Using derivatives to manage price risk in a deregulated electricity industry
- Authors: Venter, Francois Jacobus.
- Date: 2012-08-16
- Subjects: Electric utilities - South Africa. , Electric utilities - Deregulation , Electric utilities - Rates. , Risk management , Derivative securities.
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/378368 , uj:9472 , http://hdl.handle.net/10210/5903
- Description: M.Comm. , This study is to investigate the derivatives instruments used in other international deregulated electricity markets and how some of these may be used to manage risks incurred in a local Electricity Supply Industry after deregulation. To determine which of the derivatives may be used in the South African market as the most effective hedging instrument. To determine which is most effective will be determined by the contribution to the income of the market participant.
- Full Text:
- Authors: Venter, Francois Jacobus.
- Date: 2012-08-16
- Subjects: Electric utilities - South Africa. , Electric utilities - Deregulation , Electric utilities - Rates. , Risk management , Derivative securities.
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/378368 , uj:9472 , http://hdl.handle.net/10210/5903
- Description: M.Comm. , This study is to investigate the derivatives instruments used in other international deregulated electricity markets and how some of these may be used to manage risks incurred in a local Electricity Supply Industry after deregulation. To determine which of the derivatives may be used in the South African market as the most effective hedging instrument. To determine which is most effective will be determined by the contribution to the income of the market participant.
- Full Text:
The application of holistic risk management in the banking industry
- Authors: Chibayambuya, John
- Date: 2008-05-12T13:21:21Z
- Subjects: Bank management , Risk management
- Type: Thesis
- Identifier: uj:7049 , http://hdl.handle.net/10210/357
- Description: The banking industry in South Africa is facing three main challenges, namely: continuous change, foreign competition, and increasing levels of risk. These problems flow mainly from cultural diversity, globalisation, and rapid technological development in systems and communication. Decreasing predictability stems to a great extent from a lack of foreknowledge of how globalisation will develop, and how it can influence the South African banking industry in general and holistic risk management (HRM) in particular. Management of the South African banking industry therefore need to rely on crucial intelligence and foreknowledge concerning events, trends and development of (HRM) that affect the profitability and future strategic viability of the whole South African banking industry. At the onset various concepts and processes were emphasised in this study, namely operational risk management, strategic risk management, the risk management culture in the banking industry, the role of risk management in the banking industry, the role of risk management process in the banking industry, corporate governance in the banking industry in South Africa. However, the main purpose of this study was to explore the need and the dynamics of managing risk in the banking industry in a holistic manner. To this end the development of, and trends in (HRM) as part of good corporate governance in the banking industry were researched and documented. The practical aspect of the study was firstly based on the definition and analysis of different categories of risk in the banking industry. The definition and analysis was done in order to cover a broader range of risks the banking industry is facing. Secondly the risk management culture in the banking industry was investigated. Thirdly the role of risk management in the banking industry was explored in detail. Fourthly the risk management process in the banking industry was investigated and explained. Fifthly the link between risk management and corporate governance was explored. Sixthly models developed by Kloman (2000), Lam (2003) and Regester and Larkin (2005) were used as a benchmark to develop a framework for the management of holistic risk in the banking industry. It was concluded that in view of the need in the South African banking industry for a structured means of managing risk holistically, and in view of HRM constituting such a process, there is relevance for the implementation of HRM in the four big banks of the South African banking industry. However, small and unlisted banks do not manage HRM as suggested by the HRM framework. In this regard a number of recommendations were made with respect to managing HRM proactively. A framework based on empirical research and earlier work by Kloman (2000), Lam (2003) and Regester and Larkin (2005) was furthermore suggested for the implementation of HRM in the South African banking industry in the belief that this framework, and the overall research reported in this study could be of theoretical as well as practical value for risk managers in the South African banking industry. , Dr. D. J. Theron (UJ) Dr. T. P. v/d Walt (ABSA)
- Full Text:
- Authors: Chibayambuya, John
- Date: 2008-05-12T13:21:21Z
- Subjects: Bank management , Risk management
- Type: Thesis
- Identifier: uj:7049 , http://hdl.handle.net/10210/357
- Description: The banking industry in South Africa is facing three main challenges, namely: continuous change, foreign competition, and increasing levels of risk. These problems flow mainly from cultural diversity, globalisation, and rapid technological development in systems and communication. Decreasing predictability stems to a great extent from a lack of foreknowledge of how globalisation will develop, and how it can influence the South African banking industry in general and holistic risk management (HRM) in particular. Management of the South African banking industry therefore need to rely on crucial intelligence and foreknowledge concerning events, trends and development of (HRM) that affect the profitability and future strategic viability of the whole South African banking industry. At the onset various concepts and processes were emphasised in this study, namely operational risk management, strategic risk management, the risk management culture in the banking industry, the role of risk management in the banking industry, the role of risk management process in the banking industry, corporate governance in the banking industry in South Africa. However, the main purpose of this study was to explore the need and the dynamics of managing risk in the banking industry in a holistic manner. To this end the development of, and trends in (HRM) as part of good corporate governance in the banking industry were researched and documented. The practical aspect of the study was firstly based on the definition and analysis of different categories of risk in the banking industry. The definition and analysis was done in order to cover a broader range of risks the banking industry is facing. Secondly the risk management culture in the banking industry was investigated. Thirdly the role of risk management in the banking industry was explored in detail. Fourthly the risk management process in the banking industry was investigated and explained. Fifthly the link between risk management and corporate governance was explored. Sixthly models developed by Kloman (2000), Lam (2003) and Regester and Larkin (2005) were used as a benchmark to develop a framework for the management of holistic risk in the banking industry. It was concluded that in view of the need in the South African banking industry for a structured means of managing risk holistically, and in view of HRM constituting such a process, there is relevance for the implementation of HRM in the four big banks of the South African banking industry. However, small and unlisted banks do not manage HRM as suggested by the HRM framework. In this regard a number of recommendations were made with respect to managing HRM proactively. A framework based on empirical research and earlier work by Kloman (2000), Lam (2003) and Regester and Larkin (2005) was furthermore suggested for the implementation of HRM in the South African banking industry in the belief that this framework, and the overall research reported in this study could be of theoretical as well as practical value for risk managers in the South African banking industry. , Dr. D. J. Theron (UJ) Dr. T. P. v/d Walt (ABSA)
- Full Text:
Risk management for a rural electrification project : a systems engineering approach
- Authors: Zondi, Lucky
- Date: 2012-06-04
- Subjects: Risk management , Systems engineering , Rural electrification projects
- Type: Thesis
- Identifier: uj:2328 , http://hdl.handle.net/10210/4786
- Description: M.Ing. , This research study is about evaluating the practicability of using systems engineering approach to rural electrification project risk management. The research was motivated by rural electrification projects in South Africa that have suffered planning, design or operational problems due to uncertainties at project site level. The dissertation begins by describing the rural electrification background in the first chapter. The process of electrifying rural areas, challenges, and achievements so far in South Africa are presented. The government target for universal access to electricity is also highlighted. The next two chapters address the theory of systems engineering, and project risk management as one of the elements of project management. The theory of systems engineering approach to risk management is then applied to a typical electrification project structure. The electrification project is viewed as a system, with risk management as a sub-system of project management. A case study is presented for a rural electrification project in KwaZulu-Natal that has experienced design and operational problems. A risk system is identified from work breakdown structure, and risk hierarchy framework is produced based on project life cycle cost model. Risks are ranked in terms of their impact and probability. The aim of the study is to understand the impact of each risk on general project risk, and risk mitigation measures that should be taken to address those risks. The research finishes by drawing a conclusion that electrification projects are complex, risks are manageable, and systems thinking can be successfully used to manage electrification project risks. Risk management must focus on the project as a whole, including operation and maintenance, rather than focusing at individual project stages.
