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Algorithmic predictions are used in insurance to assess the risk exposure of potential customers. This article examines the impact of digital tools on the field of motor insurance, where telematics devices produce data about policyholders’ driving styles. The individual’s resulting behavioural score is combined with their actuarial score to determine the price of the policy or additional incentives. Current experimentation is moving in the direction of proactivity: instead of waiting for a claim to arise, insurance companies engage in coaching and other interventions to mitigate risk. The article explores the potential consequences of these practices on the social function of insurance, which makes risks bearable by socialising them over a pool of insured individuals. The introduction of behavioural variables and the corresponding idea of fairness could instead isolate individuals in their exposure to risk and affect their attitude towards future initiatives.

PurposeCatastrophe (CAT) events associated with natural catastrophes and man-made disasters cause profound impacts on the insurance industry. This research thus reviews the impact of CAT risk on the insurance industry and how traditional reinsurance and securitized risk-transfer instruments are used for managing CAT risk.Design/methodology/approachThis research reviews the impact of CAT risk on the insurance industry and how traditional reinsurance and securitized risk-transfer instruments are used for managing CAT risk. Apart from many negative influences, CAT events can increase the net revenue of the insurance industry around CAT events and improve insurance demand over the post-CAT periods. The underwriting cycle of reinsurance causes inefficiencies in transferring CAT risks. Securitized risk-transfer instruments resolve some inefficiencies of the reinsurance market, but are subject to moral hazard, basis risk, credit risk, regulatory uncertainty, etc. The authors introduce some popular securitized solutions and use Merton's structural framework to demonstrate how to value these CAT-linked securities. The hybrid solutions by combining reinsurance with securitized CAT instruments are expected to offer promising applications for CAT risk management.FindingsThe authors introduce some popular securitized solutions and use Merton's structural framework to demonstrate how to value these CAT-linked securities. The hybrid solutions by combining reinsurance with securitized CAT instruments are expected to offer promising applications for CAT risk management.Originality/valueThis research reviews a broad array of impacts of CAT risks on the (re)insurance industry. CAT events challenge (re)insurance capacity and influence insurers' supply decisions and reconstruction costs in the aftermath of catastrophes. While losses from natural catastrophes are the primary threat to property–casualty insurers, the mortality risk posed by influenza pandemics is a leading CAT risk for life insurers. At the same time, natural catastrophes and man-made disasters cause distinct impacts on (re)insures. Man-made disasters can increase the correlation between insurance stocks and the overall market, and natural catastrophes reduce the above correlation. It should be noted that huge CAT losses can also improve (re)insurance demand during the postevent period and thus bring long-term effects to the (re)insurance industry.

Football organizations have been facing various challenges in Kenya ranging from management problems and event security threats which have been addressed in various continents. However limited has been done to address these challenges in Kenya. Triple bottom line (TBL) measures are critical to any organization and paramount for successful planning and organizing of sports events in today’s world. The link between risk management strategies and TBL measures of football events seems to be unclear in Kenya. The study therefore sought to investigate the risk transfer strategies employed by the Footbal events in Kenya. The study hypothesized that the risk transfer strategies do not significantly affect TBL of football events in Nairobi, Kenya. The target population was 882 football stakeholders that comprised Federation of Kenya Football (FKF) organizers, Kenya Premier League (KPL) organizers, officiators, footballers and cheer leaders/fans out of which 268 formed the sample size. Instruments for collecting data included self-administered questionnaires, interview schedules and observation check list. Ten (10) managers of sports management bodies and administrative bodies were interviewed. The study employed both descriptive and explanatory research designs. Simple random sampling and stratified sampling techniques were used to select respondents to participate in the study. Data was analyzed using both descriptive statistics (frequencies, mean and standard deviation) and inferential statistics (linear multiple regression). The study, therefore, recommends the need for football organizations to invest in risk control measures such as providing security in entry and exit points as well as insurance covers for both participants and spectators in order to transfer risks and attain TBL of football events. In addition sports management bodies need to sensitize football stakeholders on various risks that arise in football events. The findings from this study may benefit the Ministry of Sports, Culture and Arts, Football organizing bodies such as Federation of Kenya Football, Kenya Premier League and other football stakeholders in formulation of policies aimed at managing and minimizing risks of football events.

El presente texto estudia el caso de América Latina y cómo sus disposiciones de control para evitar la propagación del COVID-19 han tenido impacto en sus poblaciones femeninas, migrantes y personas dependientes, sobre las que se articulan las políticas del cuidado. Para ello, se hace una revisión histórica del Estado latinoamericano, donde se analiza los regímenes de bienestar que revelan la infraestructura de cuidado en la región. A continuación, se exploran las políticas implementadas en el marco de la crisis sanitaria y su transferencia de riesgo hacia las poblaciones más vulnerables al ser potenciadas por factores determinantes de la región. Por último, al ser la pandemia un fenómeno aún en progreso se esbozan una serie de conclusiones y recomendaciones.

