• Journal of Electrical Engineering and Technology
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• v.9 no.3
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• pp.789-795
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• 2014

In a demand response (DR) market run by independent system operators (ISOs), load aggregators are important market participants who aggregate small retail customers through various DR programs. A load aggregator can minimize the allocation cost by efficiently allocating its demand response resources (DRRs) considering retail customers' characteristics. However, the uncertain response behaviors of retail customers can influence the allocation strategy of its DRRs, increasing the economic risk of DRR allocation. This paper presents a risk-based DRR allocation method for the load aggregator that takes into account not only the physical characteristics of retail customers but also the risk due to the associated response uncertainties. In the paper, a conditional value-at-risk (CVaR) is applied to deal with the risk due to response uncertainties. Numerical results are presented to illustrate the effectiveness of the proposed method.

• Korean Management Science Review
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• v.33 no.3
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• pp.105-117
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• 2016

In this paper, we present empirical testing result to examine the validity of inbound supply and outbound demand risk factors in the sense of early predicting the firm's bankruptcy risk level. The risk factors are drawn from industry uncertainty attributes categorized as uncertainties of input market (inbound supply), and product market (outbound demand). On the basis of input-output table, industry level inbound and outbound sectors are identified to formalize supply chain structures, relevant inbound and outbound uncertainty attributes and corresponding risk factors. Subsequently, publicly available macro-economic indicators are used to appropriately quantify these risk factors. Total 68 industry level bankruptcy risk forecasting results are presented with the average R-square scores of between 53.4% and 37.1% with varying time lag. The findings offers useful insights to incorporate supply chain risk to the body of firm's bankruptcy risk level prediction literature.

• Journal of the Korean Home Economics Association
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• v.38 no.12
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• pp.29-45
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• 2000

The purposes of this study were to determine what factors influence risk perceptions of females and males for milk produced using food-related biotechnology, to test whether risk perceptions or other factors influence self-protection actions and to estimate milk demand response in light of self-protection actions and other economic and demographic factors. The expected utility model was applied to explain the way consumers would take self-protection actions regarding risk perceptions and to drive milk demand. Telephone interviews were conducted and the data were collected from households(females=1,029, males=437) nationwide in the U.S. And the data were analyzed by Heckman two-step method using the software package LIMDEP. Risk perceptions were found to be influenced not by demographic factors but by outrage factors as well as attitudinal factors in both females and males, although some factors were different. In addition, risk perceptions and labeling availability were found to significantly influence self-protection actions in both groups. Furthermore, as an important concern in this study, self-protection action was found to significantly influence milk demand in only male group, implying a consistent behavior of males. Also milk price and household size were found to significantly influence milk demand in both groups. In fact, the results did demonstrate that labeling availability significantly influenced self-protection actions. That is, in markets where labeled laternatives were present, concerned consumers were more likely to self protect by substituting to these products. A policy implication of this result is that labeling food products produced using biotechnology enhances consumer choice. Hence, consumer could express a more accurate demand response and reduce the perceived food safety risk. Furthermore, education for females might be necessary to have a consistent behavior because self-protection action did not significantly influence female's milk demand, though they have greater risk perceptions than males have.

• Journal of Information Technology Applications and Management
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• v.22 no.2
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• pp.201-217
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• 2015

In this paper, we report computational testing result to examine the validity of firm's bankruptcy risk estimation through quantification of supply chain risk. Supply chain risk in this study refers to upstream supply risk and downstream demand risk, To assess the firm's risk affected by supply chain risk, we adopt unit of analysis as industry level. since supply and demand relationships of the firm could be generalized by the industry input-output table and the availability of various valid economic indicators which are chronologically calculated. The research model to estimate firm's risk level is the linear regression model to assess the industry bankruptcy risk estimation of the focal firm's industry with the independent variables which could quantitatively reflect demand and supply risk of the industry. The publicly announced macro economic indicators are selected as the candidate independent variables and validated through empirical testing. To validate our approach, in this paper, we confined our research scope to steel industry sector and its related industry sectors, and implemented the research model. The empirical testing results provide useful insights to further refine the research model as the valid forecasting mechanism to capture firm's future risk estimation more accurately by adopting supply chain industry risk aspect, in conjunction with firm's financial and other managerial factors.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.12
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• pp.469-474
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• 2020

This study explains the characteristics of micro-insurance based on the theoretical model of health insurance, such as the low demand of low-income people and the lower demand of higher risk aversion. In particular, these characteristics contradict the existing insurance theory which states that the lower the income, the higher the risk aversion, and the higher the demand for insurance. This study postulates a two-period model focusing on health insurance, contrary to a one-period model assumed in existing studies. As a result, first, we show that the decrease in income leads to a decrease in the preventive effort for illness. Second, we offer a model for micro-insurance in which the individual chooses a partial insurance under an actuarially fair insurance premium, while full insurance is optimal in existing studies. Third, we also show that the insurance demand decreases when the outlook for the future improves. Fourth, we finally show that the lack of trust and default risk of the insurer decrease the insurance demand as risk aversion increases.

