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:
Theoretical limits to risk management models : model risk
- Dos Santos, Marco Paulo Ferreira
- Authors: Dos Santos, Marco Paulo Ferreira
- Date: 2015-10-07
- Subjects: Risk management , Risk perception , Business planning
- Type: Thesis
- Identifier: uj:14260 , http://hdl.handle.net/10210/14712
- Description: M.Ing. (Engineering Management) , This mini-dissertation provides an overview of enterprise risk management and its components, while focusing on risk analysis and risk models. Since all entities face uncertainty with respect to the aspects that they interact with, enterprise risk management aims to maximize value to stakeholders. One of the tools used in the risk assessment component of enterprise risk management is a quantitative assessment technique called risk modelling. Risk modelling allows various risks to be evaluated by observing their effects on simulation outputs. Decision making under uncertainty has become heavily reliant on risk models, resulting in more complex models being formulated and utilized. As such, the risks associated with the modelling of risks are becoming increasingly more pervasive in risk management and whose effects are just as severe (if not more so, due to their lack of awareness). A more in depth examination of model risk is performed and discussed in order to highlight its lack of awareness, extent and implications, and theoretical limits in risk modelling. Using this background information, the analysis of models used in literature for pricing in telecommunications wireless mesh networks is conducted in order to evaluate their model risks. This analysis shows that very few publications acknowledge the shortcomings of their models, let alone evaluate or discuss them in any way. Further, this analysis shows that some of the models and their assumptions produce pointless results. A simple investigation of the risks associated with their models would have produced results that are more conclusive and substantiatable, and with less flaws. Although the model risk analysis has been performed on models that simulate certain billing aspects of telecommunication wireless mesh networks, the model risk a alysiscan just as easily be performed on any other models or risk models. The aim of this mini-dissertation is to provide an overview of model risk and its impact, and also highlight the importance of including the management of model risk in the enterprise risk management process.
- Full Text:
- Authors: Dos Santos, Marco Paulo Ferreira
- Date: 2015-10-07
- Subjects: Risk management , Risk perception , Business planning
- Type: Thesis
- Identifier: uj:14260 , http://hdl.handle.net/10210/14712
- Description: M.Ing. (Engineering Management) , This mini-dissertation provides an overview of enterprise risk management and its components, while focusing on risk analysis and risk models. Since all entities face uncertainty with respect to the aspects that they interact with, enterprise risk management aims to maximize value to stakeholders. One of the tools used in the risk assessment component of enterprise risk management is a quantitative assessment technique called risk modelling. Risk modelling allows various risks to be evaluated by observing their effects on simulation outputs. Decision making under uncertainty has become heavily reliant on risk models, resulting in more complex models being formulated and utilized. As such, the risks associated with the modelling of risks are becoming increasingly more pervasive in risk management and whose effects are just as severe (if not more so, due to their lack of awareness). A more in depth examination of model risk is performed and discussed in order to highlight its lack of awareness, extent and implications, and theoretical limits in risk modelling. Using this background information, the analysis of models used in literature for pricing in telecommunications wireless mesh networks is conducted in order to evaluate their model risks. This analysis shows that very few publications acknowledge the shortcomings of their models, let alone evaluate or discuss them in any way. Further, this analysis shows that some of the models and their assumptions produce pointless results. A simple investigation of the risks associated with their models would have produced results that are more conclusive and substantiatable, and with less flaws. Although the model risk analysis has been performed on models that simulate certain billing aspects of telecommunication wireless mesh networks, the model risk a alysiscan just as easily be performed on any other models or risk models. The aim of this mini-dissertation is to provide an overview of model risk and its impact, and also highlight the importance of including the management of model risk in the enterprise risk management process.
- Full Text:
The use of parametric cost estimating and risk management techniques to improve project cost estimates during feasibility studies
- Authors: Molefi, Khotso Daniel
- Date: 2013-11-25
- Subjects: Risk management , Cost estimates , Project management - Cost control , Work breakdown structure , Parameter estimation
- Type: Thesis
- Identifier: uj:7803 , http://hdl.handle.net/10210/8698
- Description: M.Ing. (Engineering Management) , “A robust set of estimates puts a project on a firm footing from day 1, allowing the project manager to apply the right level of resources at the appropriate time. If the plan has been based on poor estimates, problems will occur during the execution of the project …” This statement places great importance on the ability to estimate costs as accurately as practicable early during a project life cycle. Many techniques have been proposed with the aim of aiding with the production of early cost estimates,which have acceptable accuracies necessary for Feasibility Study purposes. One such technique is Parametric Cost Estimating for developing Parametric Cost Models used in producing these conceptual estimates.At the heart of Parametric Cost Estimating Technique, is a fundamental statistical technique commonly known as Linear Regression Analysis.The problem that the research addresses is that of the general misconception found to prevail within project houses that some engineering systems are too complex to model using the Parametric Cost Estimating Technique. The objectives of this research are to investigate and demonstrate the effectiveness of this technique in predicting the costs of a system for Feasibility Study purposes. The objectives were achieved by conducting a secondary literature review of case studies of similar Parametric Cost Models that were developed by others for engineering systems of varying complexities. A second method used in achieving the objectives included formulating a case study in which a Parametric Cost Model was developed to illustrate the concept and to prove that the accuracies produced by the model meet the requirements for Feasibility Studies.The research was limited to initial project costs required for Feasibility Studies,ignoring the effects of qualitative factors,focusing only on the acquisition costs and not the total life cycle costs of the system.The case study was developed for a passenger motor vehicle as the system of interest because sufficient cost data in the form of vehicle retail price and performance specifications is publicly available in car magazines making it possible to build a meaningful Parametric Cost Model. The Parametric Cost Model was developed using Microsoft Excel 2007 and had a Mean Absolute Error Rate of 10.9% and the range of accuracy obtained, -20% to 10% with 67% confidence level and -30% to 30% with 95% confidence level, conforming to a Class 4 estimate which meets the accuracy requirements for a Feasibility Study.
