Towards a Better Modelling and Assessment of Construction Risk: Insights from a Literature Review

This paper reviews the literature of construction risk modelling and assessment. It also reviews the real practice of risk assessment. The review resulted in significant results, summarised as follows. There has been a major shift in risk perception from an estimation variance into a project attribute. Although the Probability–Impact risk model is prevailing, substantial efforts are being put to improving it reflecting the increasing complexity of construction projects. The literature lacks a comprehensive assessment approach capable of capturing risk impact on different project objectives. Obtaining a realistic project risk level demands an effective mechanism for aggregating individual risk assessments. The various assessment tools suffer from low take-up; professionals typically rely on their experience. It is concluded that a simple analytical tool that uses risk cost as a common scale and utilises professional experience could be a viable option to facilitate closing the gap between theory and practice of risk assessment.

Investigating illegal fishing practices on Lake George: a case study of Kayinja landing site, Kamwenge District

The study was done at Kayinja landing site, one of the six gazzeted landing sites located on the eastern side of Lake George, Kamwenge district to investigate illegal fishing practices on the lake. The objectives of the study were to identify the fish species most affected by illegal fishing, factors that drive illegal fishing on the lake, impact of illegal fishing to the fishery and livelihoods of the communities around the lake and to find out the prospect of ending illegal fishing on the lake. A participatory approach was used during the study where fishers and fisheries staff were interviewed for the fish species targeted, current management approach so as to find out species at risk and anticipate the prospect or ending illegal fishing respectively also past records of the daily catch ror a period of five years were used to study the trend henee ascertain the impact of illegal fishing to the fishery and livelihoods of the communities around. Results indicated that the most targeted fish hence other wise affected by illegal fishing is Oreochromis niloticus, the most immediate impact being a decline in fish stocks, whereas defining mechanisms to increase fish stocks through closed seasons and implementation of minimum mesh size policy being the prospect to end illegal fishing on the lake.

Revisão do plano de segurança da água do sistema regional do Carvoeiro

Os Planos de Segurança da Água surgem com a necessidade de aumentar a segurança da água de abastecimento, superando a monitorização de conformidade de “fim de linha”, permitindo aumentar a confiança do consumidor na qualidade da água que lhe é fornecida. Esta nova abordagem recorre a uma metodologia de gestão baseada na identificação e no controlo de riscos em pontos críticos de um sistema de abastecimento, em complemento do controlo realizado através da monitorização da conformidade da água entregue aos consumidores. O Plano de Segurança da Água (PSA) encontra-se implementado no Sistema Regional do Carvoeiro (SRC) desde o ano de 2009. O SRC é um sistema de abastecimento de água em alta, sendo constituído por conjunto de infraestruturas de captação, tratamento, transporte e armazenamento de água desde a sua origem, localizada no rio Vouga, em Carvoeiro, até aos municípios integrados na Associação de Municípios do Carvoeiro-Vouga. Atendendo à obra de expansão do SRC, tornou-se imperativo efetuar uma revisão ao PSA, sendo este o objetivo primordial do trabalho de estágio desenvolvido na empresa Águas do Vouga S.A, concessionária responsável pela gestão do SRC. Para a prossecução deste objetivo, o trabalho desenvolvido envolveu os seguintes passos metodológicos: identificação das operações aplicadas no SRC; identificação de perigos e eventos perigosos em todos os órgãos constituintes do sistema; avaliação de riscos; identificação de pontos críticos de controlo; identificação de pontos de monitorização e medidas preventivas; elaboração do plano de monitorização, incluindo, procedimentos de controlo operacional em condições normais de funcionamento e em caso de desvio; validação deste plano. Deste trabalho resultou a identificação de 166 eventos perigosos, 17 tipologias de perigos, 3 pontos de controlo crítico e 17 pontos de monitorização. Os pontos de controlo crítico foram identificados nos processos de tratamento da ETA do Carvoeiro. O primeiro foi localizado na etapa de filtração com areia, antracite e zeólitos correspondendo aos perigos com metais (Fe e Mn), outros compostos químicos perigosos, partículas, turvação, matéria orgânica e alumínio. O segundo ponto foi identificado na etapa de filtração com filtros de carvão ativado granular relativo ao aparecimento de sabor e cianotoxinas. O terceiro ponto de controlo crítico foi encontrado na etapa de desinfeção referente aos microrganismos patogénicos. Os pontos de monitorização foram localizados ao longo do sistema em situações onde não se dispõem de nenhuma medida de controlo para eliminar o perigo e antes e após os pontos de controlo crítico. O plano de monitorização foi desenvolvido para estes pontos, embora os limites e procedimentos definidos devam ser alvo de revisão após a conclusão da obra de expansão do sistema. A validação da revisão do plano foi iniciada, mas cingiu-se apenas na avaliação preliminar de riscos, prévia ao início de operação da ETA do Carvoeiro. Para além da revisão deste plano, foram realizadas outras tarefas, nomeadamente uma análise à qualidade da água fornecida e distribuída pelo sistema, a elaboração do plano PCQA para o ano de 2016, a configuração da plataforma de gestão operacional NAVIATM e a revisão do Manual de Gestão da Águas do Vouga relativo ao processo de qualidade na captação, tratamento e distribuição e ao processo de qualidade na gestão do PSA.