- Full Text:
- Authors: Zondi, Lucky
- Date: 2012-06-04
- Subjects: Risk management , Systems engineering , Rural electrification projects
- Type: Thesis
- Identifier: uj:2328 , http://hdl.handle.net/10210/4786
- Description: M.Ing. , This research study is about evaluating the practicability of using systems engineering approach to rural electrification project risk management. The research was motivated by rural electrification projects in South Africa that have suffered planning, design or operational problems due to uncertainties at project site level. The dissertation begins by describing the rural electrification background in the first chapter. The process of electrifying rural areas, challenges, and achievements so far in South Africa are presented. The government target for universal access to electricity is also highlighted. The next two chapters address the theory of systems engineering, and project risk management as one of the elements of project management. The theory of systems engineering approach to risk management is then applied to a typical electrification project structure. The electrification project is viewed as a system, with risk management as a sub-system of project management. A case study is presented for a rural electrification project in KwaZulu-Natal that has experienced design and operational problems. A risk system is identified from work breakdown structure, and risk hierarchy framework is produced based on project life cycle cost model. Risks are ranked in terms of their impact and probability. The aim of the study is to understand the impact of each risk on general project risk, and risk mitigation measures that should be taken to address those risks. The research finishes by drawing a conclusion that electrification projects are complex, risks are manageable, and systems thinking can be successfully used to manage electrification project risks. Risk management must focus on the project as a whole, including operation and maintenance, rather than focusing at individual project stages.
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An actionable approach to designing a risk management methodology
- Authors: Hamman, Claudius
- Date: 2012-10-30
- Subjects: Risk management , Strategic planning
- Type: Thesis
- Identifier: uj:10487 , http://hdl.handle.net/10210/7984
- Description: M.Comm. (Strategic Management) , Due to dramatic changes in the organisational landscape, organisations have had to review and amend risk management frameworks, processes and principles more regularly. Consequently, organisations now require an approach to risk management that enables the achievement of strategy, objectives and business activities. Risk management has to be implemented with the consideration of both the internal and external business environment on an enterprise-wide basis. The latter should result in a competitive advantage that drives organisational performance and reduces the total cost of risk. A pro-active approach to managing the effects of uncertainty on objectives has become a necessity for remaining competitive in constantly changing business environment. This study investigates the context and ideology through which risk management can be implemented. The purpose of the research was to identify, customize and recommend a sound methodology which can be incorporated in order to implement risk management as a business enabler. By adopting an exploratory approach, the researcher conducted qualitative research, in the form of an in-depth case study, on a multinational financial services organisation. Structured interviews were held with senior individuals in order to gather data regarding the risk management practices of the organisation.
- Full Text:
- Authors: Hamman, Claudius
- Date: 2012-10-30
- Subjects: Risk management , Strategic planning
- Type: Thesis
- Identifier: uj:10487 , http://hdl.handle.net/10210/7984
- Description: M.Comm. (Strategic Management) , Due to dramatic changes in the organisational landscape, organisations have had to review and amend risk management frameworks, processes and principles more regularly. Consequently, organisations now require an approach to risk management that enables the achievement of strategy, objectives and business activities. Risk management has to be implemented with the consideration of both the internal and external business environment on an enterprise-wide basis. The latter should result in a competitive advantage that drives organisational performance and reduces the total cost of risk. A pro-active approach to managing the effects of uncertainty on objectives has become a necessity for remaining competitive in constantly changing business environment. This study investigates the context and ideology through which risk management can be implemented. The purpose of the research was to identify, customize and recommend a sound methodology which can be incorporated in order to implement risk management as a business enabler. By adopting an exploratory approach, the researcher conducted qualitative research, in the form of an in-depth case study, on a multinational financial services organisation. Structured interviews were held with senior individuals in order to gather data regarding the risk management practices of the organisation.
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A critical evaluation of uncertainty and expectations in fixed investment decisions
- Authors: Chetty, Sivan
- Date: 2015-08-18
- Subjects: Investments , Risk management , Macroeconomics
- Type: Thesis
- Identifier: uj:13897 , http://hdl.handle.net/10210/14240
- Description: M.Com. , Please refer to full text to view abstract
- Full Text:
- Authors: Chetty, Sivan
- Date: 2015-08-18
- Subjects: Investments , Risk management , Macroeconomics
- Type: Thesis
- Identifier: uj:13897 , http://hdl.handle.net/10210/14240
- Description: M.Com. , Please refer to full text to view abstract
- Full Text:
An approach to risk management in the mining projects environment : a case study
- Authors: Mndzebele, Andile S.
- Date: 2012-06-04
- Subjects: Risk management , Project management , Mining industry , EPCM
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/373617 , uj:2371 , http://hdl.handle.net/10210/4826
- Description: M. Phil. , Risk management comprises of risk identification, risk analysis, response planning, monitoring and action planning tasks that are carried out throughout the life cycle of a project in order to ensure that project objectives are met. Risk is a fact of life in all mining type projects. This research dissertation documents the risk management practices of an EPCM company involved in mining projects. Risk analysis techniques are discussed and the author goes deeper to examine what risk means to a project, and how the project team perceive, identify and quantify project risks. This dissertation uses a case study to focus on an EPCM firm‘s approach to risk management in the mining projects environment. This study aims to illustrate how the risks involved in a project have to be identified, controlled and managed. The purpose of this dissertation is therefore to act as an implementation risk management model for the case company and for use in a typical mining projects environment. Risk is an integral part of engineering projects, and it is necessary to manage the risks in order to ensure project success.
- Full Text:
- Authors: Mndzebele, Andile S.
- Date: 2012-06-04
- Subjects: Risk management , Project management , Mining industry , EPCM
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/373617 , uj:2371 , http://hdl.handle.net/10210/4826
- Description: M. Phil. , Risk management comprises of risk identification, risk analysis, response planning, monitoring and action planning tasks that are carried out throughout the life cycle of a project in order to ensure that project objectives are met. Risk is a fact of life in all mining type projects. This research dissertation documents the risk management practices of an EPCM company involved in mining projects. Risk analysis techniques are discussed and the author goes deeper to examine what risk means to a project, and how the project team perceive, identify and quantify project risks. This dissertation uses a case study to focus on an EPCM firm‘s approach to risk management in the mining projects environment. This study aims to illustrate how the risks involved in a project have to be identified, controlled and managed. The purpose of this dissertation is therefore to act as an implementation risk management model for the case company and for use in a typical mining projects environment. Risk is an integral part of engineering projects, and it is necessary to manage the risks in order to ensure project success.
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The role of information technology in the risk management of businesses in South Africa
- Authors: Schutte, B. , Marx, B.
- Date: 2018
- Subjects: Information technology , Risk management , Risk management of IT
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/289677 , uj:31434 , Citation: Schutte, B. & Marx, B. 2018. The role of information technology in the risk management of businesses in South Africa.
