scholarly journals Basics on Commodities Risk Management for Grains Trading

2016 ◽  
Vol 3 (3) ◽  
pp. 7-19
Author(s):  
Piotr Giruć
Keyword(s):  
Risk Management ◽  
Risk Groups ◽  
The State ◽  
Price Risk ◽  
Financial Instruments ◽  
State Institutions ◽  
Option Contracts

The purpose of the article is to determine the kinds of risk groups existed on cereal market and presenting possibilities of limiting the undesirable phenomena. An issue appears: what way the subjects of cereal market, producers in particular, should alone neutralize the appearing risk, and when should expect support from the state institutions. More often financial instruments find the solution for agricultural hedgers. Derivatives, such as: forward, future and option contracts are transferring the price risk from producers to intermediaries of the market and are improving the flow of contracts on the cereal market.

Construction material supply risk management using Asian option contracts: the case of a pipeline project

2020 ◽  
Vol 27 (10) ◽  
pp. 3395-3414
Author(s):  
Mohammad Vahdatmanesh ◽  
Afshin Firouzi
Keyword(s):  
Risk Management ◽  
Scenario Analysis ◽  
Price Risk ◽  
Asian Option ◽  
Steel Pipeline ◽  
Content Type ◽  
Price Fluctuations ◽  
Option Contracts ◽  
Pipeline Project ◽  
Total Price

PurposeSteel price uncertainty exposes pipeline projects that are inherently capital intensive to the risk of cost overruns. The current study proposes a hedging methodology for tackling steel pipeline price risk by deploying Asian option contracts that address the shortcomings of current risk mitigation strategies.Design/methodology/approachA stepwise methodology is introduced, which uses a closed-form formula as an Asian option valuation method for calculating this total expenditure. The scenario analysis of three price trends examines whether or not the approach is beneficial to users. The sensitivity analysis then has been conducted using the financial option Greeks to assess the effects of changes in volatility in the total price of the option contracts. The total price of the Asian options was then compared with those of the European and American options.FindingsThe results demonstrate that the Asian option expenditure was about 1.87% of the total cost of the case study project. The scenario analysis revealed that, except for when the price followed a continuous downward pattern, the use of this type of financial instrument is a practical approach for steel pipeline price risk management.Practical implicationsThis approach is founded on a well-established financial options theory and elucidates how pipeline project participants can deploy Asian option contracts to safeguard against steel price fluctuations in practice.Originality/valueAlthough the literature exists about the theory and application of financial derivative instruments for risk management in other sectors, their application to the construction industry is infrequent. In the proposed methodology, all participants involved in fixed price pipeline projects readily surmount the risk of exposure to material price fluctuations.

scholarly journals Domestic Responses to Free Trade and Free Finance in OECD Countries

1999 ◽  
Vol 1 (3) ◽  
pp. 279-316 ◽  
Author(s):  
Daniel Verdier
Keyword(s):  
Free Trade ◽  
Small Firms ◽  
Oecd Countries ◽  
The State ◽  
Financial Instruments ◽  
Modern History ◽  
Demand And Supply ◽  
State Institutions ◽  
Banking And Finance ◽  
First Time

For the first time in modern history, free trade coexists with free finance. Free trade and free finance (defined as the deregulation and internationalization of banking and finance) are not mutually reinforcing, but cause a mismatch between the demand and supply of financial instruments. Investors want more marketable instruments whereas entrepreneurs want more transaction-specific instruments. This mismatch potentially hurts small firms and local interests most. What can they do about it? It depends on state institutions. The more centralized the state, the fewer opportunities available to potential losers to curb free finance. Free finance is most successful in centralized countries, where resistance to free finance is least strongly felt. This hypothesis is systematically tested on a sample of OECD countries.

Development of a State Tax Risk Management System

2020 ◽  
Vol 17 (6) ◽  
pp. 62-75
Author(s):  
A. V. Tikhonova
Keyword(s):  
Risk Management ◽  
General Scheme ◽  
Value Added ◽  
Comparison Method ◽  
The State ◽  
Scientific Methods ◽  
Traceability System ◽  
Road Map ◽  
State Tax ◽  
Presentation Methods

The article is devoted to the development of the concept of the state to manage its tax risks, based on a systematic approach. The author's concept presupposes the presence of the following elements logically arranged according to the principle "from the general to the particular": 1) mechanisms for managing tax risks, 2) disclosing methodological recommendations, 3) specific proposals for changing legislation. To achieve this goal, the author used general scientific methods (deduction and induction, analysis and synthesis, observation, description, generalization) and private scientific methods of cognition (comparison method, graphical and tabular data presentation methods). We have presented a brief overview of the main tax risks of the Russian Federation in the current economic environment, which are classified in four areas: 1) risks in the field of value added taxation; 2) risks in the field of taxation of profits and income; 3) risks, the source of which is Russia's membership in the Eurasian Economic Union; 4) customs risks. The author presents a general scheme of tax risk management by the state, which includes the context, goals and management strategy. The priority mechanisms for managing the tax risks of the state are formulated on the basis of the presented classification of tax risks. These areas include: introduction of an end-to-end product traceability system; substantiation of taxation methods; joint elimination of tax risks (Federal Tax Service, Federal Customs Service, Ministry of Labor, Federal Service for Financial Monitoring); optimization of tax administration costs on the part of both tax authorities and taxpayers; harmonization of indirect taxation, including duty-free trade; harmonization of international tax rules at the international level; selection of the most effective tools for eliminating multiple taxation. A draft "road map" has been developed to improve the management of state tax risks.

