The document discusses operational risk within the financial services industry and the Bank's operational risk management framework. It describes how the Bank identifies and manages operational risks through processes like risk control self-assessments and collecting operational loss event data. It provides an influence diagram showing factors that could lead to human errors in the Bank's risk management department. It also briefly compares sources of operational risk across different industries like transportation, focusing on factors like reputational, financial, and legal losses.
This document discusses the differences between projects and products. It defines a project as a set of activities and actions undertaken to meet a specific need within a specified time and budget. A product is defined as the result of creative human activity that satisfies the needs of clients, generally in the form of goods or services. The document also discusses concepts like building, measuring, and learning from products and empowering end users and teams.
Annual Report 2012 – Credit Suisse Group AG Credit Suisse
Consolidated financial statements, Information on the company, Operating and financial review, Treasury and risk management, Corporate governance and Compensation.
Download the 2012 Annual Report: http://bit.ly/1jXsjvE
This report identifies an outstanding issue in my organization: lack of proper risk management department. As a newly appointed Risk Manager I prepared an active solution plan, which I present below. I first identify the problem in my organization, and then present a solution and steps toward its implementation. Furthermore, I discuss management’s involvement in the process. Finally, I discuss the expected results.
The document discusses accounting in the knowledge economy. It covers topics such as the definition of a knowledge economy, types of intangible assets, current methods for measuring intangibles like direct, market capitalization, and return on assets methods, and the need for updated accounting principles to properly account for intangible assets which make up most of companies' current market value. It also compares traditional accounting income formulas to ideal formulas for knowledge businesses.
This document provides an overview of macroeconomic aggregates and fiscal accounts and analysis. It defines the main economic sectors and aggregates such as GDP, GNP, consumption, investment, etc. It also discusses approaches to determining GDP, nominal vs real GDP, and inflation. The document then covers fiscal accounting methods and concepts such as the budget deficit, government saving-investment gap, and methods of financing the deficit such as borrowing from the central bank, other banks, or non-bank sources.
Contents
• What are Energy Markets?
• Oil Markets – Oil Supply – Oil Demand – Oil Prices and Other Oil Products
• Natural Gas Markets
• Electricity Markets
• Coal Markets
• Renewable Energy Markets
• Economics and Energy Markets
Iceland has a BBB- credit rating from Moody's, S&P, and Fitch. While it has a highly skilled workforce and strong institutions, it also has high debt levels, capital controls, and economic dependence on a few commodity exports. Recent macroeconomic performance has improved with GDP growth resuming and inflation declining, although public and external debt remain elevated. While the outlook is positive if Europe avoids deeper crisis, delays in investment or uncertainty could slow Iceland's recovery. The document recommends that Alcoa proceed with its planned project, given Iceland's favorable economic outlook.
This document discusses the differences between projects and products. It defines a project as a set of activities and actions undertaken to meet a specific need within a specified time and budget. A product is defined as the result of creative human activity that satisfies the needs of clients, generally in the form of goods or services. The document also discusses concepts like building, measuring, and learning from products and empowering end users and teams.
Annual Report 2012 – Credit Suisse Group AG Credit Suisse
Consolidated financial statements, Information on the company, Operating and financial review, Treasury and risk management, Corporate governance and Compensation.
Download the 2012 Annual Report: http://bit.ly/1jXsjvE
This report identifies an outstanding issue in my organization: lack of proper risk management department. As a newly appointed Risk Manager I prepared an active solution plan, which I present below. I first identify the problem in my organization, and then present a solution and steps toward its implementation. Furthermore, I discuss management’s involvement in the process. Finally, I discuss the expected results.
The document discusses accounting in the knowledge economy. It covers topics such as the definition of a knowledge economy, types of intangible assets, current methods for measuring intangibles like direct, market capitalization, and return on assets methods, and the need for updated accounting principles to properly account for intangible assets which make up most of companies' current market value. It also compares traditional accounting income formulas to ideal formulas for knowledge businesses.
This document provides an overview of macroeconomic aggregates and fiscal accounts and analysis. It defines the main economic sectors and aggregates such as GDP, GNP, consumption, investment, etc. It also discusses approaches to determining GDP, nominal vs real GDP, and inflation. The document then covers fiscal accounting methods and concepts such as the budget deficit, government saving-investment gap, and methods of financing the deficit such as borrowing from the central bank, other banks, or non-bank sources.
