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The growth in derivative activities, and the change in the way financial firms conduct these activities, has led to the development of practices within firms to manage risk. These practices relate to both the organisational context in which risk management takes place, and the measurement of market risk. Proposals and recommendations have been made in a number of reports in an attempt to encourage firms to adopt best practice, as identified by the Group of Thirty, through public disclosure requirements and rides for determining the amount of regulatory capital to support trading and derivatives activities. The adoption of best practice, together with the benefits of increased transparency and more appropriate methods for determining capital requirements, is seen to lead to a reduction in systemic risk. This paper examines the main proposals and recommendations made in the reports. In particular, the use of market risk measurement models, developed for internal risk management purposes, for public disclosures of market risk and for calculating regulatory capital is critically examined.

This paper seeks to provide foreign exchange risk measurement/management techniques and strategies that can be applied to investment and trading portfolios in emerging financial markets, such as the Moroccan foreign exchange market, with the objective of setting up the basis of a methodology/procedure for the measurement, management and control of foreign exchange exposures in the day‐to‐day trading operations.

Demonstrates a proactive approach for the measurements, management and control of market risk exposure for financial trading portfolios that contain foreign exchange securities. This approach is based on the renowned concept of value‐at‐risk (VAR) along with the creation of a software tool utilizing matrix‐algebra technique. In order to illustrate the proper use of VAR and stress‐testing methods, real‐world examples and practical reports of foreign exchange trading risk management are presented for the Moroccan Dirham.

To this end, several case studies were achieved with the objective of setting up a practical framework of trading risk measurement and control reports in addition to the inception of procedures for the calculation of VAR's limits. Moreover, the effects of hedging of foreign exchange trading exposures with reciprocal equity trading positions were explored and quantified. Finally, initial empirical tests of the long‐term behavior of the Moroccan foreign exchange and debt markets were quantified and analyzed.

In this work, key foreign exchange trading risk management methods, rules and procedures that financial entities, regulators and policymakers should consider in setting up their daily foreign exchange trading risk management objectives are examined and adapted to the specific needs of emerging markets, such as in the context of the Moroccan foreign exchange market.

This paper fills a gap in the foreign exchange risk management literature especially in the emerging markets perspective. The risk management procedures that are discussed in this work will aid financial markets' participants, regulators and policymakers in founding sound and up‐to‐date policies to handle foreign exchange risk exposures.

This paper aims to identify proactive supply risk management methods which can be used to reduce or remove risk sources during the supplier selection process, in the context of Western‐based manufacturing companies that source from emerging markets.

Learning from the literature and conducting multiple‐case study analyses of five Western‐based manufacturing companies' sourcing experiences from emerging markets.

The experiences of five Western‐based manufacturing companies suggested that applying the risk management process into supplier selection was particularly important and effective for supply risk reduction when sourcing from emerging markets. Supply risk sources must be identified and proactive supply risk management methods must be used to remove or reduce risk sources for effective supply risk management. The proactive risk management methods discovered in this research are: conducting a supplier questionnaire covering a wide range of business dimensions of the supplier; performing a technical review; negotiating a risk mitigation plan; employing local‐based procurement staff; using a total cost estimate; applying a strict part qualification process.

A multiple‐case study methodology employs a limited number of case studies and therefore may restrict the generalisation of research findings. Manufacturing companies are used as case study organisations for this research. Therefore, the research findings are particularly applicable and useful to manufacturing companies but might not be valid for other types of company. The research focuses on supply risk reduction during the supplier selection process, while further research into other stages of the supply management process is desirable.

The generated proactive supply risk management methods are useful to manufacturing companies looking to source or aiming to improve their sourcing experiences from emerging markets.

The literature provides valuable contents in terms of concepts but lacks proactive supply risk management methods for supply risk management when sourcing from emerging markets. The generated proactive supply risk management methods based on first‐hand information are valuable both to academics and practitioners in this field.

The purpose of this paper is to provide proactive risk management techniques and strategies that can be applied to trading and investment portfolios in emerging and Islamic illiquid financial markets, such as the Moroccan foreign exchange and stock markets.

This paper demonstrates a practical approach for the measurements, management and control of market risk exposure for financial portfolios that contain illiquid foreign exchange and equity securities. This approach is based on the renowned concept of value‐at‐risk (VAR) along with the innovation of a software tool utilizing matrix‐algebra technique.

