scholarly journals Futures Markets and Firm Decisions Under Price, Production, and Financial Uncertainty

1986 ◽  
Vol 18 (2) ◽  
pp. 39-50 ◽  
Author(s):  
Vickie J. Alexander ◽  
Wesley N. Musser ◽  
George Mason
Keyword(s):  
Risk Management ◽  
Theoretical Model ◽  
Futures Markets ◽  
Theory Of The Firm ◽  
Marketing Strategies ◽  
Financial Risks ◽  
Risk Averse ◽  
Optimal Amount ◽  
Financial Uncertainty ◽  
Fixed Quantity

AbstractIncorporation of futures markets into the theory of the firm under uncertainty has received considerable attention in risk management. A theoretical model of optimal firm decisions in cash and futures markets considering price, production, and financial risks is presented. Production and marketing strategies for corn and soybeans in Georgia and Illinois are analyzed to determine the optimal amount of futures contracting which may be a hedge or a speculative position. A partial hedge is optimal for most situations for risk averse producers when the amount hedged is variable. With fixed quantity transactions, speculative and cash positions, but not hedging, tend to be E-V efficient.

A Stochastic Dominance Analysis of Alternative Marketing Strategies for Mixed Crop Farms in North Florida

1986 ◽  
Vol 18 (2) ◽  
pp. 257-266 ◽  
Author(s):  
Kwabena A. Anaman ◽  
William G. Boggess
Keyword(s):  
Stochastic Dominance ◽  
Futures Markets ◽  
Probability Distributions ◽  
Marketing Strategies ◽  
Cumulative Probability ◽  
Risk Averse ◽  
Management Scenarios ◽  
Dominance Analysis ◽  
Mixed Crop ◽  
Forward Contracting

AbstractCumulative probability distributions of income for management scenarios involving four preharvest marketing strategies are subjected to stochastic dominance analysis to determine risk-efficient sets of strategies for different groups of farmers in North Florida. Results indicate that farmers should behave differently in their choice of marketing strategies according to their risk attitudes. Highly risk-averse farmers should prefer some forward contracting while low risk-averse and risk-loving farmers should prefer cash sales at harvest. Use of the futures markets leads to both higher income and greater risk than forward contracting but lower income and risk than cash sales.

FEATURES OF RISK MANAGEMENT AFTER REALIZING PPP PROJECTS

2018 ◽  
Vol 1 (12) ◽  
pp. 179-190
Author(s):  
Mariya Zinovievivna Masik
Keyword(s):  
Risk Management ◽  
The State ◽  
Financial Risks ◽  
Contract Negotiations ◽  
The Public ◽  
Political Risks ◽  
Force Majeure ◽  
Investment Agreement ◽  
The Law ◽  
Partnership Agreement

The article is devoted to the clarification of the peculiarities of risk management during the implementation of PPP projects. The author identifies a set of risks for a private partner, business risks of PPP projects and the main risks associated with the protests of the public, as well as public and international organizations. The typical risks of PPP projects are presented, including force majeure, political risks, profitability risks, operational, construction, financial risks, and the risk of default. The world experience of sharing risks between the partners is presented. Also named are the main methods for assessing the risks of PPP projects. It has been determined that the conditions on which the parties should reach agreement in order for the contract to be concluded are essential. Risk management can be implemented within the framework of the essential conditions for the allocation of risks. However, the provisions of the law provide for the allocation of only those risks identified by the results of an analysis of the effectiveness of the PPP project. Legislation does not directly determine how risks can be allocated to the risks identified during the pre-contract negotiations (or even at a later stage), but not taken into account in the analysis of efficiency. For example, suggestions on the terms of the partnership agreement as part of the bidding proposal may include suggestions on risk management mechanisms. There are no definite and can not be fully defined possible ways of managing risks in view of their specificity for a particular project. For this purpose, it is advisable to provide for a period of familiarization with the draft tender documentation and the possibility of making changes to it based on the findings received from potential contestants. It is also advisable to foresee cases in which it is possible to review certain terms of the contract without a competition. It is substantiated that the law does not restrict the possibility of foreseeing specific terms of an agreement on the implementation of the PPP project or to conclude additional (auxiliary) contractual instruments (for example, an investment agreement). At the same time, when laying down conditions not provided for by law, it is necessary to take into account the scope of competence of the state partner. Also, in order to ensure the principle of equality of conditions, the state partner should provide such additional conditions in the tender documentation.

