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1 – 10 of 216Derek L. Nazareth, Jae Choi and Thomas Ngo-Ye
This paper aims to examine the conditions under which small and medium enterprises (SMEs) invest in security services when they migrate their e-commerce applications to the cloud…
Abstract
Purpose
This paper aims to examine the conditions under which small and medium enterprises (SMEs) invest in security services when they migrate their e-commerce applications to the cloud environment. Using a risk management perspective, the paper assesses the impact of security service pricing, security incident prevalence and virulence to estimate SME security spending at the market level and draw out implications for SMEs and security service providers.
Design/methodology/approach
Security risks are inherently characterized by uncertainty. This study uses a Monte Carlo approach to understand the role of uncertainty in the decision to adopt security services. A model relating key security constructs is assembled based on key constructs from the domain. By manipulating security service costs and security incident types, the model estimates the market-level adoption of services, security incidents and damages incurred, along with measures of their relative dispersion.
Findings
Three key findings emerge from this study. First, adoption of services and protection is higher when tiered security services are provided, indicating that SMEs prefer to choose their security services rather than accept uniformly priced products. Second, SMEs are considered price-sensitive, resulting in a maximum level of spending in the market. Third, results indicate that security incidents and damages can be much higher than the mean in some cases, and this should serve as a cautionary note to SMEs.
Originality/value
Security spending has been modeled at the firm level. Adopting a market-level perspective represents a novel contribution. Additionally, the Monte Carlo approach provides managers with tangible measures of uncertainty, affording additional information and insight when making security service adoption decisions.
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Clair Reynolds Kueny, Alex Price and Casey Canfield
Barriers to adequate healthcare in rural areas remain a grand challenge for local healthcare systems. In addition to patients' travel burdens, lack of health insurance, and lower…
Abstract
Barriers to adequate healthcare in rural areas remain a grand challenge for local healthcare systems. In addition to patients' travel burdens, lack of health insurance, and lower health literacy, rural healthcare systems also experience significant resource shortages, as well as issues with recruitment and retention of healthcare providers, particularly specialists. These factors combined result in complex change management-focused challenges for rural healthcare systems. Change management initiatives are often resource intensive, and in rural health organizations already strapped for resources, it may be particularly risky to embark on change initiatives. One way to address these change management concerns is by leveraging socio-technical simulation models to estimate techno-economic feasibility (e.g., is it technologically feasible, and is it economical?) as well as socio-utility feasibility (e.g., how will the changes be utilized?). We present a framework for how healthcare systems can integrate modeling and simulation techniques from systems engineering into a change management process. Modeling and simulation are particularly useful for investigating the amount of uncertainty about potential outcomes, guiding decision-making that considers different scenarios, and validating theories to determine if they accurately reflect real-life processes. The results of these simulations can be integrated into critical change management recommendations related to developing readiness for change and addressing resistance to change. As part of our integration, we present a case study showcasing how simulation modeling has been used to determine feasibility and potential resistance to change considerations for implementing a mobile radiation oncology unit. Recommendations and implications are discussed.
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Anand Prakash and Sudhir Ambekar
This study aims to describe the fundamentals of teaching risk management in a classroom setting, with an emphasis on the learning interface between higher education and the…
Abstract
Purpose
This study aims to describe the fundamentals of teaching risk management in a classroom setting, with an emphasis on the learning interface between higher education and the workplace environment for business management students.
Design/methodology/approach
The study reviews literature that uses spreadsheets to visualize and model risk and uncertainty. Using six distinct case-based activities (CBAs), the study illustrates the practical applications of software like Palisade @RISK in risk management education. It helps to close the gap between theory and practice. The software assists in estimating the likelihood of a risk event and the impact or repercussions it will have if it occurs. This technique of risk analysis makes it possible to identify the risks that need the most active control.
Findings
@RISK can be used to create models that produce results to demonstrate every potential scenario outcome. When faced with a choice or analysis that involves uncertainty, @RISK can be utilized to enhance the perspective of what the future might contain.
Originality/value
The insights from this study can be used to develop critical thinking, independent thinking, problem-solving and other important skills in learners. Further, educators can apply Bloom’s taxonomy and the problem-solving taxonomy to help students make informed decisions in risky situations.
