• Management & Information Systems Review
• /
• v.36 no.2
• /
• pp.187-206
• /
• 2017

This study empirically investigated the direct and indirect effects of inter-organizational relationships control mechanisms (IRCM; prudent partner selection and complex contract) on the decrease of inter-organizational risks (i.e., relational risk and performance risk). The empirical results showed that prudent partner selection has a positive impact on the degrees of inter-organizational cooperation and the levels of inter-organizational information flow. The effects of complex contract on the inter-organizational cooperation and information flow were not significant. In the results of the decrease of inter-organizational risks, it was observed that inter-organizational cooperation has significant positive effects on the decrease of both relational risk and performance risk. It was found that partner selection only influences the decrease of performance risk. The impact of inter-organizational information flow on the decrease of inter-organizational risks was not statistically significant. The indirect effects of IRCM on the decrease of performance risk through inter-organizational cooperation were also empirically demonstrated. The significant impact of inter-organizational cooperation on the decrease of risks implies that high levels of collaborations among employees decrease the risk of opportunistic behavior as well as the possibility of low degrees of performance through cooperative efforts. According to the results of the effects of risks on supply-chain performance, only the impact of performance risk was negatively significant. This result points out that the low levels of performance cause delays in delivery and product launch, deterred production and delayed market response, and these deteriorated managerial activities necessarily decrease the degrees of supply-chain performance.

• Management Science and Financial Engineering
• /
• v.11 no.2
• /
• pp.1-17
• /
• 2005

In this article we consider a supply chain consisting of a risk-sensitive manufacturer and a riskneutral retailer. The manufacturer maximizes her individual expected profit by designing a supply chain coordinating returns contract (SCRC) that consists of (i) a channel coordinating returns policy that maximizes the supply chain joint expected profit, and (ii) a profit sharing arrangement that gives the retailer an expected profit only slightly higher than that in the no returns case so that it is just enough to induce the retailer to accept the SCRC. Thus, the manufacturer captures as high a percentage as possible of the jointly maximum supply chain profit. However, this contract can sometimes lead to the manufacturer's resulting realized profit being lower than that in the no returns case when demand is lower than expected. In this context, even though profit is sufficiently attractive on average, will the risk-sensitive manufacturer ever consider applying a SCRC? Our research raises this question and focuses on designing a SCRC that can significantly increase the probability of the manufacturer's resulting realized profit being at least higher than that in the no returns case.

• Journal of the Korea Institute of Information Security & Cryptology
• /
• v.29 no.1
• /
• pp.67-75
• /
• 2019

When a Solidity smart contract has a problem in calling a function of another contract, the fallback function is supposed to be executed automatically. However, it may be are arbitrarily created, with their behaviors unknown to developers, and fallback function execution is vulnerable to exploits by attackers. in In this paper, we propose a preprocessing based method to reduce the risk with less overhead of developers'. Developers mark the intention using the newly defined keywords in this paper, and the preprocessor reduces the risk by preprocessing the conditional variables and conditional statements according to the keywords.

• Korean Journal of Construction Engineering and Management
• /
• v.18 no.6
• /
• pp.65-77
• /
• 2017

Recently, many Korean major construction companies are suffering from profit loss mainly due to a direct impact from delays in their overseas projects. In general, changes are inevitable in a large-scale project, and most of changes are directly linked to construction delay. Therefore, in the event that an extension of time is necessary due to a change, the contractor must manage the delay based on the condition of the contract to effectively manage risks from delay to the completion date. Thus it is important to understand delay protocol defined in the condition of the contract early in the project, but there have been few or no study to propose methodology or tool to support this effort. This paper presents a review on the project planning and controling practices of major Korean construction companies along with the issues on delay claims and disputes in mega-international projects and suggests a tool to assess delay risk in the condition of the contract. To propose a delay risk assessment model for international construction projects, major standard conditions of contract have been reviewed including FIDIC Red Book(1999), PSSCOC(2014) and SIA 9th Edition(2010). To reflect recent trend of major international owners, standard conditions which they are utilizing for their projects also have been reviewed including those of ARAMCO and QP. The model provides a categories of risks to be reviewed on the condition of the contract along with standard level of the risk which is common in the international standard form of the contracts. This study also performed a case study on an actual international project to confirm the effectiveness of proposed model to identify and respond to a delay risk of a project.