The elimination of violence and terrorism in Iraq strategy

2019 ◽  
pp. 375
Author(s):  
Mona Ali Duaij ◽  
Ahlam Ahmed Issa
Keyword(s):  
Civil Society ◽  
Political Institutions ◽  
The State ◽  
Civil Society Organizations ◽  
State Institutions ◽  
Terrorist Organization ◽  
The Media ◽  
Causes Of Crime ◽  
Religious Aspect

All the Iraqi state institutions and civil society organizations should develop a deliberate systematic policy to eliminate terrorism contracted with all parts of the economic, social, civil and political institutions and important question how to eliminate Daash to a terrorist organization hostile and if he country to eliminate the causes of crime and punish criminals and not to justify any type of crime of any kind, because if we stayed in the curriculum of justifying legitimate crime will deepen our continued terrorism, but give it legitimacy formula must also dry up the sources of terrorism media and private channels and newspapers that have abused the Holy Prophet Muhammad (p) and all kinds of any of their source (a sheei or a Sunni or Christians or Sabians) as well as from the religious aspect is not only the media but a meeting there must be cooperation of both parts of the state facilities and most importantly limiting arms possession only state you can not eliminate terrorism and violence, and we see people carrying arms without the name of the state and remains somewhat carefree is sincerity honesty and patriotism the most important motivation for the elimination of violence and terrorism and cooperation between parts of the Iraqi people and not be driven by a regional or global international schemes want to kill nations and kill our bodies of Sunnis, sheei , Christians, Sabean and Yazidi and others.

How Finance Colonised Aotearoa: A Concise Counter-History

2019 ◽  
Vol 7 ◽  
pp. 41
Author(s):  
Catherine Cumming
Keyword(s):  
Financial Institutions ◽  
The State ◽  
Colonial History ◽  
Financial Instruments ◽  
Financial History ◽  
Early Colonial ◽  
History Of

This paper intervenes in orthodox under-standings of Aotearoa New Zealand’s colonial history to elucidate another history that is not widely recognised. This is a financial history of colonisation which, while implicit in existing accounts, is peripheral and often incidental to the central narrative. Undertaking to reread Aotearoa New Zealand’s early colonial history from 1839 to 1850, this paper seeks to render finance, financial instruments, and financial institutions explicit in their capacity as central agents of colonisation. In doing so, it offers a response to the relative inattention paid to finance as compared with the state in material practices of colonisation. The counter-history that this paper begins to elicit contains important lessons for counter-futures. For, beyond its implications for knowledge, the persistent and violent role of finance in the colonisation of Aotearoa has concrete implications for decolonial and anti-capitalist politics today.  

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.

Hedging as a Method of Price Risk Management

2019 ◽  
Vol 8 (4) ◽  
Author(s):  
Lilia Mirgaziyanovna Yusupova ◽  
Irina Arkadevna Kodolova ◽  
Tatyana Viktorovna Nikonova ◽  
Bulat Talgatovich Yakupov
Keyword(s):  
Risk Management ◽  
Price Risk ◽  
Price Risk Management

The Power of Public Positions

2018 ◽  
Author(s):  
Thomas Sinclair
Keyword(s):  
Detailed Analysis ◽  
Political Authority ◽  
The State ◽  
Sufficient Condition ◽  
Necessary And Sufficient Condition ◽  
State Institutions ◽  
State Of Nature ◽  
Necessary And Sufficient

The Kantian account of political authority holds that the state is a necessary and sufficient condition of our freedom. We cannot be free outside the state, Kantians argue, because any attempt to have the “acquired rights” necessary for our freedom implicates us in objectionable relations of dependence on private judgment. Only in the state can this problem be overcome. But it is not clear how mere institutions could make the necessary difference, and contemporary Kantians have not offered compelling explanations. A detailed analysis is presented of the problems Kantians identify with the state of nature and the objections they face in claiming that the state overcomes them. A response is sketched on behalf of Kantians. The key idea is that under state institutions, a person can make claims of acquired right without presupposing that she is by nature exceptional in her capacity to bind others.

New Folk Music as Attempted Repatriation in Romania

2018 ◽  
pp. 436-452
Author(s):  
Maurice Mengel
Keyword(s):  
Mass Media ◽  
Folk Music ◽  
Cultural Policy ◽  
New Products ◽  
New Product ◽  
The State ◽  
State Institutions ◽  
The Public ◽  
Socialist State ◽  
New Form

This chapter looks at cultural policy toward folk music (muzică populară) in socialist Romania (1948–1989), covering three areas: first, the state including its intentions and actions; second, ethnomusicologists as researchers of rural peasant music and employees of the state, and, third, the public as reached by state institutions. The article argues that Soviet-induced socialist cultural policy effectively constituted a repatriation of peasant music that was systematically collected; documented and researched; intentionally transformed into new products, such as folk orchestras, to facilitate the construction of communism; and then distributed in its new form through a network of state institutions like the mass media. Sources indicate that the socialist state was partially successful in convincing its citizens about the authenticity of the new product (that new folklore was real folklore) while the original peasant music was to a large extent inaccessible to nonspecialist audiences.

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