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Raghavendra Rao N.S. and Chitra A.
The purpose of this study is to propose an extended reliability method for an industrial motor drive by integrating the physics of failure (PoF).
Abstract
Purpose
The purpose of this study is to propose an extended reliability method for an industrial motor drive by integrating the physics of failure (PoF).
Design/methodology/approach
Industrial motor drive systems (IMDS) are currently expected to perform beyond the desired operating conditions to meet the demand. The PoF of the subsystem affects its reliability under such harsh operating circumstances. It is crucial to estimate reliability by integrating PoF, which helps in understanding its impact and to develop a fault-tolerant design, particularly in such an integrated drive system. An integrated PoF extended reliability method for industrial drive system is proposed to address this issue. In research, the numerical failure rate of each component of industrial drive is obtained first with the help of the MIL-HDBK-217 military handbook. Furthermore, the mathematically deduced proposed approach is modeled in the GoldSim Monte Carlo reliability workbench.
Findings
From the results, for a 15% rise in integrated PoF, the reliability and availability of the entire IMDS dropped by 23%, resulting in an impact on mean time to failure (MTTF).
Originality/value
The integrated PoF of the motor and motor controller affects industrial drive reliability, which falls to 0.18 with the least MTTF (2.27 years); whose overall reliability of industrial drive drops to 0.06 if it is additionally integrated with communication protocol.
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Brahim Chebbab, Haroun Ragueb, Walid Ifrah and Dounya Behnous
This study addresses the reliability of a composite fiber (carbon fibers/epoxy matrix) at microscopic level, with a specific focus on its behavior under compressive stresses. The…
Abstract
Purpose
This study addresses the reliability of a composite fiber (carbon fibers/epoxy matrix) at microscopic level, with a specific focus on its behavior under compressive stresses. The primary goal is to investigate the factors that influence the reliability of the composite, specifically considering the effects of initial fiber deformation and fiber volume fraction.
Design/methodology/approach
The analysis involves a multi-step approach. Initially, micromechanics theory is employed to derive limit state equations that define the stress levels at which the fiber remains within an acceptable range of deformation. To assess the composite's structural reliability, a dedicated code is developed using the Monte Carlo method, incorporating random variables.
Findings
Results highlight the significance of initial fiber deformation and volume fraction on the composite's reliability. They indicate that the level of initial deformation of the fibers plays a crucial role in determining the composite reliability. A fiber with 0.5% initial deformation exhibits the ability to endure up to 28% additional stress compared to a fiber with 1% initial deformation. Conversely, a higher fiber volume fraction contributes positively to the composite's reliability. A composite with 60% fiber content and 0.5% initial deformation can support up to 40% additional stress compared to a composite containing 40% fibers with the same deformation.
Originality/value
The study's originality lies in its comprehensive exploration of the factors affecting the reliability of carbon fiber-epoxy matrix composites under compressive stresses. The integration of micromechanics theory and the Monte Carlo method for structural reliability analysis contributes to a thorough understanding of the composite's behavior. The findings shed light on the critical roles played by initial fiber deformation and fiber volume fraction in determining the overall reliability of the composite. Additionally, the study underscores the importance of careful fiber placement during the manufacturing process and emphasizes the role of volume fraction in ensuring the final product's reliability.
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Guodong Sa, Haodong Bai, Zhenyu Liu, Xiaojian Liu and Jianrong Tan
The assembly simulation in tolerance analysis is one of the most important steps for the tolerance design of mechanical products. However, most assembly simulation methods are…
Abstract
Purpose
The assembly simulation in tolerance analysis is one of the most important steps for the tolerance design of mechanical products. However, most assembly simulation methods are based on the rigid body assumption, and those assembly simulation methods considering deformation have a poor efficiency. This paper aims to propose a novel efficient and precise tolerance analysis method based on stable contact to improve the efficiency and reliability of assembly deformation simulation.
Design/methodology/approach
The proposed method comprehensively considers the initial rigid assembly state, the assembly deformation and the stability examination of assembly simulation to improve the reliability of tolerance analysis results. The assembly deformation of mating surfaces was first calculated based on the boundary element method with optimal initial assembly state, then the stability of assembly simulation results was assessed by the density-based spatial clustering of applications with noise algorithm to improve the reliability of tolerance analysis. Finally, combining the small displacement torsor theory, the tolerance scheme was statistically analyzed based on sufficient samples.