• Journal of the Korean Society of Environmental Restoration Technology
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• v.23 no.6
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• pp.29-41
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• 2020

Wild pollinators provide important pollination services for crops. However, their geographical ranges and impact on pollination services have not been fully explored within the scope of Korean agricultural land. This study aims to identify spatial supply-demand mismatches across orchard fields in the context of assessing pollination service risk. We first used National Ecosystem Survey data and a species distribution model (MaxEnt) to develop the geographic range of each of 32 wild pollinators belonging to three families (Diptera, Hymenoptera, and Lepidoptera). We then summed the modeled presence probability of each species to obtain a measure of spatially explicit pollinator richness. This modeled richness, defined as pollination supply, was compared with the summed area of orchard fields at the municipal boundary level to identify areas with supply-demand mismatches. The study found that Lepidoptera showed the highest species richness (8.3±1.5), followed by Hymenoptera (4.3±0.8) and Diptera (3.5±0.8) species. Median orchard area was 1.5 ㎢ (range of 0-176.7 ㎢) among 250 municipal regions in South Korea. The municipal regions were divided into three categories (tertiles) of low, middle, and high pollination supply and demand according to, respectivley, average polliator richness and orhard area. Finally, we found that 55 municipal regions (accounting for 49% of national orchard land) potentially faced high risk of pollination deficits, 81 regions (48% of national orchard land) faced intermediate risk, and 63 regions faced low risk (3% of national orchard land). In conclusion, this study revealed significant mismatch between pollination supply and demand and developed risk assessment map will guide our future efforts on pollinator habitat conservation and monitoring to conserve crop pollination services.

• Journal of the Korea Safety Management & Science
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• v.13 no.2
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• pp.267-273
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• 2011

Since 'The Act on Private Investment of The Infrastructure' was established in 1994, private investment as well as government's investment in transport infrastructure has been active. However investment in transport infrastructure has more risks than others' due to uncertainty both in traffic volume and in construction cost. In the current appraisal procedure of deciding transportation infrastructure investment, instead of risk management, the sensitivity analysis considering only the changes of benefit, cost and social discount rate which are main factor affecting economic feasibility is carried out. Therefore the uncertainty of various factors affecting demand, cost and benefit are not considered in feasibility study. In this study the problems in current investment appraisal system were reviewed. Using Delphi technique the major factors which have high uncertainty in feasibility study were surveyed and then improvement plan was suggested in the respective of classic 4 step demand forecasting method. The range estimation technique was also mentioned to deal with the uncertainty of the future.

• Journal of The Korean Society of Agricultural Engineers
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• v.55 no.3
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• pp.41-49
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• 2013

Drought risk assessment is usually performed qualitatively and quantitatively depending on the definition a drought. The meteorological drought indices have a limit of not being able to consider the hydrological components such as evapotranspiration, soil moisture and runoff, because it does not consider the water demand in paddies and water supply in reservoirs. Agricultural drought was defined as the reservoir storage shortage state that cannot satisfy water requirement from the paddy fields. The objectives of this study were to suggest improved agricultural drought risk assessment in order to evaluate of regional drought vulnerability and severity studied by using Reservoir Drought Index (RDI). The RDI is designed to simulate daily water balance between available water from agricultural reservoir and water requirement in paddies and is calculated with a frequency analysis of monthly water deficit based on water demand and water supply condition. The results indicated that RDI can be used to assess regional drought risk in agricultural perspective by comparing with the historical records of drought in 2012. It can be concluded that the RDI obtained good performance to reflect the historical drought events for both spatially and temporally. In addition, RDI is expected to contribute to determine the exact situation on the current drought condition for evaluating regional drought risk and to assist the effective drought-related decision making.

• Fire Science and Engineering
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• v.30 no.6
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• pp.130-136
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• 2016

A university needs to analyze and improve its curricula with the perspective of the consumer to develop a syllabus for the training of industry-demand customized human resources. Accordingly, this paper surveyed the demand of fire-related industry workers to evaluate the major fitness of the curriculum of fire risk prediction and assessment and carried out descriptive statistical analysis, factor analysis, cluster analysis, and one-way ANOVA based on the results. According to the analysis, fire-related industry workers reported that the curriculum of fire risk prediction and assessment is suitable for majors. In addition, they were greatly aware of the necessity of basic major and common major subjects among subjects of fire risk prediction and assessment. The results of this analysis will provide the basic data to improve the curriculum continuously in the future.

• Journal of Korean Society of Transportation
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• v.35 no.4
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• pp.360-373
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• 2017

The BTO-a projects is the types, which has a demand risk among the type of PPP projects in Korea. When demand risk is realized, private investor encounters financial difficulties due to lower revenue than its expectation and the government may also have a problem in stable infrastructure operation. In this regards, the government has applied various risk sharing policies in response to demand risk. However, the amount of government's risk sharing is the government's contingent liabilities as a result of demand uncertainty, and it fails to be quantified by the conventional NPV method of expressing in the text of the concession agreement. The purpose of this study is to estimate the value of investment risk sharing by the government considering the demand risk in the profit sharing system (BTO-a) introduced in 2015 as one of the demand risk sharing policy. The investment risk sharing will take the form of options in finance. Private investors have the right to claim subsidies from the government when their revenue declines, while the government has the obligation to pay subsidies under certain conditions. In this study, we have established a methodology for estimating the value of investment risk sharing by using the Black - Scholes option pricing model and examined the appropriateness of the results through case studies. As a result of the analysis, the value of investment risk sharing is estimated to be 12 billion won, which is about 4% of the investment cost of the private investment. In other words, it can be seen that the government will invest 12 billion won in financial support by sharing the investment risk. The option value when assuming the traffic volume risk as a random variable from the case studies is derived as an average of 12.2 billion won and a standard deviation of 3.67 billion won. As a result of the cumulative distribution, the option value of the 90% probability interval will be determined within the range of 6.9 to 18.8 billion won. The method proposed in this study is expected to help government and private investors understand the better risk analysis and economic value of better for investment risk sharing under the uncertainty of future demand.