- Description: Abstract: Information Technology is a dynamic and constantly evolving field which has dramatically changed the way in which businesses operate. Organisations now have to ensure that information technology is incorporated into their risk management processes and the strategies to mitigate those risks. This study investigated the role of information technology in risk management processes, focusing on the type of information technology risks and threats that affect organisations. An empirical study of the integrated reports of the top 40 companies listed on the Johannesburg Securities Exchange was conducted to investigate the information technology risk management disclosure practices. The study was completed in 2016, before the King IV Code of Corporate Governance for South Africa became effective and accordingly, focused only on the King III principles of information technology governance and risk management. The study found that companies are mitigating information technology risks and have included information technology into their risk management processes. The results also revealed that awareness of information technology risk may be industry-driven, as companies operating in information technology environments were more likely to be exposed to information technology risk.
- Full Text:
- Authors: Schutte, B. , Marx, B.
- Date: 2018
- Subjects: Information technology , Risk management , Risk management of IT
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/289677 , uj:31434 , Citation: Schutte, B. & Marx, B. 2018. The role of information technology in the risk management of businesses in South Africa.
- Description: Abstract: Information Technology is a dynamic and constantly evolving field which has dramatically changed the way in which businesses operate. Organisations now have to ensure that information technology is incorporated into their risk management processes and the strategies to mitigate those risks. This study investigated the role of information technology in risk management processes, focusing on the type of information technology risks and threats that affect organisations. An empirical study of the integrated reports of the top 40 companies listed on the Johannesburg Securities Exchange was conducted to investigate the information technology risk management disclosure practices. The study was completed in 2016, before the King IV Code of Corporate Governance for South Africa became effective and accordingly, focused only on the King III principles of information technology governance and risk management. The study found that companies are mitigating information technology risks and have included information technology into their risk management processes. The results also revealed that awareness of information technology risk may be industry-driven, as companies operating in information technology environments were more likely to be exposed to information technology risk.
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An empirical analysis of perceived risks in derivatives trading
- Authors: Du Toit, C.F.
- Date: 2012-10-18
- Subjects: Derivative securities , Futures , Options (Finance) , Swaps (Finance) , Risk management
- Type: Thesis
- Identifier: uj:10410 , http://hdl.handle.net/10210/7877
- Description: M.Comm.
- Full Text:
- Authors: Du Toit, C.F.
- Date: 2012-10-18
- Subjects: Derivative securities , Futures , Options (Finance) , Swaps (Finance) , Risk management
- Type: Thesis
- Identifier: uj:10410 , http://hdl.handle.net/10210/7877
- Description: M.Comm.
- Full Text:
Schedule risk analysis of railway projects using monte-carlo simulation
- Authors: Mabeba, Motlatso
- Date: 2018
- Subjects: Risk management , Railroads - Management , Monte Carlo method
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/286098 , uj:30951
- Description: M.Ing. (Engineering Management) , Abstract: Railways have been used throughout history for the transportation of goods. Even though the inception of rail improved civilization, due to its inefficiencies, road transport is dominating the freight and logistics industry. Company A, which has the largest market share in rail has embarked on projects in an attempt to improve rail efficiencies by moving more volumes of freight timeously. Most of the projects of Company A have failed largely due to the poor planning of the projects in the feasibility stages. Most of the planning schedules are overoptimistic and thus unreliable. The scope of this study is to investigate the way in which planning schedules of Company A are developed by undertaking a schedule risk analysis and using Monte Carlo simulation to validate the schedule. If projects of Company A can be planned better, using schedule risk analysis, projects can become more successful in terms of delivering projects on time and then execute the projects on time.
- Full Text:
- Authors: Mabeba, Motlatso
- Date: 2018
- Subjects: Risk management , Railroads - Management , Monte Carlo method
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/286098 , uj:30951
- Description: M.Ing. (Engineering Management) , Abstract: Railways have been used throughout history for the transportation of goods. Even though the inception of rail improved civilization, due to its inefficiencies, road transport is dominating the freight and logistics industry. Company A, which has the largest market share in rail has embarked on projects in an attempt to improve rail efficiencies by moving more volumes of freight timeously. Most of the projects of Company A have failed largely due to the poor planning of the projects in the feasibility stages. Most of the planning schedules are overoptimistic and thus unreliable. The scope of this study is to investigate the way in which planning schedules of Company A are developed by undertaking a schedule risk analysis and using Monte Carlo simulation to validate the schedule. If projects of Company A can be planned better, using schedule risk analysis, projects can become more successful in terms of delivering projects on time and then execute the projects on time.
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Financial product development : a strategically competitive system engineering approach to innovative risk based financial engineering.
- Authors: Piquito, Nicholas Paul
- Date: 2012-08-27
- Subjects: Financial engineering , Risk management , Competition , Benchmarking (Management)
- Type: Thesis
- Identifier: uj:3209 , http://hdl.handle.net/10210/6621
- Description: D.Ing. , It is said that the development of innovative new products is set to become the economic battleground of the twenty-first century. Specifically, the innovative identification, development and subsequent marketing of financial products designed in order to allow organisations to manage their financial risk profiles will assume increased importance as volatility within the global business environment and capital markets increases. The discipline responsible for the development of such financial products, financial engineering, will increase in importance as financial services organisations compete to be the first to satisfy the needs of the market. The ultimate aim of financial engineering, as with any product development process, must be to develop the required product in an optimal manner at a minimised economic life-cycle cost to the organisation. Simultaneously, if correctly applied, the process of financial engineering can be a significant source of competitive advantage to the financial services organisation in an industry characterised by intense competitive pressures and exponentially increasing complexity and volatility. The financial services organisation which is able to successfully combine these two elements will have the capability to position itself as a leader in the identification and development of innovative financial products, a capability critical for success within the financial services industry. The science of engineering has within it a special subset devoted to the optimisation of the process of product development. This discipline, known as system engineering, has been extremely effective in the enhancement of product development processes within a traditional manufacturing environment. Tangible benefits of the application of system engineering include a reduced product development cycle, increased product adherence to client specifications, and a reduction in the economic life-cycle cost of the product. Within this thesis the author suggests that the optimal development of financial products in an increasingly competitive environment requires a two-pronged approach. In the first instance the financial services organisation must choose to develop the product which best promotes the medium to long-term strategic aims of the organisation. This is the concept of strategic fit. In the second instance the financial services organisation must have the capability to develop this product more effectively, and more efficiently, than its competitors. As an implementation mechanism the author develops a Financial Product Development Model based on system engineering principles chosen for their applicability to the process of financial product development. Simultaneously, the author develops a Competitive Strategy Framework, a collection of five strategic elements designed to ensure that the financial product development decision displays a measure of correlation to the strategic aims of the organisation. This Competitive Strategy Framework is implemented within the Financial Product Development Model via the use of a Strategic Circuit Breaker, a concept developed by the author and based on the concept of trading circuit breakers as used on the world's major stock exchanges. The aim of the Financial Product Development Model proposed within this thesis is to enhance the process of financial engineering and in so doing provide the financial services organisation with a means of improving its strategic competitiveness within the financial markets. The proposed Financial Product Development Model is validated via the practical application of the model. The results of this validation indicate that significant benefits may be obtained by correctly implementing the model. In addition the author conducts a limited scope industry survey designed to determine the opinion of financial services professionals to the major concepts underlying the model. The favourable results of this survey indicate that (1) the proposed model is practical and applicable within the financial services industry, and (2) the financial services industry in general is unaware of the importance of the process of product development and the manner in which system engineering can be used to enhance this process. By implication the financial services organisation that is able to differentiate its financial product development process from its competitors stands to achieve a significant competitive advantage.