The evolution and transfer of risk elements of urban river ecological management projects are primarily responsible for the difficulty of risk management in these projects. In this paper, we identify 63 risk elements of urban river ecological management projects using in-depth literature reviews and brainstorming. The association among all the risk elements is constructed using an expert survey method, and the risk elements are utilized as network nodes. The relationships between these nodes are then used as network edges (i.e., paths) to construct a complex network model. By using the network visualization and analysis tool anaconda3, we analyze the overall and local characteristic parameters of the risk network. The risk transmission characteristics of the urban river ecological management project are analyzed according to the parameter characteristics to reveal the inner relationships of risk transmission inherent in the complex network. We use the Jinghe ecological management project in Jinghe New City to verify the effectiveness of the proposed model. The study demonstrates that the starting node risk needs to be controlled, and the conduction node that indirectly triggers risk propagation needs to be cut off to achieve risk prevention and control. Accordingly, the risk prevention strategy is proposed, namely, paying close attention to the starting nodes of schedule delay risk, construction cycle risk and cost overrun risk, as well as the conduction risk nodes of project complexity risk, quality assessment risk, construction accident risk and improper drawing design risk. Effective measures should be taken to control the transmission and occurrence of risks based on these two aspects. The study reveals the network evolution of risk factors, which enriches the theory of the risk factor network evolution and evaluation of urban river ecological management projects.

This study analyzes the impact of securitization on the soundness of financial institutions through the two main securitization products in Brazil: Credit Rights Investment Funds (FIDC) and Real Estate Receivables Certificates (CRI). On the basis of a panel data analysis regarding 92 financial institutions from 2003 to 2016, we performed several regressions for different samples and methods. The findings suggest that securitization may increase the insolvency risk. In particular, we observe that the effect on the insolvency risk caused by securitization from CRI operations is higher than from FIDC operations.

International engineering procurement construction (IEPC) is a complex subject interconnected with risk transfer. In-depth understanding of risks in IEPC projects is essential for effective risk management and managerial strategies. Most related studies focus on the critical risks based on the perceptions of stakeholders or their direct “contribution” to the project loss. This study aims to investigate risk interconnection in IEPC projects through social network analysis, with a focus on the critical risks, risk interactions, and risk mitigation strategies. Three approaches were employed. First, the risk register and interconnection between IEPC projects were identified through a literature review. Second, the risk register and interrelationships were investigated using a questionnaire to formulate theoretical risk-interdependent networks. Third, practical IEPC projects were analyzed using network metrics to identify mitigation strategies for the associated critical risks. From the obtained results, we concluded that controlling security and contract risks in project management can reduce the occurrence or impact of other risks. Moreover, environmental issues related to contractors are also critical in international construction projects. Investigating relationships between risks has uncovered different risk-propagation mechanics within IEPC projects, thus extending the theoretical knowledge for international construction and risk management.

Purpose Buried structures like pipeline systems or water distribution networks (WDN) are vulnerable to seismic activities and the risk of damages increases when there is liquefaction. This paper aims to propose a methodology on how to determine the probable maximum loss (PML) on pipeline systems when earthquakes and liquefaction occur in future scenarios. Design/methodology/approach The paper used historical data and presents a case study on how the methodology to estimate the PML was used. The estimation is analytic and relied on simulations to determine the seismic and liquefaction hazard in the study area. Statistical and numerical analysis was used to estimate the damages and losses. Findings The output shows the PML of a WDN at different earthquake scenarios. It also shows a comparison between the damages and losses of diameter sizes of the pipes. Research limitations/implications In this paper, the damages behaved independently in one area, and correlation was not considered. Practical implications This PML methodology can aid in pre-disaster planning to prepare for seismic countermeasures risk transfer such as insurance to reduce the loss. Originality/value This paper shows a methodology and example on how to estimate the damages and PMLs of an existing WDN of a projected earthquake and liquefaction hazard based on historical data.

Volumetric DDoS attacks are continued to be an immense threat to e-commerce and other online businesses from the last decade as attackers have much resources to amplify scale and frequency day by day. Despite significant efforts by research community and security professionals, we are lacking a robust solution against DDoS attacks. Generally, the attacker's investment in sending large amount of traffic to paralyze a system is negligible as compared to the loss they caused to an organization. Therefore, in this article, a risk transfer approach, a combination of techno-economic aspects is proposed where the risk of being attacked is transferred to some cooperating ISPs in return for economic incentives. In the proposed approach, user's attention, cash, other network and computational resources are contemplated as valuable resources. User must have consent from server in the form of “Sending Rights” which can be obtained by solving cryptographic puzzle (computational work) or by purchasing through micropayment or combination of both according to traffic load level. Our proposed solution is implemented on PN2sim simulator and then verified on SPIN model checker. Implementation results show the supremacy of our proposed approach.

