Re-evaluating the risk costing agenda in PPP projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khalid Almarri ◽  
Halim Boussabaine
Keyword(s):  
Risk Allocation ◽  
Content Type ◽  
The Public ◽  
Risk Transfer ◽  
Potential Gain ◽  
Price Of Risk ◽  
Risk Pricing ◽  
The Cost ◽  
Risk Determinants ◽  
Allocation Approach

PurposeThe level at which risk is priced and the magnitude of risks transferred to the private sector will have a significant impact on the cost of the public–private partnership (PPP) deals as well as on the value for money analysis and on the section of the optimum investment options. The price of risk associated with PPP schemes is complex, dynamic and continuous throughout the concession agreement. Risk allocation needs to be re-evaluated to ensure the optimum outcome of the PPP contract.Design/methodology/approachThis paper provides a coherent theoretical framework for dealing with scenarios of potential gain and loss from retaining or transferring risks.FindingsThe outcome indicates that using the proposed framework will provide innovative ways of deriving risk prices in PPP projects using several risk determinants strategies.Practical implicationsIn costing risks, analysts have to take into consideration the balance between the cost of risk transfer and the cost of losses if risk is retained.Originality/valueThis paper contributes to the PPP literature and practice by proposing a framework which is consistent with a risk allocation approach in PPP projects, where the key proposition is that risk pricing can overload project debt leading to loss of value.

Better risk pricing can unlock billions in investment

2018 ◽  
Keyword(s):  
Direct Investment ◽  
Cost Of Capital ◽  
Political Risk ◽  
Investment Decisions ◽  
Content Type ◽  
Cross Border ◽  
Percentage Points ◽  
Risk Pricing ◽  
The Cost

Subject Pricing political risk. Significance The mis-measurement of political risk is resulting in the cost of capital being valued 2-4 percentage points higher than it should be in assessments ahead of cross-border investment decisions. Research suggests that in 2016 this could have increased net foreign direct investment (FDI) to non-advanced countries by more than 10%. Impacts Political risk measurement is set for a renaissance, with interest from practitioners and end-users likely to proliferate. Frontier markets that are on the edge of inclusion in 'emerging' portfolio allocations could see an uptick in investment inflows. Returns to long-term capital managers, from insurers to pension funds, will rise as cost-of-capital calculations grow in sophistication.

An evaluation of the impact of risk cost on risk allocation in public private partnership projects

2019 ◽  
Vol 26 (8) ◽  
pp. 1696-1711
Author(s):  
Khalid Almarri ◽  
Saleh Alzahrani ◽  
Halim Boussabaine
Keyword(s):  
Private Sector ◽  
Design Methodology ◽  
Risk Allocation ◽  
Risk Matrix ◽  
Content Type ◽  
The Public ◽  
Unique Aspect ◽  
Risk Cost ◽  
The Impact ◽  
Practical Implications

Purpose A unique aspect of PPP is the opportunity for the transfer of risk ownership to the private sector. The purpose of this paper is to investigate how risk cost influences risk allocation. Design/methodology/approach A questionnaire survey was used to collect data. The questionnaire included nine sub-categories of risks. To quantify the influence of risk cost on risk allocation, a dependency risk matrix was employed. Heat maps techniques were used to visualise the results of the survey. Findings The findings show which risks within the endogenous or exogenous groups are to be allocated to the public sector, the private sector, or to be shared. The finding from this research provides a baseline for the PPP stakeholders in developing guidelines for estimating the value of risk costs in the risks register as well as serving as a mechanism for risk allocation. Research limitations/implications The context of the study may limit the generalisability of the results. Practical implications The study provides practical guidance to PPP stakeholders on risk allocation appetite. Originality/value This study extends the processes and methods by which PPP project’s risk is allocated to create a better value for all the stakeholders.