- Full Text:
- Authors: Piquito, Nicholas Paul
- Date: 2012-08-27
- Subjects: Financial engineering , Risk management , Competition , Benchmarking (Management)
- Type: Thesis
- Identifier: uj:3209 , http://hdl.handle.net/10210/6621
- Description: D.Ing. , It is said that the development of innovative new products is set to become the economic battleground of the twenty-first century. Specifically, the innovative identification, development and subsequent marketing of financial products designed in order to allow organisations to manage their financial risk profiles will assume increased importance as volatility within the global business environment and capital markets increases. The discipline responsible for the development of such financial products, financial engineering, will increase in importance as financial services organisations compete to be the first to satisfy the needs of the market. The ultimate aim of financial engineering, as with any product development process, must be to develop the required product in an optimal manner at a minimised economic life-cycle cost to the organisation. Simultaneously, if correctly applied, the process of financial engineering can be a significant source of competitive advantage to the financial services organisation in an industry characterised by intense competitive pressures and exponentially increasing complexity and volatility. The financial services organisation which is able to successfully combine these two elements will have the capability to position itself as a leader in the identification and development of innovative financial products, a capability critical for success within the financial services industry. The science of engineering has within it a special subset devoted to the optimisation of the process of product development. This discipline, known as system engineering, has been extremely effective in the enhancement of product development processes within a traditional manufacturing environment. Tangible benefits of the application of system engineering include a reduced product development cycle, increased product adherence to client specifications, and a reduction in the economic life-cycle cost of the product. Within this thesis the author suggests that the optimal development of financial products in an increasingly competitive environment requires a two-pronged approach. In the first instance the financial services organisation must choose to develop the product which best promotes the medium to long-term strategic aims of the organisation. This is the concept of strategic fit. In the second instance the financial services organisation must have the capability to develop this product more effectively, and more efficiently, than its competitors. As an implementation mechanism the author develops a Financial Product Development Model based on system engineering principles chosen for their applicability to the process of financial product development. Simultaneously, the author develops a Competitive Strategy Framework, a collection of five strategic elements designed to ensure that the financial product development decision displays a measure of correlation to the strategic aims of the organisation. This Competitive Strategy Framework is implemented within the Financial Product Development Model via the use of a Strategic Circuit Breaker, a concept developed by the author and based on the concept of trading circuit breakers as used on the world's major stock exchanges. The aim of the Financial Product Development Model proposed within this thesis is to enhance the process of financial engineering and in so doing provide the financial services organisation with a means of improving its strategic competitiveness within the financial markets. The proposed Financial Product Development Model is validated via the practical application of the model. The results of this validation indicate that significant benefits may be obtained by correctly implementing the model. In addition the author conducts a limited scope industry survey designed to determine the opinion of financial services professionals to the major concepts underlying the model. The favourable results of this survey indicate that (1) the proposed model is practical and applicable within the financial services industry, and (2) the financial services industry in general is unaware of the importance of the process of product development and the manner in which system engineering can be used to enhance this process. By implication the financial services organisation that is able to differentiate its financial product development process from its competitors stands to achieve a significant competitive advantage.
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Risk management in banking : a theoretical overview
- Authors: Smit, Ellen Yolande
- Date: 2011-12-06
- Subjects: Risk management , Bank management
- Type: Thesis
- Identifier: uj:1836 , http://hdl.handle.net/10210/4196
- Description: M.Comm.
- Full Text:
- Authors: Smit, Ellen Yolande
- Date: 2011-12-06
- Subjects: Risk management , Bank management
- Type: Thesis
- Identifier: uj:1836 , http://hdl.handle.net/10210/4196
- Description: M.Comm.
- Full Text:
The effects of risk management on the success of a project
- Authors: Naidoo, Premesarie K.
- Date: 2012-08-01
- Subjects: Risk management , Project management
- Type: Mini-Dissertation
- Identifier: uj:8925 , http://hdl.handle.net/10210/5395
- Description: M.Ing. , In all companies, there exists many opportunities. With these opportunities comes benefits as well as uncertainties and therefore risks. To expedite these opportunities, it is crucial that the expected monetary value associated with the gain of the opportunity exceeds the expected monetary value associated with the loss due to the risk impact. It is therefore imperative that all projects with associated risks be carefully identified and assessed, with mitigation steps to reduce or eliminate the impact of the risks, if possible. The management of identifying, assessing and mitigating risks with mitigation and contingent plans or allowances, is known as risk management. Risk management identifies strategies and the relevant stakeholders to best handle risks by seeking innovative but practical solutions, based on experience and sound judgements. Risk management forms a vital part of project management since risk is present throughout the life cycle of any project. Risks are present in all project management functions. These risks arise due to changes in scope also known as scope creep, unrealistic cost or time estimation and factors influencing quality, etc. It is believed that risk management is an influencing factor that determines the success of a project. According to the literature review, the success of a project is defined according to a time - budget - performance model, where the project is regarded as successful if it is completed within the projected timeline and budget and meets all the quality requirements. This research paper explored the definition of project success at Sasol1 in Secunda and the influence of risk management on the success of a project. A questionnaire 1 Sasol in Secunda, will from hereon be defined as and referred to as the organization survey was distributed to selected persons using email at the organisation to investigate their opinions towards risk management. From the findings of the study, it was found that this research study is fitting to the theoretical belief that effective risk management is an important influencing factor on the success of a project and that a successful project is defined as a project completed within the projected schedule and budget and meets all requirements. It was also an objective to determine which of the project management functions should be focussed on to improve project success at the organisation. The project management functions believed to have most risk attached to it, was further compared to the actual project management functions with most risks attached to it during the actual project execution. This has proven to be an opportunity to optimise on which project management functions should be the focus areas, by comparing the belief, to the factors that actually have major risk impacts. The risk management process at the organisation was further investigated to ensure that it was the most efficient risk management process. Following the research, it can be concluded that the risk management model at the organisation is the most optimised model in accordance with that of literature. The scope of this dissertation includes risk classification, the process of risk management, risk management techniques based on theory and an investigation into a case study. This theoretical understanding is then compared to the actual research findings based on the questionnaire conducted, on the effects of risk management and its effects on the success of a project.
- Full Text:
- Authors: Naidoo, Premesarie K.