Contents
• What are Energy Markets?
• Oil Markets – Oil Supply – Oil Demand – Oil Prices and Other Oil Products
• Natural Gas Markets
• Electricity Markets
• Coal Markets
• Renewable Energy Markets
• Economics and Energy Markets
Iceland has a BBB- credit rating from Moody's, S&P, and Fitch. While it has a highly skilled workforce and strong institutions, it also has high debt levels, capital controls, and economic dependence on a few commodity exports. Recent macroeconomic performance has improved with GDP growth resuming and inflation declining, although public and external debt remain elevated. While the outlook is positive if Europe avoids deeper crisis, delays in investment or uncertainty could slow Iceland's recovery. The document recommends that Alcoa proceed with its planned project, given Iceland's favorable economic outlook.
The term asymmetric volatility arises from observation that we observe higher volatilities (higher risk) during the market downturn than in the market upturns. The most common mentioned factor that contributes to such risk behavior is increased market leverage that was produced by a negative shock; however, there are also other factors, such as perceived risk/reward balance in different stages of market behavior.
Managers use a short-term horizon to maximize their utility function. Short-term profitability of banking institutions is one of the most important determinants of bonus packages and managers are therefore motivated to produce highest possible returns on equity by lowering equity buffers to the lowest possible level. Framing effects approach shows that managers engage into risk seeking behavior in order to avoid sure loss (thus, to guarantee that they receive higher bonus), although risk adverse behavior is a preferred choice. Lessons learned from the financial crisis are the importance of introducing behavioral finance concepts into a daily banking activities, increase information transparency, and try to find alternative measures of managers’ efficiency – measures that would stimulate setting up long-term value functions.
In the paper we test the new Phillips curve for Central and Eastern European EU accession countries for the period from 1990 to 2002 and use it to compare the efficiency of the traditional Phillips curve. More specifically, we want to see whether real marginal cost, which includes labor productivity and real wage components, can account for inflation dynamics in the observed sample. Surprisingly, when observing all eight selected countries, the relation between real marginal cost and inflation is opposite than expected. On the other hand, inflation in Baltic States and Slovenia seems to be influenced by real marginal cost. The elasticity coefficient of real wages on inflation for Slovenia shows that inflation was quite responsive to movement in wages during the total period, however, inflation became quite inelastic with respect to wages after 2000. Thus, economic policies that were introduced in Slovenia after 2000 were quite efficient in wage regulation, although the real effect will be observed in a more advanced period.
In this paper we try to estimate effects of financial deepness and capital account liberalization on economic growth, investment and the total factor productivity (TFP) in Slovenia from 1993 to the second quarter of 2001. We find out that the only positive effect of capital account liberalization was increased credits to private sector. On the other hand, financial depth has a positive and significant effect on economic growth and investment, but not on the TFP growth. Moreover, it is not likely that also capital account liberalization positively affects above specified choice variables. Namely, financial deepening is achieved through development of adequate institutions and sustainable macroeconomic policies. Once financial system is set in the country, capital account liberalization takes place.
One of the biggest drawbacks in the subprime crisis was a wrong fit of risk measurements and tools to the firm’s portfolio allocation strategies.1 Crouhy (2009) and Stulz (2009) among others point out what went wrong in the risk management practices during the current and other recent financial crisis:
(a) Inadequate use of risk metrics. Daily VaR (Value at Risk) is widely used in financial institutions to assess the trading activities risk. However, VaR measures the minimum worst loss expected (at 99% or 95% confidence level, depending on the distribution used) and not the expected worst loss (Stulz, 2009). Furthermore, VaR does not tell us anything about distribution of the losses BEYOND the minimum worst loss and even worse, it is not sure whether VaR can capture low probability catastrophic events.
The fund invests in insurance-linked bonds referred to as cat bonds. These are high-yield debt instruments with the purpose of raising money in the catastrophe events, usually natural disasters. Cat bonds are issued by insurance and reinsurance companies. Their main attraction for issuers is that in case of a catastrophe event, the issuers’ obligation to pay interest and principal is either deferred or forgiven.
