scholarly journals Derivative products and innovation in Islamic finance

2014 ◽  
Vol 7 (3) ◽  
pp. 242-257 ◽  
Author(s):  
Seng Kiong Kok ◽  
Gianluigi Giorgioni ◽  
Jason Laws
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Supervisory Board ◽  
Management Tool ◽  
Islamic Finance ◽  
Management Tools ◽  
Content Type ◽  
Risk Transfer ◽  
Financial Framework ◽  
The Creation

Purpose – The purpose of this paper is to highlight the possibility of structuring an Islamic option which includes an element of risk sharing as opposed to risk transfer. Design/methodology/approach – The approach adopted in this research involved a combination of a wa’ad (promise) and murabaha (cost plus sale) and examining if they could form a risk-sharing Islamic option. The payoffs were assumed to be dependent on bi-period outcomes. Findings – The paper attempted to create a hybrid risk-sharing option by combining elements of both wa’ad (promise) and murabaha (cost plus sale). The results yielded are dependent on the eventual direction of the market (in-the-money, at-the-money and out-the-money). While the results are not definitive, they do provide arguments for the adoption of a risk-sharing, as opposed to a risk-transfer, methodology when it comes to structuring risk management instruments. Research limitations/implications – One of the major limitations of this research is the inability to assess the Shariah compliance of the proposed instrument. Shariah compliance is determined by a Shariah Supervisory Board, and every effort has been made to ensure that Shariah financial principles are adhered to in the creation of this structure. Practical implications – The structure provides some interest arguments in the creation of risk management tools under a Shariah financial framework. The structure illustrates the benefits of having a risk-sharing mode over the conventional risk-transfer stances of most risk management tools. Originality/value – The paper offers a new way of structuring a risk management tool in Islamic finance. It explores the highly debated area of derivatives in Islamic finance and proposes a new way of creating a risk management tool that involves some elements of risk sharing.

Factors influencing Midwestern grain farmers’ use of risk management tools

2019 ◽  
Vol 79 (2) ◽  
pp. 192-203
Author(s):  
Brian K. Coffey ◽  
Ted C. Schroeder
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Mail Survey ◽  
Management Tool ◽  
Farm Size ◽  
Management Tools ◽  
Content Type ◽  
Multinomial Logit Regression ◽  
Decision Choices ◽  
Grain Farmers

PurposeThe purpose of this paper is to identify the relationships between grain farm and farmer profiles and their respective choices to use forward pricing techniques and revenue protection crop insurance to manage risk.Design/methodology/approachAn e-mail survey of Midwestern grain farmers elicited farmer demographic information, farm profile, risk attitudes and farmer use of forward pricing and revenue protection insurance. Responses regarding use of risk management tools were compiled as choices to use possible bundles of tools to account for simultaneous nature of the decision. Choices to use bundles of tools were used as the independent variable categories in a multinomial logit regression. Regressors were relevant data collected from the survey.FindingsFarm size, using a market advisory service, and being a technology adopter are the most important factors in predicting risk management tool use by grain farmers. Farmers tend to use forward pricing and revenue protection insurance in combination. Large farms are more likely to use forward pricing tools.Practical implicationsResults provide researchers, extension professionals and risk management specialists with a current understanding of how farm and farmer characteristics relate to use of risk management tools. The authors also elaborate on findings to provide guidance for future risk management research.Originality/valueThe survey covered 9 Midwestern states and 648 grain farmers. The survey results update understanding of grain farmers’ risk management practices. The empirical approach treats risk management decisions to use available tools as simultaneous, which recent literature suggests is more appropriate than earlier approaches.