Essays in Corporate Finance

Prior research has been divided regarding how firms respond to bankruptcy risk, largely revolving around two competing forces. On the one hand, asset substitution encourages firms to increase the riskiness of assets to extract value from creditors. On the other, firms want to minimize bankruptcy risk, either by reducing cash flow risk or through increasing the size of the firm. I test these two theories using a natural experiment of chemicals used in production processes being newly identified as carcinogenic to explore how firms may respond to potential negative cash flow resulting from litigation risk. I use plantlevel chemical data to study firm exposure to risk. I examine how responses between firms of differing levels of chemical exposure may vary within the industry, how firm financial distress affects firm response and whether public and private firms respond differently. In general, my research provides support for the asset substitution theory. My first paper studies how investment response varies based on level of carcinogenic exposure. I find that firms with moderate levels of exposure make efforts to mitigate their cash flow risk and reduce their exposure. At the same time, firms with high levels of exposure increase their exposure and riskiness of future cash flows. These findings are consistent with asset substitution theory. My second paper analyzes the interaction of financial distress and risk exposure. I find that firms in a stronger financial position are more likely to limit their exposure by reducing the number of exposed facilities. On the other hand, not only do firms in weaker financial position not decrease their exposure, I find that, in some instances, they increase their exposure to carcinogens. This work again supports the theory of asset substitution. Finally, in my third paper, I explore if public firms respond differently to a potential negative cash flow shock than do private firms. I test whether existing public firms are more likely to attempt to minimize their cash flow risk and thus reduce their carcinogen exposure than are private firms. I do not find evidence that public firms respond differently to this shock than do private firms.

Notification of data breaches under the continuous disclosure regime

Consumer personal information is now a valuable commodity for most corporations. Concomitant with increased value is the expansion of new legal obligations to protect personal information. Mandatory data breach notification laws are an important new development in this regard. Such laws require a corporation that has suffered a data breach, which involves personal information, such as a computer hacking incident, to notify those persons who may have been affected by the breach. Regulators may also need to be notified. Australia currently does not have a mandatory data breach notification law but this may be about to change. The Australian Law Reform Commission has suggested that a data breach notification scheme be implemented through the Privacy Act 1988 (Cth). However, the notification of data breaches may already be required under the continuous disclosure regime stipulated by the Corporations Act 2001 (Cth) and the Australian Stock Exchange (ASX) Listing Rules. Accordingly, this article examines whether the notification of data breaches is a statutory requirement of the existing continuous disclosure regime and whether the ASX should therefore be notified of such incidents.

Disclosure of proxy voting information by Australian managed investment schemes

The US Securities and Exchange Comission requires registered management investment companies to disclose how they vote proxies relating to portfolio securities they hold. The primary purpose of this rule is to enable fund investors to monitor the role of institutional shareholders in the corporate governance practices of public companies. In Australia, despite reform proposals, there are no regulations requiring institutional investors to report proxy voting procedures and practises. There is little evidence of voluntary disclosure of proxy voting by Australian managed investment schemes in equities, indicating that there are costs involved in such disclosure.

Disclosure of proxy voting information by Australian managed investment schemes

The US Securities and Exchange Commission requires registered management investment companies to disclose how they vote proxies relating to portfolio securities they hold. The primary purpose of this rule is to enable fund investors to monitor the role of institutional shareholders in the corporate governance practices of public companies. In Australia, despite reform proposals, there are no regulations requiring institutional investors to report proxy voting procedures and practices. There is little evidence of voluntary disclosure of proxy voting by Australian managed investment schemes in equities, indicating that there are costs involved in such disclosure.