- Full Text:
- Authors: Molefi, Khotso Daniel
- Date: 2013-11-25
- Subjects: Risk management , Cost estimates , Project management - Cost control , Work breakdown structure , Parameter estimation
- Type: Thesis
- Identifier: uj:7803 , http://hdl.handle.net/10210/8698
- Description: M.Ing. (Engineering Management) , “A robust set of estimates puts a project on a firm footing from day 1, allowing the project manager to apply the right level of resources at the appropriate time. If the plan has been based on poor estimates, problems will occur during the execution of the project …” This statement places great importance on the ability to estimate costs as accurately as practicable early during a project life cycle. Many techniques have been proposed with the aim of aiding with the production of early cost estimates,which have acceptable accuracies necessary for Feasibility Study purposes. One such technique is Parametric Cost Estimating for developing Parametric Cost Models used in producing these conceptual estimates.At the heart of Parametric Cost Estimating Technique, is a fundamental statistical technique commonly known as Linear Regression Analysis.The problem that the research addresses is that of the general misconception found to prevail within project houses that some engineering systems are too complex to model using the Parametric Cost Estimating Technique. The objectives of this research are to investigate and demonstrate the effectiveness of this technique in predicting the costs of a system for Feasibility Study purposes. The objectives were achieved by conducting a secondary literature review of case studies of similar Parametric Cost Models that were developed by others for engineering systems of varying complexities. A second method used in achieving the objectives included formulating a case study in which a Parametric Cost Model was developed to illustrate the concept and to prove that the accuracies produced by the model meet the requirements for Feasibility Studies.The research was limited to initial project costs required for Feasibility Studies,ignoring the effects of qualitative factors,focusing only on the acquisition costs and not the total life cycle costs of the system.The case study was developed for a passenger motor vehicle as the system of interest because sufficient cost data in the form of vehicle retail price and performance specifications is publicly available in car magazines making it possible to build a meaningful Parametric Cost Model. The Parametric Cost Model was developed using Microsoft Excel 2007 and had a Mean Absolute Error Rate of 10.9% and the range of accuracy obtained, -20% to 10% with 67% confidence level and -30% to 30% with 95% confidence level, conforming to a Class 4 estimate which meets the accuracy requirements for a Feasibility Study.
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The use of copulas in risk management.
- Authors: Stander, Yolanda Sophia
- Date: 2012-08-15
- Subjects: Copulas (Mathematical statistics) , Dependence (Statistics) , Risk management
- Type: Mini-Dissertation
- Identifier: uj:9418 , http://hdl.handle.net/10210/5852
- Description: M.Sc. , In this dissertation we take a closer look at how copulas can be used to improve the risk measurement at a financial institution. The focus is on market risk in a trading environment. In practice risk numbers are calculated with very basic measures that are easy to explain to senior management and to traders. It is important that traders understand the risk measure as that helps them to understand the risk inherent in any deal and may assist them in deciding on the optimal hedge. The purpose of a hedge is to reduce the risk in a portfolio. As senior management is responsible for deciding on the optimal risk limits and risk appetite of the financial institution, it is important for them to understand what the risks are and how to measure these. The simplicity of the risk measures leads to certain inadequacies that can have very negative consequences for a financial institution. If the risk measure does not adequately capture the risk of a deal, the financial institution may suffer big losses when there are stress events in the market. Alternatively, when the risk measure overestimates the risk of a deal, too much economic capital is tied up in the deal. This inhibits the trader from adding more deals to a portfolio that may potentially lead to big profits. Economic capital is the capital that has to be held against positions to protect the financial institution if and when extreme market moves occur. In this dissertation the focus is on how copulas can be used to improve current risk measures. We focus on bivariate copulas. Bivariate copulas are easier to depict graphically than multivariate copulas with more than two dimensions. It is also easier to prove that the fitted bivariate copulae do adequately describe the underlying dependence structure between risk factors. Even though the focus is on the bivariate case, all methodologies can easily be extended to higher dimensions. In Chapter 1 copulas are defined and some basic copula properties are shown. We consider the definition of elliptical copulas and discuss some drawbacks to using them in a financial application. Some useful Archimedean copula properties are discussed and it is shown how to generate the copula function for n 2 dimensions. The various ways in which to estimate the parameters of a copula are also discussed as well as goodness-of-fit tests that are used to test whether the copula fits the underlying data adequately. Finally the chapter ends with an example that illustrates the theory. A back-test is done to establish whether the copula adequately describes the dependence structure over time. It is also shown how the fitted copula can be used to generate stress scenarios that are used as an alternative to historical scenarios when calculating a value-at-risk (VaR) number. In chapter 2 the properties of a dependence measure are discussed and it is argued that linear correlation does not conform to these desired properties. Rank correlation measures have some additional properties that make them more efficient than linear correlation measures in certain instances. We also consider their relationship to copulas. Finally it is shown how copulas can be used in practice to get another view on the dependence structure between risk factors. In risk measurement we are mainly concerned with extreme moves that market variables may show. In chapter 3 some of the techniques used in risk management are discussed as well as some of their shortcomings. The shortcomings are addressed by applying extreme value theory to calculate stress factors and using copulas to model the dependence structure between risk factors. The theory underlying bivariate extreme copulas is discussed and illustrated with a practical example.
- Full Text:
- Authors: Stander, Yolanda Sophia
- Date: 2012-08-15
- Subjects: Copulas (Mathematical statistics) , Dependence (Statistics) , Risk management
- Type: Mini-Dissertation
- Identifier: uj:9418 , http://hdl.handle.net/10210/5852
- Description: M.Sc. , In this dissertation we take a closer look at how copulas can be used to improve the risk measurement at a financial institution. The focus is on market risk in a trading environment. In practice risk numbers are calculated with very basic measures that are easy to explain to senior management and to traders. It is important that traders understand the risk measure as that helps them to understand the risk inherent in any deal and may assist them in deciding on the optimal hedge. The purpose of a hedge is to reduce the risk in a portfolio. As senior management is responsible for deciding on the optimal risk limits and risk appetite of the financial institution, it is important for them to understand what the risks are and how to measure these. The simplicity of the risk measures leads to certain inadequacies that can have very negative consequences for a financial institution. If the risk measure does not adequately capture the risk of a deal, the financial institution may suffer big losses when there are stress events in the market. Alternatively, when the risk measure overestimates the risk of a deal, too much economic capital is tied up in the deal. This inhibits the trader from adding more deals to a portfolio that may potentially lead to big profits. Economic capital is the capital that has to be held against positions to protect the financial institution if and when extreme market moves occur. In this dissertation the focus is on how copulas can be used to improve current risk measures. We focus on bivariate copulas. Bivariate copulas are easier to depict graphically than multivariate copulas with more than two dimensions. It is also easier to prove that the fitted bivariate copulae do adequately describe the underlying dependence structure between risk factors. Even though the focus is on the bivariate case, all methodologies can easily be extended to higher dimensions. In Chapter 1 copulas are defined and some basic copula properties are shown. We consider the definition of elliptical copulas and discuss some drawbacks to using them in a financial application. Some useful Archimedean copula properties are discussed and it is shown how to generate the copula function for n 2 dimensions. The various ways in which to estimate the parameters of a copula are also discussed as well as goodness-of-fit tests that are used to test whether the copula fits the underlying data adequately. Finally the chapter ends with an example that illustrates the theory. A back-test is done to establish whether the copula adequately describes the dependence structure over time. It is also shown how the fitted copula can be used to generate stress scenarios that are used as an alternative to historical scenarios when calculating a value-at-risk (VaR) number. In chapter 2 the properties of a dependence measure are discussed and it is argued that linear correlation does not conform to these desired properties. Rank correlation measures have some additional properties that make them more efficient than linear correlation measures in certain instances. We also consider their relationship to copulas. Finally it is shown how copulas can be used in practice to get another view on the dependence structure between risk factors. In risk measurement we are mainly concerned with extreme moves that market variables may show. In chapter 3 some of the techniques used in risk management are discussed as well as some of their shortcomings. The shortcomings are addressed by applying extreme value theory to calculate stress factors and using copulas to model the dependence structure between risk factors. The theory underlying bivariate extreme copulas is discussed and illustrated with a practical example.