An analysis of risk management tools utilized by Illinois farmers

2014 ◽  
Vol 74 (1) ◽  
pp. 69-86 ◽  
Author(s):  
Kerry Tudor ◽  
Aslihan Spaulding ◽  
Kayla D. Roy ◽  
Randy Winter
Keyword(s):  
Cluster Analysis ◽  
Risk Management ◽  
Logistic Regression ◽  
Multinomial Logistic Regression ◽  
Risk Attitude ◽  
Management Tool ◽  
Management Service ◽  
Perceived Effectiveness ◽  
Management Tools ◽  
Content Type

Purpose – The purpose of this paper is to investigate the relationships among choice of risk management tools, perceived effectiveness of risk management tools, self-reported risk attitude, and farm and farmer characteristics. Design/methodology/approach – A mail survey was used to collect information about utilization of risk management tools, perceived effectiveness of risk management tools, and factors that could influence choice of risk management tools by Illinois farmers. Cluster analysis, one-way ANOVA, χ2 tests of independence, and multinomial logistic regression were utilized to detect possible relationships among choice of risk management tools, perceived effectiveness of risk management tools, self-reported risk attitude, and farm and farmer characteristics. Findings – Multinomial logistic regression analysis revealed that age and gross farm income (GFI) were the strongest predictors of the risk management tool utilization group to which an individual would be assigned. The number of risk management tools utilized decreased with age but increased with GFI. Neither self-reported risk attitude nor education was a significant independent variable in the multinomial logistic regression model, but both were strongly impacted by age. Younger farmers with higher GFI were the most likely users of hedging. Research limitations/implications – The results of this study provide support for the idea that farmers who are better able to generate revenue are better able to manage risk, but the direction of causality was not investigated. Practical implications – Risk management service providers could benefit from this study as a benchmark for understanding their current and potential farmer clients’ risk management strategies. Originality/value – This study used cluster analysis and multinomial logistic regression to address the complexity of decisions regarding multiple risk management tools. The number of tools utilized by individuals was investigated.

Social appreciation for the improvement of tourism management of 20th-century heritage: a methodological proposal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gema Ramírez-Guerrero ◽  
Javier García-Onetti ◽  
Juan Adolfo Chica-Ruiz ◽  
Manuel Arcíla-Garrido
Keyword(s):  
20Th Century ◽  
Management Tool ◽  
Future Research ◽  
Analysis Tool ◽  
Content Type ◽  
Cultural Assets ◽  
Current State ◽  
The Social ◽  
Depth Analysis ◽  
The Creation

Purpose This paper attempts to fill the gap that exists in research regarding 20th-century heritage and its social appreciation. The purpose of this paper is to explore different ways of evaluating the heritage value and tourism potential and to propose an innovative model validated in the Zarzuela Hippodrome as an example of cultural asset from 20th century with important economic, social, cultural, aesthetic and architectural aspects. Design/methodology/approach This study opted for an interpretation of heritage from an ecosystem, integrating and global paradigm, understanding the asset as a set of resources that interact with each other, generating a common and enriched tourist experience among all the elements that make it up. From this perspective, it is conceived that by modifying one of the elements, the whole (tourist) ecosystem will be equally influenced. On the other side, it was incorporated non-parametric techniques based on the implementation of surveys for the validation of the tool to the case study of the Zarzuela hippodrome. Findings The results suggest that the hippodrome's internal values have been evaluated very positively, while its external values are low. Through this study, the paper has identified several weaknesses that impede its functioning as a viable “tourist product.” The distance from the city center, the lack of available information and the scarce diffusion and tourism promotion are its main weaknesses. The proposed analysis tool reveals the importance of the active participation of visitors to evaluate cultural assets through the combination of aspects related to the conservation of cultural assets and, in turn, elements that encourage their commodification as tourist products, break down barriers between these two disciplines. Research limitations/implications The management tool proposed in this study can be used to underpin the creation of tourism experiences in cultural or heritage assets by diagnosing the current state of its tourist potential, quantifying its value in relation to the visitors’ perception and making visible those problematic aspects to develop actions to solve them. Although the present study is support for future research, as well as for improving the marketing of heritage in tourist settings, an in-depth analysis of the technical elements of heritage, as well as of its intervention (if applicable), will be necessary for the managers who want to use the tool. Social implications One of the most differentiating characteristics between the construction typology of 20th-century historical buildings is perhaps the scarcity of decorative ornamentation, with exposed concrete being the main surface coating. Many of these constructions have an important cultural and historical relevance, however, the social perception, as regards its consideration as architectural and artistic heritage seems to reflect discordant aspects. This study provides support as a decision-making tool to determine the existing valuation of a building and how to enhance it. Originality/value This study takes steps toward the creation of a model that supports decision-makers and owners of cultural assets through a measurement system that makes it possible to quantify and determine the current state of tourism use through the social evaluation of heritage criteria. It defines which are the elements that favor the resilience of the property or, on the contrary, which are those that undermine its enhancement.

