Abstract: Many organizations consider outsourcing their information technology (IT) development projects as an attractive risk-mitigating approach. In such an engagement, the vendor may agree to complete a project for a fixed cost and according to a defined time schedule. Nevertheless, while the vendor is liable for the traditional project risks, other forms of risk may arise, which are the vendor risks. This paper presents a recent case study of a project failure that demonstrates some of the major vendor risks and their contribution to system development failure. The risks discussed in the paper are: (a) Adversarial relationships and loss of trust between the vendor and the client; (b) Vendor management de-escalation of commitment; and (c) Di.fficulry in breaking the contractual engagement. The case shows that IT outsourcing, an organization might not eliminate the traditional IT project risks but rather exchange them for equally fatal vendor risks. Furthermore, the case raises doubts regarding the effectiveness ...

Abstract: An audit system includes business processes that describe the operations of an enterprise, risks associated with the set of business processes that describe the dangers arising from the set of business processes, and risk controls associated with the risks that are intended to mitigate the effects of the risks. An audit manager can create an audit project from an audit project template derived from the business processes, the risks, and the risk controls. The audit manager can display the associations between the business processes, the risks, and the risk controls. A set of workflow-enabled applications are adapted to implement the business processes and the risk controls. A set of process procedures associated with the business processes provides documentation to employees assigned to perform the business processes. The set of process procedures also provide auditors with documentation on auditing the business processes.

Abstract: Few senior executives pay a whole lot of attention to computer security. They either hand off responsibility to their technical people or bring in consultants. But given the stakes involved, an arm's-length approach is extremely unwise. According to industry estimates, security breaches affect 90% of all businesses every year and cost some $17 billion. Fortunately, the authors say, senior executives don't need to learn about the more arcane aspects of their company's IT systems in order to take a hands-on approach. Instead, they should focus on the familiar task of managing risk. Their role should be to assess the business value of their information assets, determine the likelihood that those assets will be compromised, and then tailor a set of risk abatement processes to their company's particular vulnerabilities. This approach, which views computer security as an operational rather than a technical challenge, is akin to a classic quality assurance program in that it attempts to avoid problems rather than fix them and involves all employees, not just IT staffers. The goal is not to make computer systems completely secure--that's impossible--but to reduce the business risk to an acceptable level. This article looks at the types of threats a company is apt to face. It also examines the processes a general manager should spearhead to lessen the likelihood of a successful attack. The authors recommend eight processes in all, ranging from deciding how much protection each digital asset deserves to insisting on secure software to rehearsing a response to a security breach. The important thing to realize, they emphasize, is that decisions about digital security are not much different from other cost-benefit decisions. The tools general managers bring to bear on other areas of the business are good models for what they need to do in this technical space.

Abstract: Method, system and computer product for analyzing business risk using event information extracted from natural language sources. In this invention, articles each containing qualitative business event information relevant to a target business entity are retrieved. A structured events record of details for the qualitative business event information is extracted from the articles. The structured events record is applied to a business risk model that uses temporal reasoning to map qualitative business event information to business risk. The business risk model determines the business risk of the target business entity based on temporal proximity and order of the qualitative business event information in the structured events record.

Abstract: Disclosed is an enterprise risk system which allows improved management of business interruption risks. Business interruption risks are those risks that can significantly disrupt normal business operations and include traditional hazard risks, catastrophes, and natural disasters, as well as many types of supply chain disruptions.

Abstract: This paper seeks empirically to identify the determinants of the very small firms’ financial leverage. This is important because both these enterprises have been under-researched and research in the area has been troubled by samples biased towards very large enterprises. Results support hypotheses that size, growth, operational cycle and entrepreneur’s risk tolerance are positively and business risk, asset composition, profitability and inflation negatively associated with financial leverage. Additionally, there is support for a hypothesized relationship with industry but not with enterprise age. To achieve a wider understanding of these relationships, financial leverage is studied in combination with own working capital.