• Journal of the Korea Institute of Building Construction
• /
• v.13 no.2
• /
• pp.102-111
• /
• 2013

During the administration of a construction project, various types of participants are engaged in the project. From the design phase to the maintenance phase, these participants may confront many risks. To avoid these risks, participants should utilize an insurance company or a bond company. The types of risks and liability that a construction manager may face are listed in the construction law or contract. But there are some arguments related to risk transferring and the content of risks. For this reason, construction managers must carefully consider any possible risks in the contract and the construction law. Therefore, for construction managers to deal with risks appropriately, the introduction of a legal requirement to carry professional liability insurance, a defined compensation range for damages, a method of guarantee in the event of defects, a defined compensation claim period for damage, and a method of damage claim were suggested in this study.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.45
• /
• pp.3-31
• /
• 2010

The passing of property in goods affects contractual rights and duties. It is the point on which depend issues as diverse as the seller's entitlement to sue for the price and the incidence of risk of loss of casualty to the goods. The passing of property may also have an incidental effect on the remedies of the parties, including specific performance. But Incoterms do not deal with how the goods should reach the agreed point of delivery. While Incoterms specifically deal with questions of division of risk of loss of or damage to the goods between seller and buyer, they do not deal with property or transfer of title of the goods. Indeed, it was not even possible to agree on uniform rules on these questions in the CISG. Therefore, the parties to a contract of sale should provide for these matters themselves in the contract of sale and closely observe what the applicable law requires for the transfer of ownership to the goods and other property rights.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.37
• /
• pp.187-216
• /
• 2008

Risk regarding the possibility of loss can be especially problematic. If a loss is certain to occur, it may be planned for in advance and treated as a definite, known expense. It is when there is uncertainty about the occurrence of a loss that risk becomes an important problem. The word risk is often used in connection with insurance. No one generally accepted definition of risk exists, however. Of the many definitions, two distinctive ones are commonly used. One defines risk as the variation in possible outcomes of an event based on chance. That is, the greater the number of different outcomes that may occur, the greater the risk. Another way of expressing this concept is to state: The greater the variation around an average expected loss, the greater the risk. The second definition of risk is the uncertainty concerning a possible loss. The definition of risk as a useful one because it focuses attention on the degree of risk in given situations. The degree of risk is a measure of the accuracy with which the outcome of an event based on chance can be predicted. For now, it will serve our purpose to note the more accurate the prediction of the outcome of an event based on chance, the lower the degree of risk. After sources of risks are identified and measured, a decision can be made as to how the risk should be handled. A pure risk that is not identified does not disappear, the business merely loses the opportunity to consciously decide on the best technique for dealing with that risk. The process used to systematically manage risk exposures is known as risk management. Some persons use the term risk management only in connection with businesses, and often the term refers only to the management of pure risks. In this sense, the traditional risk management goal has been to minimize the cost of pure risk to the company. But as firms broaden the ways that they view and manage many different types of risk, the need for new terminology has become apparent. The terms integrated risk management and enterprise risk management reflect the intent to manage all forms of risk, regardless of type. International trade transaction is called between countries has features of globalism, cultural gap, long distance and long terms for the transaction. It is riskier than domestic transaction has its specific risks, such as foreign exchange risk and political risk, and requires various active risk management skills. Risks in relation to the international trade transaction are the contract risk, transit risk and payment risk, etc. The risk management in relation to the international trade transaction is to identify and measure these risks. The purpose of this study is to analyse the practical problems and its solution plan by analyzing various cases related to the risk management of bill of lading in the international trade transaction.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 1992.04b
• /
• pp.403-412
• /
• 1992

This note examines a situation where a risk-neutral insurer and a risk-averse individual (prospective insured) negotiate to reach an arbitration point of the price of insurance over the terms of an insurance contract in order to maximize their respective self-interests. The situation is modeled as a Nash bargaining problem. We analyze the dependence of the price of insurance, which is determined by the Nash solution, on the parameters such as the size of insured loss, the probability of a loss, the degree of risk-aversion of the insured, and the riskiness of loss distribution.

• Journal of Digital Convergence
• /
• v.11 no.10
• /
• pp.71-77
• /
• 2013

Broadcaster and production studio inevitably take the risk in Korea because the outsourced drama is contracted before produced. However, it is important for both parties to share risk and reward. This study seeks to assess the fairness of the copyright contract between broadcaster and production studio by examining whether they both have the balanced risk and reward structure. For the study, revenue and cost elements with their amounts are identified, which come from TV commercials, oversea sales, the secondary windows, sponsorship, and product placement. Next, the revenue and COGS (Cost of goods sold) of broadcaster and studio are estimated for both cases of when drama becomes successful or not. The analysis reveals that the current copyright agreement allows broadcaster hold low risk but high reward whilst production studio takes high risk low reward. However, the result doesn't imply that government intervention is justified because demand and supply determine the negotiation power in a free economy.

• The Journal of the Korea Contents Association
• /
• v.12 no.3
• /
• pp.285-294
• /
• 2012

Under conditions of increasing environmental uncertainty, firms' risk management become important. This study examines the impact of foreign currency derivative usage on firm value using 3,004 Korean non-financial firms from 2002 to 2007. The results showed that there was no significant relationship between foreign currency derivative usage and firm value for the whole period and from 2002 to 2004 when exchange rate was relatively less volatile. But form 2005 to 2007 when exchange rate was volatile, foreign currency derivative usage gave significant negative impact on firm value, whereas when contract value was used, the relatinship was significantly positive. These results might be come from the characteristics of contract value and fair value of foreign currency derivatives. increased firm value when contract value was used as foreign currency derivative usage measure. But when fair value was used, there was no significance. For control variables, major shareholders ownership and foreign blockholders ownership was positively related with firm value.