- Date: 2012-08-01
- Subjects: Risk management , Project management
- Type: Mini-Dissertation
- Identifier: uj:8925 , http://hdl.handle.net/10210/5395
- Description: M.Ing. , In all companies, there exists many opportunities. With these opportunities comes benefits as well as uncertainties and therefore risks. To expedite these opportunities, it is crucial that the expected monetary value associated with the gain of the opportunity exceeds the expected monetary value associated with the loss due to the risk impact. It is therefore imperative that all projects with associated risks be carefully identified and assessed, with mitigation steps to reduce or eliminate the impact of the risks, if possible. The management of identifying, assessing and mitigating risks with mitigation and contingent plans or allowances, is known as risk management. Risk management identifies strategies and the relevant stakeholders to best handle risks by seeking innovative but practical solutions, based on experience and sound judgements. Risk management forms a vital part of project management since risk is present throughout the life cycle of any project. Risks are present in all project management functions. These risks arise due to changes in scope also known as scope creep, unrealistic cost or time estimation and factors influencing quality, etc. It is believed that risk management is an influencing factor that determines the success of a project. According to the literature review, the success of a project is defined according to a time - budget - performance model, where the project is regarded as successful if it is completed within the projected timeline and budget and meets all the quality requirements. This research paper explored the definition of project success at Sasol1 in Secunda and the influence of risk management on the success of a project. A questionnaire 1 Sasol in Secunda, will from hereon be defined as and referred to as the organization survey was distributed to selected persons using email at the organisation to investigate their opinions towards risk management. From the findings of the study, it was found that this research study is fitting to the theoretical belief that effective risk management is an important influencing factor on the success of a project and that a successful project is defined as a project completed within the projected schedule and budget and meets all requirements. It was also an objective to determine which of the project management functions should be focussed on to improve project success at the organisation. The project management functions believed to have most risk attached to it, was further compared to the actual project management functions with most risks attached to it during the actual project execution. This has proven to be an opportunity to optimise on which project management functions should be the focus areas, by comparing the belief, to the factors that actually have major risk impacts. The risk management process at the organisation was further investigated to ensure that it was the most efficient risk management process. Following the research, it can be concluded that the risk management model at the organisation is the most optimised model in accordance with that of literature. The scope of this dissertation includes risk classification, the process of risk management, risk management techniques based on theory and an investigation into a case study. This theoretical understanding is then compared to the actual research findings based on the questionnaire conducted, on the effects of risk management and its effects on the success of a project.
- Full Text:
The determination of the important risks in the management of a bank
- Authors: Du Preez, Markus
- Date: 2011-11-30
- Subjects: Bank management , Risk management
- Type: Thesis
- Identifier: uj:1762 , http://hdl.handle.net/10210/4116
- Description: M.Comm. , The aim of this study was to take a closer look at the modem financial institutions of the world and to determine what adverse conditions these companies face. Banks are some of the strongest organisations in a country, and the banking sector is a major employer. Yet, the risks faced by banks are enormous, and without the prudent and responsible management of these risks banks can find themselves in severe trouble. Recent situations in the South African banking sector underpin this, as several of the small banks in the country went into judicial management or were put out of business because they failed to meet their liquidity requirements. Risk management in banking is one of the most important tasks in the institution. Regardless of the division or type of operation, banks face certain risks. In this study, the researcher looked at the risks described in the literature as the main risks found in the banking environment. Solvency, liquidity, credit, price and operating risks are the risks most commonly discussed in the literature on banking risks. Although the five main risks constitute a serious threat to a bank each in its own right, each risk can be subdivided based on the likelihood of the risk materialising. The researcher therefore subdivided each major risk into subrisks. The question was then posed: Are there any similarities between these risks? The researcher developed a model whereby risks are categorised according to the attributes they have in common. The study classified the risks into the categories of market, credit and other risks. The objective in classifYing known banking risks is to assist the risk management team in a bank to manage similar risks in a similar way. Instead of focussing on each major risk and its multitude of subcategories individually, it is easier to manag~ a set of risks according to their similarities. Furthermore, the researcher wanted to determine which all the banking risks discussed would be universal in the danger they hold to any banking operation or any division operating within a bank. The question was posed: What are the classical risks in banking that would without a doubt lead to bank failure ifleft unmanaged? Liquidity, solvency and credit risks were the risks identified as critical in any banking operation and the risks that history has shown to be most detrimental to the future viability of any bank. Finally, the study looked at the management of these three classical risks from the perspective of determining policy and strategy. The study drew form literature, personal observation and the input of risk and bank management professionals to highlight some ofthe most important elements in credit, solvency and liquidity management.
- Full Text:
- Authors: Du Preez, Markus
- Date: 2011-11-30
- Subjects: Bank management , Risk management
- Type: Thesis
- Identifier: uj:1762 , http://hdl.handle.net/10210/4116
- Description: M.Comm. , The aim of this study was to take a closer look at the modem financial institutions of the world and to determine what adverse conditions these companies face. Banks are some of the strongest organisations in a country, and the banking sector is a major employer. Yet, the risks faced by banks are enormous, and without the prudent and responsible management of these risks banks can find themselves in severe trouble. Recent situations in the South African banking sector underpin this, as several of the small banks in the country went into judicial management or were put out of business because they failed to meet their liquidity requirements. Risk management in banking is one of the most important tasks in the institution. Regardless of the division or type of operation, banks face certain risks. In this study, the researcher looked at the risks described in the literature as the main risks found in the banking environment. Solvency, liquidity, credit, price and operating risks are the risks most commonly discussed in the literature on banking risks. Although the five main risks constitute a serious threat to a bank each in its own right, each risk can be subdivided based on the likelihood of the risk materialising. The researcher therefore subdivided each major risk into subrisks. The question was then posed: Are there any similarities between these risks? The researcher developed a model whereby risks are categorised according to the attributes they have in common. The study classified the risks into the categories of market, credit and other risks. The objective in classifYing known banking risks is to assist the risk management team in a bank to manage similar risks in a similar way. Instead of focussing on each major risk and its multitude of subcategories individually, it is easier to manag~ a set of risks according to their similarities. Furthermore, the researcher wanted to determine which all the banking risks discussed would be universal in the danger they hold to any banking operation or any division operating within a bank. The question was posed: What are the classical risks in banking that would without a doubt lead to bank failure ifleft unmanaged? Liquidity, solvency and credit risks were the risks identified as critical in any banking operation and the risks that history has shown to be most detrimental to the future viability of any bank. Finally, the study looked at the management of these three classical risks from the perspective of determining policy and strategy. The study drew form literature, personal observation and the input of risk and bank management professionals to highlight some ofthe most important elements in credit, solvency and liquidity management.
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The construction and evaluation of an enterprise risk management instrument for state-owned enterprises
- Authors: Vergotine, Hilton Wilhelm
- Date: 2012-10-25
- Subjects: Risk management , Enterprise risk management , State-owned enterprises , Government business enterprises - Management
- Type: Thesis
- Identifier: uj:10447 , http://hdl.handle.net/10210/7912
- Description: D.Phil. , The purpose of the study is to construct and evaluate a measuring instrument that could determine the business impact of enterprise risk management (ERM) processes on State-Owned Enterprises (SOEs) in South Africa. In respect of ERM, various authors point out that there is little empirical research on the topic and almost no research regarding the evaluation of its effectiveness and value contribution to organisations. In addition, the current measurement tools for assessing the management of risk maturity are based on subjective assessments or comprised of checklists of activities that assess ERM components based on individual opinions. It was against this setting that the literature review focuses on the components and the broader organisational improvement strategies within which ERM is practised. This entails outlining corporate governance and discussing its processes and practices. In particular, the discussion focuses on historical and current practices, corporate scandals and the lessons learned from them, internationally accepted codes, local corporate governance codes, and corporate governance codes applicable to SOEs. The discussion concerning the management of risk concentrates on its fundamental principles, the link with corporate governance, and the broader discipline and practice of ERM. The significance of ERM is further elaborated on by focusing on its approach, the key local and international ERM standards and associated principles, ERM evaluation practices, and current shortcomings identified in the management of risks. In order to meet the empirical objectives of the study, a pragmatic research paradigm, using a mixed methods approach, was chosen. This selection was considered appropriate as the pragmatic paradigm applies all research approaches in understanding a problem. To this extent, a mixed methods research approach was adopted, comprised of the qualitative approaches to sampling, interviews, observations, the review of organisational documents, the Delphi method, construction of the questionnaire items, and development of the instrument. The point of interface between the research approaches occurred at the level of sampling and the analysis of the results collated from the validation of the instrument by applying descriptive and inferential statistical methods.