Inter-sector senior leader transitions: experience and outcomes

2014 ◽  
Vol 27 (1) ◽  
pp. 85-93
Author(s):  
Robert McLeay Thompson ◽  
Christine Flynn
Keyword(s):  
Public Sector ◽  
Small Sample ◽  
Senior Leaders ◽  
Senior Managers ◽  
Organizational Relationships ◽  
Content Type ◽  
The Public ◽  
Senior Leader ◽  
Public Sector Leadership ◽  
The Cost

Purpose – The purpose of this paper is to explore the experience of senior leaders who move into the public sector from other sectors of the economy, a process referred to in this paper as inter-sector senior leader transitions. This is a little researched area of public sector leadership yet has significant implications for fundamental public sector reform. Design/methodology/approach – The paper employs an interview design to elicit senior leaders' stories of their transition into the public sector. Findings – The data suggest that successful senior leader transitions are more likely when a set of conditions is met; the leader transitions into CEO role, rather than levels below CEO, ministers provide inter-sector transition support, senior leaders develop responses to stress, senior leaders reject high formalization, their change processes focus on building capacity, and senior leaders confront dysfunctional organizational relationships directly. Research limitations/implications – The research relies on a relatively small sample. However, access to senior managers at this level can be difficult. Nevertheless, those senior managers who participated were very willing to share their stories. Practical implications – If public sector organizations are to realize the value of successful leaders from other sectors, they need to invest in structured processes that facilitate the transition. A laissez-faire approach is not viable given the cost of such transitions. Originality/value – The paper focuses on a little researched area of leadership experience which has significant implications for the development and change of the public sector.

scholarly journals Investigating the cost of offsite construction housing in Western Australia

2019 ◽  
Vol 12 (1) ◽  
pp. 5-24 ◽  
Author(s):  
Monty Sutrisna ◽  
Barry Cooper-Cooke ◽  
Jack Goulding ◽  
Volkan Ezcan
Keyword(s):  
Western Australia ◽  
Construction Projects ◽  
Public Domain ◽  
Potential Solution ◽  
Residential Housing ◽  
Content Type ◽  
Housing Projects ◽  
The Public ◽  
Construction Techniques ◽  
The Cost

Purpose Offsite construction approaches and methodologies have been proffered a potential solution for controlling “traditional” projects, especially where high levels of complexity and uncertainty exist. Given this, locations such as Western Australia (WA), where there are unique housing provision challenges, offsite construction method was considered a potential solution for not only addressing the complexity/uncertainty challenges but also alleviating the housing shortage. However, whilst acknowledging the benefits of offsite construction, recognition was also noted on perceived barriers to its implementation, primarily relating to cost uncertainty. This recognition is exacerbated by very limited offsite construction cost data and information available in the public domain. In response to this, this paper sims to provide detailed cost analysis of three offsite construction projects in WA. Design/methodology/approach To hold parameters constant and facilitate cross-case comparative analysis, data were collected from three embedded case studies from three residential housing projects in WA. These projects represent the most contemporary implementation of offsite in WA; where two were completed in 2016/2017 and the third project was still ongoing during the data collection of this research. The research methodological approach and accompanying data analysis component engaged a variety of techniques, which was supported by archival study of project data and evidence gathered from the offsite construction provider. Findings Core findings revealed three emerging themes from residential offsite construction projects pertinent to cost. Specifically, the overall cost of delivering residential housing project with offsite construction techniques, the cost variability of offsite construction residential housing projects as impacted by uncertainties and the cash flow of residential offsite construction projects based on the payment term. These three major cost drivers are elucidated in this paper. Originality/value This research presents new cost insights to complement the wider adoption of offsite construction techniques. It presents additional information to address the limited cost data and information of offsite construction projects available in the public domain particularly for residential housing projects (within the bounded context of WA). It also highlights the further stages needed to enhance data validity, cognisant of universal generalisability and repeatability, market maturity and stakeholder supply chains.

