...Reserve System © The Bulgarian National Bank, 2009 © 2009 by Tsvetan Manchev et al. ISBN 978-954-8579-30-8 Published by the Bulgarian National Bank 1, Knyaz Alexander I Square 1000 Sofia telephone +359 2 9145-750 facsimile +359 2 980 2425, 980 6493 www.bnb.bg 2 International Foreign Exchange Reserves Contents Introduction ......................................................... 11 PART ONE. Chapter 1. 1. 2. 3. 4. 5. THE THEORETICAL FOUNDATIONS Nature and Function .......................................... 19 Definition ............................................................. 19 Gold as a Foreign Reserve Assets ...................... 20 Reasons to Own and Use Foreign Reserves ...... 23 The Functions of Foreign Reserves ..................... 24 Exchange Rate Policy, Monetary Policy, and Foreign Reserves ......................................... 26 6. Foreign Reserve Adequacy ................................ 31 1. 2. 3. Financial Asset Risk and Return ........................ 36 Financial Assets .................................................. 36 Types of Asset Risk...
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...CREDIT RISK MANAGEMENT BY COMMERCIAL BANKS IN KENYA, A COMPARATIVE STUDY OF KCB AND COOPERATIVE BANK, CHUKA BRANCHES BY AMULYOTO FRANKLIN UNGAYA (BB1/02596/10) A Research Proposal Submitted to the Department of Business Administration in Partial Fulfillment of the Requirement for the Award of the Degree of Bachelor of Commerce (Banking and finance option) of Chuka University CHUKA UNIVERSITY AUGUST, 2013. DECLARATION AND APPROVAL This research proposal is my own original work and has not been presented for a degree in any other university, either in part or a whole. Amulyoto, F. U. Signature……………………………… Date…………………………………… APPROVAL This research has been submitted for examination with the approval of the following university supervisor: MR. NGENO K. W. A. Department of Business Administration Chuka University Signature………………………… Date……………………………… ACKNOWLEDGEMENT The writing of this proposal was made possible through support and encouragement from various persons. I sincerely thank my creator, the Almighty God who has given me grace to carry out my research study. I would also like to thank my supervisor Mr. Ngeno. Through his guidance and correction I was able to come up with this proposal. The gratitude is profound. Special thanks to everyone else who’s input in this work cannot go unmentioned. DEDICATION This research is dedicated to my mother, Mrs. Judith Amulyoto. TABLE OF CONTENTS ...
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...EFFECTS OF RISK MANAGEMENT METHODS ON PROJECT PERFORMANCE IN RWANDAN CONSTRUCTION INDUSTRY A CASE STUDY OF MULTI-STOREYED BUILDINGS CONSTRUCTION PROJECT OF RSSB Systemic project risk management has an effect on the project success. It is found that there is strong relationship between the amount of risk management efforts undertaken in a project and the level of the project success. Several project risk management approaches are proposed as follows; i.e., (PRAM, Chapman (1997), RAMP, Thomas (2002), PMBOK (2008), RMS, a risk management (2002) etc. Pejman (2012) Existing approaches may be summarized into a four phase process for effective project risk management, i.e., (identifying risks, assessing risks, responding risks, and monitoring and/or reviewing risks. Nerija (2012) The overview of definitions which can be found in literature regarding those two terms implies that uncertainty is a broad concept and risk is a part of it. This confirms close relation between those two concepts but at the same time distinguishes them. In the following chapters, the focus is on risk itself and how it should be handled. Uncertain is not a tangible term and thus will not be further developed in this report. The PMBOK (2004) listed the following strategies or techniques for managing risks in the construction projects; avoid (extending schedule, reducing scope, shutting down the project),transfer (Financial risk exposure, insurance, warranties, guarantees);mitigate(taking early actions...