Abstract: How do technology innovators, business executives, and venture capitalists manage the technical elements of business risk when developing and launching new products? Overcoming technical risks requires crossing the so-called valley of death—the gap between demonstrating the soundness of a technical concept in a controlled setting and readying the product technology for the market. Crossing the valley of death may mean bringing university-based research to the point where it appears viable to venture capitalists, or bridging the cultural gap between technical innovators and the managers who are being asked to risk their institutional resources. In every context, purely technical risks are coupled with the market risks inherent in innovation. In this book Lewis Branscomb and Philip Auerswald address early-stage, high-tech innovation in the context of business decision making and innovation policy. The topics addressed include the extent to which purely technical risk is separable from market risk; how industrial managers make decisions on funding early-stage, high-risk technology projects; and under what circumstances government can and should act to reduce the technical risks of innovative projects so that firms will invest in them. The book includes contributions by Mary Good, George Hartmann, James McGroddy, Mike Myers, Michael Roberts, and F. M. Scherer.

Abstract: How do technology innovators, business executives, and venture capitalists manage the technical elements of business risk when developing and launching new products? Overcoming technical risks requires crossing the so-called valley of death—the gap between demonstrating the soundness of a technical concept in a controlled setting and readying the product technology for the market Crossing the valley of death may mean bringing university-based research to the point where it appears viable to venture capitalists, or bridging the cultural gap between technical innovators and the managers who are being asked to risk their institutional resources In every context, purely technical risks are coupled with the market risks inherent in innovation In this book Lewis Branscomb and Philip Auerswald address early-stage, high-tech innovation in the context of business decision making and innovation policy The topics addressed include the extent to which purely technical risk is separable from market risk; how industrial managers make decisions on funding early-stage, high-risk technology projects; and under what circumstances government can and should act to reduce the technical risks of innovative projects so that firms will invest in them The book includes contributions by Mary Good, George Hartmann, James McGroddy, Mike Myers, Michael Roberts, and F M Scherer

Abstract: This study employs correlation relationships to measure the strength of trade-offs between business and financial risks as a representation of the strategic capital adjustment process. Under different business risk measures based on varying lengths of historical farm income data, results suggest that farmers tend to adopt a myopic perspective when contemplating risk-balancing plans. Cross-sectional regression results for two-time period models covering the decade of the 1980s and 1990s yielded important implications. The liquidity-constrained environment of the 1980s emphasizes the combination of risk-balancing plans, specialization, and market revenue-enhancing strategies. In the 1990s, risk balancing becomes compatible with risk-reducing crop diversification and insurance protection plans.

Abstract: This paper focuses on why firms fail by comparing the management practices and product characteristics of successful and failed small businesses that wanted to become mass merchandising suppliers. Almost 1700 manufacturers participated in a program, which evaluated the firm and its submitted product. Independent samples tests suggested that failed firms (those rejected as mass merchandising suppliers) were inferior to successful firms in management practices and product characteristics. A discriminant analysis suggested that marketing, technology usage, business risk, and management experience and strategy were accurate in predicting which ventures would be unacceptable for the mass retail market, but it was not successful at predicting which firms would be more likely to be approved by a retailer's buyers. INTRODUCTION Small businesses contribute to the growth and stability of the U. S. economy in numerous ways. Small businesses provide more than 50 percent of all sales, employ over half of the American workforce, and account for 55 percent of innovations (U. S. Small Business Administration, 1998). With this type of economic impact, it is not surprising that researchers have focused on small business success more than failure. Understanding failure is important, however, for two reasons: (1) entrepreneurs who are familiar with failure rates may avoid starting ill-fated firms and (2) firms that know the causes of failure may identify correctable factors that lead to success (Bruno, Leidecker, & Harder, 1987; Perry, 2001). Some researchers suggest that comparison studies between successful and failed ventures are needed to identify different practices and derive benefits from the failure process (Gaskill, Van Auken, & Manning, 1993; Lussier, & Pfeifer, 2000; McGrath, 1999). This paper attempts to provide such a study. It focuses on why firms fail by comparing the management practices and product characteristics of small businesses wanting to become mass merchandising suppliers. It also identifies which factors lead to failure for small businesses in this sample. CAUSES OF FAILURE The U. S. Small Business Administration (SBA) reports that over 90 percent of business failures are management-related (Udell, Atehortua, & Parker, 1995). Some studies suggest that failure is a consequence of poor management because all business functions fall under the discretion of managers to some degree and are affected by operational practices (Bruno et al., 1987; Gaskill et al., 1993). Fredland and Morris (1976) note that all failure could be blamed on inadequate management when "good management" is defined as the ability to foresee potential threats in the marketplace and react accordingly. Therefore, this section reviews some of the management practices and marketplace factors identified as failure characteristics for small businesses. In a summary of the failure literature, Haswell and Holmes (1989) noted that substandard management practices often led to a lack of recordkeeping and an inability to access information for decision-making purposes. Wichmann (1983) found that accounting and marketing were key problems for small businesses in Alaska and Wyoming. Few firms kept adequate records, had appropriate control measures, or understood the principles of marketing. Bruno et al. (1987) also found that some firms suffered marketability setbacks because they offered products that were not sufficiently prepared and took on debt too early. Managers of failed firms stated that they would wait on the "window of opportunity" for their product and avoid debt financing if they had it to do all over again. This finding is consistent with the work of O'Neill and Duker (1986) who found that failed firms had more inferior products and a higher level of debt and than surviving firms. Other studies have cited management incompetence and inexperience as major causes of small business failure (Gaskill et al. …