Bu çalışmanın amacı; BIST100 Endeksi, ABD Doları ve VIX Endeksi’nin 02.01.2009–12.11.2018 dönemi günlük verileri aracılığıyla, pay senedi piyasaları ve döviz kuru piyasası oynaklıkları arasındaki risk transfer mekanizmasını asimetrik nedensellik yöntemi ile ele almaktır. Belirlenen piyasa dinamikleri risk transferinin varlığı, Hatemi-J (2012) asimetrik nedensellik yaklaşımıyla araştırılmıştır. Bulgular, risk transferinde asimetrik nedenselliğe yönelik kanıtlar göstermektedir. Buna göre VIX’in pozitif oynaklığından BIST100’ün negatif oynaklığına; ABD Dolarının pozitif oynaklığından BIST100’ün hem pozitif hem negatif oynaklığına ve BIST100’ün negatif oynaklığından ABD Dolarının negatif oynaklığına nedensellik ilişkisi tespit edilmiştir.

In the fall of 1993, German company Metallgesellschaft, Ag experienced a loss of over one billion dollars. This loss resulted from its hedging strategy, and was one of the largest losses of its kind at the time. Naturally this raised interest regarding what caused these huge losses, and called into question the events and circumstances surrounding and leading up to this disaster. There are two basic schools of thought regarding Metallgesellschaft's strategy. The first is that it was a good strategy and had the potential to be successful and profitable. The other is that its strategy was risky and speculative. Despite the abundance of literature surrounding this event, there has been so resolution. My research looks to remedy this by directly confronting the controversy. The methodologies I use can answer once and for all if Metallgesellschaft unnecessarily took on too much risk, or had a good strategy. I find that MGRM's hedging strategy would have been profitable if it hadn't been prematurely ended. I further find that an options like strategy would have alleviated MGRM's cash flow problem.

Governments globally have endorsed Vision Zero, declaring that no person should be killed or permanently injured on public roads. Concurrently, the wider social, public health, and environmental implications of urban structure and transport choices have gained intense policy attention, as cities aim to transition toward sustainable accessibility. This is especially the case as research reveals a range of counter-intuitive road safety dynamics; many narrow approaches to road safety management appear to trigger adverse risk compensation and negative externality effects, potentially running counter to broader sustainability goals. Recognizing the urgent need to integrate road safety with broader urban sustainability measures, this paper presents a review of road safety literature using the established Hazard Control Hierarchy. In doing so, we identify and categorize opportunities to more effectively combine Vision Zero with broader sustainable accessibility policy objectives. We synthesize the literature against the Hazard Control Hierarchy to devise a framework to more effectively integrate the work of professional disciplines which shape the safety and sustainability of the urban built environment.

In this paper, a policy-based network management (PBNM) strategy has been proposed to defend DDoS attack along with maintaining Quality of Service (QoS) for legitimate users. During cautious or ale...

We model the optimal choice of the contract terms of a foreign exchange risk sharing supply contract between a buyer and supplier who are located in two different countries, when the supplier quotes a wholesale price in its currency, and both parties are mean variance expected utility maximizers. We extend the model to examine alternatives to the risk sharing contract, which are the wholesale price contract without risk hedging and a wholesale price contract with transfer of risk by the buyer to an options dealer. We empirically apply the model, to two different currencies of the supplier, by assuming that the buyer is based in the U.S., while the supplier is based in one of two countries, which are Switzerland and the U.K. Our results show that the performance of the risk sharing contract provides a substantial improvement in the total expected utility of both partners to the contract, over both the wholesale price contract without risk hedging and the risk transfer contract.

Long-term development finance provided by Multilateral Development Banks (MDBs) is key to advancing the United Nations 2015 Sustainable Development Goals. However, MDBs are constrained in their lending by the availability of capital. This paper argues that Risk Transfer, as a complement to equity injections, could permit higher MDB lending by attracting a broader class of investors. We describe selected examples of actual Risk Transfer transactions and provide estimates of the potential expansion in lending these techniques could yield. But we also identify obstacles that limit investors willingness and ability to participate in these transactions. Therefore, we recommend an agenda for international policymakers to open the way for the wider use of Risk Transfer. Still, we recognize this will be a gradual process which cannot substitute for MDB expansion through additional ordinary capital resources.

Construction industry is mostly affected by risks. So, the people in the construction organizations need to manage the risks by using different techniques of construction management. In this study, the data is gathered through questionnaires from Vijayawada and Visakhapatnam in Andhra Pradesh State, India. SPSS software is used for evaluating results. The risk analysis methods in Vijayawada construction organizations results are about 45% using Direct Judgement Techniques, and in Visakhapatnam, Comparing Analysis Technique is used for about 42%. In Vijayawada, the risk response technique used is Risk Transfer resulting about 41.4%, and in Visakhapatnam, it is about 37.9%. Therefore, in Vijayawada the technology risk transferring method is used about 62.1% (often), and in Visakhapatnam, it is about 45% (often). Finally, in Vijayawada the financial risk transferring method is rarely about 69% and in Visakhapatnam it is rarely about 62%. Therefore, if all the above risk analysis techniques and risk response techniques are used properly in the construction organizations, then the project will be finished within the given time and budget.