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...Examination Paper: Finance Management IIBM Institute of Business Management Examination Paper International Financial Management Section A: Objective Type (30 marks) This section consists of Multiple choice & Short Answer type questions. Answer all the questions. Part One questions carry 1 mark each & Part Two questions carry 5 marks each. Part One: Multiple choices: 1. Foreign exchange market in India is relatively very a. Big b. Small c. Medium d. None of the above 2. Balance of payment is a systematic record of all _______ during a given period of time. a. Political transactions b. Social transactions c. Economic transactions d. None of the above 3. Merchandise trade balance, services balance & balance on unilateral transfer are the part of ________ account a. Current account b. Capital account c. Official account d. None of the above 4. Interest rate swaps can be explained as an agreement between _________ parties a. One b. Two c. Three d. None of the above 5. Capital account convertibility in India evolved in August a. 1996 b. 1995 c. 1994 d. None of the above MM.100 1 IIBM Institute of Business Management Examination Paper: Finance Management 6. Interest rate parity is an economic concept, expressed as a basic algebraic identity that relates a. Capital rate & interest rate b. Interest rate & exchange rate c. Currency rate & exchange rate d. None of the above 7. The two kind of swap in the forward market are a. Forward & reverse swap b. Reverse swap & option...
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...The Implications of Risk Management Information Systems for the Organization of Financial Firms Michael S. Gibson* Federal Reserve Board Abstract Financial dealer firms have invested heavily in recent years to develop information systems for risk measurement. I take it as given that technological progress is likely to continue at a rapid pace, making it less expensive for financial firms to assemble risk information. I look beyond questions of risk measurement methodology to investigate the implications of risk management information systems. By examining several theoretical models of the firm in the presence of asymmetric information, I explore how a financial firm’s capital budgeting, incentive compensation, capital structure, and risk management activities are likely to change as it becomes less costly to assemble risk information. I also explore the likely effects of the falling cost of assembling risk information on a financial firm’s organizational structure. Two common themes emerge: centralization within the firm and increased disclosure of risk information outside the firm are both likely to increase. 1 Introduction Financial dealer firms have invested heavily in recent years to develop information systems for risk measurement and management.1 These systems gather data on a firm’s risk positions and compute statistical measurements, such as Value-atRisk, to assess the magnitude of the risks faced by the firm. Increasingly, the uses of these...
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...HR Management Strategy Plan HRM/420 Human Resource Risk Management May 13, 2013 HR Management Strategy Plan A human resource risk management strategy plan is an integral part of an organization as it helps solve and reduce the problems an organization faces and/or will face. Risk management is managing potential risks that will or have posed a negative threat on a business and/or organization. Managing risk is a work process that not only is used to solve risks as they arise but also to reduce or eliminate future risks. With that said, Baderman Island Resort should have a solid HR risk management strategy plan in place in order to ensure future success for the organization. As we create a complete risk management strategy plan for Baderman Island Resort the following will be included: risk assessment and management program, health and safety programs, succession plan, and crisis contingency plan. The risk assessment and management program for Baderman Island Resort is designed to keep all employees and guests safe, trained and well informed. As for their health and safety program there are two important concerns that need to be addressed as we design the HR risk management strategy plan, these objectives include overall resort safety and promoting wellness. Employee wellness programs are important, as Baderman Island Resort wants to boost morale, improve health and fitness and increase productivity in the workplace. Succession planning is an integral piece of...
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...Risk is widespread and dwells at the heart of every monetary activity of people, organisations and governments. Risk management is the procedure of distinguishing the risks, assessing it and after that decisions are made and executed for the best method for dealing with the risks. From the macroeconomic angle the techniques of risk management can diminish the quantity of business and modern endeavours that would some way or another get to be wiped out. The most striking advantage of powerful risk management results from loss of control. Compelling misfortune control techniques can minimise the recurrence and power of catastrophes. Risk is pervasive and spreads through each issue of life. To business segments, unanticipated circumstances make...