Findings
A case study of a guide rail model demonstrated the efficiency and effectiveness of the proposed method.
Research limitations/implications
The present study only considered the form error when generating the skin model shape, and the waviness and the roughness of the matching surface were not considered.
Originality/value
To the best of the authors’ knowledge, the proposed method is original in the assembly simulation considering stable contact, which can effectively ensure the reliability of the assembly simulation while taking into account the computational efficiency.
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Tiep Nguyen, Nicholas Chileshe, Duc Ty Ho, Viet Thanh Nguyen and Quang Phu Tran
Urban rail projects are typically large-scale transport infrastructure projects (megaprojects) which have many potential risks that can influence the strategic goals of owners…
Abstract
Purpose
Urban rail projects are typically large-scale transport infrastructure projects (megaprojects) which have many potential risks that can influence the strategic goals of owners. However, there is a paucity of studies which explore the impact of risks on both “urban rail” project time and cost together considering quantitative assessments. Therefore, this paper focuses on investigating critical risks and quantifying such risk impacts on urban railway project schedule and cost in practice.
Design/methodology/approach
A combination of qualitative and quantitative research methods comprising semi-interviews with five experts and a questionnaire survey of 132 professional respondents is used. The data were modeled using Monte Carlo Simulation to predict the probability of project schedule and cost.
Findings
The results show that 30 risk variables are categorized into seven main groups which have significant impacts on both project time and cost. Outstanding five risk variables were highlighted as follows: (1) project site clearance and land compensation; (2) design changes; (3) physical project resources; (4) contractors’ competencies and (5) project finance. Such findings were supported by Monte Carlo simulation which predicted in the worst case that the project may suffer 11.03 months’ delays and have cost overrun with a contingency of US$287.68 million.
Originality/value
This study expands our knowledge about time and cost contingency of urban metro railway implementation across developing economies and particularly within the context of Vietnam. Policymakers will not only gain an understanding about risk structure but will also recognize the significant impacts of critical risk through risk impact modeling and simulation. Such an approach provides insights into risk treatment priorities for planners so that they can proactively establish suitable strategies for risk mitigation in practice.
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Hugo Alvarez-Perez, Regina Diaz-Crespo and Luis Gutierrez-Fernandez
This study aims to examine the performance of environmental, social and governance (ESG) equity indices in Latin America (LA), evaluating their risk-return characteristics in…
Abstract
Purpose
This study aims to examine the performance of environmental, social and governance (ESG) equity indices in Latin America (LA), evaluating their risk-return characteristics in comparison to conventional benchmark indices.
Design/methodology/approach
Using a quantitative empirical approach, the authors analyze ESG equity indices from Brazil, Mexico, Chile, Peru and Colombia, employing metrics such as Sharpe, Sortino and Omega ratios to measure risk-adjusted returns. Regression analysis is employed to assess the replicability of ESG indices by benchmark indices. Monte Carlo simulations are conducted to explore the potential increase in risk-adjusted returns when ESG equity indices are incorporated into portfolios.
Findings
The study addresses critical questions for investors: Can ESG indices outperform their benchmarks? Can these ESG indices be replicated by benchmark counterparts? Do ESG equity indices enhance portfolio diversification? The findings reveal that investing in ESG indices has the potential to enhance risk-adjusted returns and portfolio diversification.
Research limitations/implications
While this study focuses on various LA economies, it’s important to note variations in currency and volatility.
Practical implications
For investors in LA, this study highlights the importance of considering ESG indices as part of their investment strategies. While not all ESG indices outperform conventional ones, some may improve diversification and risk-adjusted performance. Investors should carefully assess market-specific conditions and national factors when making investment decisions.
Originality/value
The primary contribution of this study is its focus on LA countries in the examination of diverse portfolios. The research provides valuable insights into the performance of ESG indices in this region compared to conventional benchmark indices. This approach addresses an important gap in the existing literature and offers a more comprehensive perspective on ESG investing and portfolio diversification.
