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As airport operators, the provision of chilled water and back-up power generation is a necessary element of our utility infrastructure. This paper outlines the benefits and pitfalls related to outsourcing this increasingly critical infrastructure to the local power company and describes the case of Orlando International Airport (MCO), which formed a public-public partnership with Orlando Utilities Commission (OUC). Over the course of a multiyear negotiation, we engaged OUC to take on operating the chilled water plant and the back-up generation facility for the airport's new Terminal C. Throughout the negotiation, we addressed many challenges. The aim of this paper is to familiarise the airport operator with the transaction and some of the key issues we faced and resolved at MCO. [ABSTRACT FROM AUTHOR]

Flood risk has dramatically increased over the decades and is complicated by climate change. Nevertheless, the residual risk of flooding remains scarcely addressed in practice and theory. This paper is to document the lessons learned from managing residual risk in Taiwan. Through a semi-structured interview process, fourteen stakeholders from the flood management in academia, government, and local communities shared their perspectives on residual risk covering various aspects, including flood risk mapping, social representations, and some management strategies. Land use regulation and community-based disaster prevention were highlighted as preparedness measures and recognized for their effectiveness to mitigate flood residual risk. However, there is still an insufficient consideration of flood maps as public communication tools rather than mere decision-informing documents. Besides, all the interviewed stakeholders agreed that marginal flood risk awareness limits the recognition and discussion of residual risk as a problem of its own. Misconceptions and the lack of communication between stakeholders were identified as the main barriers too. Interviewees pointed out that citizens are unaware of risks mainly either due to their inexperience or over-trust in the safety of flood protection structures. Overall, this work may inform residual flood risk management for Taiwan and elsewhere enduring similar extreme floods.

In deciding whether an infrastructure project should be delivered using traditional procurement or a public-private partnership (PPP), the public sector estimates the project's value for money (VFM), which serves as the principal justification for adopting PPP. It is well known that VFM arises primarily from risk transfer, that is, the risk of (for example) potential cost overruns is transferred from the public sector to the private sector under PPP, thereby creating cost savings to the public sector. Using a unique source of PPP data, Infrastructure Ontario, Canada, this paper investigates an issue not examined systematically and quantitatively in the literature: how the contribution to VFM arising from risk transfer varies from project type to project type, and why. [ABSTRACT FROM AUTHOR]

This study was conducted to assess fire risk transfer and its impact on the Nigerian economy over the period 1999 to 2019. It was borne out of the incessant fire outbreaks in the country in recent times which has led to an increase in fire risk premiums in the Nigerian insurance industry. The specific objectives were to investigate the trend of fire risk premium and real gross domestic product (RGDP) and assess the impact of fire risk premium on RGDP in Nigeria. The ex-post facto research design was adopted and the population consisted of all insurance companies covering fire risk as of 2019. Data were sourced from Nigeria Insurance Digest, the Central Bank of Nigeria statistical bulletin and the National Bureau of Statistics covering the selected years. The dependent variable for the study was RGDP while fire risk premium, exchange rate and money supply were independent variables. The trend analysis revealed that fire risk premiums increased at a faster rate than RGDP. while the regression analysis indicated a positive significant relationship between fire risk premiums and RGDP, and negative relationships between exchange rate and RGDP, as well as between money supply and RGDP. It was recommended that fire risk transfer should be encouraged for individuals and organizations to enhance its continued contribution to economic growth. [ABSTRACT FROM AUTHOR]

Abstract The application of risk management strategies is a common approach in emergency response scenarios. However, scant knowledge exists regarding its utilization in the specific context of an outbreak, both theoretically and practically. This study delves into the realm of risk management during the COVID-19 pandemic, focusing on four key measurements: risk avoidance (RA), risk reduction (RD), risk transfer (RT), and risk retention (RR). Using 800 valid responses collected from 31 provinces across China between August 1 and September 30, 2020, this study investigates spatial disparities in individuals’ intentions towards risk management. To achieve this, an extended version of the Theory of Planned Behavior (E-TPB) is applied. The Structural Equation Model’s path analyses revealed several findings: (1) discernible spatial disparities in RR, RA, and RD intentions between large and small cities; (2) RD and RR intentions were significantly associated with attitude, subjective norm, perceived behavioral control, and risk perception; (3) RA and RT intentions were significantly associated with attitude and risk perception; (4) risk perception exihibiting both direct and indirect effects on RA and RR intentions. This study contributs to the urban studies literature by extending the theoretical framework of risk management in the context of COVID-19. It enhances the measurement tools employed in the TPB model and scrutinizes spatial disparities in the adoption of preventative measures against COVID-19. The findings underscore the importance for local policymakers to consider geographical differences when formulating effective strategies for COVID-19 prevention.