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...country’s economy. Any individual or company engaged in overseas business should be aware of the risks of currency fluctuations. Customers without commercial contracts expressed in domestic currency (or fixed by an agreed rate of exchange) are fully exposed to what is known as an exchange risk. Exchange risk may arise because of exchange rate movements in the period from the original commercial contract, to the time of settlement of the domestic equivalent of the foreign currency amount. Foreign exchange risk management is designed to preserve the value of currency inflows, investments and loans, while enabling international businesses to compete abroad. Although it is impossible to eliminate all risks, negative exchange outcomes can be anticipated and managed effectively by individuals and corporate entities. Businesses do so by becoming familiar with the typical foreign exchange risks, demanding hard currency, diversifying properly and employing hedging strategies. No countries of the world can produce all their necessary commodities and services. So it has to buy the commodities and services which it cannot produce or produce insufficiently from other countries. On the other hand countries producing commodities and services excess of their necessity export a portion of it to other countries. The activities of buying and selling or of exchange of commodities and services between two different countries are done by banks. So Banks play the important role of...
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...Risk Management: Over the past decade, risk and uncertainty have increasingly become major issues which impact business activities. Many organizations are raising awareness to minimize the adverse consequences by implementing the process of Risk Management Framework which plays a significant role in mitigating almost all categories of risks. According to Ward (2005), the objective of risk management is to enhance a company’s performance. In particular, the importance of the framework is to assist top management in developing a sensible risk management strategy and program. In an effort to effectively use the risk management process frameworks, it is important to differentiate between risk and uncertainty. There is a tendency to claim that the process of the COSO framework and SHAMPU framework are more appropriate to further explain and deal with the issues of uncertainty and risk. This essay will first define risk and uncertainty. In the second section, it will introduce the process of two frameworks namely the COSO framework and the SHAMPU framework. It will evaluate the performance of the two different alternative risk management frameworks to distinguish different between risk and uncertainty. Finally, an opinion will be expressed if the effective use of risk management process frameworks depends upon an ability to differentiate between risk and uncertainty. Ward (2005) points out that different people have different viewpoints about risks and uncertainties. Some...
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...This article can be divided into four parts, explaining the risks of Wellfleet Bank, additional risks after new focus and recruitment, calculation for the proposal and analysis of risk management processes in order. Risks of Wellfleet Bank Given its strategy, Wellfleet bank may face several kinds of risks: credit risk, country or sovereign risk, regulatory risk, compartmentalized risk and market risk. Credit risk was the first one that Wellfleet bank may have. Credit risk arises from the possibility that promised cash flows held by the bank, such as loans or bonds, will not be paid in full. According to the case, the number of proposals for the Group Credit Committee to project increased from 220 (for 2008) to over 300 (for 2009). What’s more, the largest credit proposals were nearing $1 billion each and each of these large-scale credit applications involved a mega-risk. As per the mantra of the bank, “If a billion-dollar deal went wrong, it could sink the ship.” Secondly, regardless of its customer base, which was most of its 6 million retail customers and 15,000 corporate clients resided out of the U.K., Wellfleet’s headquarter was still in London and it complied with regulations and standards like any other U.K.-based banks. Wellfleet considered the “first-world compliance standards” as an important competitive advantage over local rivals in emerging markets. But the risk was its repayments from the local borrowers might be interrupted by the interference of foreign governments...
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...large multinational and small to medium, should take the threats and risks they could face seriously. Security Risk Management (SRM), Business Continuity Management (BCM) and Emergency Planning (EP) assist in achieving this by putting in place effective risk identification and management measures. Effective management of risk can make the difference between success or failure of business operations during and after difficult events. Threats can include man made threats, such as terrorist attacks, or naturally occurring threats such as earthquakes. Effective risk identification and management is essential to any business, especially with the current uncertainty in the world’s economic climate. In order for businesses to survive, during times of increased strain on business operations, it is essential that an alignment between security and business operations can be achieved. This can be achieved by the security department not only widening the remit to cover more risks, but changing how the department works and relates to the rest of the business; including shared responsibility for things such as Corporate Governance, Information Assurance, Business Continuity, Reputation Management and Crisis Management. The problem is security departments now have more responsibilities in an increasingly complex and fast moving world. Security Risk management is no longer an activity just for companies who work in high-risk areas or with exposure to significant security threats. Therefore,...