The risk of cooperation with service provider is associated primarily with non-performance of outsourced tasks or with performance not in line with the expectations of principal. Significant factors that affect the risk of cooperation with service provider result from the attitude of parties to cooperation, and also from the external conditions of this cooperation. Undistorted cooperation with logistics service provider, as well as undisturbed flow of goods play a special role in the delivery of goods to recipients. The objective of this article is to present the results of empirical research on reaction to the risk of cooperation with logistics service providers. It is part of the results of a wider research on management of the risk of cooperation with logistics service providers. The research is based on the assumption that attitudes of cooperating parties play a key role in dealing with risk.

Damage caused by floods has generally increased in Europe over the decades, and reducing the flood risk has become a recognised priority throughout the continent. Floods constitute a burden on the economies of European countries and insurance companies, not only because of the damage they cause but also because of the costs of structural flood defences and safety measures in general. The main reasons for the increasing flood risk are: presence of settlements and the growing value of assets in flood-prone areas; climate and environmental (land use and land cover) changes that always happen but have recently been accelerated because of radically different demographic conditions and technological progress. Statistical analyses by Munich Re’s NatCatSERVICE database underline the high relevance of floods to European societies. The reasons for the rising trends in flood losses are explained. The flood risk is borne by various stakeholders – individuals, businesses, governments and the insurance sector. This paper discusses the taxonomy of floods, presents flood statistics for Europe and examines the reasons for flood risk increase. It also examines flood risk reduction, focusing on various aspects of flood insurance as a means of risk transfer.

Agriculture insurance is most common forms of risk transfer in agriculture. It is often compulsory for borrowers of agricultural loans in low and middle income countries. This study tries to find out the status of compulsory agriculture insurance in Nepal and its sustainability through answering question “are compulsory agriculture insurance programs making agricultural insurance sustainable? Or we have to think differently for its sustainability. Household survey were conducted using pre-tested semi structured questionnaire in eight districts. Altogether 377 insurer farmers (132 crop and 245 livestock farmers) were selected from the list of target population using simple random sampling technique. Similarly, five cases were selected from the study districts. Result shows that Government of Nepal (GoN) has developed both cost of production and value based insurance products based on farmers demand. Basically, premium rate is fixed as five percent to cost of production based and seven percent to value based insurance for most of crops and livestock. Different governments programs such as youth self-employment program, youth focused program, spring rice promotion program and other grant/subsidy programs under different mega projects of GoN have started to link agriculture insurance with their programs. Insurance has been made mandatory to get such any subsidy support from the government for promoting agriculture insurance simultaneously. However, this study found that this strategy did not adequately work. But if they feel the enterprises is risky and realize the importance of agriculture insurance and can get higher returns from the enterprises, they were willing to participate in agriculture insurance. Most of farmers who participated in government grant program have limited understanding of crop insurance so that they have discontinued insurance after the end of grant/subsidy program. Therefore, it is necessary to revisit the existing provision of grant linked insurance and need to focus more on creating awareness on importance of agriculture insurance for its sustainability.

The rise of blockchain technology and other technological accelerators enables a fully automated decentralized autonomous risk transfer. In this chapter, we explain the functionality and operating principles of this new method of risk transfer. We provide an overview of the corresponding institutional arrangement and its challenges. We identify two main challenges, namely ensuring the quality of the product and gaining a critical network size. A feasible solution for these problems is the usage of system-specific tokens, which are used as a form of digital collateralization. In a short case study, we scrutinize how these theoretical concepts can be translated into practice and show the potential of the idea. While flight delay risk is already handled through decentralized autonomous risk transfer, the biggest benefits can be realized by decentralizing crop and hurricane insurance, including a seamless transfer of the risk to capital markets.

Summary The bioaccumulation of polychlorinated dibenzo-p-dioxins/furans (PCDD/Fs), known as dioxins, in fatty meat is one of primary pathways of entry into the human body, but levels of human exposure to dioxins in fatty meat subject to global trade are unknown. We show high dioxin estimated dietary intake (EDI) via pork consumption in Europe, the United States, and China, owing to stronger dioxin environmental contamination and high pork consumption in these countries. The dioxin risk transfer embodied in pork trade is mostly significant in high-latitude countries and regions of Canada, Russia, and Greenland because these regions with low dioxin environmental levels import large amounts of pork meat from more severely dioxin-contaminated Europe and the United States. We demonstrate that global pig feed trading decreases the exposure of pork consumers to dioxins via the import of feed from countries with low dioxin environmental contamination by pig breeding countries., Graphical abstract, Highlights • High PCDD/Fs EDI is caused by high dioxin environmental pollution and pork consumption • Global pork trade caused larger PCDD/Fs EDI flows than atmospheric transport • Western Europe and the United States yield most of the PCDD/Fs EDI transfer through pork export • Pig feed trade can affect pork consumers’ exposure to dioxins, Environmental science; Pollution; Agricultural market; Food science