scholarly journals IMPLANTAÇÃO DO BALANCED SCORECARD EM UMA INDÚSTRIA DE CERÂMICA VERMELHA

2018 ◽  
Vol 7 (2) ◽  
pp. 72
Author(s):  
Célio Gomes de Lima Júnior ◽  
Julianne das Chagas Gomes ◽  
José Guilherme Said Pierre Carneiro ◽  
José Sarto Freire Castelo
Keyword(s):  
Strategic Management ◽  
Balanced Scorecard ◽  
Management Tool ◽  
Management Model ◽  
Managerial Control ◽  
Management Tools ◽  
The Balanced Scorecard ◽  
The Creation ◽  
Ceramics Industry ◽  
Red Ceramics

A implantação de ferramentas de gestão, como o Balanced Scorecard (BSC), envolve mudanças no controle gerencial de uma empresa em diversos aspectos, pois enfatiza a comunicação de estratégias e a criação de uma nova metodologia para o controle de desempenho. O objetivo deste estudo é realizar uma análise crítica sobre a aplicação do Balanced Scorecard em uma indústria de cerâmica vermelha, a partir da construção e da implementação dessa ferramenta de gestão em uma cerâmica localizada no município de Russas, Ceará. O estudo de caso revelou a necessidade de rever a gestão estratégica da empresa, em virtude da criação de mecanismos eficientes de alimentação dos indicadores pertencentes ao mapa estratégico, de modo a refletir sobre a situação da mesma, e por fim, garantiu que os gestores e funcionários estivessem alinhados com o modelo de gestão estratégica recém-implantado, a fim de que seja possível obter as vantagens propiciadas por este modelo de gestão. IMPLEMENTATION OF BALANCED SCORECARD IN A RED CERAMICS INDUSTRY ABSTRACT The implementation of management tools such as the Balanced Scorecard (BSC) involves changes in the managerial control of a company in several aspects, as it emphasizes the communication of strategies and the creation of a new methodology for performance control. The objective of this study is to perform a critical analysis on the application of the Balanced Scorecard in a red ceramics industry from the construction and the implementation of this management tool in a ceramics located in the municipality of Russas, Ceará. The case study revealed the need to review the strategic management of the company due to the creation of efficient mechanisms to feed the indicators belonging to the strategic map, in order to reflect on the situation of the company, and finally ensured that managers and employees were aligned with the newly implemented strategic management model, in order to obtain the advantages provided by this management model.

Enterprise risk management and bow ties: going beyond patient safety

2019 ◽  
Vol 26 (3) ◽  
pp. 770-785
Author(s):  
Hossam Elamir
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Patient Safety ◽  
Assessment Tool ◽  
Enterprise Risk Management ◽  
Risk Assessment Tool ◽  
Management Tool ◽  
Content Type ◽  
Enterprise Risk ◽  
Bow Tie

Purpose The growing importance of risk management programmes and practices in different industries has given rise to a new risk management approach, i.e. enterprise risk management. The purpose of this paper is to better understand the necessity, benefit, approaches and methodologies of managing risks in healthcare. It compares and contrasts between the traditional and enterprise risk management approaches within the healthcare context. In addition, it introduces bow tie methodology, a prospective risk assessment tool proposed by the American Society for Healthcare Risk Management as a visual risk management tool used in enterprise risk management. Design/methodology/approach This is a critical review of published literature on the topics of governance, patient safety, risk management, enterprise risk management and bow tie, which aims to draw a link between them and find the benefits behind their adoption. Findings Enterprise risk management is a generic holistic approach that extends the benefits of risk management programme beyond the traditional insurable hazards and/or losses. In addition, the bow tie methodology is a barrier-based risk analysis and management tool used in enterprise risk management for critical events related to the relevant day-to-day operations. It is a visual risk assessment tool which is used in many higher reliability industries. Nevertheless, enterprise risk management and bow ties are reported with limited use in healthcare. Originality/value The paper suggests the applicability and usefulness of enterprise risk management to healthcare, and proposes the bow tie methodology as a proactive barrier-based risk management tool valid for enterprise risk management implementation in healthcare.