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...CHAPTER ONE 1.0 INTRODUCTION Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Project risk management includes the processes concerned with identifying, analyzing, and responding to project risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events. Managing risk therefore, is an integral part of good project management, and fundamental to achieving good business and project outcomes and the effective procurement of goods and services. Risk management provides a structured way of assessing and dealing with future uncertainty. 1.1 PROJECT MANAGEMENT A project can be defined as a series of related jobs usually directed toward some major output and requiring a significant period of time to perform. According to the Project Management Institute, the discipline of project management can be defined as the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve pre-determined objectives of scope, cost, time, quality and participation satisfaction. Furthermore, project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific projects. 1.2 RESPONSIBILITY OF A PROJECT MANAGER The Project Manager is...
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...nrw | nrw | Risk Management Design -RV Dealer final report Risk Management Design -RV Dealer final report PART I 1. OBJECTIVE The objective of this report is to present a Risk Management Plan for the RV Retail and Depot facility located in Fountain, Colorado. The overall cost of the construction and restoration of the existing facility is approximately 1.5 million dollars. Level 1 | Level 2 | Level 3 | 1- RV Design | 1.1 Initiation | 1.2.1 Initial Meeting with General Contractor Construction Architects to discuss the project. 1.2.2 Present the project to the team 1.2.3 Prepare a proposal 1.2.4 Present proposal 1.2.5 Proposal Approval | | 1.2 Planning | 1.2.1 Create a preliminary scope of work1.2.2 Determine the project team1.2.3 Develop a project plan1.2.4 Submit the project plan1.2.5 Project Plan Approval | | 1.3 Execution | 1.3.1 Project Kickoff meeting1.3.2 Verify and validate user requirements1.3.3 Create a cost estimate1.3.4 Present cost estimate to customer1.3.5 Milestone: Cost Estimate Approval1.3.6 Select equipment 1.3.7 Draft initial design1.3.8 Milestone: Present 60% design to customer1.3.9 Receive comments from customer1.3.10 Review comments1.3.11 Complete design using the customer’s comments1.3.12 Create a punch list 1.3.12.1 Team Coordination Meeting1.3.13 Milestone: Present 95% Drawings to customer | | 1.4 Control | 1.4.1 Project Management1.4.2 Project Status...
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...In this article we describe strategic risk management at the LEGO Group, which is based on an initiative started in late 2006 and led by Hans Læssøe, senior director of strategic risk management at LEGO System A/S. It’s also part of the continuing work of the Strategic Risk Management Lab at DePaul University, which is identifying and developing leading practices in integrating risk management with strategy development and strategy execution. The LEGO Group Strategy To understand strategic risk management at the LEGO Group, you need to understand the company’s strategy. This is consistent with the first step in developing strategic risk management in an organization: to understand the business strategy and the related risks as described in the Strategic Risk Assessment process (see Mark L. Frigo and Richard J. Anderson, “Strategic Risk Assessment,” Strategic Finance, December 2009). The LEGO Group’s mission is “Inspire and develop the builders of tomorrow.” Its vision is “Inventing the future of play.” To help accomplish them, the company uses a growth strategy and an innovation strategy. Growth Strategy: The LEGO Group has chosen a strategy that’s based on a number of growth drivers. One is to increase the market share in the United States.Many Americans may think they buy a lot of LEGO products, but they buy only about a third of what Germans buy, for example. Thus there are potential growth opportunities in the U.S. market. The LEGO Group also wants...
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