Corona, command and capitalism

2020 ◽  
Vol 10 (3) ◽  
pp. 1-8
Author(s):  
Michael Ward
Keyword(s):  
Interest Rates ◽  
Public Good ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Economic Consequences ◽  
Web Based ◽  
Content Type ◽  
The Public ◽  
Academic Level ◽  
Risk Pricing

Learning outcomes The case presents a lot of information, directly and via references and Web-based links, about the economic consequences of the virus. Several themes are evident: As an opening theory-base, the decades-long stakeholder versus shareholder debate is invoked – but does this extend beyond “stakeholders” to the “public good”? There are contexts (generally wars) in which governments are empowered to instruct private companies to engage in the public good – but how far should/must they voluntarily go? The underlying macro-economic issue is: where will we get the capital? Central banks have not recovered from the 2008 global financial crisis and have limited “ammunition” to address the anticipated economic problems introduced by the virus. The case presents data on selected financial metrics (interest rates, debt levels, risk pricing, etc.) and outlines the conventional stimulatory steps used: lowering short-term rates (monetary policy) and investment in assets (fiscal policy) and the less-conventional Quantitative Easing “QE”. Case overview/synopsis The coronavirus appears to herald a devastating blow to lives and to the world economy – its impact is yet unknown, but likely to be comparable to war and pestilence of biblical proportion. This case focuses on the possible economic trajectories as a consequence of the virus, with emphasis on bailing-out (restructuring) struggling companies and restoring jobs. Within the framework of a world desperately in need of capital, it raises questions about accountability and responsibility. Should retrenched workers in restaurants, banks and airlines feel the consequences of their poor career choices? Must shareholders (read pensioners) shoulder losses to support the public good? Ought governments bail-out whole industries – using tax-payer money? Or do we allow central banks to conjure-up billions and hope for the best? The case does not attempt to provide answers to these questions but presents several vignettes and offers a context in which participants can debate the merits of these problems. Complexity academic level MBA and Exec-ed. Supplementary materials Teaching Notes are available for educators only. Subject code CSS: 1 Accounting and Finance.

Profiling the international academic ghost writers who are providing low-cost essays and assignments for the contract cheating industry

2019 ◽  
Vol 17 (1) ◽  
pp. 72-86 ◽  
Author(s):  
Thomas Lancaster
Keyword(s):  
Low Cost ◽  
Direct Access ◽  
Search Term ◽  
Contract Cheating ◽  
Content Type ◽  
Essay Writing ◽  
Customer Reviews ◽  
The Public ◽  
International Industry ◽  
The Cost

Purpose Students have direct access to academic ghost writers who are able to provide for their assessment needs without the student needing to do any of the work. These ghost writers are helping to fuel the international industry of contract cheating, raising ethical dilemmas, but not much is known about the writers, their business or how they operate. This paper aims to explore how the ghost writers market their services and operate, based on observable information. Design/methodology/approach This paper reviews data from providers actively offering contract cheating services available to the public on Fiverr.com, a low-cost micro outsourcing site. The search term write essay is used to identify providers, finding 103 Gigs from 96 unique providers. Visible information, such as provider marketing, advertised services, pricing information and customer reviews, is analysed. Findings The results demonstrate that bespoke essays are readily available to students at a low cost. The majority of providers operate from Kenya. Revenue calculations indicate a price point of US$31.73 per 1,000 words, below the cost of traditional essay mills, but show that these 96 providers have generated around US$270,000 of essay writing business between them. Originality/value This study affords a look into a complex and established industry whose inner workings are normally kept private and for which little published information currently exists. The research adds to what is known about the extent, location and operation of the contract cheating industry.

Labour policies may contain Turks' disenchantment

2018 ◽  
Keyword(s):  
Large Scale ◽  
Positive Impact ◽  
Job Security ◽  
Labour Markets ◽  
Content Type ◽  
Severance Pay ◽  
The Public ◽  
State Of The Economy ◽  
The Cost ◽  
Employment Subsidies

Subject Piecemeal measures to boost employment, job security and incomes. Significance The administration is concerned to keep citizens content with the state of the economy ahead of elections in 2019. Its policies may have a positive impact on employment and the satisfaction of the workforce (particularly subcontracted workers) in 2018. Impacts Short of a crisis and recession, economic discontent is unlikely to become so deep or widespread as to cause large-scale social upheavals. Steps to make labour markets more flexible and reform the severance-pay system and civil service may remain shelved at least until 2020. The cost of employment subsidies to the public purse could become significant, particularly if increased or made permanent.