In order to illustrate the proper use of VAR and stress‐testing methods, real‐world examples and feasible reports of risk management are presented for the Moroccan financial markets. To this end, several case studies were achieved with the objective of creating a realistic framework of trading risk measurement and control reports in addition to the inception of procedures for the calculation of VAR limits.

The versatile risk management procedures that are discussed in this work will be of value to financial entities, regulators and policymakers operating within the context of emerging and Islamic markets. The risk management procedures that are outlined in this paper will aid in setting‐up of realistic policies for the management of trading/investment risk exposures in illiquid markets. The document includes comprehensive theory, analyses sections, conclusions and recommendations, and full viable risk management reports.

Even though considerable literatures have investigated the statistical and economic significance of VAR models, this article provides real‐world techniques and optimum asset allocation strategies that are useful for trading/investment portfolios in emerging and Islamic financial markets. This is with the objective of setting‐up the basis of a proactive methodology/procedure for the measurement, management and control of equity and foreign exchange exposures in the day‐to‐day trading/investment operations.

The aim of this paper is to fill a gap in the foreign‐exchange trading risk‐management literature and particularly from the perspective of emerging and illiquid markets, such as in the context of the Moroccan foreign‐exchange market.

This paper, demonstrates a constructive approach, for the management of trading risk exposure of foreign‐exchange securities, which takes into account proper adjustments for the illiquidity of both long and short trading positions. The approach is based on the renowned concept of value at risk (VaR) along with the innovation of a software tool utilizing matrix‐algebra and other optimization techniques.

Several case studies, on the Moroccan Dirham, were achieved with the objective of setting‐up a practical framework of trading risk measurement, management and control reports, in addition to the inception of a practical procedure for the calculation of optimum VaR limits structure.

In this work, the risk‐management procedures that are discussed will aid financial markets' participants, regulators and policymakers, operating within emerging economies, in founding sound and proactive policies to handle foreign‐exchange trading risk exposures. The document includes comprehensive theory, analyses sections, conclusions and recommendations, and full real‐world foreign‐exchange trading risk‐management reports.

Although a substantial literature has examined the statistical and economic meaning of VaR models, this article provides real‐world techniques and optimum asset allocation strategies that are useful for trading portfolios in emerging and illiquid financial markets. This is with the objective of setting‐up the basis of a proactive methodology/procedure for the measurement, management and control of foreign‐exchange exposures in the day‐to‐day trading operations.

This paper aims to focus on three points of the theory about property investment risks: the management risk is not taken into account; the assumed regularity of the damping of the specific risks with an increase in the number of investments; and the assumption that the market risk is constant.

The analyses performed are based on an investment portfolio in the Dutch office market with 14 properties (fictive).

There are three risk component within the risk profile instead of the named two, namely: specific risk, depends on special individual factors of the investments; management risk, reflects the span of control problem of the organization of the investor; and systematic risk, depends on distinguishing local levels. The calculations do show the effect of diversification, but not in all cases. It depends on the order in which assets associated with different risks are added. Moreover, management and systematic risk work cumulative and opposed to the difersifying power of the specific risk because both increase with increasing portfolio size.

The market risk and the management risk can only be specified as subjective estimates, since they cannot be measured by the conventional standard‐deviation method.

The investor will have to learn to live with the fact that you never can tell.

This analysis shows that the theory derived for the financial market is only partially applicable, and that real estate investments need to be assessed on their own merits.

This study aims to examine the theoretical foundations for multivariate portfolio optimization algorithms under illiquid market conditions. In this study, special emphasis is devoted to the application of a risk-engine, which is based on the contemporary concept of liquidity-adjusted value-at-risk (LVaR), to multivariate optimization of investment portfolios.

This paper examines the modeling parameters of LVaR technique under event market settings and discusses how to integrate asset liquidity risk into LVaR models. Finally, the authors discuss scenario optimization algorithms for the assessment of structured investment portfolios and present a detailed operational methodology for computer programming purposes and prospective research design with the backing of a graphical flowchart.

