The conceptualisation of operational risk management models

Operational risk is evolving as a specialist field of risk management that must be practiced within all organisations, but currently has a particular relevance to banks. The Basel Committee on Banking Supervision has circulated a consultative paper which, if adopted by nation-state bank supervisors, will impose an operational risk capital charge on banks as part of a new Capital Accord. The definition of operational risk is wide-ranging and creates some unique issues related to the development of appropriate risk management models. This paper conceptualises two distinct operational risk management models; being a predictive model that will result in a known outcome upon its implementation, and a pre-emptive operational risk management model which prepares an organisation in the event that a future risk occurrence results in a disruption to critical business operations.

Unifying manufacturing simulation models using HLA

The increasing use of simulation in manufacturing has seen an increase in simulation models created using many simulation package. This use of different simulators can create simulation islands in a manufacturing factory, making it difficult to get a true simulated overview of the factory. At present, there are only a few cases where manufacturing simulations have been linked to enable multiple simulation models to run as one. This research expands upon these cases. For this paper the topic of discussion is the research in connecting different 'Commercial Off The Shelf' simulators together to allow flow of all information through the connected models using high level architecture.

Applying a reconfigurable multi-agent scheduler to product distribution

More intelligent scheduling methods are required for manufacturing scheduling due to the move to more agile systems. Multi-agent methods are one such approach. This paper describes the application of a reconfigurable multi-agent scheduler to the problem of allocating orders to warehouses in a distribution supply chain. This multi-agent system was originally developed for allocation of orders to machines in a highly reconfigurable manufacturing system and this work was aimed at investigating the ease of applying this same scheduler to other problems. It was found that this new application was readily achieved because of the modular structure of the scheduler. This paper shows how the application to the new problem was achieved.

Corporate governance failure and its impact on National Australia Bank's performance

The National Australia Bank (NAB) is the largest financial services institution listed on the Australian stock exchange and is within the 30 most profitable financial services organisation in the world. In January 2004, the bank disclosed to the public that it had identified losses relating to unauthorised trading in foreign currency options amounting to AUD360 million. Thisforeign exchange debacle was classified as operational risk, the risk of loss resulting from inadequate or failed processes, people, or systems and reiterated the importance of corporate governance for banks. Concurrent issues of National Australia Bank's AUD4.1 billion loss on US HomeSide loans in 2001, the degree of strength of their risk management practices and lack of auditor independence, were raised by the US Securities and Exchange Commission in 2004, reinforcing the view that corporate governance had not been given the priority it deserved over a number of years. This paper will assess and critically analyse the impact of corporate governance failure by management and Board of Directors on NAB's performance over the years 2001-2005.

An education and training framework for disaster risk management in banks

Banks are the most significant financial institutions operating within nation-state and the global financial system. These institutions are exposed to a wide range of operational risks. Disaster risk management is a critical component of the wider operational risk management. The Bank for International Settlements, in conjunction with nation-state prudential regulators, is introducing measures that will require banks to identify, measure and manage operational risks within the context of new capital adequacy requirements. An essential part of any risk management process is education and training. This paper presents a structured education and training framework that will support the achievement of banks’ disaster risk management objectives. The education and training framework comprises three specific programs: (1) an induction/awareness program targeted to all personnel, (2) a contingency planning program – a specialist program for disaster risk management personnel, and (3) an executive program designed for senior management, directors and strategic decision makers.

Pointwise construction of Lipschitz aggregation operators

This paper establishes tight upper and lower bounds on Lipschitz aggregation operators considering their diagonal, opposite diagonal and marginal sections. Also we provide explicit formulae to determine the bounds. These are useful for construction of these type of aggregation operators, especially using interpolation schemata.

Handling of neutral information by aggregation operators

We generalize the notion of a neutral element of aggregation operators. Our construction involves tuples of values that are neutral with respect to the result of aggregation. Neutral tuples are useful to model situations in which information from different sources, or preferences of several decision makers, cancel each other. We examine many popular classes of aggregation operators in respect to their neutral sets, and also construct new aggregation operators with predefined neutral sets

The impact of enterprise resource planning systems on management accounting : an Australian study

Information technology is significantly changing the operating practices of an increasing number of companies globally. These developments have important implications for the accounting profession and in particular accounting practices in the twenty-first century. This study examines the development of enterprise resource planning (ERP) systems as a means of illustrating how changes in information technology allows all systems in a company to be linked to manage operations holistically.

The study investigates the change in accounting systems using a sample of Australian companies with emphasis on the adoption of ERP systems including the potential impact of ERP on capital budgeting processes. The results show that ERP systems are changing management accounting practices, although at this stage, the impact on capital budgeting techniques appears to be limited. The findings contribute to the emerging body of literature on the development of ERP systems and its impact on management accounting teaching and research.

Molecular recognition of DNA by rigid [n]-polynorbornane-derived bifunctional intercalators: synthesis and evaluation of their binding properties

We have exploited the concept of multivalency in the context of DNA recognition, using novel chemistry to synthesize a new type of bis-intercalator with unusual sequence-selectivity. Bis-intercalation has been observed previously, but design principles for de novo construction of such molecules are not known. Our compounds feature two aromatic moieties projecting from a rigid, polynorbornane-based scaffold. The length and character of the backbone as well as the identity of the intercalators were varied, resulting in mono- or divalent recognition of the double helix with varying affinity. Our lead compound proved to be a moderately sequence-selective bis-intercalator with an unwinding angle of 27 and a binding constant of about 8 M. 9-Aminoacridine rings were preferred over acridine carboxamides or naphthalimides, and a rigid [3]-polynorbornane scaffold was superior to a [5]-polynorbornane. The flexibility of the linker connecting the rings to the scaffold, although less influential, could affect the strength and character of the DNA binding.

Incorporation of a molecular hinge into molecular tweezers by using tandem gycloadditions onto 5,6-Dimenthylenenorbornene

Site-selective 1,3-dipolar coupling at the norbornene p-bond of 5,6-dimethylenenorbornene 1 yields cycloadducts with an end-fused 1,3-diene system which have been reacted with N=N (or C=C) dienophiles to produce ribbon molecules, in which the internal diazacyclohexene (or cyclohexene) subunits are capable of acting as conformational hinges. Direct coupling of 5,6-dimethylenenorbornene with 1,3,4-oxadiazoles or dual coupling with bis(cyclobutene epoxides) afforded bis(1,3-dienes) that diastereoselectively react with dienophiles to produce new, conformationally mobile, molecular tweezers.

syn-Facial hetero-bridged [n]polynorbornanes : a new class of polarofacial framework molecules composed of fused 7-oxa- and 7-azanorbornanes

New oxygen-bridged norbornane-fused cyclobutene epoxides and bis-(cyclobutene epoxides) are described and shown to react stereoselectively with 7-azanorbornenes to produce syn-facial N,O-bridged polynorbornanes and stereorandomly with 7-oxanorbornenes to produce O,O-bridged polynorbornanes as mixtures of syn-facial and anti-facial products.[1] Polarofacial systems containing up to six syn-facial norbornane bridges are described, while systems with seven co-facial oxygen atoms have been prepared by incorporating terminal epoxide rings to O5-[5]polynorbornanes. Ester-substituted 1,3,4-oxadiazoles are shown to be useful reagents for coupling 7-oxanorbornanes and produce predominantly syn-facial O-bridged polarofacial systems together with their anti-facial isomers.

Reactions to increased workload: effects on professional efficacy of nurses

Research findings support the idea that workload is a significant stressor associated with a variety of deleterious psychological reactions, including burnout, in several different samples of workers. A theoretical model is put forth in the present study in which workload is seen as contributing to distress and depression. Increasingly, organisations are experiencing changes as a result of extensive downsizing, restructuring, and merging. As a result of fiscal restraint, hospitals have been forced to merge, close, downsize, and restructure. Workloads have increased among hospital staff, particularly nurses. This study applies a theoretical model to the understanding of the impact of workload on nurses employed in hospitals experiencing downsizing, particularly on their distress, burnout, and depression. Respondents were 488 nurses who were employed in hospitals that were undergoing restructuring and in which units had already been closed as a result of restructuring. Results of structural equation modeling showed that the data partially fit the model and that workload contributed substantially to levels of depression through distress reactions. Further results showed that cynicism, anger, and emotional exhaustion significantly operationalised distress reactions. This study is unique theoretically in linking anger, cynicism, and emotional exhaustion in a single model that predicts distress levels from workload. The findings that anger, cynicism, and emotional exhaustion operationalised distress indicate the importance of studying patterns of negative reactions and their consequences for depression. Implications of the results are discussed for interventions that can be taken by organisations in order to reduce workloads.