Few empirical studies have looked specifically at the contribution of financial sector development to transition economies' growth, although developed financial markets have been generally assumed to be crucial to supporting growth performance. An empirical exercise that relates GDP growth to a range of variables finds some support for the proposition that financial sector development—in particular the role of foreign-owned banks—had a significant positive impact on transition economies' growth during the past decade.
The results of elections held in eastern Europe this year do not indicate any clear shifts in regional trends or direction. Bulgaria and Romania are set to join the EU on January 1st 2007 (at most there could have been a one-year delay until January 2008), but this will be under the strictest conditions ever applied to new members. Acrimonious negotiations on the final status of Kosovo appear to be grinding towards an impasse and possible crisis. It is difficult to predict the effects on developments in the wider region—not only in restive and resentful Serbia, but also in Bosnia and Hercegovina (BiH), Macedonia and possibly further afield. This is occurring when the EU's most effective instrument for influencing developments in the region—the offer of EU membership—has been seriously weakened by the anti-enlargement mood sweeping western Europe.
Systemic Risk Safeguards for Central Clearing CounterpartiesHELIOSPADILLAMAYER
During the financial crisis, the advantages of exchange-traded and centrally cleared derivatives became visible and an increased use of central counterparties (CCPs) was advocated amid their market safety. CCPs were seen as mitigation agents of counterparty, liquidity and operational risk, entities that are able to address information asymmetries, reduce trading complexity and increase operational efficiency and transparency.
The CCP is designed to reduce and assist with managing credit risk, also known as counterparty risk, in the derivative clearing process through a series of financial safeguards or layers of protection (also referred to as the CCP risk waterfall), where each safeguard handles a particular set of risks the CCP faces during its normal clearing activity or when it faces a default event amid a failure of one or several clearing members. Safeguard measures are constructed in such a way that they prevent a negative spillover effect to other members and to the financial markets.
The aim of the paper is to show that the risk waterfall processes used by CCPs can withstand an extended period of stressed market conditions. We design a theoretical framework in order to simulate a CCP risk waterfall and create a hypothetical CCP to empirically test its ability to perform under crisis conditions.
Our empirical study includes a baseline with a 30-day period and scenario tests, which assume that CCP clearing members suffer capital shortfall due to the systemic risk. Results show that while in the baseline scenario all participating clearing members meet capital requirements, several members become undercapitalized in stress tests and are therefore excluded from trading. Furthermore, in situations in which the defaulter’s guaranty fund was not sufficient to cover a shortfall, the CCP first-loss capital and other financial resources are quickly used up and the default management process moves to a further step. This requires mutualization of the loss by non-defaulting clearing members. Another important observation is that CCPs need timely information about the history of a member’s trading behavior cleared by the CCP, their positions in international markets as well as their overall financial health in order to correctly handle vulnerabilities that arise from their undercapitalization.
Despite credit market turbulence and slowing activity in many major advanced economies, oil prices have been reaching record highs in recent months. Besides oil-specific factors, such as geopolitical risks and speculations, the current price boom is driven by demand and supply forces that reinforce each other amid supportive financial conditions. This paper aims to a link macroeconomic variables together with oil prices in order to provide complement decision tools used by commercial and investment banks when optimizing their investment portfolios. For that reason, we apply financial programming model with incorporated oil price variable. We show that oil prices affect private consumption, gross domestic product, inflation, and imports. On the other hand, we also investigate effects of macroeconomic variables on oil market equilibrium. A decrease in oil supply as well as depreciation of the US$ lead to higher oil prices, which in turn decrease private consumption and output, but as well stimulate inflationary pressures. Empirical test is performed on the basis of quarterly US data from 2001 to 2007. Although financial programming models are subject to limitations and empirical implications are difficult to apply, some general relations between selected macroeconomic variables and oil price can be determined.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
The term asymmetric volatility arises from observation that we observe higher volatilities (higher risk) during the market downturn than in the market upturns. The most common mentioned factor that contributes to such risk behavior is increased market leverage that was produced by a negative shock; however, there are also other factors, such as perceived risk/reward balance in different stages of market behavior.