A comparison of the cost of research in South Africa's public research and higher education institutions

2008 ◽  
Vol 104 (11/12) ◽  
Author(s):  
D.R. Walwyn
Keyword(s):  
Higher Education ◽  
Higher Education Institutions ◽  
Public Research ◽  
Pricing Policy ◽  
The Public ◽  
Annual Salary ◽  
Research Sector ◽  
Salary Survey ◽  
The Cost ◽  
Comparative Information

Despite the importance of labour and overhead costs to both funders and performers of research in South Africa, there is little published information on the remuneration structures for researchers, technician and research support staff. Moreover, there are widely different pricing practices and perceptions within the public research and higher education institutions, which in some cases do not reflect the underlying costs to the institution or the inherent value of the research. In this article, data from the 2004/5 Research and Development Survey have been used to generate comparative information on the cost of research in various performance sectors. It is shown that this cost is lowest in the higher education institutions, and highest in the business sector, although the differences in direct labour and overheads are not as large as may have been expected. The calculated cost of research is then compared with the gazetted rates for engineers, scientists and auditors performing work on behalf of the public sector, which in all cases are higher than the research sector. This analysis emphasizes the need within the public research and higher education institutions for the development of a common pricing policy and for an annual salary survey, in order to dispel some of the myths around the relative costs of research, the relative levels of overhead ratios and the apparent disparity in remuneration levels.

The Internet Trap

2018 ◽  
Author(s):  
Matthew Hindman
Keyword(s):  
The Internet ◽  
Net Neutrality ◽  
The Public ◽  
Attention Economy ◽  
Digital News ◽  
The Cost ◽  
Over Time

The Internet was supposed to fragment audiences and make media monopolies impossible. Instead, behemoths like Google and Facebook now dominate the time we spend online—and grab all the profits from the attention economy. This book explains how this happened. It sheds light on the stunning rise of the digital giants and the online struggles of nearly everyone else—and reveals what small players can do to survive in a game that is rigged against them. The book shows how seemingly tiny advantages in attracting users can snowball over time. The Internet has not reduced the cost of reaching audiences—it has merely shifted who pays and how. Challenging some of the most enduring myths of digital life, the book explains why the Internet is not the postindustrial technology that has been sold to the public, how it has become mathematically impossible for grad students in a garage to beat Google, and why net neutrality alone is no guarantee of an open Internet. It also explains why the challenges for local digital news outlets and other small players are worse than they appear and demonstrates what it really takes to grow a digital audience and stay alive in today's online economy. The book shows why, even on the Internet, there is still no such thing as a free audience.

Strategy for Protecting the North Sea: A Chemical Industry Perspective

1991 ◽  
Vol 24 (10) ◽  
pp. 269-276
Author(s):  
J. R. Lawrence ◽  
N. C. D. Craig
Keyword(s):  
North Sea ◽  
Chemical Industry ◽  
Important Research ◽  
The Public ◽  
The North ◽  
Anthropogenic Inputs ◽  
Seven Principles ◽  
The North Sea ◽  
The Cost

The public has ever-rising expectations for the environmental quality of the North Sea and hence of everreducing anthropogenic inputs; by implication society must be willing to accept the cost of reduced contamination. The chemical industry accepts that it has an important part to play in meeting these expectations, but it is essential that proper scientific consideration is given to the potential transfer of contamination from one medium to another before changes are made. A strategy for North Sea protection is put forward as a set of seven principles that must govern the management decisions that are made. Some areas of uncertainty are identified as important research targets. It is concluded that although there have been many improvements over the last two decades, there is more to be done. A systematic and less emotive approach is required to continue the improvement process.

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