Stress testing practices in risk management - Empirical evidence from the Finnish banking and insurance sectors

The main purpose of this study was to analyze how stress tests are used in risk management in the Finnish banking and insurance sectors. In order to enhance understanding of the topic, stress testing was explored in the context of corporate governance and regulato-ry implications of Basel II and Solvency II on stress testing were examined. In addition, the effects of the global financial crisis on stress testing were mapped and the differences in stress testing practices between the banking and insurance sector were discussed. The research method was qualitative case study and it was conducted by interviewing risk managers from ten institutions and a representative from FIN-FSA. Findings pointed out that stress testing practices vary significantly between different institutions. Interesting observations were made in terms of stress testing practices in the banking and insurance sectors. The increasing importance and use of stress tests were recognized as a result of the financial crisis. Stress testing was even considered more like art than science given the amount of challenges it involves. In general, improvements in stress tests were suggested, with an emphasis on stress concentration between different types of risks.

Maailman ydinvoimaloiden alttius maanjäristyksille

Ydinvoimaloiden maanjäristysturvallisuutta on tutkittu uudelleen vuoden 2011 Fukushiman onnettomuuden seurauksena. Vuoden 2014 tammikuussa maailmalla oli 438 toimivaa ydinreaktoria, joista arviolta 20 % sijaitsi järistysherkillä alueilla. Työssä tutkitaan ydinvoimalaitosten varautumista maanjäristyksiin, sekä kartoitetaan myös maailmalta maanjäristysten suhteen vaarallisia alueita. Työssä selvitetään myös mitä Fukushiman onnettomuudesta on opittu. Maailmalla tapahtuneita maanjäristyksiä käydään läpi internetistä löytyvien tilastojen avulla. Maanjäristysten vaikutusta ydinvoimaloiden turvallisuuteen tarkastellaan Fukushiman onnettomuuden seurauksena aloitettujen tutkimusten, sekä Euroopan stressitestien avulla. Maanjäristyksen todennäköisyyksien ja ydinvoimalaitosten sijaintien perusteella maanjäristysriskin kannalta vaarallisimmat alueet sijaitsevat Japanissa, Yhdysvaltojen länsirannikolla ja Intiassa. Maanjäristyksiin varautuminen perustuu maanjäristysriskin suuruuden ennustettavuuteen. Suurimmilla riskialueilla on tehty tutkimustyötä maanjäristysriskin suuruuden arvioinnissa, sekä varauduttu arvioitujen riskitasojen mukaisesti.

A modified nominal stress method for fatigue assessment of steel plates with thermally cut edges

Thermal cutting methods, are commonly used in the manufacture of metal parts. Thermal cutting processes separate materials by using heat. The process can be done with or without a stream of cutting oxygen. Common processes are Oxygen, plasma and laser cutting. It depends on the application and material which cutting method is used. Numerically-controlled thermal cutting is a cost-effective way of prefabricating components. One design aim is to minimize the number of work steps in order to increase competitiveness. This has resulted in the holes and openings in plate parts manufactured today being made using thermal cutting methods. This is a problem from the fatigue life perspective because there is local detail in the as-welded state that causes a rise in stress in a local area of the plate. In a case where the static utilization of a net section is full used, the calculated linear local stresses and stress ranges are often over 2 times the material yield strength. The shakedown criteria are exceeded. Fatigue life assessment of flame-cut details is commonly based on the nominal stress method. For welded details, design standards and instructions provide more accurate and flexible methods, e.g. a hot-spot method, but these methods are not universally applied to flame cut edges. Some of the fatigue tests of flame cut edges in the laboratory indicated that fatigue life estimations based on the standard nominal stress method can give quite a conservative fatigue life estimate in cases where a high notch factor was present. This is an undesirable phenomenon and it limits the potential for minimizing structure size and total costs. A new calculation method is introduced to improve the accuracy of the theoretical fatigue life prediction method of a flame cut edge with a high stress concentration factor. Simple equations were derived by using laboratory fatigue test results, which are published in this work. The proposed method is called the modified FAT method (FATmod). The method takes into account the residual stress state, surface quality, material strength class and true stress ratio in the critical place.