Managers use a short-term horizon to maximize their utility function. Short-term profitability of banking institutions is one of the most important determinants of bonus packages and managers are therefore motivated to produce highest possible returns on equity by lowering equity buffers to the lowest possible level. Framing effects approach shows that managers engage into risk seeking behavior in order to avoid sure loss (thus, to guarantee that they receive higher bonus), although risk adverse behavior is a preferred choice. Lessons learned from the financial crisis are the importance of introducing behavioral finance concepts into a daily banking activities, increase information transparency, and try to find alternative measures of managers’ efficiency – measures that would stimulate setting up long-term value functions.
In the paper we test the new Phillips curve for Central and Eastern European EU accession countries for the period from 1990 to 2002 and use it to compare the efficiency of the traditional Phillips curve. More specifically, we want to see whether real marginal cost, which includes labor productivity and real wage components, can account for inflation dynamics in the observed sample. Surprisingly, when observing all eight selected countries, the relation between real marginal cost and inflation is opposite than expected. On the other hand, inflation in Baltic States and Slovenia seems to be influenced by real marginal cost. The elasticity coefficient of real wages on inflation for Slovenia shows that inflation was quite responsive to movement in wages during the total period, however, inflation became quite inelastic with respect to wages after 2000. Thus, economic policies that were introduced in Slovenia after 2000 were quite efficient in wage regulation, although the real effect will be observed in a more advanced period.
In this paper we try to estimate effects of financial deepness and capital account liberalization on economic growth, investment and the total factor productivity (TFP) in Slovenia from 1993 to the second quarter of 2001. We find out that the only positive effect of capital account liberalization was increased credits to private sector. On the other hand, financial depth has a positive and significant effect on economic growth and investment, but not on the TFP growth. Moreover, it is not likely that also capital account liberalization positively affects above specified choice variables. Namely, financial deepening is achieved through development of adequate institutions and sustainable macroeconomic policies. Once financial system is set in the country, capital account liberalization takes place.
One of the biggest drawbacks in the subprime crisis was a wrong fit of risk measurements and tools to the firm’s portfolio allocation strategies.1 Crouhy (2009) and Stulz (2009) among others point out what went wrong in the risk management practices during the current and other recent financial crisis:
(a) Inadequate use of risk metrics. Daily VaR (Value at Risk) is widely used in financial institutions to assess the trading activities risk. However, VaR measures the minimum worst loss expected (at 99% or 95% confidence level, depending on the distribution used) and not the expected worst loss (Stulz, 2009). Furthermore, VaR does not tell us anything about distribution of the losses BEYOND the minimum worst loss and even worse, it is not sure whether VaR can capture low probability catastrophic events.
The fund invests in insurance-linked bonds referred to as cat bonds. These are high-yield debt instruments with the purpose of raising money in the catastrophe events, usually natural disasters. Cat bonds are issued by insurance and reinsurance companies. Their main attraction for issuers is that in case of a catastrophe event, the issuers’ obligation to pay interest and principal is either deferred or forgiven.
Few empirical studies have looked specifically at the contribution of financial sector development to transition economies' growth, although developed financial markets have been generally assumed to be crucial to supporting growth performance. An empirical exercise that relates GDP growth to a range of variables finds some support for the proposition that financial sector development—in particular the role of foreign-owned banks—had a significant positive impact on transition economies' growth during the past decade.
The results of elections held in eastern Europe this year do not indicate any clear shifts in regional trends or direction. Bulgaria and Romania are set to join the EU on January 1st 2007 (at most there could have been a one-year delay until January 2008), but this will be under the strictest conditions ever applied to new members. Acrimonious negotiations on the final status of Kosovo appear to be grinding towards an impasse and possible crisis. It is difficult to predict the effects on developments in the wider region—not only in restive and resentful Serbia, but also in Bosnia and Hercegovina (BiH), Macedonia and possibly further afield. This is occurring when the EU's most effective instrument for influencing developments in the region—the offer of EU membership—has been seriously weakened by the anti-enlargement mood sweeping western Europe.