The application of risk management strategies is a common approach in emergency response scenarios. However, scant knowledge exists regarding its utilization in the specific context of an outbreak, both theoretically and practically. This study delves into the realm of risk management during the COVID-19 pandemic, focusing on four key measurements: risk avoidance (RA), risk reduction (RD), risk transfer (RT), and risk retention (RR). Using 800 valid responses collected from 31 provinces across China between August 1 and September 30, 2020, this study investigates spatial disparities in individuals' intentions towards risk management. To achieve this, an extended version of the Theory of Planned Behavior (E-TPB) is applied. The Structural Equation Model's path analyses revealed several findings: (1) discernible spatial disparities in RR, RA, and RD intentions between large and small cities; (2) RD and RR intentions were significantly associated with attitude, subjective norm, perceived behavioral control, and risk perception; (3) RA and RT intentions were significantly associated with attitude and risk perception; (4) risk perception exihibiting both direct and indirect effects on RA and RR intentions. This study contributs to the urban studies literature by extending the theoretical framework of risk management in the context of COVID-19. It enhances the measurement tools employed in the TPB model and scrutinizes spatial disparities in the adoption of preventative measures against COVID-19. The findings underscore the importance for local policymakers to consider geographical differences when formulating effective strategies for COVID-19 prevention. [ABSTRACT FROM AUTHOR]

This study extends current knowledge on competition and corporate defense by investigating how firms transfer risk in response to their firm-specific multimarket and structural competitive conditions. Drawing on the theory of multimarket competition, we propose an inverted U–shaped relationship between multimarket competition and risk transfer. We also propose that, for the sake of gaining a competitive edge, the extent to which a firm manages risk will tend to be opposite to that of its competitors. Last, we propose that egocentric industry concentration will moderate the relationship between multimarket competition and risk transfer besides its direct effect. Analysis of reinsurance usage in the US property and casualty insurance industry strongly supports our model and shows that firm-specific competitive conditions are salient to a firm's risk transfer level. [ABSTRACT FROM AUTHOR]

Existing studies on the environmental Kuznets curve (EKC) neglect the inverse effect of pollution transfer from environmental regulation interactions on pollution reduction from a risk analysis perspective. Based on the regional differentiated attitudes on the environmental regulation reached in risk communication by the risk awareness biases of multiple interest groups, this article clarifies the causality between risk communication and risk transfer based on multistakeholder engagement processes; furthermore, the article incorporates the simultaneous action of the technological innovation effect and pollution risk transfer effect to construct a spatial environmental hyperbolic model with a bidirectional correlation between pollution emissions and economic growth in different regions. To verify our model, we select the pollution from agricultural watersheds in China as a sample to examine the two inverse effects. The results demonstrate that (1) agricultural watershed pollution and economic growth show an inverted U‐shaped relation and a U‐shaped relation in the local region and adjacent regions, respectively; (2) the pollution reduction assessment of the classical EKC model can be largely attributed to pollution risk transfer behavior; and (3) the turning point of the U‐shaped curve appears earlier than that of the inverted U‐shaped curve in the spatial hyperbola model. The findings suggest that stakeholders should consider the risk awareness bias caused by the imbalance of regional economic development and the scenarios that provide a "haven" for pollution risk transfer. Moreover, our study expands the theoretical connotation of the classical EKC hypothesis and is more suitable for pollution reduction scenarios in developing countries. [ABSTRACT FROM AUTHOR]

This paper develops a simplified agent-based model to investigate the dynamics of risk transfer and its implications for systemic risk within financial networks, focusing specifically on credit default swaps (CDSs) as instruments of risk allocation among banks and firms. Unlike broader models that incorporate multiple types of economic agents, our approach explicitly targets the interactions between banks and firms across three markets: credit, interbank loans, and CDSs. This model diverges from the frameworks established by prior researchers by simplifying the agent structure, which allows for more focused calibration to empirical data—specifically, a sample of Swiss banks—and enhances interpretability for regulatory use. Our analysis centers around two control variables, CDSc and CDSn, which control the likelihood of institutions participating in covered and naked CDS transactions, respectively. This approach allows us to explore the network’s behavior under varying levels of interconnectedness and differing magnitudes of deposit shocks. Our results indicate that the network can withstand minor shocks, but higher levels of CDS engagement significantly increase variance and kurtosis in equity returns, signaling heightened instability. This effect is amplified during severe shocks, suggesting that CDSs, instead of mitigating risk, propagate systemic risk, particularly in highly interconnected networks. These findings underscore the need for regulatory oversight to manage risk concentration and ensure financial stability.