The effect of national governance codes on firm disclosure practices : evidence from analyst earnings forecasts

This study examines whether voluntary national governance codes have a significant effect on company disclosure practices. Two direct effects of the codes are expected: 1) an overall improvement in company disclosure practices, which is greater when the codes have a greater emphasis on disclosure; and 2) a leveling out of disclosure practices across companies (i.e., larger improvements in companies that were previously poorer disclosers) due to the codes new comply-or-explain requirements. The codes are also expected to have an indirect effect on disclosure practices through their effect on company governance practices. The results show that the introduction of the codes in eight East Asian countries has been associated with lower analyst forecast error and a leveling out of disclosure practices across companies. The codes are also found to have an indirect effect on company disclosure practices through their effect on board independence. This study shows that a regulatory approach to improving disclosure practices is not always necessary. Voluntary national governance codes are found to have both a significant direct effect and a significant indirect effect on company disclosure practices. In addition, the results indicate that analysts in Asia do react to changes in disclosure practices, so there is an incentive for small companies and family-owned companies to further improve their disclosure practices.

Role of corporate governance in mitigating the selective disclosure of executive stock option information

We examine the nature and extent of statutory executive stock option (ESO) disclosures by Australian listed companies over the 2001 to 2004 period, and the influence of corporate governance mechanisms on these disclosures. Our results show a progressive increase in overall compliance from 2001 to 2004. However, despite the improved compliance, the results reveal managements’ continued reluctance to disclose more sensitive ESO information. Factors associated with good internal governance, including board independence, audit committee independence and effectiveness, and compensation committee independence and effectiveness are found to contribute to improved compliance. Similarly, certain external governance factors are associated with improved disclosure, including external auditor quality, shareholder activism (as proxied by companies identified as poor performers by the Australian Shareholders’ Association), and regulatory intervention.

Were regulatory changes in reporting "abnormal items" justified? : evidence of intra-period classificatory earnings management practices in Australia

Purpose Managers generally have discretion in determining how components of earnings are presented in financial statements in distinguishing between ‘normal’ earnings and items classified as unusual, special, significant, exceptional or abnormal. Prior research has found that such intra-period classificatory choice is used as a form of earnings management. Prior to 2001, Australian accounting standards mandated that unusually large items of revenue and expense be classified as ‘abnormal items’ for financial reporting, but this classification was removed from accounting standards from 2001. This move by the regulators was partly in response to concerns that the abnormal classification was being used opportunistically to manage reported pre-abnormal earnings. This study extends the earnings management literature by examining the reporting of abnormal items for evidence of intra-period classificatory earnings management in the unique Australian setting. Design/methodology/approach This study investigates associations between reporting of abnormal items and incentives in the form of analyst following and the earnings benchmarks of analysts’ forecasts, earnings levels, and earnings changes, for a sample of Australian top-500 firms for the seven-year period from 1994 to 2000. Findings The findings suggest there are systematic differences between firms reporting abnormal items and those with no abnormal items. Results show evidence that, on average, firms shifted expense items from pre-abnormal earnings to bottom line net income through reclassification as abnormal losses. Originality/value These findings suggest that the standard setters were justified in removing the ‘abnormal’ classification from the accounting standard. However, it cannot be assumed that all firms acted opportunistically in the classification of items as abnormal. With the removal of the standardised classification of items outside normal operations as ‘abnormal’, firms lost the opportunity to use such disclosures as a signalling device, with the consequential effect of limiting the scope of effectively communicating information about the nature of items presented in financial reports.

The extent of the insured’s duty of disclosure : a comparative analysis of the disclosure obligations of insured in Australia, Singapore and China

Pre-contractual material disclosure and representation from an insurance policy proposer is the most important element for insurers to make a decision on whether a proposer is insurable and what are the terms and conditions if the proposal by the proposer is able to be insured. The issue this thesis researches and investigates focus on the issues related to the pre-contractual non-disclosures and misrepresentations of an insured under the principle of utmost good faith, by operation of laws, can achieve with different results in different jurisdiction. A similar disputed claim involving material non-disclosed personal information or misrepresentation at the pre-contractual stage from an insured with respect to both general and life insurance policies settled by an insurer in Australia could be that the policy is set aside ab initio by the insurers in Singapore or China. The jurisdictions this thesis examines are • Australia; • Singapore; and • China including Hong Kong.

Media pressures and corporate disclosure of social responsibility performance information : a study of two global clothing and sports retail companies

This paper investigates the social and environmental disclosure practices of two large multinational companies, specifically Nike and Hennes&Mauritz. Utilising a joint consideration of legitimacy theory and media agenda setting theory, we investigate the linkage between negative media attention, and positive corporate social and environmental disclosures. Our results generally support a view that for those industry‐related social and environmental issues attracting the greatest amount of negative media attention, these corporations react by providing positive social and environmental disclosures. The results were particularly significant in relation to labour practices in developing countries – the issue attracting the greatest amount of negative media attention for the companies in question.