The relationship between operational risk management and business continuity management: a case study of a selected financial institution in South Africa
- Authors: Mkhize, Gelvas Bhekabambo Senzoesihe
- Date: 2018
- Subjects: Risk management -- South Africa , Risk assessment -- South Africa Operations research -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/22769 , vital:30076
- Description: The disruption of a leading financial services company because of internal or external risks has huge negative impact on the business bottom-line and the South African Financial Services industry at large. The Basel Accord defined operational risk as one of the key risk to manage in an attempt to minimise risk within a bank. Business Continuity Management (BCM) is a key component of enabling a business to prepare for disruptions and yet BCM remains poorly integrated with Operational Risk Management (ORM) in most financial institutions. Qualitative research focuses on gathering and interpreting data through quotation, description and narration was undertaken to explore opportunities for integration of tools and methodologies used by these two risk types. This type of research is concerned with capturing conversations, experiences, perspectives, voices and meanings typically from small samples purposively selected. The study findings are based on a sample of 9 respondents. Most of the respondents indicated that the bank is guided by the Basel, Advanced Measurement Approach (AMA) accreditation to the South African Reserve Bank (SARB) and the three lines of defense. There were many integration points identified by respondent and three recommendations were made to address the research objectives.
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- Date Issued: 2018
The role of enterprise risk management in the success of South African short-term insurance companies
- Authors: Ntwana, Lwandile
- Date: 2018
- Subjects: Risk management -- South Africa , Insurance companies -- South Africa Insurance -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/33758 , vital:33015
- Description: Short-term insurance companies, though they are in a business of managing risks for other companies; they themselves are vulnerable to different types of risks in their operation. The pressure from the Financial Services Board and the ratings agencies has also added to the risk management burden faced by short-term insurance companies. For this study four generic types of risks were identified as the key risks each insurance company needs to focus on in order to ensure success and survival in their operations. Implementation of enterprise risk management framework has thus become a necessity for every short-term insurance company in order to effectively mitigate the complex risks brought by the ever-changing business environment. The purpose of this study was to evaluate the significance of the relationship between enterprise risk management and the success and survival of the companies in the short-term insurance industry in order to develop and implement strategies to manage risks effectively. This study specifically looked at these types of risks: operational risks, financial risks, market risks and reputational risks; and these have been identified as generic risks that can be used as a guide for companies who intend implementing an enterprise risk management framework. An empirical study was conducted using a population of 45 short-term insurance companies who operate in South Africa; and for this study a response rate of 53% was achieved. The methodology adopted in the study included the research design, research methods and test for tests for validity and reliability. The results were analysed and discussed. The key findings from the empirical study indicated that, there is a relationship between operational risk, market risk and reputational risk; and the success and survival of short-term insurance companies in South Africa. Secondary literature also emphasised the importance of enterprise risk management on the success and survival of short-term insurance companies in South Africa. Adoption and implementation of enterprise risk management remains vital for short-term insurance companies in South Africa as a tool to help manage the very complex risks facing the industry on daily basis.
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- Date Issued: 2018
Risk preferences and consumption decisions in organic production: the case of Kwazulu-Natal and Eastern Cape provinces of South Africa
- Authors: Kisaka-Lwayo, Maggie
- Date: 2012
- Subjects: Food security -- South Africa , Sustainable development -- South Africa , Organic farming -- South Africa , Natural foods industry -- South Africa , Risk management -- South Africa , Consumers -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD (Agricultural Economics)
- Identifier: vital:11188 , http://hdl.handle.net/10353/492 , Food security -- South Africa , Sustainable development -- South Africa , Organic farming -- South Africa , Natural foods industry -- South Africa , Risk management -- South Africa , Consumers -- South Africa
- Description: Despite phenomenal success of the commercial agricultural sector in South Africa and significant progress in integrating smallholders since democratic reforms, food security concerns remain. Recent global increases in food prices have further exacerbated vulnerabilities and made it imperative to examine alternative food production questions in the country. Organic agriculture is identified as one of the sustainable approaches to farming and offers insights towards a paradigm shift in food and nutritional security. Notwithstanding, consumer awareness, knowledge and consumption of organic foods are significantly lower in developing than developed countries. Risks associated with adoption of organic practices need to be explored to address the supply and demand constraints. Similarly, while consumer awareness of organic foods is the first step in developing demand for organic products, it does not necessarily translate to consumption. Therefore it is important to investigate these issues. The objectives of this study were to: (i) describe the demographic and socio-economic characteristics of organic farmers and consumers; (ii) establish the determinants of farmers‘ decision to participate in organic farming distinguishing between the