Systemic Risk Safeguards for Central Clearing CounterpartiesHELIOSPADILLAMAYER
During the financial crisis, the advantages of exchange-traded and centrally cleared derivatives became visible and an increased use of central counterparties (CCPs) was advocated amid their market safety. CCPs were seen as mitigation agents of counterparty, liquidity and operational risk, entities that are able to address information asymmetries, reduce trading complexity and increase operational efficiency and transparency.
The CCP is designed to reduce and assist with managing credit risk, also known as counterparty risk, in the derivative clearing process through a series of financial safeguards or layers of protection (also referred to as the CCP risk waterfall), where each safeguard handles a particular set of risks the CCP faces during its normal clearing activity or when it faces a default event amid a failure of one or several clearing members. Safeguard measures are constructed in such a way that they prevent a negative spillover effect to other members and to the financial markets.
The aim of the paper is to show that the risk waterfall processes used by CCPs can withstand an extended period of stressed market conditions. We design a theoretical framework in order to simulate a CCP risk waterfall and create a hypothetical CCP to empirically test its ability to perform under crisis conditions.
Our empirical study includes a baseline with a 30-day period and scenario tests, which assume that CCP clearing members suffer capital shortfall due to the systemic risk. Results show that while in the baseline scenario all participating clearing members meet capital requirements, several members become undercapitalized in stress tests and are therefore excluded from trading. Furthermore, in situations in which the defaulter’s guaranty fund was not sufficient to cover a shortfall, the CCP first-loss capital and other financial resources are quickly used up and the default management process moves to a further step. This requires mutualization of the loss by non-defaulting clearing members. Another important observation is that CCPs need timely information about the history of a member’s trading behavior cleared by the CCP, their positions in international markets as well as their overall financial health in order to correctly handle vulnerabilities that arise from their undercapitalization.
Despite credit market turbulence and slowing activity in many major advanced economies, oil prices have been reaching record highs in recent months. Besides oil-specific factors, such as geopolitical risks and speculations, the current price boom is driven by demand and supply forces that reinforce each other amid supportive financial conditions. This paper aims to a link macroeconomic variables together with oil prices in order to provide complement decision tools used by commercial and investment banks when optimizing their investment portfolios. For that reason, we apply financial programming model with incorporated oil price variable. We show that oil prices affect private consumption, gross domestic product, inflation, and imports. On the other hand, we also investigate effects of macroeconomic variables on oil market equilibrium. A decrease in oil supply as well as depreciation of the US$ lead to higher oil prices, which in turn decrease private consumption and output, but as well stimulate inflationary pressures. Empirical test is performed on the basis of quarterly US data from 2001 to 2007. Although financial programming models are subject to limitations and empirical implications are difficult to apply, some general relations between selected macroeconomic variables and oil price can be determined.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
7. 7"
jobs,"retirement,"and"healthy"issues),"clients/products/business"practices,"and"external"incidents."These"
risks"always"result"in"financial"losses,"ranging"from"insignificant"amounts"to"major"amounts."Furthermore,"
risks"are"always"related"with"the"reputational"loss"of"institution,"business"interruption"and"third"party"
liability.""
(D)#Hospitality#industries#(hotels,#cruise#ships)#
Main" operational" risks" in" hospitality" industries" arise" from" the" ability" to" attract" and" retain" qualified"
personnel" mainly" due" to" reflection" of" unattractive" working" hours" (evening" shifts," weekends," and"
holidays)"in"compensation"received."Poor"financial"compensation"could"cause"minor"incidents,"such"as"
thefts,"and"lead"to"a"destruction"of"reputational"risk."Furthermore,"many"hotel"complexes"or"cruise"ships"
do"not"take"advantage"of"modernized"technology"to"maximize"their"revenues."External"operational"risk"is"
related"to"a"changed"demography"and"travel"patterns"and"needs"(younger"generations"vs."babyUboomers),"
and"recently,"due"to"the"financial"crisis,"income"availability"to"travel"has"reduced"and"negatively"impacted"
hospitality"industry"in"general.""Cruise"ships,"on"the"other"hand,"bear"additional"operational"risk,"related"
to"security"of"travelling"–"recent"accidents"(Concordia,"food"poisoning"on"some"cruises"from"Miami)"are"
having"a"severe"impact"on"reputation"of"cruise"tourism.""""
