Browsing by Subject "Risk management"

Now showing 1 - 3 of 3
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    Open Access
    A systemic exploration of risks in mobile application development projects and environments
    (2022) du Plessis, Ashlea; Tuan, Nien-Tsu
    Purpose - The aim of this research is to develop an understanding of the most common risks encountered during mobile application development projects and identify the interrelationships that exist between these risks to highlight the core risk drivers that negatively impact these projects and outcomes. Research design and methodology - This study adopted a holistic approach using Warfield's Interactive Management (IM) methodology to understand the risks that hinder MAD projects and understand the interrelationships between these risks to identify the core driving risks. IM can be divided into four phases. In the first phase, Idea generation, participants were asked through a survey to define their role and list the risks they perceive as most important within their environment. The second phase, Idea clarification, was actioned through online video calls where participants discussed the risks to get a shared understanding of each risk. The third phase, Idea structuring, was also executed through online video calls where participants agreed on the relationships that exist between each risk through pair-to-pair comparison using Interpretive Structural Modelling (ISM) software. The final phase, Interpretation, required participants to review the interpretive structural model and agree on the core risks that mainly negatively impact MAD projects. Research finding - The research revealed three core risks that significantly lead to other risks that will negatively impact MAD projects and environments within the context of this study. These risks include ‘Lack of platform knowledge', ‘Poor team skills and capabilities', and ‘Poor quality and observability of data/analytics to understand user behaviour'. Value of the research – This research contributes to the following: 1) Risks that are identified and prioritised as dominant risks can be compared to the lists from existing studies that aimed to highlight unique risks in MAD projects, 2) By understanding the inter-relationships between risks, a few root causes/risk drivers can be highlighted which should receive more attention throughout the project, 3) By adopting a systemic approach, it helps to reveal context-specific issues which may not be available in existing literature, and 4) The collaborative learning nature of the IM approach adds to research on the sustainability of complex MAD projects implemented in pluralist and coercive environments.
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    Open Access
    How deep is your model? Network topology selection from a model validation perspective
    (2022-01-03) Nowaczyk, Nikolai; Kienitz, Jörg; Acar, Sarp K; Liang, Qian
    Deep learning is a powerful tool, which is becoming increasingly popular in financial modeling. However, model validation requirements such as SR 11-7 pose a significant obstacle to the deployment of neural networks in a bank’s production system. Their typically high number of (hyper-)parameters poses a particular challenge to model selection, benchmarking and documentation. We present a simple grid based method together with an open source implementation and show how this pragmatically satisfies model validation requirements. We illustrate the method by learning the option pricing formula in the Black–Scholes and the Heston model.
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    Open Access
    Investigating Pre-Financial Close Risks Associated with Communal Land Ownership Rights in Onshore Wind Energy Development in South Africa
    (2020) Mokone, Bothokgami; Madhlopa, Amos
    There are challenges to be addressed if South Africa is to reach its full potential in exploiting wind energy resources. One of such challenges is communal land ownership, which is used for the development of wind energy in rural areas. Often, communal lands have no formal land structures, ownership or title deeds to support the individuals and communities that claim possession thereof. This challenge of communal land ownership and the associated risks impact upon investments by independent power producers in wind energy infrastructure. Land in South Africa remains a highly sensitive issue given the historical injustice of land dispossession which became the source of poverty and inequality. Moreover, transitioning to renewable energy sources would add more pressure on land scarcity. Commercial wind energy projects are capital intensive, with high annual turnovers. Achieving financial close is a risk mitigation strategy that confirms that early-stage contractual agreements have been reached in the development stage of a wind project lifecycle. Therefore, risk identification and allocation are fundamental to ensuring that the structuring and contractual obligations of non-recourse project financing are met. Wind energy plants require significant stretches of land, and this is progressing at an industrial scale and often, onshore wind energy projects are located in rural areas, thereby impacting local communities. Land ownership rights are a key element for communities, in which renewable energy development takes place. Households living on communal land, of which the right to use land is vested in individual households, are situated on such lands. This study uses the theory of risk management to investigate pre-financial close risks in developing wind energy associated with communal land ownership rights and the extent to which those risks inhibit wind energy projects from reaching financial close in South Africa. An exploratory research design was applied, while a questionnaire survey was used to collect data from wind developers. The study identified the pre-financial close risks associated with communal land to be technical, legal, economic, social and political risks. Indeed, there is a lack of clear, long-term policy framework to support investments in clean energy infrastructure. This causes significant delays to wind energy project development and it negatively affects financial close. In addition, there are competing interests among multiple stakeholders, leading to the burdensome processes involved in securing leasehold agreements on communal land. As a result, projects which were initially proposed on communal land, have not always reach financial close as planned while others were stopped. The results show that risk mitigation tools could include effective and continuous stakeholder management which is critical to reaching financial close. Furthermore, the Department of Rural Development and Land Reform has not established a streamlined process that developers can follow to secure communal land leasehold rights, given that the process is time-consuming.