In the last decades, we have witnessed increasing losses on crop yield due to an increase in magnitude and frequency of hydrological extremes such as droughts and floods. These hazards promote systematic and regressive impacts on the economy and human behavior. Risk transfer mechanisms are key to cope with the economic impacts of these events, therefore safeguarding income to farmers and building resilience to the overall sector. The index-based insurance establishes an index that can be monitored in real or near-real-time, which is associated with losses to a specific agent. While the manifestation of the causality hazard to exposure and exposure to damage and its mathematical representation in cash flow equations is a hard task, incorporating an objective and transparent index adds up a new challenge to this modeling framework. Moreover, past events that have been used as the main guide to evaluating expected losses given risk can no longer offer an accurate risk estimation due to environmental changes. This work aims to tackle the hydrologic extremes risk transfer modeling in irrigated agriculture to obtain optimized premium values and parameters of an insurance fund for irrigated agriculture in Southeastern Brazil. This study will be developed in the Piracicaba, Jundiaí, and Capivari river basin, also known as PCJ catchment in the states of São Paulo and Minas Gerais, Brazil. The region, with approximately 5 million inhabitants, is considered one of the most important in Brazil due to its economic development, which represents about 7% of the National Gross Domestic Product (GDP). The Hydrologic Risk Transfer Model of the Hydraulic and Sanitation department of the University of São Paulo (MTRH-SHS) will be used to obtain optimized premium values. The main index variable is streamflow fitted to extreme value theory distribution for low and high flows. To evaluate climate change and land-use change scenarios, Regional Climate Models (RCMs) and land use projections will be related to streamflow in a hierarchical Bayesian framework. Synthetic data will be then simulated according to scenarios previously defined in a Monte Carlo approach. The hazard-damage function will be obtained by total crop yield and revenue per municipality, then the relationship between the index and expected losses is determined in an empirical equation. Finally, a cash flow computation is run with synthetic data obtaining optimized premiums in a way to minimize fund storage values. We expect to provide further evidence of the feasibility of actuarially fair premium values for the agents in the sector considering global phenomena of climate change and land-use change. Results will support climate change adaptation plans and policy as well as contribute to methods for estimating risk in a changing environment.

Increasing climate stress is likely to significantly impact smallholder farmer livelihoods, and can lead to divergent adaptation pathways. However, empirical evidence is inconclusive regarding how climate affects smallholder farmers’ deployment of various livelihood strategies, including rural-urban migration, especially as these impacts become more severe. Here we use an agent-based model to show that in a South Asian-type agricultural community experiencing a 1.5oC temperature increase by 2050, climate impacts are likely to decrease household income in 2050 by an average of 28 percent relative to the same income under a stationary climate, with fewer households engaging in economic migration and investing in cash crops. Pairing a small cash transfer with risk transfer mechanisms significantly increases the adoption of alternative livelihood strategies, improves community incomes, and reduces community inequality. While specific results depend on contextual factors such as risk preferences and climate risk exposure, these interventions are robust in improving adaptation outcomes by addressing the intersection of risk aversion, financial restrictions, and climate impacts.

Risk sharing is the key institution for development. The prohibition of risk transfer mechanism in Islamic finance constitutes the foundation of the risk-sharing paradigm. In theory, risk sharing divides the burden of economic and financial risks among economic agents. This chapter emphasizes on the distinct framework of both risk transfer and risk sharing systems.

The financial crisis of 2007 has triggered various debates, ranging from the stability of the banking system to subtle technical issues regarding the Gaussian and other copulas. All these debates are important, and it might be good to start even a further one: Credit derivatives have much in common with treaty reinsurance, e.g. risk transfer via pooling and layering, scarce data, skewed distributions, and a limited number of specialized players in the market. All this leads to a very particular mixture of mathematical/statistical and behavioral challenges. Reinsurers have been struggling to cope with these, not always successfully, but they have learnt many lessons during their more-than-one century in business. This has led to certain rules adopted by the reinsurance market and to a certain mindset adopted by the individuals working in the industry. Some of the traditions established in the insurance and reinsurance world could possibly inspire markets like the credit derivatives market.