- Full Text:
- Authors: Vergotine, Hilton Wilhelm
- Date: 2012-10-25
- Subjects: Risk management , Enterprise risk management , State-owned enterprises , Government business enterprises - Management
- Type: Thesis
- Identifier: uj:10447 , http://hdl.handle.net/10210/7912
- Description: D.Phil. , The purpose of the study is to construct and evaluate a measuring instrument that could determine the business impact of enterprise risk management (ERM) processes on State-Owned Enterprises (SOEs) in South Africa. In respect of ERM, various authors point out that there is little empirical research on the topic and almost no research regarding the evaluation of its effectiveness and value contribution to organisations. In addition, the current measurement tools for assessing the management of risk maturity are based on subjective assessments or comprised of checklists of activities that assess ERM components based on individual opinions. It was against this setting that the literature review focuses on the components and the broader organisational improvement strategies within which ERM is practised. This entails outlining corporate governance and discussing its processes and practices. In particular, the discussion focuses on historical and current practices, corporate scandals and the lessons learned from them, internationally accepted codes, local corporate governance codes, and corporate governance codes applicable to SOEs. The discussion concerning the management of risk concentrates on its fundamental principles, the link with corporate governance, and the broader discipline and practice of ERM. The significance of ERM is further elaborated on by focusing on its approach, the key local and international ERM standards and associated principles, ERM evaluation practices, and current shortcomings identified in the management of risks. In order to meet the empirical objectives of the study, a pragmatic research paradigm, using a mixed methods approach, was chosen. This selection was considered appropriate as the pragmatic paradigm applies all research approaches in understanding a problem. To this extent, a mixed methods research approach was adopted, comprised of the qualitative approaches to sampling, interviews, observations, the review of organisational documents, the Delphi method, construction of the questionnaire items, and development of the instrument. The point of interface between the research approaches occurred at the level of sampling and the analysis of the results collated from the validation of the instrument by applying descriptive and inferential statistical methods.
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Option pricing and risk management
- Authors: Zittlau, Ferdinand Ernst
- Date: 2012-08-28
- Subjects: Options (Finance) -- Prices , Risk management
- Type: Thesis
- Identifier: uj:3326 , http://hdl.handle.net/10210/6728
- Description: M.Comm. , Chapter 2 discussed the basic principles underlying of the two major option pricing formulae. It clearly showed that two totally different approaches were followed in each case, and yet both arrived at approximately the same value for the price of an option. Both these approaches made certain assumptions in their derivation of the formulae in order to simplify the final expressions, and to produce a more workable solution. They both however made substantial use of statistical probability in order to determine the likelihood of a certain event occurring. Chapter 3 gave a detailed derivation of both the Black and Scholes and the Binomial tree pricing formulae, as well as the associated criticism and advantages of the respective approaches. Value at risk, or VaR, was used in determining the statistical probability of a certain portfolio consisting of a specified option losing more than a certain percentage of its value over a given period of time. The resulting number obtained can be used to judge the riskiness of a portfolio in the given market conditions. All of these formulae are used on a daily basis by financial professionals in the daily operations of a magnitude of different institutions in order to value financial portfolios, the risk associated with these portfolios and the probability of certain events occurring within the portfolios in order to make better decisions and increase the profitability of these institutions, without actually knowing the underlying principles. - As- such these --formulae merely become a number crunching business, and interpretation of these numbers, without realising the pitfalls associated with the approaches in establishing these formulae. The random walk theory for unrestricted movement assumes that at t=0, the rates are at the origin. This can be interpreted as 0%, and instinctively any person would agree that 0% is not possible in any fixed income environment, due to the time value attached to money. Choosing the ruling rate as the origin would be more practical in determining the origin, but care must be taken in assigning probabilities to the up and down movements. At the onset of the problems amongst the emerging markets during 1998, the probability of rates increasing once it reached 17,00% was much higher than that of the rates decreasing. However, barely a month later when the rates had reached its peak at more than 21,00% and were declining again, the probability of the rates increasing once it reached 17,00% again was much lower than that of it decreasing further. This would have a significant effect on the probability generating function, and hence also an effect on the mean and variance thus derived. The probability curve of the rates during these times were also not represented by a standard normal curve, and as such the heteroscedacity of the curve had a major influence on the pricing of options. During extreme periods both the random walk theory and the Wiener process would be totally skewed, and unreliable answers would be derived from this approach. By 'adjusting the expression for a non-standard distribution, these problems can be eliminated and an accurate approach once again obtained using this process. Problems that could occur when using this approach to solve inaccuracies would amongst others include the following: The incorrect distribution function is being applied for the specific set of conditions prevailing in the market. This is due to the fact that under these abnormal conditions the distribution function can change over a very short period of time. Incorrect skews being applied to the distribution function due to fast changing market conditions. When to revert back to the normal distribution function. It then becomes a question not of an improper analytical approach, but incorrect timing approach. Since markets mostly perform according to the standardised normal distribution function the Wiener approach hold true for most applications.
- Full Text:
- Authors: Zittlau, Ferdinand Ernst
- Date: 2012-08-28
- Subjects: Options (Finance) -- Prices , Risk management
- Type: Thesis
- Identifier: uj:3326 , http://hdl.handle.net/10210/6728
- Description: M.Comm. , Chapter 2 discussed the basic principles underlying of the two major option pricing formulae. It clearly showed that two totally different approaches were followed in each case, and yet both arrived at approximately the same value for the price of an option. Both these approaches made certain assumptions in their derivation of the formulae in order to simplify the final expressions, and to produce a more workable solution. They both however made substantial use of statistical probability in order to determine the likelihood of a certain event occurring. Chapter 3 gave a detailed derivation of both the Black and Scholes and the Binomial tree pricing formulae, as well as the associated criticism and advantages of the respective approaches. Value at risk, or VaR, was used in determining the statistical probability of a certain portfolio consisting of a specified option losing more than a certain percentage of its value over a given period of time. The resulting number obtained can be used to judge the riskiness of a portfolio in the given market conditions. All of these formulae are used on a daily basis by financial professionals in the daily operations of a magnitude of different institutions in order to value financial portfolios, the risk associated with these portfolios and the probability of certain events occurring within the portfolios in order to make better decisions and increase the profitability of these institutions, without actually knowing the underlying principles. - As- such these --formulae merely become a number crunching business, and interpretation of these numbers, without realising the pitfalls associated with the approaches in establishing these formulae. The random walk theory for unrestricted movement assumes that at t=0, the rates are at the origin. This can be interpreted as 0%, and instinctively any person would agree that 0% is not possible in any fixed income environment, due to the time value attached to money. Choosing the ruling rate as the origin would be more practical in determining the origin, but care must be taken in assigning probabilities to the up and down movements. At the onset of the problems amongst the emerging markets during 1998, the probability of rates increasing once it reached 17,00% was much higher than that of the rates decreasing. However, barely a month later when the rates had reached its peak at more than 21,00% and were declining again, the probability of the rates increasing once it reached 17,00% again was much lower than that of it decreasing further. This would have a significant effect on the probability generating function, and hence also an effect on the mean and variance thus derived. The probability curve of the rates during these times were also not represented by a standard normal curve, and as such the heteroscedacity of the curve had a major influence on the pricing of options. During extreme periods both the random walk theory and the Wiener process would be totally skewed, and unreliable answers would be derived from this approach. By 'adjusting the expression for a non-standard distribution, these problems can be eliminated and an accurate approach once again obtained using this process. Problems that could occur when using this approach to solve inaccuracies would amongst others include the following: The incorrect distribution function is being applied for the specific set of conditions prevailing in the market. This is due to the fact that under these abnormal conditions the distribution function can change over a very short period of time. Incorrect skews being applied to the distribution function due to fast changing market conditions. When to revert back to the normal distribution function. It then becomes a question not of an improper analytical approach, but incorrect timing approach. Since markets mostly perform according to the standardised normal distribution function the Wiener approach hold true for most applications.