Abstract: Here's a tool that allows you to find out. OVERVIEW: Considerable work has been done by the Industrial Research Institute and other organizations to improve the efficiency ofthe technology function within a company. Protocols have been developed to evaluate projects, transform them from ideas to products or processes, and generate a balanced project portfolio. However, very little has been done to determine whether or not the portfolio developed is aligned with the company's business strategy, to achieve the company objectives. Consequently, an IRI committee developed a tool for testing this alignment. Ten "Alignment Dimensions," covering many necessary areas of alignment, have been formulated for use as a communication tool between the different functions within a company. It is believed that more and better discussion will lead to integrated planning and, in turn, better results. Many studies have been undertaken to improve the efficiency of the technology function within a company, with respect to project selection (1-6) and development of balanced project portfolios (7-10). However, not much has been published on aligning the portfolio with the business strategy of the company, at least not on using a procedure that utilizes a language understood by both the technical and business personnel, is relatively quantitative, and is designed to promote discussion and be iterative until alignment is achieved. The "misalignment" of the technology portfolio with the business strategy seems to be a common occurrence in industry today, leading to missed company objectives and disenchantment of senior management with the technology function. One of the problems appears to be the lack of a tool that promotes discussion on a fairly quantitative basis, in terminology understandable to all participants. The tool described in this article is designed to determine the alignment of the portfolio with the business strategy. (See "How the Tool Was Developed," next page). One can draw a comparison with the alignment of a person's investment portfolio with their retirement strategy. The major value from using this tool is to ensure that the alignment of the portfolio with the business strategy is considered and a dialogue is started and continued until alignment is achieved. It can be used as many times as necessary to ensure that alignment is maintained, particularly under changing business and technology conditions. The ten "Alignment Dimensions" are: 1. Size and nature of future business goals (by markets). 2. Meeting time requirements. 3. Return on existing assets: * People. * Core competencies. * Technology. * R&D. * Manufacturing equipment. * Working capital. * Intellectual property. * Brand name. * Information technology. 4. Investment in new assets. 5. Alignment of portfolio with balance of business objectives-line extensions vs. new products vs. exploratory products vs. process vs. service/system solutions. 6. New Sales Ratio goal. 7. Need for new business or market areas vs. existing business areas. 8. New and improved products/processes vs. cost reduction. 9. Alignment with business risk tolerance. 10. Organizational commitment. These are detailed below with their corresponding anchoring statements. Dimension 1: Size and Nature of Future Business Goals Broken Down by Markets.-Are the Business and Technology expectations of future market opportunities (trends, size, growth, new technologies, new applications) reflected in the Technology Portfolio? Anchoring Statements 5. Business and Technology jointly plan the portfolio using ongoing, validated, documented forecasting of markets. 4. Technology portfolio is usually planned using market information. 3. Technology portfolio and market information are sometimes linked. …

Abstract: The paper examines the way that companies and their directors view crime in the context of their legal and social responsibilities for managing business risks. It concludes that, especially outside financial services, the duties to identify, manage and report crimes are very limited, but post-'9/11' insecurities, reputational issues and the (under-enforced) Turnbull requirements for directors to take note of key business risks (including crime) have ratcheted up security risk management in large businesses while leaving SMEs largely untouched. A business risk profile related to crimes is developed, involving: the business as a victim; individuals as victims in the context of business operations domestic and overseas; products and processes generating opportunities for crime; and the business and individual employees as offenders. Some key steps are outlined to help board members in both PLCs and SMEs to analyse their problems. The article concludes with some key issues for government, police, business and civil society to consider in clarifying problem ownership.