Propósito
Se examina el rendimiento de los índices-ESG en América Latina (AL), evaluando sus características de riesgo y retorno en comparación con los índices convencionales.
Diseño/metodología/enfoque:
Utilizando un enfoque cuantitativo, analizamos los índices-ESG de Brasil, México, Chile, Perú y Colombia, empleando ratios de Sharpe, Sortino y Omega para medir los rendimientos ajustados al riesgo. Se utiliza análisis de regresión para evaluar la replicabilidad de los índices-ESG por parte de los índices de referencia. Se realizan simulaciones de Monte-Carlo para explorar el aumento en los rendimientos ajustados al riesgo cuando se incorporan los índices-ESG en las carteras.
Hallazgos:
El estudio aborda preguntas críticas: ¿Pueden los índices-ESG superar a sus índices de referencia? ¿Pueden estos índices-ESG ser replicados por sus contrapartes de referencia? ¿Mejoran los índices-ESG la diversificación de las carteras? Los hallazgos revelan que la inversión en índices-ESG tiene el potential de mejorar los rendimientos y la diversificación de las carteras de inversión.
Limitaciones/implicaciones de la investigación –
Aunque este estudio se centra en diversas economías de AL, es importante tener en cuenta variaciones en moneda y volatilidad.
Originalidad/valor:
La principal contribución de este estudio radica en su enfoque en países de AL en el examen de carteras diversas; ofrece valiosos conocimientos sobre el rendimiento de los índices-ESG en esta región en comparación con los índices convencionales.
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Bruce E. Hansen and Jeffrey S. Racine
Classical unit root tests are known to suffer from potentially crippling size distortions, and a range of procedures have been proposed to attenuate this problem, including the…
Abstract
Classical unit root tests are known to suffer from potentially crippling size distortions, and a range of procedures have been proposed to attenuate this problem, including the use of bootstrap procedures. It is also known that the estimating equation’s functional form can affect the outcome of the test, and various model selection procedures have been proposed to overcome this limitation. In this chapter, the authors adopt a model averaging procedure to deal with model uncertainty at the testing stage. In addition, the authors leverage an automatic model-free dependent bootstrap procedure where the null is imposed by simple differencing (the block length is automatically determined using recent developments for bootstrapping dependent processes). Monte Carlo simulations indicate that this approach exhibits the lowest size distortions among its peers in settings that confound existing approaches, while it has superior power relative to those peers whose size distortions do not preclude their general use. The proposed approach is fully automatic, and there are no nuisance parameters that have to be set by the user, which ought to appeal to practitioners.
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Mohd Irfan and Anup Kumar Sharma
A progressive hybrid censoring scheme (PHCS) becomes impractical for ensuring dependable outcomes when there is a low likelihood of encountering a small number of failures prior…
Abstract
Purpose
A progressive hybrid censoring scheme (PHCS) becomes impractical for ensuring dependable outcomes when there is a low likelihood of encountering a small number of failures prior to the predetermined terminal time T. The generalized progressive hybrid censoring scheme (GPHCS) efficiently addresses to overcome the limitation of the PHCS.
Design/methodology/approach
In this article, estimation of model parameter, survival and hazard rate of the Unit-Lindley distribution (ULD), when sample comes from the GPHCS, have been taken into account. The maximum likelihood estimator has been derived using Newton–Raphson iterative procedures. Approximate confidence intervals of the model parameter and their arbitrary functions are established by the Fisher information matrix. Bayesian estimation procedures have been derived using Metropolis–Hastings algorithm under squared error loss function. Convergence of Markov chain Monte Carlo (MCMC) samples has been examined. Various optimality criteria have been considered. An extensive Monte Carlo simulation analysis has been shown to compare and validating of the proposed estimation techniques.
Findings
The Bayesian MCMC approach to estimate the model parameters and reliability characteristics of the generalized progressive hybrid censored data of ULD is recommended. The authors anticipate that health data analysts and reliability professionals will get benefit from the findings and approaches presented in this study.
Originality/value
The ULD has a broad range of practical utility, making it a problem to estimate the model parameters as well as reliability characteristics and the significance of the GPHCS also encourage the authors to consider the present estimation problem because it has not previously been discussed in the literature.
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