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Engineering approach to risk management in information technology systems
- Authors: Seker, Harun
- Date: 2012-09-10
- Subjects: Risk management , Information technology - Risk assessment , Engineering - Risk assessment
- Type: Thesis
- Identifier: uj:9835 , http://hdl.handle.net/10210/7239
- Description: M.Phil. , The use of information systems has increased dramatically after the emergence of internet. Individuals, companies and organizations are becoming increasingly dependent on IT systems. Before technology and computers became such an important part of society, it was difficult to manage and control large organizations. Today computers enable the effective and efficient management of large organizations, therefore allowing them to spread throughout the country and world. Businesses are following latest advances in this era to remain competitive in the changing global market place. They use computers, automated IT systems and networks to gather, store, retrieve, process, and analyze information as well as to trade and communicate. The rapid advances in computer technology are largely a result of the research, development and design efforts of computer engineers. There is a direct correlation between a nation's wealth and scientific and technological capacity. The most effective way of taking our country forward is to enthuse our youth for science and technology. As the world makes rapid, sometimes breathtaking strides in the diverse fields of science and technology, South Africa more than ever needs qualified individuals who will use their skills and entrepreneurial spirit to enable our country to complete internationally with the best. However, Information systems and networks and their worldwide increasing usage have been accompanied by new and increasing risks. Data and information stored on and transmitted over information technology systems and networks are subject to threats from various means of unauthorized access, such as misuse, misappropriation, alteration, malicious code transmissions, denial of service or destruction and require appropriate safeguards. This research report will aim to emphasize the importance of risk management and its three activities; risk assessment, risk mitigation and evaluation and assessment. It will focus on activities that deal with the solution of problems through logical thinking, information system management This report will also deal with a case study that gives us real life examples of risk management experiences of one local computer hardware and software supplier companies. Information has become valuable assets that need to be protected after moving to a digital era and E-commerce. Protecting information can also be as critical as protecting other resources like money and physical assets.
- Full Text:
- Authors: Seker, Harun
- Date: 2012-09-10
- Subjects: Risk management , Information technology - Risk assessment , Engineering - Risk assessment
- Type: Thesis
- Identifier: uj:9835 , http://hdl.handle.net/10210/7239
- Description: M.Phil. , The use of information systems has increased dramatically after the emergence of internet. Individuals, companies and organizations are becoming increasingly dependent on IT systems. Before technology and computers became such an important part of society, it was difficult to manage and control large organizations. Today computers enable the effective and efficient management of large organizations, therefore allowing them to spread throughout the country and world. Businesses are following latest advances in this era to remain competitive in the changing global market place. They use computers, automated IT systems and networks to gather, store, retrieve, process, and analyze information as well as to trade and communicate. The rapid advances in computer technology are largely a result of the research, development and design efforts of computer engineers. There is a direct correlation between a nation's wealth and scientific and technological capacity. The most effective way of taking our country forward is to enthuse our youth for science and technology. As the world makes rapid, sometimes breathtaking strides in the diverse fields of science and technology, South Africa more than ever needs qualified individuals who will use their skills and entrepreneurial spirit to enable our country to complete internationally with the best. However, Information systems and networks and their worldwide increasing usage have been accompanied by new and increasing risks. Data and information stored on and transmitted over information technology systems and networks are subject to threats from various means of unauthorized access, such as misuse, misappropriation, alteration, malicious code transmissions, denial of service or destruction and require appropriate safeguards. This research report will aim to emphasize the importance of risk management and its three activities; risk assessment, risk mitigation and evaluation and assessment. It will focus on activities that deal with the solution of problems through logical thinking, information system management This report will also deal with a case study that gives us real life examples of risk management experiences of one local computer hardware and software supplier companies. Information has become valuable assets that need to be protected after moving to a digital era and E-commerce. Protecting information can also be as critical as protecting other resources like money and physical assets.
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An ALCO perspective on treasury risks
- Authors: Schoeman, Gideon Petrus
- Date: 2012-09-05
- Subjects: Asset-liability management , Bank management , Risk management
- Type: Mini-Dissertation
- Identifier: uj:3592 , http://hdl.handle.net/10210/6973
- Description: M.Comm. , The purpose of this study is to describe the different approaches to risk management by the bank's ALCO and the bank's treasury. The clear identification of their responsibilities will improve overall management, profitability, performance evaluation and benchmarking, as well as the interpretation and management of market risk regulation. The contribution of this study lies in the fact that this problem is frequently mentioned by senior bank executives and researchers as one factor inhibiting to the effective strategic management of banks and one of the major causes of friction between management in banks.
- Full Text:
- Authors: Schoeman, Gideon Petrus
- Date: 2012-09-05
- Subjects: Asset-liability management , Bank management , Risk management
- Type: Mini-Dissertation
- Identifier: uj:3592 , http://hdl.handle.net/10210/6973
- Description: M.Comm. , The purpose of this study is to describe the different approaches to risk management by the bank's ALCO and the bank's treasury. The clear identification of their responsibilities will improve overall management, profitability, performance evaluation and benchmarking, as well as the interpretation and management of market risk regulation. The contribution of this study lies in the fact that this problem is frequently mentioned by senior bank executives and researchers as one factor inhibiting to the effective strategic management of banks and one of the major causes of friction between management in banks.
- Full Text:
Enterprise risk management implementation : perceptions of risk practitioners in the South African mining industry
- Authors: Maier, Justin
- Date: 2013-12-09
- Subjects: Enterprise risk management , Risk management
- Type: Thesis
- Identifier: uj:7854 , http://hdl.handle.net/10210/8748
- Description: 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.
- Full Text:
- Authors: Maier, Justin
- Date: 2013-12-09
- Subjects: Enterprise risk management , Risk management
- Type: Thesis
- Identifier: uj:7854 , http://hdl.handle.net/10210/8748
- Description: 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.
- Full Text:
The management, control and implementation of SCADA projects
- Authors: Jacobs, Kevin Bruce
- Date: 2012-02-06
- Subjects: Project management , Supervisory control systems , Automatic data collection systems , Risk management
- Type: Thesis
- Identifier: uj:2007 , http://hdl.handle.net/10210/4360
- Description: M.Ing. , The dissertation covers the establishment of a project from the point of view of a project manager. The document refers to examples where possible to illustrate the actual process through which a project goes during the life-cycle of the project. The first chapter provides an introduction to the context of the project and informs the reader of the type of project which the dissertation discusses. An overview of SCAD A (Supervisory Control and Data Acquisition) systems is discussed followed by field hardware to highlight the environment of typical engineering projects in the automation industry. An introduction to project management is discussed to set the context of the dissertation in motion. The second chapter covers the relevant theoretical stages of a project starting from the early stages of defining the project scope through to the project closure. Each of the stages in the project are dissected and considered within the context of a typical SCAD A oriented project. The third chapter is a case study of the "Jwaneng SCADA Project," which is the name assigned to the project from this point onwards. The project illustrates a typical project which an engineering project manager will manage. The project covers the details of the work involved in the project by passing through all the stages involved in an engineering project. Each stage of the project is illustrated by making reference to appendices containing project specific documents. The project is considered from the point of the original development of the project plan through to the completion of the project. This involves extensive controlling and ensuring that the project is running smoothly. These basic principles are illustrated in the document and aim to inform the reader on the successful dissection and implementation of a proper engineering project plan from start to finish.