Abstract: PROBLEM TO BE SOLVED: To continuously reduce business risk more even after a business processing system was introduced. SOLUTION: The business processing management system which registers business processing to be done and inputs the progress state of the processing to manage it has a basic information registration part 22 and a business processing basic information storage part 17 in which respective pieces of information on the kind of the business processing, a customer, and a processing elapsed time calculation reference time are registered, a credit risk table 31 by which a credit risk value of the customer is obtained, and a business processing risk calculation part 25 which calculates the risk of the business processing based on the kind of the business processing, the credit risk value of the customer, and a processing time calculated from the processing elapsed- time calculation reference time.

Abstract: In this paper, we use empirical analysis to analyze company characteristics associated with the adoption and maintenance of broad-based stock option plans. First, a cross-sectional analysis evaluates what company characteristics are now associated with these plans. Second, a longitudinal analysis examines the company characteristics that predict the adoption of such plans. Overall, our results provide support to the claim that higher monitoring costs prompt firms to adopt and maintain employee stock option plans. Firms with higher levels of business risk are less likely to shift some of that risk to employees through stock-based compensation, whereas firm with higher variability in total shareholder returns are more likely to adopt broad-based employee stock options. Nonunion firms are more likely to adopt and maintain such plans, and financial constraints do not appear to be driving the adoption decision.

Abstract: The purpose of this article is to assess how the changing operations of international banks in emerging countries in the last decades have altered the risks they face as well as their mitigation techniques. The recent expansion of the international banking business through the setup of branches and subsidiaries has increased business potential, but has also changed the nature of the risks faced. Nevertheless, it is hard to determine whether risks, on the whole, are larger now than when cross-border operations were the main instrument for international banks’ activity. In addition, the article describes the various channels through which the risks faced by banks operating in emerging countries increase in times of crisis, especially when operating locally and in highly dollarized host countries, as shown in the latest crisis events. While the financial independence of subsidiaries may be considered an important tool of risk control, the possibilities to mitigate risks in local markets during times of crisis are generally scarce. This could be due to the relatively recent expansion of foreign banks’ local operations in emerging countries, as compared to the cross-border business, together with the relative underdevelopment of local financial markets, or perhaps to the nature of the local business itself.

Abstract: When a business introduces the use of e-commerce applications the software related business risks the business faces change. A corresponding change may also occur in the risks faced by the developers of the e-commerce applications. Unrecognised changes in the risks involved in software projects have considerable implications for a business. This paper reports the outcomes of the preliminary phase of a study into the implications of e-commerce for software project risk in financial institutions. Firstly, the analysis draws on the e-commerce and systems development literatures to determine the differences between e-commerce development projects and traditional development projects. Four key areas of difference were found between traditional projects and e-commerce including changes in the development process outcomes, changes in the development processes and methods, changes in stakeholder groups and changes in determining application requirements. Secondly, the differences are analysed against a set of software project risk factors from a recent reputable study. Each of the risk factors was affected in some way. Some of these impacts appear to be temporary, while others appear highly dependent upon the individual circumstances of the organization undertaking the project. Some risks did, however, appear to be permanently increased or decreased, thus signalling a fundamental difference in the overall risk profile of e-commerce projects when compared to traditional projects. Whether the impacts are temporary, contextual or permanent, they all have implications for way in which risk in e-commerce software projects is assessed and managed.

Abstract: We find UK investors and entrepreneurs are significantly concordant in rankings of investments and key factors for risk but significantly discordant on risk classes. Investors emphasise agency risk (e.g., motivation, empowerment, alignment), and entrepreneurs emphasise business risk (e.g., market opportunities).