The function of reinsurance is to absorb the risks of the direct insurance industry. This has two main purposes: (i) reinsurance capital allows direct insurers to write more business, and (ii) it protects them against balance sheet fluctuations caused by large and unexpected losses. The reinsurance market is served by a relatively small group of some 200 professional reinsurers. However, throughout history a variety of alternative forms appeared that could be used to distribute risks beyond one insurer. Co-insurance, for example, was one of the main forms of secondary risk spread in the marine community for centuries. It dominated the London market and was, to a large degree, responsible for the late and restricted development of reinsurance companies in Anglo-Saxon markets. The emergence of ever-larger risks in the 20th century forced the industry to focus increasingly on dealing with large losses and capping the maximum exposures of insurers. This made the business more financial, a trend which received a new boost with the advent of insurance-linked securities (ILSs) in the 1990s. Since then, the market for alternative risk transfer (ART) has grown, not least with the advent of new investors such as different investment funds that provide alternative risk capital. However, towards the 2020s, professional reinsurers started gaining ground again after a series of large natural catastrophes and with the continuous rise of Asian economies. Since the 2010s, growth opportunities for reinsurance are sought mostly in emerging markets and by making more risks insurable. Emerging market growth, however, is challenging and the gap between insured and insurable economic losses is still widening. Since the turn of the millennium, the industry has invested in finding solutions to close this so-called protection gap. Professional reinsurers are also seeking to develop new markets by making emerging risks such as cybercrime insurable. Yet such dynamic risks are fundamentally different from older static risks. Solutions are sought in applying methods that already made natural catastrophes insurable, modelling techniques, and ART products.

Background The series of serious industrial accidents in recent years at contractors to large companies has highlighted risk outsourcing as a real and urgent problem. This study aims to review the difference in the degree of risk exposure and the occurrence of industrial accidents depending on the type of company relations. Among in-house contractors, the focus will be on those handling hazardous chemicals that include companies for which outsourcing requires approval. Methods This study uses the 9th wave of the Industrial Safety and Health Survey (2018). For determining the degree of risk exposure, the occurrence of industrial accidents, and industrial accident rate, multivariate, logistic, and fractional logit, regression analyses were used, respectively. Results First, In-house contractors’ degree of risk exposure is higher than that of the client companies. In particular, this gap is even greater for companies dealing with chemicals. Second, among only those that handle hazardous chemicals, in-house contractors do show a significantly higher rate of industrial accident occurrence. Third, In-house contractors have a significantly higher rate of industrial accidents from diseases than client companies. Conclusion The analysis supports the intent of the legal amendment that strengthens the protection of in-house contracted workers who handle hazardous chemicals. Second, the results of this study suggest that safety and health management must go beyond legal compliance and ensure that it has substance and effectiveness. Last, there should be policy consideration is necessary to reduce attempts to hide industrial accidents.

Amid the proliferating uncertainties of globalised modernity, development institutions have deployed insurance to transfer risk across more geographic and hazard domains. This chapter first explores why insurance and other risk transfer tools are increasingly popular responses in development practice. It then argues that this embrace can paradoxically proliferate uncertainties when insurance contracts fail to pay out, illustrated with reference to drought insurance in Malawi and pandemic insurance in the Democratic Republic of Congo. The chapter closes by envisioning how insurance might be refashioned from a ‘technology of hubris’ to a ‘technology of humility’, suggesting some principles for more relational deployments of insurance that could begin to recuperate its promise as a technique of mutual solidarity and sustainable risk-sharing.

In this study, we examine how banks’ stock price crash risk is affected by recourse uncertainty embedded in securitizations. By recourse uncertainty, we mean the difficulty for equity market participants to assess the true extent of risk transfer between securitizing banks and investors in asset-backed securities due to the opacity of securitizations. We argue that this uncertainty facilitates the withholding and accumulation of negative recourse news that is subsequently released at once, resulting in crashes. Using a sample of U.S. bank holding companies for the period of 2002-2015, we find that recourse uncertainty is positively associated with the future crash risk of securitizing banks. The result holds after controlling for bank intrinsic risk. We also predict and find that this association is higher for banks with poorer information environment and for the period before the adoption of SFAS 166/167, which required enhanced disclosure about securitization activities.

Research on risk management in Public Private Partnerships (PPPs) has largely overlooked that the Special Purpose Vehicle (SPV) is made up of several project partners with different interests and objectives to manage risk. This paper makes an important contribution to this literature as it articulates SPV partners’ perceptions of how they manage risk in toll road PPPs. Our case studies show that the different skillsets of both the international and domestic partners with their sub-contractors provide opportunities for mitigating and managing risk but also pose potential problems in terms of measuring and obtaining value for money for taxpayers.

The translator’s risk management while translating can involve several general dispositions, of which risk taking, risk avoidance, and risk transfer have been modeled previously (Pym 2015). In this...

Insurance as a risk transfer mechanism may contribute to economic growth of a country by fostering long term investment through capital that is collected from accumulated savings from individuals. The main objective of this paper is to examine the contribution of insurance in economic growth of Nepal using determinants of insurance like total insurance premium, Life insurance premium, Non-life insurance premium, employment and investment using data from 2004 to 2015 based on theoretical and empirical evidence. Fortunately, in past few years, lots of research has been done to map the specific contributions made by insurance sector in economic growth of the country applying theoretical and empirical evidence. The evidence suggests that insurance may contribute to economic growth by creating investment climate and managing risk in more efficient way. Theoretically, the studies show insurance has a positive contribution to different levels of development and further suggests to examine the relationship between insurance and economic growth using appropriate model.