scholarly journals The role of subsidies in managing the operating risk of agricultural enterprises

2009 ◽  
Vol 55 (No. 4) ◽  
pp. 169-180 ◽  
Author(s):  
J. Špička ◽  
J. Boudný ◽  
B. Janotová
Keyword(s):  
Risk Management ◽  
Crop Yields ◽  
Sample Survey ◽  
Cow Milk ◽  
Management Tool ◽  
Farm Income ◽  
Management Tools ◽  
Operating Risk ◽  
Livestock Productivity

The paper examines the relationship between the farmers’ operating risk and current subsidies. Focused at the commodity level, the analysis is based on a sample survey of costs and yields of two crops (winter wheat and rapeseed) and two livestock commodities (cow milk and fattening cattle) carried out in 2005–2007 in the Czech Republic. The risk analysis relates to the growing conditions, crop yields and the livestock productivity. The future role of the subsidies as the risk management tool in the farming business, as well as the position of this instrument against the other risk management instruments is analysed. The break even analysis and the Monte Carlo simulation are used as analytical tools. The results indicate that the current subsidies have an impact on the stability of the farmers’ income. Partially or fully decoupled payments serve as a “financial pillow” increasing the level of the farmers’ income and extending the farmers’ decision-making possibilities. Furthermore, the current subsidies reduce the variability of the farmers’ income. The current subsidies are a suitable complement to other commonly used risk management tools primarily designed to reduce the farmers’ and farm income variability.

Process management framework for chemical waste treatment laboratories

2019 ◽  
Vol 26 (2) ◽  
pp. 447-462
Author(s):  
Alexandre Bevilacqua Leoneti ◽  
Danilo Vitorino dos Santos ◽  
Renato Santos da Silva ◽  
Alessandra Henriques Ferreira ◽  
Adriano César Pimenta ◽  
...  
Keyword(s):  
Operations Management ◽  
Process Management ◽  
Waste Treatment ◽  
Management Tool ◽  
Chemical Waste ◽  
Management Tools ◽  
Content Type ◽  
Management Framework ◽  
Chemical Wastes ◽  
Comprehensive Classification

Purpose The purpose of this paper is to propose a process management framework for Chemical Waste Treatment Laboratories (CWTL) that can be used as a management tool to identify and manage critical process. Design/methodology/approach Proposition of a generic classification for categories of chemical waste; use of the ABC analysis as a tool for analysis of priority in relation to the inputs of an CWTL; use of the process matrix (variety vs volume) to identify the key resources required to perform the activities of a CWTL; and use of mapping process techniques to map the processes defined and calculate times. Findings The proposed framework was applied to a CWTL at University of São Paulo, Brazil, and showed that the high variability of demand is a significant factor in the management of this laboratory, requiring processes that are flexible to meet this demand. The results showed that the applicability of the production and operations management theories within the scope of process management of CWTLs, proved to be useful tools for improving the treatment efficiency of chemical waste in these facilities. Originality/value The novelty of this work is in the fact of using production and operations management tools in the management of CWTLs to propose diagnoses to improve the management of their processes. The proposition of a comprehensive classification for chemical wastes generated in CWTLs is also highlighted.

An esham-ijara structure in the United States?

2017 ◽  
Vol 8 (4) ◽  
pp. 455-467 ◽  
Author(s):  
Daniel Hummel ◽  
Blake Goud
Keyword(s):  
Local Governments ◽  
Risk Sharing ◽  
Local Economic Development ◽  
Local Level ◽  
The United States ◽  
Conventional Approach ◽  
Islamic Finance ◽  
Tax Increment Financing ◽  
Content Type ◽  
The City