Abstract: This paper analyzes the extent of risk-sharing among stockholders. Wealthy households play a crucial role in many economic problems due to the substantial concentration of wealth and asset holdings in the U.S. data. Hence, to evaluate the empirical importance of market incompleteness, it is essential to determine if idiosyncratic shocks are important for the wealthy who also have better insurance opportunities compared to the average household. We study a dynamic structural model where each period households compare the benefits of stockholding with a per-period trading cost and decide whether to participate in the stock market. Due to the endogenous entry decision, the testable implications of perfect risk-sharing take the form of a sample selection model. To eliminate the selection bias, we implement a semiparametric estimation method recently proposed by Kyriazidou (2001). Using data from PSID we strongly reject perfect risk-sharing for stockholders, but perhaps surprisingly, find no evidence against it among non-stockholders. The results are robust to a number of changes in the test method, such as including future wages into the instrument set, and testing from long time differences. We offer some explanations based on private information problems and the resulting idiosyncratic production risk borne by wealthy households. Finally, we strongly reject risk-sharing for the whole population consistent with existing literature. These findings indicate that, if anything, market incompleteness may be more important for the wealthy, and suggest further focus on risk factors that primarily affect this group, such as business risks.

Abstract: The competitions in21st century have arrived at a new level-the competition of supply chainHowever,a-long with the competitive advantages brought by the managerial mode of supply chain,there come the risksThis article analyses deeply and comprehensively the supply Chain risks in terms of systematic structures,managerial modes and oper-ation mechanism,and points out such risks existing in the supply chain management as system risks,information risks and market risksThe enterprises should effectively avoid the supply chain risks on the basis of studying the existence and devel-oping conditions of supply chain risks

Abstract: PROBLEM TO BE SOLVED: To provide a system allowing the easy and quick recognition of an evaluation risk point of equipment/work related to business. SOLUTION: This business risk countermeasure support system computing the risk evaluation point on the basis of risk input information is provided with a first multiplication computing means finding a product of a usage frequency of risk input equipment and a mean value of weight to a safety countermeasure item of the equipment, a first addition means adding a product value by the number of equipment, a second addition means adding a coefficient representing importance set in compliance with the equipment, and a second multiplication computing means finding a product of an output of the first addition means and an output of the second addition means. A value computed by the second multiplication computing means is transmitted to an information terminal device on the business in-charge side as the risk evaluation point of the risk input equipment. In this way, a person in charge of business can be released from a great burden of equipment management unsystematic in the risk evaluation point concerned with business. COPYRIGHT: (C)2005,JPO&NCIPI

Abstract: PROBLEM TO BE SOLVED: To obtain correlation on the basis of the amount of a loss in the past, the past weather conditions, and economic indicator data, and to obtain a correlation between indicators to indicate a plurality of factors and the amount of a loss. SOLUTION: A correlation between weather variation, external factors such as economic activity situations, and business risks is analyzed. A situation which could happen in the future is created from prediction simulation of the external factors such as weather simulation or economic variation simulation, and the business risks such as profit and loss are predicted by applying the correlation with business outcomes such as sales to the situation. COPYRIGHT: (C)2004,JPO&NCIPI

Abstract: Under the conditions of a high unemployment level and a high business risk, the Bulgarian private firms and their employees are commonly re-orientated towards introducing new paradigm of HR management, focused on human resources as a strategic source of wealth and value creation, but the process is still on transitional phase The level of introduction of new methods and techniques of HR management is right-proportional function of the size of foreign shares in firms ownership

Abstract: Summary In this study, a model for measuring and designing appropriate risk management strategies for dairy farmers was developed in Tonya district of Trabzon province, Turkey. Probability distributions of milk price and yield are derived to expose business and financial risk faced by dairy farmers. After designing appropriate dairy risk management strategies, existing risk management strategies were compared by using second-degree stochastic dominance (SSD). The results show that the total risk of dairy farmers is 57 % and the possible loss is approximately 2000$. Business risk is 50 % while the other half is attributed to financial rigidities. Research results also suggest that the most appropriate risk management strategy is transferring risk in order to ensure sufficient returns to meet debt services and to operate expense commitments in the research area. Based on the SSD results, income diversification through obtaining off farm income is the best way to transfer risk and marketing milk through sales cooperatives is the following alternative for dairy farmers.