In the United States, there has been tremendous growth in a form of third-party litigation financing where investors buy pieces of lawsuits from plaintiffs. Many scholars believe that this new financing helps to balance the risk tolerance of plaintiffs and defendants and thereby facilitates the resolution of litigation in a way that more closely tracks the goals of the substantive law. In this Article, I ask whether these risk-balancing virtues of claim investing carry over into class action cases. This is a question that has not yet been addressed by scholars because many think it is not possible for financiers to buy pieces of class action lawsuits in the United States. But I show that such investments are neither impractical nor unethical; indeed, it appears that they are already here. It is therefore worth considering whether the investments confer the same social benefits they do in other cases. I argue that although class members do not need a risk transfer device in class action cases because they are almost always risk-neutral in light of their small losses, their lawyers do need such a device. Although this does not necessarily mean that claim investing is socially desirable overall in class actions, the social costs that have thus far been identified with claim investing seem modest compared to the benefits.

Global efforts to tame CO2 emissions include the use of renewable energy sources, such as geo-energy harnessing. However, injecting pressurised fluids into the deep underground can induce earthquakes, hence converting CO2-related risk into seismic risk. Induced seismicity hazard is characterised by the overall seismic activity afb that is normalised by the injected fluid volume V and the parameter b of the Gutenberg–Richter law. The (afb,b) set has so far been estimated for a dozen of reservoir stimulations, while at least 53 geothermal fluid stimulations are known to exist, based on our survey. Here, we mined the induced seismicity literature and were able to increase the number of estimates to 39 after calculating afb from related published parameters and by imputing b with its expectation where this parameter was missing (0.65 ≤ b ≤ 2.9, with mean 1.16). Our approach was a two-step procedure: we first reviewed the entire literature to identify seismic hazard information gaps and then did a meta-analysis to fill those gaps. We find that the mean and median afb estimates slightly decrease from afb ≈ −2.2 to afb = −2.9 and −2.4, respectively, and that the range of observations expands from −4.2 ≤ afb ≤ 0.4 to −8.9 ≤ afb ≤ 0.4, based on a comprehensive review unbiased towards high-seismicity experiments. Correcting for potential ambiguities in published parameters could further expand the range of possibilities but keep the mean and the median relatively close to original estimates, with afb ≈ −2.3 and −2.4, respectively. In terms of the number of earthquakes induced (function of 10afb), our meta-analysis suggests that it is about half the number that could previously be inferred from published afb estimates (i.e., half the seismic hazard). These results are hampered by high uncertainties, demonstrating the need to re-analyse past earthquake catalogues to remove any ambiguity and to systematically compute afb in future geothermal projects to reduce uncertainty in induced seismicity hazard assessment. Such uncertainties are so far detrimental to the further development of the technology.

Parametric catastrophe (CAT) bonds are financial derivatives that provide a capital influx after a large natural disaster. More than US$10 billion in earthquake risk has been transacted since the late 1990s using mathematical relationships between monetary loss and ground accelerations recorded by seismological instruments. This paper investigates how the quality of these relationships varies depending on the functional forms used and the geographic distributions of both the strong motion sensor network and the exposure assets for which coverage is provided. We refer to this quality as the loss predictive power of the network. The analysis concludes that the recurrently used simplistic indices based on the nearest measurements to estimate loss at a particular location are advised only in the most optimistic circumstances in which the density of instruments is high where assets at risk are located. In other cases, more sophisticated ground motion estimation methods are recommended. The Istanbul area, where the Bosphorus I & II Ltd. CAT bond series was implemented in recent years, is treated as a case study.

The now extensive historiography of the ‘Captain Swing’ disturbances of 1830–1 contains two notable lacunae. Firstly, no thorough investigation has been undertaken of their first major episode, the ‘Sevenoaks Fires’ of summer 1830. Secondly, the overwhelming historiographical focus on Swing's perpetrators has ignored its victims almost entirely. This article therefore examines why particular farmers were singled out for incendiary attack in the area, what tactics they and the authorities employed in response and what that meant for social relations subsequently. The evidence reveals a trend towards greater accountability on the part of the elite and a growing confidence sometimes shown by the lower orders in challenging them. It does so, moreover, within an overarching framework of risk and risk transfer, since this provides an entirely new historiographical perspective on both the Fires and Swing generally. Finally, this approach is extended to suggest how it may have underpinned competing conceptions of Poor Law provision among the town's elite, post-Swing.

Risk transfer in public private partnerships (PPPs) may not always be conducive to efficient management due to principal agent problems. This paper identifies three parameters: (i) competition, (ii) monitoring and (iii) incentives, for transferring risks in a principal agent relationship. These parameters are applied to three PPP wastewater projects. The findings illustrate that competition determines the private sectors’ ability to bear risks, monitoring reduces ex-post information asymmetry and incentive ensures that risks are efficiently managed. The lessons learnt from the case studies can provide guidance for governments in transferring risks efficiently in PPP wastewater treatment projects.