Purpose The purpose of this paper is to explore Islamic borrowing at the local level in redevelopment authorities in the USA through an ijara and esham framework. Design/methodology/approach A hypothetical example is approached with a real redevelopment authority in the City of Pompano Beach, Florida. Actual data from past borrowing in a tax increment financing district are compared to an Islamic financing approach to test for competitiveness to a conventional approach. Findings It was found that when incorporating a crowdsourced option along with an ijara and esham approach, the returns on investment are higher than for a conventional approach. The risk is higher, but the returns are also higher which possibly increases the incentive to invest in these options. Research limitations This scenario is only hypothetical and based on many assumptions. A real-world application of the approach would have to be attempted to confidently determine its viability. Practical implications The potential competitiveness of this financing approach as well as its higher sustainability makes this a favorable approach for local redevelopment authorities to implement for needed money for infrastructure projects in blighted areas of the city. It is also of interest to Muslim countries that are devolving authority to their local governments. Originality/value This paper considers an alternative approach to tax increment financing which relies on a revenue sharing arrangement called an esham–ijara and esham–sukuk risk-sharing structure in Islamic financing terminology. There is currently very little discussion of esham in Islamic finance and no discussion of the application of Islamic finance to local economic development enterprises.

The uncertainties of risk management

2014 ◽  
Vol 27 (3) ◽  
pp. 489-526 ◽  
Author(s):  
Eija Vinnari ◽  
Peter Skærbæk
Keyword(s):  
Risk Management ◽  
Network Theory ◽  
Internal Audit ◽  
Actor Network Theory ◽  
Legal Aspects ◽  
Structured Interviews ◽  
Management Tools ◽  
Content Type ◽  
Internal Auditors ◽  
Multiple Frames

Purpose – The purpose of this paper is to analyse the implementation of risk management as a tool for internal audit activities, focusing on unexpected effects or uncertainties generated during its application. Design/methodology/approach – Public and confidential documents as well as semi-structured interviews are analysed through the lens of actor-network theory to identify the effects of risk management devices in a Finnish municipality. Findings – The authors found that risk management, rather than reducing uncertainty, itself created unexpected uncertainties that would otherwise not have emerged. These include uncertainties relating to legal aspects of risk management solutions, in particular the issue concerning which types of document are considered legally valid; uncertainties relating to the definition and operationalisation of risk management; and uncertainties relating to the resources available for expanding risk management. More generally, such uncertainties relate to the professional identities and responsibilities of operational managers as defined by the framing devices. Originality/value – The paper offers three contributions to the extant literature: first, it shows how risk management itself produces uncertainties. Secondly, it shows how internal auditors can assume a central role in the risk management system. Thirdly, it develops Callon's framing/overflowing framework with the notion that multiple frames are linked and create unexpected dynamics, and applies it to the study on the effects of risk management tools in an internal audit context. It shows how, despite recurring attempts to refine risk management, further uncertainties are continuously produced, thus providing an empirical illustration of how reframing and overflowing intertwine in a continual process.

scholarly journals The Evaluation of Trade Credit Insurance in Lithuanian Business Market as a Credit Risk Management Tool

2017 ◽  
Vol 14 (1) ◽  
pp. 5-20 ◽  
Author(s):  
Aleksandra Lezgovko ◽  
Andrej Jakovlev
Keyword(s):  
Risk Management ◽  
International Trade ◽  
Credit Risk ◽  
Trade Credit ◽  
Alternative Methods ◽  
Management Tool ◽  
Credit Risk Management ◽  
Management Tools ◽  
Credit Insurance ◽  
Business Market

AbstractIn today’s trade, the vast majority of commercial transactions in both domestic and international trade are concluded by applying trade credit terms. The aim of this article is to analyse the trade credit insurance and, according to the methodology, to evaluate it as a credit risk management tool in the context of Lithuanian business market. The authors have proposed a methodology that combines theoretical and practical research methods. First of all, with assistance of qualitative analysis, the alternative external credit risk management tools were examined. Such analysis allows not only to identify the advantages, disadvantages and benefits of researched risk management tools but also to assess the efficiency and rationality of trade credit insurance in the context of alternative methods. In order to carry out an assessment in the practical aspect, considering the lack of statistical data, it was decided additionally to perform an expert evaluation. After performing an assessment of trade credit insurance, it was concluded that in international trade, with a large buyer portfolio and high sales volume, the trade credit insurance becomes the most effective and rational way to manage credit risk, which eliminates the losses because of the debtor’s insolvency or bankruptcy, manages countries and sector’s risks and helps to discipline the debtor, what determines the decline in overdue accounts frequencies, amounts and volumes.

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