- Full Text:
The use of cell captives to manage financial risks
- Authors: Bakker, Daniel
- Date: 2010-11-22T07:55:04Z
- Subjects: Risk management , Finance
- Type: Thesis
- Identifier: uj:7007 , http://hdl.handle.net/10210/3515
- Description: M.Comm. , Every modern-day company is faced with challenges on a daily basis to improve its performance. This challenge stretches further than the financial target that is received from the shareholders every year and boils right down to the day to day operations of a company. How does the company perform according to the market, does the company have a uniqueness that will allow for a competitive advantage, how can costs be reduced in order to create value in terms of shareholders and how to stay the blueprint company with its competitors seen as followers. The objective of this study is to determine the effect that financial risk management in terms of a cell captive insurance facility has on a company, especially the financial side and ultimately to provide a framework on the implementation of a cell captive insurance facility. A cell captive insurance facility stems from the self insurance principle and is tailored to a unique product offered by various insurance companies. It enables a company to insure its frequent losses at a lower premium than the insurance market and all surpluses resulting from the Captive can be regarded as profit to the owner of the captive or used to lower the following year's contribution. In order to obtain a Cell Captive's insurance facility, a company must purchase shares in an insurance company, known as a sponsor, and hereby receive certain insurance amenities. The captive that is now formed enables a company to insure all business related activities against possible risks with a further extension of the definition 'business related activities'. Due to the unlikely event to completely self insure, with regards to the cost implication and bearing the size of the captive in mind to cover all possible financial losses, an underwritten agreement between the cell captive owner and the sponsor insurance company should cater for all catastrophic risks which protects the captive from collapsing, due to a massive loss. With the creation of a cell captive insurance facility, the owner of the captive can extend on all its business related activities and offer insurance products to its employees and clients, with a reasonably reduce rate compared to the insurance market. The success of theses products can be so-good that the financial impact on the captive proofs the products to be self-reliant and even generates an income for the cell captive insurance facility. As a result of the objective to implement effective risk management via a cell captive insurance facility and to create profit by doing so, the results of the Vodacom Group was used in order to emphasize the successfulness of a cell captive insurance facility. Vodacom Group saved or rather refer to the term as "created" a net underwriting profit that amounts to R 3,385,275 in the first three months by using its Cell Captive Insurance Facility. Thats more than enough to prove the financial gain, but the company also benefited from the fact that it now has the ability to educate its managers and their management styles. The captive can no act as the focal point of the Group's risk management effort, by focusing the minds of senior management on the causes of claims and means to combat that.
- Full Text:
- Authors: Bakker, Daniel
- Date: 2010-11-22T07:55:04Z
- Subjects: Risk management , Finance
- Type: Thesis
- Identifier: uj:7007 , http://hdl.handle.net/10210/3515
- Description: M.Comm. , Every modern-day company is faced with challenges on a daily basis to improve its performance. This challenge stretches further than the financial target that is received from the shareholders every year and boils right down to the day to day operations of a company. How does the company perform according to the market, does the company have a uniqueness that will allow for a competitive advantage, how can costs be reduced in order to create value in terms of shareholders and how to stay the blueprint company with its competitors seen as followers. The objective of this study is to determine the effect that financial risk management in terms of a cell captive insurance facility has on a company, especially the financial side and ultimately to provide a framework on the implementation of a cell captive insurance facility. A cell captive insurance facility stems from the self insurance principle and is tailored to a unique product offered by various insurance companies. It enables a company to insure its frequent losses at a lower premium than the insurance market and all surpluses resulting from the Captive can be regarded as profit to the owner of the captive or used to lower the following year's contribution. In order to obtain a Cell Captive's insurance facility, a company must purchase shares in an insurance company, known as a sponsor, and hereby receive certain insurance amenities. The captive that is now formed enables a company to insure all business related activities against possible risks with a further extension of the definition 'business related activities'. Due to the unlikely event to completely self insure, with regards to the cost implication and bearing the size of the captive in mind to cover all possible financial losses, an underwritten agreement between the cell captive owner and the sponsor insurance company should cater for all catastrophic risks which protects the captive from collapsing, due to a massive loss. With the creation of a cell captive insurance facility, the owner of the captive can extend on all its business related activities and offer insurance products to its employees and clients, with a reasonably reduce rate compared to the insurance market. The success of theses products can be so-good that the financial impact on the captive proofs the products to be self-reliant and even generates an income for the cell captive insurance facility. As a result of the objective to implement effective risk management via a cell captive insurance facility and to create profit by doing so, the results of the Vodacom Group was used in order to emphasize the successfulness of a cell captive insurance facility. Vodacom Group saved or rather refer to the term as "created" a net underwriting profit that amounts to R 3,385,275 in the first three months by using its Cell Captive Insurance Facility. Thats more than enough to prove the financial gain, but the company also benefited from the fact that it now has the ability to educate its managers and their management styles. The captive can no act as the focal point of the Group's risk management effort, by focusing the minds of senior management on the causes of claims and means to combat that.
- Full Text:
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.