To that end, the portfolio/risk manager can specify different closeout horizons and dependence measures and calculate the necessary LVaR and resulting investable portfolios. In addition, portfolio managers can compare the return/risk ratio and asset allocation of obtained investable portfolios with different liquidation horizons in relation to the conventional Markowitz´s mean-variance approach.

The examined optimization algorithms and modeling techniques have important practical applications for portfolio management and risk assessment, and can have many uses within machine learning and artificial intelligence, expert systems and smart financial applications, financial technology (FinTech), and within big data environments. In addition, it provide key real-world implications for portfolio/risk managers, treasury directors, risk management executives, policymakers and financial regulators to comply with the requirements of Basel III best practices on liquidly risk.

The proposed optimization algorithms can aid in advancing portfolios selection and management in financial markets by assessing investable portfolios subject to meaningful operational and financial constraints. Furthermore, the robust risk-algorithms and portfolio optimization techniques can aid in solving some real-world dilemmas under stressed and adverse market conditions, such as the effect of liquidity when it dries up in financial and commodity markets, the impact of correlations factors when there is a switching in their signs and the integration of the influence of the nonlinear and non-normal distribution of assets’ returns in portfolio optimization and management.

The volatile scenario of technological innovation demonstrates the need for risk control processes, in order to ensure its viability. The purpose of this paper is to propose a conceptual framework for risk management in the introduction of new technologies by start-ups, aiming to provide the guidelines for the improvement of this process.

The study comes up with conceptual categories related to risk management in start-ups, mainly based on the NPVR approach. The methodology included two comparative case studies: MercadoPago and GuiaBolso, which had their data collected through interviews with key managers and documents provided by the organizations. Data analysis was based on the Miles et al. (2014) model, whereby data were condensed; data were visualized, and conclusions developed and checked.

Among the main results, there is the proposition of a deductive-inductive matrix for the management of uncertainties and risks in start-ups, which brings elements that provide the calculation of the NPV adjusted for the risk of developing a new product (NPVR), process or service, as well as the contribution of the level of risk management maturity of the companies, setting up the Risk Management Matrix (RMM).

The authors propose a matrix for the management of uncertainties and risks in start-ups.

The authors present comparative case studies of MercadoPago and GuiaBolso which help the entrepreneurs to develop their start-ups.

As the main contribution, this paper proposes the start-up RMM, a model for the management of uncertainties and risks in start-ups, which brings elements that provide the calculation of the NPV adjusted for the risk of developing a new product (NPVR), process or service, as well as the contribution of the level of risk management maturity of the companies.

It is the purpose of this article to empirically test the risk parameters for larger foreign‐exchange portfolios and to suggest real‐world policies and procedures for the management of market risk with the aid of value at risk (VaR) methodology. The aim of this article is to fill a void in the foreign‐exchange risk management literature and particularly for large portfolios that consist of long and short positions of multi‐currencies of numerous developed and emerging economies.

In this article, a constructive approach for the management of risk exposure of foreign‐exchange securities is demonstrated, which takes into account proper adjustments for the illiquidity of both long and short trading/investment positions. The approach is based on the renowned concept of VaR along with the innovation of a software tool utilizing matrix‐algebra and other optimization techniques. Real‐world examples and reports of foreign‐exchange risk management are presented for a sample of 40 distinctive countries.

A number of realistic case studies are achieved with the objective of setting‐up a practical framework for market risk measurement, management and control reports, in addition to the inception of a practical procedure for the calculation of optimum VaR limits structure. The attainment of the risk management techniques is assessed for both long and short proprietary trading and/or active investment positions.

The main contribution of this article is the introduction of a practical risk approach to managing foreign‐exchange exposure in large proprietary trading and active investment portfolios. Key foreign‐exchange risk management methods, rules and procedures that financial entities, regulators and policymakers should consider in setting‐up their foreign‐exchange risk management objectives are examined and adapted to the specific needs of a model of 40 distinctive economies.

Although a substantial literature has examined the statistical and economic meaning of VaR models, this article provides real‐world techniques and optimum asset allocation strategies for large foreign‐exchange portfolios in emerging and developed financial markets. This is with the objective of setting‐up the basis of a methodology/procedure for the measurement, management and control of foreign‐exchange exposures in the day‐to‐day trading and/or asset management operations.

The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance.

Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance.

Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance.

First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings.

The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization.

Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.