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Purpose--The purpose of this paper is to estimate New Zealand's country level risk using a time-varying country beta market model. Country beta is allowed to vary as a function of several macroeconomic variables, including the net government overseas borrowing, 90-day bill rate, ten-year bill rate, wool price, trade-weighted index, manufacturers' price index, retail trade, current account balance, and money supply. Design/methodology/approach--Multivariate regression analysis is used to test the relation between country volatility and the macro-economic variables for the period September 1985 to March 2000. Findings--It is found that the US dollar exchange rate (USD) and the monetary conditions index (MCI) have a significant impact on New Zealand's country beta. The temporal variance of New Zealand's country beta displayed a great deal of volatility prior to and immediately following the 1987 stock market crash. The beta was far less volatile during the 1990s. Research limitations/implications--The variable set is restricted by the availability of data concerning the key macro-economic statistics. Practical implications Risk at the country level is of increasing importance in the evaluation of offshore investments. Practical implications relate to the evaluation of investments in foreign markets, specifically the appropriate cost of capital, given increased integration of financial markets. Originality/value--The study provides a better appreciation of the relationship between the country beta and several macro-economic variables that has not been applied to the New Zealand economy before. Keywords International investments, Risk analysis, New Zealand Paper type Research paper

Abstract Purpose--It is the purpose of this article to improve existing methods for risk management, in particular stress testing, for derivative portfolios. The method is explained and compared with other [...]

Abstract Purpose--An efficient asset-liability management requires maximizing banks' profit as well as controlling and lowering various risks. This multi-objective decision problem aims to reach goals such as maximization of liquidity, [...]

Abstract Purpose--To discuss the scope and limits of the compliance department's responsibilities in securities firms. Design/methodology/approach Describes the background to establishing stand-alone compliance departments; the organizational structure of compliance departments; [...]

This paper surveys current applications of duration analysis in risk management. Using straightforward examples, it shows how duration works and demonstrates its central role in assessment and hedging of interest rate risk.

A new framework for accounting for risk was considered using the practice of businesses of engaging the services of professional consultants such as accountants, attorneys, and market research agencies. The framework considers the risk entailed in the use of professional services and the potential for uncertainty in their results. The ability of risk-based segmentation to determine risk factors can prove to be an invaluable tool for vendors and clients of organizational professional services.

An assessment was undertaken with regards to the environmental risk facing banking institutions in the United Kingdom (UK). The data on current market share of environmentally sensitive industry sectors in the UK revealed that banks' exposure to environmental risks depends on their market share of high environmental risk sectors. Also, the type of management approach used by a banking institution's borrowers in dealing with environmental risks also affects the degree of risks facing the institution.

Control acts as a vital determinant of compensation risk management by chief executive officers (CEOs). Utilization of ordinary least squares with pooled cross-sectional and time series data revealed that reduction of compensation risk through utilization of golden parachutes is achieved by CEOs who are above some threshold level of control. Controlling terms that influence compensation risk results to enhancement of CEOs' compensation contracts.

Trading activity of managers is influenced by exposure to wealth risk caused by false signaling. Managers who are exposed to personal wealth risk tend to exhibit higher abnormal net buying prior to self-tender stock repurchases than those who are not. Also, managers who are exposed to risk of signaling failure manifest a larger stock price reaction to a repurchase announcement.

Managing foreign exchange risk in corporations is not a one-man role. Studies conducted at British Times 1000 corporations revealed the chief executive's and general management's direct and serious involvement in the activity. Multiple regression and factor analysis were used to evaluate contributing elements to an effective currency exposure management. Likewise, determinate reasoning and agency theories were used to evaluate single dependency and interests of both shareholders and managers.

International risk analyses being used by Malaysian firms in foreign countries are studied. Results show that each firm's estimation of how important business risk is and the level of sophistication in their methods of measuring it are not significantly related. Also, no relationship is found between the importance of business risk and sophistication in the measurement of political risk. However, strong relationships are found between the importance of business risk and the sophistication of measuring foreign currency risk, and between importance risk and the sophistication in measuring political risk.

Political risk insurance is an option most multinational corporations (MNCs) take for granted. A comparative study on international risk insurance providers suggests that MNCs use political risk assessment methods before entering a foreign market. Also, MNCs should not restrict trading with only a few local firms, thereby spreading the risk involved. A sovereign immunity waiver would also minimize political risk.

A case study was conducted to propose a systematization of technical risk management through the use of failure mode and effects analysis (FMEA) to improve the decision making process in new product development (NPD). The case of an automaker in Brazil was examined. The results of the study show a positive influence on the product development decision-making process.

The moderation of risk managers associate with international entry-mode strategies by opportunity for control and firm capability is examined. Ownership-provided control has been found to interact with capability to influence risk perceptions. Managers are seen to consider both control and capability when judging the perceived risk of an entry strategy.

Differences between managing a single project compared and a project portfolio are examined. A method for risk management within the context of a project portfolio is also proposed. The method has been found to enable single projects to gain experiences from other projects within the portfolio.

A study was conducted to show that the strategic behaviors that are associated with great success are also associated with failure. Two classic examples of marketing innovation are reexamined. Findings indicate that firms which were able to achieve greatness have typically done so only at the cost of increased risk.

A study was conducted to provide a perspective on the complex new concepts of managing strategic risk. Findings indicate that the strategy paradox arises from 'the collision of commitment and uncertainty.' The possible effects of shying away from making clear strategic commitments are also discussed.

Information search and purchase intentions have been found to create a significant impact on the perceived risks of consumers. A multivariate analysis involving 12 service-oriented firms proved that consumer services classified on the basis of search require distinct information needs for consumers since they have different levels of associated risks. It was also shown that among the behavioral variables observed, credence services tend to elicit the highest level of perceived risk, including financial, performance, social and psychological uncertainties.

Research is presented describing the development of three differing decision support models and risk assessment frameworks for use in the integration of maritime total quality management.

Research is presented describing the development of a risk management priority model for identifying and correcting failures using a new risk scale numbering system.

A study was conducted to examine the role of organizational risk perception and reduction in local government offices' purchase of professional services. Chief planning officers were asked to complete a questionnaire to determine the risks perceived and risk-reducing strategies they used. Findings revealed minor variations in terms of risk across the different phases. However, certain risk-reducing strategies differed across the buying phases and influenced modified-rebuy decisions.