- Full Text:
The mitigation of financial risk associated with capital projects
- Authors: Gentle, Frank Edward
- Date: 2011-12-06
- Subjects: Risk management
- Type: Mini-Dissertation
- Identifier: http://ujcontent.uj.ac.za8080/10210/376890 , uj:1802 , http://hdl.handle.net/10210/4165
- Description: M.Comm.
- Full Text:
- Authors: Gentle, Frank Edward
- Date: 2011-12-06
- Subjects: Risk management
- Type: Mini-Dissertation
- Identifier: http://ujcontent.uj.ac.za8080/10210/376890 , uj:1802 , http://hdl.handle.net/10210/4165
- Description: M.Comm.
- 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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The importance of project risk management process in Information Technology projects
- Authors: Mtshali, Sophie Nomusa
- Date: 2018
- Subjects: Project management , Risk management , Information technology - Risk management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272610 , uj:29028
- Description: M.Com. (Business Management) , Abstract: Risk management has increasingly become a crucial aspect of project success in the Information Technology industry. Risks are no longer seen from the narrow perspective of physical harm; but the narrative has evolved to include unforeseen circumstances and effects on all stakeholders and planned outputs of the project. In financial terms, it was reported that 13.8 billion SA Rands were lost to failed projects in 2011. In light of the aforementioned, this research focuses on Project Risk Management (PRM) and how it can help reduce and better manage risks inherent in all project works. Since it is expected that effective project risk management (PRM) seeks to minimize the risks inherent to projects in order for the project manager to make better-informed decisions, which will contribute to overall project success, this research asks the fundamental question: ‘is there any positive relationship between PRM and project success in the IT industry?’ To answer the research question, this study takes a pragmatic approach using the quantitative method of data collection. Surveys were distributed among 100 project managers and coordinators within the IT environment in South Africa, 65 valid responses were received. Descriptive analysis was conducted on the findings and the results are presented in themes according to the objectives of the study. One of the research conclusion is that the most significant factors limiting the use of PRM methodologies with the respondents is not organisational culture as expected, rather ‘lack of subject matter expertise in project management’ on the part of the project managers. It was ultimately concluded that there is a strong relationship between PRM and project success. If risks can be reduced in a project, the chances of success increases. Lastly, it was seen that within the scope of the research, PRM has a positive impact with project being completed on schedule (or earlier) and within or below budget. The research is however not without its own inherent limitations; one of which is the fact that the study is a once-off experience and cannot envisage changes in the IT project success while using different project management strategies. A longitudinal study would have helped prevent against this.
- Full Text:
- Authors: Mtshali, Sophie Nomusa
- Date: 2018
- Subjects: Project management , Risk management , Information technology - Risk management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/272610 , uj:29028
- Description: M.Com. (Business Management) , Abstract: Risk management has increasingly become a crucial aspect of project success in the Information Technology industry. Risks are no longer seen from the narrow perspective of physical harm; but the narrative has evolved to include unforeseen circumstances and effects on all stakeholders and planned outputs of the project. In financial terms, it was reported that 13.8 billion SA Rands were lost to failed projects in 2011. In light of the aforementioned, this research focuses on Project Risk Management (PRM) and how it can help reduce and better manage risks inherent in all project works. Since it is expected that effective project risk management (PRM) seeks to minimize the risks inherent to projects in order for the project manager to make better-informed decisions, which will contribute to overall project success, this research asks the fundamental question: ‘is there any positive relationship between PRM and project success in the IT industry?’ To answer the research question, this study takes a pragmatic approach using the quantitative method of data collection. Surveys were distributed among 100 project managers and coordinators within the IT environment in South Africa, 65 valid responses were received. Descriptive analysis was conducted on the findings and the results are presented in themes according to the objectives of the study. One of the research conclusion is that the most significant factors limiting the use of PRM methodologies with the respondents is not organisational culture as expected, rather ‘lack of subject matter expertise in project management’ on the part of the project managers. It was ultimately concluded that there is a strong relationship between PRM and project success. If risks can be reduced in a project, the chances of success increases. Lastly, it was seen that within the scope of the research, PRM has a positive impact with project being completed on schedule (or earlier) and within or below budget. The research is however not without its own inherent limitations; one of which is the fact that the study is a once-off experience and cannot envisage changes in the IT project success while using different project management strategies. A longitudinal study would have helped prevent against this.
- Full Text:
The implications of project risk management maturity on information technology success
- Authors: Omphile, Wazha
- Date: 2012-06-05
- Subjects: Project management , Risk management , Information technology management
- Type: Thesis
- Identifier: uj:2436 , http://hdl.handle.net/10210/4895
- Description: M.Tech. , The question whether risk management contributes to project success is considered relevant considering the long history and high rates of failure in Information Technology (IT) projects. Much work and research has been done to investigate the relationship between risk management and project success but very few studies provide empirical evidence to substantiate the claims made on the relationship between these two concepts. Poor risk management has been associated with project failure while the question whether good risk management results in project success still cannot be unequivocally answered. The goal of this study is therefore to investigate the implications of project risk management maturity on project success in the South African telecommunications industry. To achieve the goal of this research a literature review was carried out to unearth the research questions relevant to this study. A survey questionnaire was compiled and sent out to IT project managers in the telecommunications industry in Gauteng, South Africa. The questionnaire gathered quantitative data from a purposive sample large enough to produce the results needed for this research. The questionnaire evaluated the risk management maturity of organisations in the telecommunications industry. It also determined definitions of project success that are prevalent in the industry and ranked factors that influence project outcomes. Furthermore, the questionnaire set out to establish current IT project success and failure rates in the telecommunications industry. This data was then analysed and conclusions drawn about risk management maturity and project success. Recommendations to the telecommunications industry were made based on the findings of the data analysis. The purpose of a literature study in this research was to provide clarity and focus for the research problem. It also broadened the researcher’s knowledge about the specific research area, thus allowing the researcher to become acquainted with the available body of knowledge regarding why and how risk management is associated with project success or failure. The quantitative research approach was used as it is on the basis of quantitative data that a correlation between risk management maturity and project success can be determined. A survey questionnaire was used as it provided anonymity, confidentiality and ease of administration. The findings of the research indicate that risk management maturity in the telecommunications industry is low. Organisations that claim higher levels of risk management maturity also have higher rates of IT project success. However this correlation is not significant when the responses are considered out of the organisational context. This is an indication that the organisational environment plays a role in determining project outcomes. The delivery of business benefits and customer satisfaction are more important than the traditional view of measuring project success by time, budget and scope/quality. Furthermore, communication within the project team and between team members and the customer has been found to be necessary for the delivery of successful IT projects. The improvement of risk management practices increases the chances of project success. Organisational effort in improving risk management practices does yield positive project outcomes. This research highlights areas for further investigation in the study of the relationship between risk management and project success.