FINANCIAL RISK MANAGEMENT IN ENTREPRENEURIAL ACTIVITY: CONCEPT, SYSTEM AND PRINCIPLE OF BUILDING

2020 ◽  
Vol 2 (4) ◽  
pp. 62-67
Author(s):  
M. M. KHAYTANOVA ◽  
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Entrepreneurial Activity ◽  
Financial Risks ◽  
Study Methods ◽  
Financial Risk Management ◽  
Concept System

The article reveals: theoretical justifications of the concept of “financial risk” in relation to the sphere of entrepreneurship; methods for its identification and processing. Financial risk management is the activity of identification, assessment, control and monitoring of risks. In the course of the study, methods for managing financial risks in entrepreneurial activity and their classification were identified.

scholarly journals Territories of state-led aquaculture risk management: Thailand’s Plang Yai program

2020 ◽  
pp. 239965442096524
Author(s):  
Mariska JM Bottema ◽  
Simon R Bush ◽  
Peter Oosterveer
Keyword(s):  
Risk Management ◽  
Policy Instruments ◽  
Spatially Explicit ◽  
Financial Risks ◽  
Shared Resources ◽  
Globalizing World ◽  
Farmer Behavior ◽  
Key Policy ◽  
The Individual ◽  
High Degree

The Thai aquaculture sector faces a range of production, market and financial risks that extend beyond the private space of farms to include public spaces and shared resources. The Thai state has attempted to manage these shared risks through its Plang Yai (or ‘Big Area’) agricultural extension program. Using the lens of territorialization, this paper investigates how, through the Plang Yai program, risk management is institutionalized through spatially explicit forms of collaboration amongst farmers and between farmers and (non-)state actors. We focus on how four key policy instruments brought together under Plang Yai delimited multiple territories of risk management over shrimp and tilapia production in Chantaburi and Chonburi provinces. Our findings demonstrate how these policy instruments address risks through dissimilar but overlapping territories that are selectively biased toward facilitating the individual management of production risks, whilst enabling both the individual and collective management of market and financial risks. This raises questions about the suitability of addressing aquaculture risks by controlling farmer behavior through state-led designation of singular, spatially explicit areas. The findings also indicate the multiple roles of the state in territorializing risk management, providing a high degree of flexibility, which is especially valuable in landscapes shared by many users, connected to (global) value chains and facing diverse risks. In doing so we demonstrate that understanding the territorialization of production landscapes in a globalizing world requires a dynamic approach recognizing the multiplicity of territories that emerge in risk management processes.

Management of Fiscal and Financial Risks Generated by PPPs: Conceptual Issues and Country Experiences

2018 ◽  
Author(s):  
Edgardo C. Demaestri ◽  
Cynthia Moskovits ◽  
Jimena Chiara
Keyword(s):  
Risk Management ◽  
Latin American ◽  
Institutional Capacity ◽  
Debt Management ◽  
Financial Risks ◽  
Successful Development ◽  
Contingent Liabilities ◽  
Project Risks ◽  
The Caribbean ◽  
Risks Assessment

This paper discusses the main issues concerning sovereign fiscal and financial risks from public–private partnerships (PPPs) with a focus on contingent liabilities (CLs). It is based on the presentations and discussions that took place during the XI Annual Meeting of the Group of Latin American and the Caribbean Debt Management Specialists (LAC Debt Group), held in Barbados in August 2015. The main issues discussed include PPP risks assessment, institutional framework for PPP risk management, and accounting and reporting of CLs generated by PPPs. Six country cases (Chile, Colombia, Costa Rica, Honduras, Suriname, and Turkey) are presented to illustrate experiences with different degrees of development regarding the management of risks and CLs related to PPPs. The document concludes that PPP risk management should encompass the whole lifecycle of a PPP project, risks need to be identified and CLs must be estimated and monitored, and the institutional capacity of governments to evaluate and manage PPP risks plays a central role in the successful development of PPP contracts. Although institutional capacities in this regard have improved in recent years, estimations of CLs involved in PPPs are not regularly performed, and there is still room for improvement on the assessment, measurement, registration, budgeting, and reporting of risks and CLs related to PPPs.