• Net income and divided absorption of sales shocks is limited across firms and industries. • Smoothing channels as Materials, G&A expenses, and wages significantly mitigate sales shock. • Net income smoothing channels represent tools for corporate risk management. This study introduces an enriched framework depicting the channels through which managers can mitigate sales shock impacts on firm net income and dividends. Employing variance decomposition, this study provides insights into the proportion of sales shocks absorbed through different firm-level net income smoothing channels. We control for the nature (positive vs. negative) and duration (persistent vs. transitory) of sales shocks. Our findings offer significant insights into income and dividend smoothing. Research implications for theory and practice are further explored. [ABSTRACT FROM AUTHOR]

Development and emissions reduction are key conflicts that China needs to balance under the "dual‑carbon" goal. The risk of potential output loss due to limiting economic growth by carbon emission stress will be further propagated through the trading system. This study evaluated the level of regional carbon risk by constructing a carbon risk index, then quantified the transfer of carbon risk under interprovincial trade based on the multiregional input-output model, and ultimately revealed the unequal changes of carbon risk between provinces. The results show that the level of carbon risk was consistently higher in Northwest China (Inner Mongolia, Ningxia, Xinjiang) and North China (Shandong, Hebei) during 2007–2017. There was an inequality between inter-provincial embodied carbon flow and carbon risk transfer, which made the sum of net carbon risk imports across provinces positive rather than zero. In addition, the risk-transfer value matrix identified helps to underpin mitigation actions across provinces, and the inter-provincial trade with a lower risk-transfer value needs to be improved. Furthermore, the continued increase of carbon risk in some less developed regions, such as Inner Mongolia, was found to be difficult to reverse, making it important to reduce emissions from the production side in order to minimize risk. [Display omitted] • A consistency index for assessing regional carbon risk levels was constructed. • A framework for analyzing the carbon risk transmission through trade was proposed. • Northern and northwestern regions of China were identified as high-risk regions. • There was inequality between carbon risk transmission and embodied carbon flow. • Inequality in carbon risk transmission solidified, though mitigated. [ABSTRACT FROM AUTHOR]

The construction sector is more complicated and prone to risk than many other industries due to the size of the projects and the financial capital involved. Arranging insurance is the prudent course of action for risk management in the construction sector. There is a lack of clarity in insurance policies for public construction projects in the Kingdom of Saudi Arabia (KSA), which poses additional risks to all involved contracting parties. The aim of this research is to evaluate insurance policies in the KSA's public construction projects to identify the key deficiencies and obstacles and provide a road map for improvement in the insurance sector concerning insurance against financial losses, professional liability, defects' liability, hidden defects, and others. Forty-two contractors and forty-two owners in Saudi Arabia were surveyed, using a questionnaire to gather information for the study about their knowledge of and attitudes regarding risk transfer through insurance (professional liability, defects liability, and hidden defects). The study also covers the selection criteria for insurance policies for projects that potentially shift risk to the construction sector. Ten criteria were also examined as potential sources of liability issues and suggested as potential remedies in KSA. The findings indicate that the duty and liability of engineers and those participating in these projects can be offset by engineers' insurance against professional errors and hidden flaws, and by the construction industry's clear liability policy. Additionally, the research is envisaged to contribute to construction projects' overall quality and safety, ensuring that robust legal and financial safeguards protect all stakeholders., Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (© 2024 The Authors. Published by Elsevier Ltd.)

Existing studies on the environmental Kuznets curve (EKC) neglect the inverse effect of pollution transfer from environmental regulation interactions on pollution reduction from a risk analysis perspective. Based on the regional differentiated attitudes on the environmental regulation reached in risk communication by the risk awareness biases of multiple interest groups, this article clarifies the causality between risk communication and risk transfer based on multistakeholder engagement processes; furthermore, the article incorporates the simultaneous action of the technological innovation effect and pollution risk transfer effect to construct a spatial environmental hyperbolic model with a bidirectional correlation between pollution emissions and economic growth in different regions. To verify our model, we select the pollution from agricultural watersheds in China as a sample to examine the two inverse effects. The results demonstrate that (1) agricultural watershed pollution and economic growth show an inverted U-shaped relation and a U-shaped relation in the local region and adjacent regions, respectively; (2) the pollution reduction assessment of the classical EKC model can be largely attributed to pollution risk transfer behavior; and (3) the turning point of the U-shaped curve appears earlier than that of the inverted U-shaped curve in the spatial hyperbola model. The findings suggest that stakeholders should consider the risk awareness bias caused by the imbalance of regional economic development and the scenarios that provide a "haven" for pollution risk transfer. Moreover, our study expands the theoretical connotation of the classical EKC hypothesis and is more suitable for pollution reduction scenarios in developing countries., (© 2023 Society for Risk Analysis.)