- Full Text:
- Authors: Omphile, Wazha
- Date: 2012-06-05
- Subjects: Project management , Risk management , Information technology management
- Type: Thesis
- Identifier: uj:2436 , http://hdl.handle.net/10210/4895
- Description: M.Tech. , The question whether risk management contributes to project success is considered relevant considering the long history and high rates of failure in Information Technology (IT) projects. Much work and research has been done to investigate the relationship between risk management and project success but very few studies provide empirical evidence to substantiate the claims made on the relationship between these two concepts. Poor risk management has been associated with project failure while the question whether good risk management results in project success still cannot be unequivocally answered. The goal of this study is therefore to investigate the implications of project risk management maturity on project success in the South African telecommunications industry. To achieve the goal of this research a literature review was carried out to unearth the research questions relevant to this study. A survey questionnaire was compiled and sent out to IT project managers in the telecommunications industry in Gauteng, South Africa. The questionnaire gathered quantitative data from a purposive sample large enough to produce the results needed for this research. The questionnaire evaluated the risk management maturity of organisations in the telecommunications industry. It also determined definitions of project success that are prevalent in the industry and ranked factors that influence project outcomes. Furthermore, the questionnaire set out to establish current IT project success and failure rates in the telecommunications industry. This data was then analysed and conclusions drawn about risk management maturity and project success. Recommendations to the telecommunications industry were made based on the findings of the data analysis. The purpose of a literature study in this research was to provide clarity and focus for the research problem. It also broadened the researcher’s knowledge about the specific research area, thus allowing the researcher to become acquainted with the available body of knowledge regarding why and how risk management is associated with project success or failure. The quantitative research approach was used as it is on the basis of quantitative data that a correlation between risk management maturity and project success can be determined. A survey questionnaire was used as it provided anonymity, confidentiality and ease of administration. The findings of the research indicate that risk management maturity in the telecommunications industry is low. Organisations that claim higher levels of risk management maturity also have higher rates of IT project success. However this correlation is not significant when the responses are considered out of the organisational context. This is an indication that the organisational environment plays a role in determining project outcomes. The delivery of business benefits and customer satisfaction are more important than the traditional view of measuring project success by time, budget and scope/quality. Furthermore, communication within the project team and between team members and the customer has been found to be necessary for the delivery of successful IT projects. The improvement of risk management practices increases the chances of project success. Organisational effort in improving risk management practices does yield positive project outcomes. This research highlights areas for further investigation in the study of the relationship between risk management and project success.
- 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.
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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.
- Full Text:
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.
- Full Text:
The computer incident response framework (CIRF)
- Authors: Pieterse, Theron Anton
- Date: 2014-10-10
- Subjects: Information technology - Security measures , Computer networks - Security measures , Risk management , Computer security
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/369666 , uj:12577 , http://hdl.handle.net/10210/12368
- Description: M.Com. (Informatics) , A company’s valuable information assets face many risks from internal and external sources. When these risks are exploited and reports on information assets are made public, it is usually easy to determine which companies had a contingency plan to deal with the various aspects of these “computer incidents”. This study incorporates important factors of computer incidents into a framework which will assists the company in effectively dealing and managing computer incidents when they occur.
- Full Text:
- Authors: Pieterse, Theron Anton
- Date: 2014-10-10
- Subjects: Information technology - Security measures , Computer networks - Security measures , Risk management , Computer security
- Type: Thesis
- Identifier: http://ujcontent.uj.ac.za8080/10210/369666 , uj:12577 , http://hdl.handle.net/10210/12368
- Description: M.Com. (Informatics) , A company’s valuable information assets face many risks from internal and external sources. When these risks are exploited and reports on information assets are made public, it is usually easy to determine which companies had a contingency plan to deal with the various aspects of these “computer incidents”. This study incorporates important factors of computer incidents into a framework which will assists the company in effectively dealing and managing computer incidents when they occur.
- Full Text:
The application of reduced-form models for managing consumer credit risk
- Van der Walt, Frederik Christoffel
- Authors: Van der Walt, Frederik Christoffel
- Date: 2014-10-13
- Subjects: Risk management , Consumer credit - Management
- Type: Thesis
- Identifier: uj:12589 , http://hdl.handle.net/10210/12379
- Description: Ph.D. (Mathematical Statistics) , This thesis considers the modelling and prediction of consumer credit risk events. We model consumer credit risk events (like a missed payment, a repayment or a default) by means of a discrete, real time, staggered entry counting process. Merton s (1974) structural approach is the foundation of numerous credit-risk models, as well as the Basel capital accords. The underlying assumptions of this approach are that both liability and asset levels are observable to some extent and that default, which occurs if liability levels are larger than asset levels, can occur only once. These assumptions are inappropriate for consumer credit risk, where asset and liability levels are not observable and multiple defaults may occur. We nd that the so-called reduced-form models initially developed by Artzner and Delbaen (1995) and Jarrow and Turnbull (1995), which impose no structure on the default event, are better suited to model and predict consumer credit risk. All reduced-form models can be represented as counting processes. Counting processes are continuous in nature, so we discretize these processes before applying them to the regularly spaced, discrete monthly data. We show that the use of survival analysis tech- niques such as Cox s (1972) proportional hazard model, which is a special case in counting processes, are not well suited to model credit risk. This is because survival analysis is mostly concerned with the prediction of the time until a single event occurs. Accordingly, in survival analysis the time domain used is event time . Hence, all observations need to be aligned to some starting time. We prefer to work in calendar time and are concerned with the timing (in calendar time) of multiple events. We identify and implement a dynamic, discrete statistical model based on calendar time that accounts for staggered entries, multiple entries into and exits from the portfolio, as well as multiple default events on an account level. This approach, from Arjas and Haara (1987), makes use of both idiosyncratic and systematic covariates, which facilitates stress-testing. This approach has, to our knowledge, never been applied to credit risk before and we apply it to a mortgage loan portfolio of a major bank in South Africa.
- Full Text:
- Authors: Van der Walt, Frederik Christoffel
- Date: 2014-10-13
- Subjects: Risk management , Consumer credit - Management
- Type: Thesis
- Identifier: uj:12589 , http://hdl.handle.net/10210/12379
- Description: Ph.D. (Mathematical Statistics) , This thesis considers the modelling and prediction of consumer credit risk events. We model consumer credit risk events (like a missed payment, a repayment or a default) by means of a discrete, real time, staggered entry counting process. Merton s (1974) structural approach is the foundation of numerous credit-risk models, as well as the Basel capital accords. The underlying assumptions of this approach are that both liability and asset levels are observable to some extent and that default, which occurs if liability levels are larger than asset levels, can occur only once. These assumptions are inappropriate for consumer credit risk, where asset and liability levels are not observable and multiple defaults may occur. We nd that the so-called reduced-form models initially developed by Artzner and Delbaen (1995) and Jarrow and Turnbull (1995), which impose no structure on the default event, are better suited to model and predict consumer credit risk. All reduced-form models can be represented as counting processes. Counting processes are continuous in nature, so we discretize these processes before applying them to the regularly spaced, discrete monthly data. We show that the use of survival analysis tech- niques such as Cox s (1972) proportional hazard model, which is a special case in counting processes, are not well suited to model credit risk. This is because survival analysis is mostly concerned with the prediction of the time until a single event occurs. Accordingly, in survival analysis the time domain used is event time . Hence, all observations need to be aligned to some starting time. We prefer to work in calendar time and are concerned with the timing (in calendar time) of multiple events. We identify and implement a dynamic, discrete statistical model based on calendar time that accounts for staggered entries, multiple entries into and exits from the portfolio, as well as multiple default events on an account level. This approach, from Arjas and Haara (1987), makes use of both idiosyncratic and systematic covariates, which facilitates stress-testing. This approach has, to our knowledge, never been applied to credit risk before and we apply it to a mortgage loan portfolio of a major bank in South Africa.
- 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)
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The alignment of organisational strategy and risk appetite in the financial services industry
- Authors: Schikker, Sijbren
- Date: 2011-10-03T07:50:53Z
- Subjects: Srategic planning , Risk management , Financial services industry
- Type: Thesis
- Identifier: uj:7226 , http://hdl.handle.net/10210/3863
- Description: M.Comm. , This study concerns itself with the concepts of strategy, risk management and risk appetite. Strategy and risk management play a very important role in any business, but it is very difficult to determine the interrelationship between strategy and risk. There is no scientific/academic proof and there is no model or framework on what the alignment between an organisation’s strategy and risk appetite is. Therefore, the purpose of this study is to develop a risk appetite model to align an organisation’s strategy and risk management, so that management will be able to improve its decision-making. The research design is based on a qualitative evaluation of the various literature concepts on strategy, risk management and risk appetite. Furthermore, personal interviews were held with senior risk, strategy and financial managers in the South African financial services industry to test the risk appetite model and determine the relevance and robustness of the risk appetite model. The main findings of this study revealed that: • to take full advantage of business opportunities, risk management and strategy cannot operate independently in any organisation; they must be integrated or at least linked with one another; • risk appetite is an important concept on its own, but is even more crucial as the link between risk management and strategy; • most financial services organisations assume that there is a link between risk management, strategy and risk appetite but that there is no formal process or framework available to link the three concepts; • effective risk management enables financial services organisations to achieve a competitive advantage, which is achieved by optimising risks and rewards; and • organisations that probably will withstand future crises are those with appropriate enterprise risk management practices in place where risk and strategy are linked with each other; and the risk appetite model can play an important role in achieving this goal. ii The main conclusion is that the risk appetite model is the formal framework to integrate risk management with strategy, because the model: • takes a holistic view to risk management; • allows all employees at all levels to understand risk appetite because it is quantitative and not too mathematical; • utilises risk appetite as the “gel” to link strategy and risk management; • allows for measured decision-making and proper governing; • allows organisations to be proactive in their risk management; • takes the upside and downside of risk into consideration; • gives strategic direction to the business; and • addresses all the important steps to integrate risk management, risk appetite and strategy. Lastly, for the risk appetite model to be successful it is essential to: • have buy-in from everyone in the organisation; • have the right governance in place to ensure the effective implementation and communication of the organisation’s risk appetite; and • continuously monitor the organisation’s risk appetite.
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- Authors: Schikker, Sijbren
- Date: 2011-10-03T07:50:53Z
- Subjects: Srategic planning , Risk management , Financial services industry
- Type: Thesis
- Identifier: uj:7226 , http://hdl.handle.net/10210/3863
- Description: M.Comm. , This study concerns itself with the concepts of strategy, risk management and risk appetite. Strategy and risk management play a very important role in any business, but it is very difficult to determine the interrelationship between strategy and risk. There is no scientific/academic proof and there is no model or framework on what the alignment between an organisation’s strategy and risk appetite is. Therefore, the purpose of this study is to develop a risk appetite model to align an organisation’s strategy and risk management, so that management will be able to improve its decision-making. The research design is based on a qualitative evaluation of the various literature concepts on strategy, risk management and risk appetite. Furthermore, personal interviews were held with senior risk, strategy and financial managers in the South African financial services industry to test the risk appetite model and determine the relevance and robustness of the risk appetite model. The main findings of this study revealed that: • to take full advantage of business opportunities, risk management and strategy cannot operate independently in any organisation; they must be integrated or at least linked with one another; • risk appetite is an important concept on its own, but is even more crucial as the link between risk management and strategy; • most financial services organisations assume that there is a link between risk management, strategy and risk appetite but that there is no formal process or framework available to link the three concepts; • effective risk management enables financial services organisations to achieve a competitive advantage, which is achieved by optimising risks and rewards; and • organisations that probably will withstand future crises are those with appropriate enterprise risk management practices in place where risk and strategy are linked with each other; and the risk appetite model can play an important role in achieving this goal. ii The main conclusion is that the risk appetite model is the formal framework to integrate risk management with strategy, because the model: • takes a holistic view to risk management; • allows all employees at all levels to understand risk appetite because it is quantitative and not too mathematical; • utilises risk appetite as the “gel” to link strategy and risk management; • allows for measured decision-making and proper governing; • allows organisations to be proactive in their risk management; • takes the upside and downside of risk into consideration; • gives strategic direction to the business; and • addresses all the important steps to integrate risk management, risk appetite and strategy. Lastly, for the risk appetite model to be successful it is essential to: • have buy-in from everyone in the organisation; • have the right governance in place to ensure the effective implementation and communication of the organisation’s risk appetite; and • continuously monitor the organisation’s risk appetite.
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The alignment of organisation strategy and risk appetite in the financial services industry
- Authors: Schikker, Sijbren
- Date: 2014-10-08
- Subjects: Strategic planning , Risk management , Financial services industry
- Type: Thesis
- Identifier: uj:12554 , http://hdl.handle.net/10210/12346
- Description: M.Com. (Business Management) , This study concerns itself with the concepts of strategy, risk management and risk appetite. Strategy and risk management playa very important role in any business, but it is very difficult to determine the interrelationship between strategy and risk. There is no scientific/academic proof and there is no model or framework on what the alignment between an organisation's strategy and risk appetite is. Therefore, the purpose of this study is to develop a risk appetite model to align an organisation's strategy and risk management, so that management will be able to improve its decision-making. The research design is based on a qualitative evaluation of the various literature concepts on strategy, risk management and risk appetite. Furthermore, personal interviews were held with senior risk, strategy and financial managers in the South African financial services industry to test the risk appetite model and determine the relevance and robustness of the risk appetite model. The main findings of this study revealed that: • to take full advantage of business opportunities, risk management and strategy cannot operate independently in any organisation; they must be integrated or at least linked with one another; • risk appetite is an important concept on its own, but is even more crucial as the link between risk management and strategy; • most financial services organisations assume that there is a link between risk management, strategy and risk appetite but that there is no formal processor framework available to link the three concepts; • effective risk management enables financial services organisations to achieve a competitive advantage, which is achieved by optimising risks and rewards; and • organisations that probably will withstand future crises are those with appropriate enterprise risk management practices in place where risk and strategy are linked with each other; and the risk appetite model can play an important role in achieving this goal. The main conclusion is that the risk appetite model is the formal framework to integrate risk management with strategy, because the model: • takes a holistic view to risk management; • allows all employees at all levels to understand risk appetite because it is quantitative and not too mathematical; • utilises risk appetite as the "gel" to link strategy and risk management; • allows for measured decision-making and proper governing; • allows organisations to be proactive in their risk management; • takes the upside and downside of risk into consideration; • gives strategic direction to the business; and • addresses all the important steps to integrate risk management, risk appetite and strategy. Lastly, for the risk appetite model to be successful it is essential to: • have buy-in from everyone in the organisation; • have the right governance in place to ensure the effective implementation and communication of the organisation's risk appetite; and • continuously monitor the organisation's risk appetite.
- Full Text:
- Authors: Schikker, Sijbren
- Date: 2014-10-08
- Subjects: Strategic planning , Risk management , Financial services industry
- Type: Thesis
- Identifier: uj:12554 , http://hdl.handle.net/10210/12346
- Description: M.Com. (Business Management) , This study concerns itself with the concepts of strategy, risk management and risk appetite. Strategy and risk management playa very important role in any business, but it is very difficult to determine the interrelationship between strategy and risk. There is no scientific/academic proof and there is no model or framework on what the alignment between an organisation's strategy and risk appetite is. Therefore, the purpose of this study is to develop a risk appetite model to align an organisation's strategy and risk management, so that management will be able to improve its decision-making. The research design is based on a qualitative evaluation of the various literature concepts on strategy, risk management and risk appetite. Furthermore, personal interviews were held with senior risk, strategy and financial managers in the South African financial services industry to test the risk appetite model and determine the relevance and robustness of the risk appetite model. The main findings of this study revealed that: • to take full advantage of business opportunities, risk management and strategy cannot operate independently in any organisation; they must be integrated or at least linked with one another; • risk appetite is an important concept on its own, but is even more crucial as the link between risk management and strategy; • most financial services organisations assume that there is a link between risk management, strategy and risk appetite but that there is no formal processor framework available to link the three concepts; • effective risk management enables financial services organisations to achieve a competitive advantage, which is achieved by optimising risks and rewards; and • organisations that probably will withstand future crises are those with appropriate enterprise risk management practices in place where risk and strategy are linked with each other; and the risk appetite model can play an important role in achieving this goal. The main conclusion is that the risk appetite model is the formal framework to integrate risk management with strategy, because the model: • takes a holistic view to risk management; • allows all employees at all levels to understand risk appetite because it is quantitative and not too mathematical; • utilises risk appetite as the "gel" to link strategy and risk management; • allows for measured decision-making and proper governing; • allows organisations to be proactive in their risk management; • takes the upside and downside of risk into consideration; • gives strategic direction to the business; and • addresses all the important steps to integrate risk management, risk appetite and strategy. Lastly, for the risk appetite model to be successful it is essential to: • have buy-in from everyone in the organisation; • have the right governance in place to ensure the effective implementation and communication of the organisation's risk appetite; and • continuously monitor the organisation's risk appetite.
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Systematic risk management and strategic control in public private partnerships
- Authors: Nel, Danielle
- Date: 2014-05-29
- Subjects: Risk management , Public-private sector cooperation
- Type: Thesis
- Identifier: uj:11233 , http://hdl.handle.net/10210/10826
- Description: D.Litt et Phil. (Public Management and Governance) , Public Private Partnerships (PPPs) are contractual arrangements between the public and private sector, which are generally long-term in nature. If correctly implemented PPPs can mobilise socio-economic goals. The implementation of PPPs is to permit the delivery of continued, lucrative public organisation or services, by mobilising private sector proficiency and conveying a substantial amount of risk to the private sector, towards value for money. The incentive of the research is centred on the guiding principles of PPPs and the challenge of risk-sharing. The aim of this study is to encourage the systematic management and strategic control of PPPs in South Africa. In doing so, this study aims to determine how the PPP model can be improved to necessitate effective risk management in PPPs, and to provide for improved strategic control. The study supplies recommendations for improved practice, in both the public and private sectors, through strategic planning and shared apparata in PPP arrangements. Furthermore, the study suggests guidelines for effective risk sharing and management in PPPs, through integrated systems management. Integrated systems management proposes that the strategy, structures, systems and culture of PPPs are entrenched in organisational settings, in both the private and public sector, as well as in the PPP arrangement, to encourage capacity development and more developed institutions in South Africa. Effective risk management in PPPs necessitates the anticipation of risks; sufficient planning to address these risks and achieve project objectives; and, lastly, the entrenching of risk management within the organisation and project structures. The study commences with an overview of the development of public management and conceptual approaches of governance, providing a contextual synthesis of past and current theoretical perspectives. The study conceptualises the theoretical standpoints relevant to PPPs and the labelling of peripheral approaches. The research provides a synopsis of the role and functions of PPPs, international best practices in PPPs, and the nature of risk management in PPPs. This affords a foundation for investigating the trials and issues associated with PPPs and the challenges experienced in managing risks in PPPs. This is augmented with a systematic breakdown of the research design and methodology, to structure the research. In addition, a preliminary quantitative survey assessment is conducted, in order to derive preliminary findings for the primary analysis in the research.