Sustainable Development and Risk Management

2021 ◽  
Vol 18 (4) ◽  
pp. 16-27
Author(s):  
E. Yu. Pertseva ◽  
V. Yu. Skobarev ◽  
E. E. Telenkov
Keyword(s):  
Risk Management ◽  
Development Strategy ◽  
Management System ◽  
Financial Risk ◽  
Workplace Safety ◽  
Financial Risks ◽  
Performance Targets ◽  
Company Value ◽  
Risk Management System

In the context of the increasing role of non-financial factors of company value creation, many organizations, when developing a development strategy, go beyond exclusively financial and economic goals and include workplace safety, energy efficiency, customer satisfaction and other non-financial goals in their performance targets. Achieving such goals involves risks, but today there is no common understanding of the composition of the relevant risks, their sources (factors of occurrence), approaches to assessing these risks, as well as universal corporate tools for managing them. In this article, we offer our vision of the place of the so-called “non-financial risks” in the risk management system and show the possibilities of integrating non-financial risk management into the risk management system and the management model of the organization.

scholarly journals PARAMETRIZATION OF THE MECHANISM OF FINANCIAL RISK MANAGEMENT IN THE DIGITAL SECURITIES CIRCULATION

2019 ◽  
pp. 77-83
Author(s):  
Oleksandr Volodmyrovych Lutskevych ◽  
Keyword(s):  
Risk Management ◽  
Social Life ◽  
Financial Risk ◽  
State Regulation ◽  
Securities Market ◽  
Financial Risks ◽  
Negative Consequences ◽  
Management Mechanism ◽  
Financial Risk Management ◽  
The Impact

Urgency of the research. Digital technologies are transforming all spheres of social life, and the financial sphere is no exception. In general, such trends cannot but leave an imprint on approaches to managing the financial risk of digital securities. Target setting. Currently, scientific and methodological support for the formation of a mechanism for managing the financial risks of digital securities is in the early stages of development, while the quality of state regulation and supervision of participants in digital securities directly depends on the effectiveness of the current mechanism for managing such risks. Actual scientific researches and issues analysis. Theoretical and applied aspects of the securities market, features of the impact of financial innovations and financial risk management in the field of securities circulation, are researched by V. Bodrov [1], O. M. Kovaleva [2], I. V. Krasnova [3], N. V. Tkachenko [4], Yu. B. Kolupaeva [5] and others. Uninvestigated parts of general matters defining. The methodology of formation the mechanism for managing the financial risks of digital securities needs more precise research. The research objective. Deepening the scientific understanding of the term "financial risk management mechanism for the circulation of digital securities" will ensure to outline ways of increasing the efficiency of this financial instrument usage. The statement of basic materials. This article analyzes the essence of the term "financial risk management mechanism". The construction of the mechanism has been adapted to the specifics of digital securities risk management. Conclusions. The essence of the mechanism of financial risks management of digital securities circulation is improved due to application of a set of methods for identification, quantitative and qualitative analysis, measures to prevent realization and / or reduction of negative consequences of financial risks of digital securities circulation, ways of control over some events.

scholarly journals Managing Risk Integration for Performance Orientation among Malaysian Firms

2018 ◽  
Vol 12 (1) ◽  
pp. 119
Author(s):  
Michael Tinggi ◽  
Shaharudin Jakpar ◽  
Ng Kim Hui
Keyword(s):  
Risk Management ◽  
Financial Crisis ◽  
Business Processes ◽  
Global Financial Crisis ◽  
Random Effect ◽  
Financial Risks ◽  
Performance Orientation ◽  
Managing Risk ◽  
Corporate Level

The study is potentially, to explore the effect of discounting for risk on performance of firms listed in Malaysian stocks’ market. Risk management has been part of the corporate philosophy in maximizing shareholders’ wealth and firms’ profit. Managing risk cannot be done in isolation. Too often common risks pertinent to operation, liquidity and financing may be taken for granted by many firms. Risks exist on stand alone, but its implication may negatively severe firms’ performance if not addressed or dealt with properly. Integrating and managing risks may potentially improve the quality of business processes, which may orientate towards attaining firms’ performance at the corporate level. The 2007 global financial crisis has incidentally highlighted the importance of integrating and managing risk and its effect on business. Empirical evidences from the Panel Random Effect (RE) analysis of the above companies showed that the firm’s ability to manage and integrate operating, liquidity, and financial risks steer the firms towards performance orientation.

scholarly journals Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Risks ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 211
Author(s):  
Elena G. Popkova ◽  
Bruno S. Sergi
Keyword(s):  
Sustainable Development ◽  
Risk Management ◽  
Emerging Economies ◽  
Social Entrepreneurship ◽  
Financial Risk ◽  
Financial Risks ◽  
Financial Risk Management ◽  
Substantial Progress ◽  
The Stability ◽  
Commercial Entrepreneurship

The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management.

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