(E)#Utilities#(nuclear#power#plant#generation)#
Risks in the nuclear power industry are systemic (Koplow, 2011). If an accident occurs in one place, the
impact is spilled over the entire industry as many reactors rely on the same technology, were built by the
same contractors, or employ similar defences (in the case of a terrorist attack). The"principal"risk"related"to"
the" nuclear" power" plant" operations" arises" from" radiation" impact" on" health" and" environment." Recent"
accident" in" Japan" as" well" as" the" accident" in" Chernobyl" was" due" to" the" lack" of" design" strategy" for"
preventing"accidents"and"mitigating"their"potential"effects."None"of"the"plants"had"built"a"sufficient"backU
up" system" to" prevent" an" equipment" failure" disaster." In" case" of" Chernobyl," the" reactor" was" not" built"
properly"to"retain"radioactivity"within"the"vessel.""
Frequency refers to how often a loss event happens, and is measured in terms of number
of events per time units. It is described by a discrete distribution. Severity depends on the monetary
impact of the event, and is described by a continuous distribution. In operational risk both components
have to be considered separately, since there exist loss events with low frequency but high severity (e.g.
catastrophes, damage to physical assets); on the other hand, there are plenty of high frequency, low
severity events (e.g. small credit frauds, accounting errors, etc.). Transportation industry is usually
facing low frequency and high severity events. For health care industry (surgeries), frequency of
events is diminishing as a success rate of surgeries is increasing over time. Severity (if measured in
financial impact) is small, but high when measured as “a loss of life” impact. Financial sector faces
high frequency events, but severity can vary from low scale (small credit frauds, accounting errors) to
high scale (rouge-traders- related losses). Hospitality industries (hotels and cruise ships) should face
8. 8"
medium frequency events (some of them also provoked by political and economic disruption at the
centres of destination and therefore a drop in arrivals), however, severity event can be high (revenue
loss due to low arrivals, destruction of asset – hotel, ship in case of natural disaster, loss of life in case
of cruise ship accident – case of Concordia). Utilities industry (nuclear power plant) if facing low
frequency events, but extremely high severity events – a failure in nuclear power plant can lead to an
environmental disaster.
Risk mitigation measures require a good understanding of the hazard and the factors
contributing to its occurrence, since any mechanism that will be effective in reducing risk will have to
modify one or more of these factors. Risk mitigation measures may work by reducing the probability
of occurrence, or the severity of the consequences, or both. Achieving the desired level of risk
reduction may require the implementation of more than one mitigation measure. For transport
industry (aviation), important risk mitigants are revision of the system design (before system
implementation), non-punitive reporting of deviations to flight safety, monitoring the quality of
external suppliers according to the company’s (and international) standards and practices and
regulations prescribed for flight operators, changes to staffing arrangements; continuous training of
personnel to deal with the risk (Stolzer,"Halford,"Goglia,"2011),. For medical care (surgeries), it is
important to obtain a second (and third) opinion prior to the surgery, keeping track on surgeries
performed and causes identified in case of failed procedure, and an ongoing training of staff involved
in surgeries (surgeons, anesthetist, nurses). Due to the potentially high financial losses related to legal
procedures, medical providers also undertake insurance against potential failures in services. For
financial services, insurance is allowed as risk mitigant as losses can be measured precisely. Other
risk mitigants are internal management controls, self-insurance by allocating a part of regulatory
capital for operational risk, securitization of certain operational risks (like catastrophic bonds), risk
transfers (for example, certain parts of risk can be underwritten or funded by a separate entity) For
hospitality industries (hotels, cruises), personnel training is the most important risk mitigant as these
industries are very labor-intensive. It is also important to have proper security systems in place (such
as video cameras in common areas of hotel, security boxes in rooms, cabins) to prevent thefts. For that
reasons, hotels can decide to outsource more complex operational functions to experts. For cruises,
passengers need to understand security measures that will be undertaken in case of accident and
organize a rescue exercise once on board. For utilities (nuclear plants), risk mitigants are periodic
safety reviews and upgrades of reactors, training of personnel to operate properly upgraded reactors,
taking up insurance against employee liability, material damage or breakdown or business interruption
( International Atomic Energy Agency, 2001).
"