- Full Text:
- Authors: Jacobs, Kevin Bruce
- Date: 2012-02-06
- Subjects: Project management , Supervisory control systems , Automatic data collection systems , Risk management
- Type: Thesis
- Identifier: uj:2007 , http://hdl.handle.net/10210/4360
- Description: M.Ing. , The dissertation covers the establishment of a project from the point of view of a project manager. The document refers to examples where possible to illustrate the actual process through which a project goes during the life-cycle of the project. The first chapter provides an introduction to the context of the project and informs the reader of the type of project which the dissertation discusses. An overview of SCAD A (Supervisory Control and Data Acquisition) systems is discussed followed by field hardware to highlight the environment of typical engineering projects in the automation industry. An introduction to project management is discussed to set the context of the dissertation in motion. The second chapter covers the relevant theoretical stages of a project starting from the early stages of defining the project scope through to the project closure. Each of the stages in the project are dissected and considered within the context of a typical SCAD A oriented project. The third chapter is a case study of the "Jwaneng SCADA Project," which is the name assigned to the project from this point onwards. The project illustrates a typical project which an engineering project manager will manage. The project covers the details of the work involved in the project by passing through all the stages involved in an engineering project. Each stage of the project is illustrated by making reference to appendices containing project specific documents. The project is considered from the point of the original development of the project plan through to the completion of the project. This involves extensive controlling and ensuring that the project is running smoothly. These basic principles are illustrated in the document and aim to inform the reader on the successful dissection and implementation of a proper engineering project plan from start to finish.
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An assessment of Peoples Bank Business' service to SMME's sponsored by the Khula Indemnity Scheme
- Authors: Bredenkamp, Monique
- Date: 2012-01-16
- Subjects: Small business , Small business finance , Banks and banking , Risk management , Commercial credit
- Type: Mini-Dissertation
- Identifier: uj:1910 , http://hdl.handle.net/10210/4271
- Description: M.Comm. , South Africa's Minister of Trade and Industry, Alec Irwin, stated that "one of the most striking features of the South African economy is the underdevelopment of small and medium enterprises" (Polkinghorne, 2001). A lack of sufficient capital and credit is often a major handicap to the development of SMMEs, particularly in their early growth stages. The growth and development .ofthe small, medium and micro enterprise (SMME) sector is acknowledged by most interest groups and policy-makers as being of critical importance to South Africa's ability to address the serious problems of unemployment. The South African government suggests that the SMME sector -with the help of government support -is capable of fulfilling these obj ectives and has introduced a number of supply-side measures to promote the formerly neglected sector. The overall objective is "to create an enabling environment" and "to level the playing field" (South Africa, 1995) in terms of national, regional and local policy frameworks for SMME development. Khula Enterprise Finance Ltd. was established in 1996 in terms of a Department of Trade and Industry (DT!) initiative and provides access to credit to SMMEs through various delivery mechanisms. One of these delivery mechanisms is a scheme that was created to assist SMMEs to access finance from traditional financial intermediaries by providing guarantees on a risksharing basis. Khula Enterprise Finance Ltd. has assisted in delivering almost 103 000 loans, credit guarantees and other facilities to SMMEs since the agency started operating in 1996. The total value of the loans and guarantees exceeds R550 million (Martins, 2001). ii However, Khula Enterprise Finance Ltd. has to contend with intermediaries applying its programmes -banks that are not renowned for their spirit of adventure, and welfare-oriented service organisations that lack business acumen (Khula: Some business ... , 2002: 53). The perception among the general population in South Africa is that most banks have neither the capacity nor the will to actively and creatively manage SMME loans to South Africa's emerging markets -"emerging" meaning political customers who have not been seen as critical in the past, but who are seen as such in the future. In South Africa these are largely people of black African descent (Polkinghorne, 2001). The target of Peoples Bank Business includes previously disadvantaged communities such as black persons, women and the disabled. Additionally, clients are assisted with venture capital or loans to fund start-up businesses. Emphasis is placed on assistance to the community in addition to traditional criteria such as bottom-line results. This study attempted to assess the service provided by Peoples Bank Business to clients sponsored by the Khula Indemnity Scheme. This study did not attempt to provide solutions to problems experienced, but rather to identify the deficiencies/gaps in service as experienced by clients of Peoples Bank Business.
- Full Text:
- Authors: Bredenkamp, Monique
- Date: 2012-01-16
- Subjects: Small business , Small business finance , Banks and banking , Risk management , Commercial credit
- Type: Mini-Dissertation
- Identifier: uj:1910 , http://hdl.handle.net/10210/4271
- Description: M.Comm. , South Africa's Minister of Trade and Industry, Alec Irwin, stated that "one of the most striking features of the South African economy is the underdevelopment of small and medium enterprises" (Polkinghorne, 2001). A lack of sufficient capital and credit is often a major handicap to the development of SMMEs, particularly in their early growth stages. The growth and development .ofthe small, medium and micro enterprise (SMME) sector is acknowledged by most interest groups and policy-makers as being of critical importance to South Africa's ability to address the serious problems of unemployment. The South African government suggests that the SMME sector -with the help of government support -is capable of fulfilling these obj ectives and has introduced a number of supply-side measures to promote the formerly neglected sector. The overall objective is "to create an enabling environment" and "to level the playing field" (South Africa, 1995) in terms of national, regional and local policy frameworks for SMME development. Khula Enterprise Finance Ltd. was established in 1996 in terms of a Department of Trade and Industry (DT!) initiative and provides access to credit to SMMEs through various delivery mechanisms. One of these delivery mechanisms is a scheme that was created to assist SMMEs to access finance from traditional financial intermediaries by providing guarantees on a risksharing basis. Khula Enterprise Finance Ltd. has assisted in delivering almost 103 000 loans, credit guarantees and other facilities to SMMEs since the agency started operating in 1996. The total value of the loans and guarantees exceeds R550 million (Martins, 2001). ii However, Khula Enterprise Finance Ltd. has to contend with intermediaries applying its programmes -banks that are not renowned for their spirit of adventure, and welfare-oriented service organisations that lack business acumen (Khula: Some business ... , 2002: 53). The perception among the general population in South Africa is that most banks have neither the capacity nor the will to actively and creatively manage SMME loans to South Africa's emerging markets -"emerging" meaning political customers who have not been seen as critical in the past, but who are seen as such in the future. In South Africa these are largely people of black African descent (Polkinghorne, 2001). The target of Peoples Bank Business includes previously disadvantaged communities such as black persons, women and the disabled. Additionally, clients are assisted with venture capital or loans to fund start-up businesses. Emphasis is placed on assistance to the community in addition to traditional criteria such as bottom-line results. This study attempted to assess the service provided by Peoples Bank Business to clients sponsored by the Khula Indemnity Scheme. This study did not attempt to provide solutions to problems experienced, but rather to identify the deficiencies/gaps in service as experienced by clients of Peoples Bank Business.
- Full Text: