GAFM Articles

An understanding of the benefits of managing risk - II (December 2006) | Risk Management
by Michael Vincent

Two months ago we started our examination of the seven “S” model, now at last we can complete this area and start to use it as a risk management tool. We were interrupted because of the great news from the AIRM about the CPRM and my need to get the concept of stakeholder value rather than shareholder value into our view of the intrinsic valuation of a successful business. ...[ Read More ]

An understanding of the benefits of managing risk - June 2001 (December 2006) | Risk Management
by Michael Vincent

For the last two months we have looked at ensuring a framework for survival that can be overlaid onto a business to give the best chance of being in existence at the start of the recovery. The jury is still out on how deep the fall will be; indeed some are arguing that we have almost bottomed. ...[ Read More ]

Why Risk Management? (December 2006) | Risk Management
by Michael Vincent

Have you wondered why the words ‘risk management’ are heard so widely today? Have you considered what can be achieved with an understanding of the term? Indeed, is the term used or misused in today’s business world? ...[ Read More ]

The Dimensions of Risk Management - Workers Camp Feb 2003 (December 2006) | Risk Management
by Michael Vincent

Society is evolving; if enterprises do not change to meet the acceptable community standards then they will disappear from the industrial landscape. Government is the instrument of change, in other words they are charged with the reflection and implementation of community standards across society as a whole. Business needs to apply the principles of the management of risk in order to stay in front of compliance requirements. ...[ Read More ]

Duration as an effective risk management tool for interest rate risk (December 2006) | Risk Management
by Michael Vincent

Duration is the effective maturity of a security because it can account for the interim cash flows. Traditionally duration as a risk management tool has focused on bond portfolios, however Melanie Ferger, an exchange student from Germany looked at the tool in relation to asset and liability management from a financial institution’s viewpoint. The theme of her project sought to validate her hypothesis that duration could be used as an effective interest rate management tool for the liability side of a financial institution’s balance sheet. ...[ Read More ]