fully-certified organic, partially-certified organic and non-organic farmers; (iii) elicit farmers risk preferences and empirically analyse farmers sources of risk and risk management strategies; (iv) explore consumer awareness, perceptions and attitudes regarding organic products; and (v) identify the factors that influence consumer‘s preference and consumption of organic products. A total of 400 respondents were surveyed, consisting of 200 smallholder farmers in KwaZulu-Natal and 200 consumers in the Eastern Cape. The KwaZulu-Natal study was conducted earlier and identified the following as major sources of risk, lack of consumer awareness of organic products and lack of information among producers about consumer preferences for organic products. This informed the need to undertake a consumer awareness and preference study, in order to inform producers. The Eastern Cape is a bordering province to KwaZulu-Natal with similar socio economic conditions and a major consumer of produce from KwaZulu-Natal. It was also expected that in the intervening period there could have been awareness about the product. An vii indication of its appeal would not be in the consumption of the product by the people who grow it, but by consumers who reside in bordering regions. Producer and household questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The Arrow Pratt Absolute Risk Aversion (APARA) coefficient was used to measure the farmer‘s degree of risk aversion and the experimental gambling approach to establish the risk classification. Consumers were also asked about their awareness and knowledge about organics, attitudes and perceptions towards organics, preference and consumption patterns. The ordered probit results indicate that older farmers, who are less risk averse and reside in the sub-ward Ogagwini, Ezigani, and Hwayi were more likely to be certified organic farmers. Similarly, the propensity to adopt organic farming is positively correlated to household size, livestock ownership, asset base and tenure security. The risk analysis indicates that at higher pay-offs most farmers are intermediate to moderately risk-averse, with little variation according to personal characteristics, and that non-organic farmers tend to be more risk averse than fully-certified and partially-certified farmers. In general, price, production and financial risks were perceived as the most important sources of risk. Using Principal Component Analysis (PCA), seven principal components (PCs) explaining 66.13% of the variation were extracted. Socio economic factors having a significant effect on the various sources of risk are age, gender, education, location, information access and risk taking ability. The most important traditional risk management strategies used by the surveyed farmers are crop diversification, precautionary savings and participating in social networks. There was general awareness of what constituted organic foods with many consumers associating organic foods with health and nutrition, chemical free and produced using indigenous methods of production. However, there was low awareness of organic products among consumers with little or no knowledge of organic certification and standards. According to the logit model the major factors influencing consumer awareness of organic products are: gender, education, employment status, and location of the respondents, person/household member responsible for shopping and the price perception of the decision maker. The discriminant analysis showed that the consumption of organic products is significantly affected by age of the consumer, viii location, person/household member responsible for shopping, consumer awareness of organics, price perception and label trust. The findings from this study provides useful practical insights for policy makers, farm advisers and researchers in the design of effective and efficient policies, programmes and projects which can affect the adoption of organic practices, increase smallholder farmers capacity to manage risk and drive growth in the organic food market.
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- Date Issued: 2012
Risk management
- Authors: Derrocks, Velda Charmaine
- Date: 2010
- Subjects: Risk management -- South Africa , Banks and banking -- South Africa , Financial risk management -- South Africa , Risk management -- South Africa -- Decision making
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8633 , http://hdl.handle.net/10948/1480 , Risk management -- South Africa , Banks and banking -- South Africa , Financial risk management -- South Africa , Risk management -- South Africa -- Decision making
- Description: The objective of the study is to establish a perspective of risk management by doing an assessment of current risk management practices, especially in the aftermath of the 2008/2009 global financial crisis. Risk management, as a component of corporate governance, was analysed by addressing the following: - The nature of value-creating assets in business; - The primary challenges for risk management over the next three years; - The changing approaches towards risk management; - The role of legislation and external stakeholders; - The role of risk management in strategic planning; - The cost of risk management; and - The benefits of improved risk management capabilities. A survey was conducted in the form of a questionnaire in order to obtain primary information from business owners on the current role of risk management in their organisations as well as their view on the role of risk management going forward. Businesses operating in the Port Elizabeth and surrounding area with an existing relationship with Absa Business Banking Services participated in the study. Quantitative techniques were used to analyse the data that were obtained from the sample group. The study revealed that the role of risk management in enterprises is evolving into an integrated, enterprise wide risk management function that can be utilised as a source of competitive advantage, from both a funding perspective for Banks and a business perspective for business owners. Capitalising on risk management as a competitive advantage will ultimately lead to long term sustainability and profitability of South African business enterprises and the South African Banking system.
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- Date Issued: 2010