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- Authors: Nel, Danielle
- Date: 2014-05-29
- Subjects: Risk management , Public-private sector cooperation
- Type: Thesis
- Identifier: uj:11233 , http://hdl.handle.net/10210/10826
- Description: D.Litt et Phil. (Public Management and Governance) , Public Private Partnerships (PPPs) are contractual arrangements between the public and private sector, which are generally long-term in nature. If correctly implemented PPPs can mobilise socio-economic goals. The implementation of PPPs is to permit the delivery of continued, lucrative public organisation or services, by mobilising private sector proficiency and conveying a substantial amount of risk to the private sector, towards value for money. The incentive of the research is centred on the guiding principles of PPPs and the challenge of risk-sharing. The aim of this study is to encourage the systematic management and strategic control of PPPs in South Africa. In doing so, this study aims to determine how the PPP model can be improved to necessitate effective risk management in PPPs, and to provide for improved strategic control. The study supplies recommendations for improved practice, in both the public and private sectors, through strategic planning and shared apparata in PPP arrangements. Furthermore, the study suggests guidelines for effective risk sharing and management in PPPs, through integrated systems management. Integrated systems management proposes that the strategy, structures, systems and culture of PPPs are entrenched in organisational settings, in both the private and public sector, as well as in the PPP arrangement, to encourage capacity development and more developed institutions in South Africa. Effective risk management in PPPs necessitates the anticipation of risks; sufficient planning to address these risks and achieve project objectives; and, lastly, the entrenching of risk management within the organisation and project structures. The study commences with an overview of the development of public management and conceptual approaches of governance, providing a contextual synthesis of past and current theoretical perspectives. The study conceptualises the theoretical standpoints relevant to PPPs and the labelling of peripheral approaches. The research provides a synopsis of the role and functions of PPPs, international best practices in PPPs, and the nature of risk management in PPPs. This affords a foundation for investigating the trials and issues associated with PPPs and the challenges experienced in managing risks in PPPs. This is augmented with a systematic breakdown of the research design and methodology, to structure the research. In addition, a preliminary quantitative survey assessment is conducted, in order to derive preliminary findings for the primary analysis in the research.
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Supply chain performance and customer service in the mining explosives industry
- Buthelezi, Thandeka Zamashenge
- Authors: Buthelezi, Thandeka Zamashenge
- Date: 2018
- Subjects: Business logistics , Risk management , Customer services , Explosives industry , Consumer satisfaction
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/292134 , uj:31742
- Description: Abstract: In the mining industry that is plagued with increased competition and low profitability, gaining a competitive advantage is a mammoth task as the mining customers are faced with decreasing profit margins due to declining commodity prices and increases in critical cost drivers. Thus, there has been increased focus on more profitable production, which has meant an increased focus on a reliable supply of cost effective input materials such as explosives. Therefore, an explosives supplier should aim to offer a product and service which will optimise the mine’s costs. However, there is limited competitive advantage that can be derived from cost strategies (Naoui, 2014), thus many have opted to look for differentiation strategies through enhanced customer experience (Gonzalez, 2017). This research is aimed at investigating how the supply chain performance of an explosives supplier affects the quality of service rendered to mining customers. The study is also aimed at determining what supply chain risk mitigation strategies can be used to improve the performance of the supply chain and the customer service thereafter. The research hypothesis is that “Supply chain risk management leads to a positive customer service experience” The hypothesis was to be proved by showing the effective management of supply chain risk increased supply chain performance which leads to an improvement in customer service experience. The research was conducted using a single method qualitative approach, where the qualitative primary data was derived from interviews with personnel from four distinct groupings within the explosives supply chain, which consisted of production and supply chain personnel, sales representative and customers. The interviews were aimed at determining the critical customer service attributes that represented the various service quality elements that the customers deem important to their business performance. The reader will benefit from the research as it highlights the risks that are inherent in the supply chain and shows how these risks can be mitigated with the implementation of supply chain performance measures to drive improved customer service experience. It provides insights into how to ensure improved customer service in stringent, highly regulated, supply chains and ultimately achieve competitive advantage. , M.Com. (Business Management)
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- Authors: Buthelezi, Thandeka Zamashenge
- Date: 2018
- Subjects: Business logistics , Risk management , Customer services , Explosives industry , Consumer satisfaction
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/292134 , uj:31742
- Description: Abstract: In the mining industry that is plagued with increased competition and low profitability, gaining a competitive advantage is a mammoth task as the mining customers are faced with decreasing profit margins due to declining commodity prices and increases in critical cost drivers. Thus, there has been increased focus on more profitable production, which has meant an increased focus on a reliable supply of cost effective input materials such as explosives. Therefore, an explosives supplier should aim to offer a product and service which will optimise the mine’s costs. However, there is limited competitive advantage that can be derived from cost strategies (Naoui, 2014), thus many have opted to look for differentiation strategies through enhanced customer experience (Gonzalez, 2017). This research is aimed at investigating how the supply chain performance of an explosives supplier affects the quality of service rendered to mining customers. The study is also aimed at determining what supply chain risk mitigation strategies can be used to improve the performance of the supply chain and the customer service thereafter. The research hypothesis is that “Supply chain risk management leads to a positive customer service experience” The hypothesis was to be proved by showing the effective management of supply chain risk increased supply chain performance which leads to an improvement in customer service experience. The research was conducted using a single method qualitative approach, where the qualitative primary data was derived from interviews with personnel from four distinct groupings within the explosives supply chain, which consisted of production and supply chain personnel, sales representative and customers. The interviews were aimed at determining the critical customer service attributes that represented the various service quality elements that the customers deem important to their business performance. The reader will benefit from the research as it highlights the risks that are inherent in the supply chain and shows how these risks can be mitigated with the implementation of supply chain performance measures to drive improved customer service experience. It provides insights into how to ensure improved customer service in stringent, highly regulated, supply chains and ultimately achieve competitive advantage. , M.Com. (Business Management)
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