The retirement outcomes for defined benefit (DB) plan participants can be significantly impacted by the plan sponsors’ plan design choices, as well as by the decisions made by participants. This is true when a plan sponsor is seeking to transfer its risk or when participants retire from an ongoing plan. For DB plans whose plan design allows for a lump sum form of benefit, or those who are offering one through a special lump sum window, the guaranteed income benefit that was synonymous with the earliest pension plans will likely be lost in favor of the lure of a one-time lump sum payout to participants. What many pensioners don’t realize—often until it is too late—is that when they accept a lump sum distribution, they run the risk of prematurely depleting their assets. With a lump sum, the pensioner becomes responsible for managing the investment and addressing the market and longevity risks that are traditionally assumed by the plan or, in the case of a pension risk transfer, the insurer. This article will outline practical ways that DB plan sponsors can reduce pension risk and simultaneously enable the retirement outcomes intended for the plan through partial annuitization, and other lifetime income options. It also offers plan sponsors insights on how to develop clear and complete education and communication with income-oriented framing or positioning.

Application of risk management techniques gain significant importance after the financial crises of 2008. Banks adopt contemporary risk management techniques to eliminate credit risk associated with the enlargement of their lending volume. The present study aims to analyze the impact of credit derivatives on lending/financing behavior of conventional and Islamic banks of Pakistan. The study used comparative analysis by employing random effect model for the sample of 20 conventional banks and pooled OLS regression on sample size of 5 Islamic banks for the period of 2006-2016. Results of the study show that conventional banks effectively increase their lending volumes by utilizing risk transfer techniques. However, Islamic banks are still at its infancy in utilizing risk transfer techniques due to shariah restrictions. The study recommends policy implications for Islamic bank to introduce innovative shariah compliant hedging instruments to boost their financing portfolios.

Transfer station, incineration plant, and landfill site made up the major parts of municipal solid waste disposal system of S city in Eastern China. Characteristics of volatile compounds (VCs) and odor pollution of each facility were investigated from a systematic perspective. Also major index related to odor pollution, i.e., species and concentration of VCs, olfactory odor concentration, and theoretic odor concentration, was quantified. Oxygenated compounds and hydrocarbons were the most abundant VCs in the three facilities. Different chemical species were quantified, and the following average concentrations were obtained: transfer station, 54 VCs, 2472.47 μg/m3; incineration plant, 75 VCs, 33,129.25 μg/m3; and landfill site, 71 VCs, 1694.33 μg/m3. Furthermore, the average olfactory odor concentrations were 20,388.80; 50,677.50; and 4951.17, respectively. The highest odor nuisance was detected in the waste tipping port of the incineration plant. A positive correlation between the olfactory and chemical odor concentrations was found with R 2 = 0.918 (n = 15, P

A fundamental benefit sought from Public Private Partnerships is risk transfer – or more explicit allocation of risks between the public and private partners. However, not all operating risks can be transferred or eliminated. The public partner retains residual risk and remains ultimately accountable for the delivery of public services. Sub-standard management of major change events can lead to poor value-for-money outcomes. In-depth insights are provided in this article into how the actual management of Public Private Partnerships may be carried out and dealt with by governments at critical junctures during the concession period. Key risks, issues and critical success factors are identified that can have profound effects on the achievement of intended outcomes. These considerations build upon existing knowledge, policy and guidance for Public Private Partnerships, both nationally and internationally, making this essay tangible and grounded for both academics and practitioners.

The central role played by deforestation in the increase in global CO2 emissions has recently justified the development of new schemes which offer compensation in exchange for reductions in emissions from deforestation (Reducing Emissions from Deforestation and Forest Degradation, REDD). The design of REDD projects can be based on market prices to set how deforesters are compensated for avoiding deforestation. With limited experiments involving a true market integration of REDD, it remains however difficult to assess the potential impact market price uncertainties may have on the targets of the protective scheme. The goal of this article is to assess the optimal choices of a forest owner, in terms of his combined decision of choosing when to protect his forest, and the deforestation rate prior to it, given his option to enter an irreversible REDD scheme that provides him with uncertain cash flows under different risk aversion scenarios.

Fannie and Freddie’s credit risk transfer (CRT) programs are a set of highly promoted and useful tools to hedge unexpected losses. Financial institutions, such as banks and insurance companies, use credit protection and risk transfer products similar to CRT to enhance or supplement regulatory capital levels and to absorb mostly unexpected risk. Based on market conditions, there are both opportunities as well as limitations of using different CRT products. CRT is not a panacea for the GSEs as implied by some market commentators. CRT is procyclical and not a replacement for stable and permanent equity capital that supports expected risk.