Risk management efficiency measurement and analysis – an alternative measure based on hedge accounting

2019 ◽  
pp. 71-90
Author(s):  
Shahsuzan Zakaria ◽  
Sardar M. N. Islam
Keyword(s):  
Risk Management ◽  
Efficiency Measurement ◽  
Alternative Measure ◽  
Management Efficiency ◽  
Hedge Accounting ◽  
Measurement And Analysis

scholarly journals Currency risk management and hedge accounting - comparison of Polish and Ukrainian regulations

2018 ◽  
Vol 0 (2(40)) ◽  
pp. 37-43
Author(s):  
Мажена Ремлейн ◽  
Валентина Витальевна Ксендзук
Keyword(s):  
Risk Management ◽  
Currency Risk ◽  
Hedge Accounting

scholarly journals Foreign Exchange Risk and Profit Improvement in the Comprehensive Profit Opportunity and Lost Opportunity Control Model

2016 ◽  
Vol 11 (4) ◽  
pp. 1 ◽  
Author(s):  
Akira Nishimura
Keyword(s):  
Risk Management ◽  
Foreign Exchange ◽  
Business Strategy ◽  
Management Accounting ◽  
Manufacturing Companies ◽  
Hedge Accounting ◽  
Exchange Risk ◽  
Profit Opportunity ◽  
Contemporary Management ◽  
Lost Opportunity

The aim of this paper is to examine the influence of foreign exchange risks on manufacturing activities (<em>monozukuri</em> in Japanese) and the function of derivatives as a countermeasure against such risk from the viewpoint of management accounting. From this perspective, we examine the Comprehensive Profit Opportunity and Lost Opportunity Control (COLC) model, discussed previously in this journal, and further its practical development and application. To this end, this paper first clarifies the actual situations of major Japanese manufacturing companies in terms of foreign exchange fluctuation earnings and derivative instruments (including hedge accounting). Then, after investigation of the prior research on the interrelation between risk management and management accounting, we theoretically analyze the relations between risks, derivatives, and hedge accounting from the synthetic viewpoint of profit opportunity, risk, and opportunity cost. As a result, this analysis can play an important role in outlining the landscape in which business strategy and enterprise risk management align, both proactively and reflectively, with contemporary management accounting.

scholarly journals Investigation of the Pillars of Sustainability Risk Management as an Extension of Enterprise Risk Management on Palestinian Insurance Firms’ Profitability

2020 ◽  
Vol 12 (11) ◽  
pp. 4709
Author(s):  
Rami Shaheen ◽  
Mehmet Ağa ◽  
Husam Rjoub ◽  
Ahmad Abualrub
Keyword(s):  
Risk Management ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Enterprise Risk Management ◽  
Reverse Causality ◽  
Comprehensive Understanding ◽  
Management Efficiency ◽  
Enterprise Risk ◽  
Insurance Firms

This research paper examined the simultaneous relationship between sustainability risk management (SRM) as an extension of Enterprise Risk Management (ERM) and Palestinian insurance firms’ profitability, for the period spanning 2007Q1 to 2018Q4, by applying the panel dynamic (Generalized Method of Moments) GMM model. The literature was expanded by providing a comprehensive understanding of determining the pillars of ERM with the use of the factor analysis principle component method. The findings revealed that the firm’s profitability positively corresponded to ERM1 implementation, which represents “management efficiency”. In contrast, it shows negative correspondence to ERM2 implementation, which represents “control and ownership”. Furthermore, there were slightly negative signs from managing the use of leverage and they were conservative in terms of loss reserves. The challenges of firms’ profitability have negatively corresponded to emerging sustainability risks, such as political stability, that cause premiums written to show weak signs of excessive choice of risk or prices that are not met carefully. Interestingly, there is a positive relationship in the interaction between ERM2 implementation during the crisis period on insurance firms’ profitability. There is a robust causal relationship from ERM to the profitability (either positive or negative). The reverse causality is also significant but to a lesser extent. Thus, the study recommends alignment more coherent with the implication of ERM as holistic risk according to the market characteristic towards the environmental perils leads to sustainable development and its segments to maintain the longer term of survival in the firms’ performance.

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