bluuebunny/crossref_metadata_2025 huggingface dataset:
SPIRITUALITY, MEANING IN LIFE, AND WORK WELLNESS: A RESEARCH AGENDA
Authors: de Klerk J.J.
Published: February 2008

The role of spirituality in the organization is a rapidly growing area of interest in management literature and conferences. This resulted in a call for more scientific inquiry into workplace spirituality. However, progress with empirical research on spirituality in organizations seems to be hampered by a lack of construct clarity. Whilst the construct of workplace spirituality is being clarified, spirituality can be approximated and operationalized through one of its major elements, meaning in life. Much knowledge and insights can be gained in the role and relationships of spirituality in organizations through this approach. One such postulated relationship with spirituality (meaning in life) is wellness. This postulation is based mainly on the results from research studies that consistently show relationships between meaning in life and psychological well‐being. As work is also an element of wellness, potential relationships between meaning in life and various aspects of work wellness are explored and conceptualized. This paper explores work‐wellness from a spiritual framework through the construct of meaning in life by focusing on the contribution that a person's sense of meaning in life can play to improve work‐wellness and wellness in general. A research agenda is developed of postulated relationships of meaning in life with various work wellness related constructs. Thirteen research propositions are proposed to provide direction for the empirical inquiry into workplace spirituality.
A REGIONAL COOPERATION TO SUPPORT FINANCIAL CRISIS MANAGEMENT AND PREVENTION: AN APPLICATION OF A MODEL WITH UNCERTAINTY AND FEEDBACK INFLUENCES
Authors: Azis Iwan J.
Published: February 2008

Managing financial sector under a liberalized system is always difficult; it faces a risk of financial crisis. Financial managers in most emerging markets, be it in the corporate, banking or public sector, have experienced such a challenge, and those in East Asia have learned the hard lesson during the 1997–98 financial crisis. Although efforts have been made to restructure the domestic financial sector by imposing a better risk analysis, in a world of free capital flows there is no guarantee that the system can be totally impervious to a crisis. This implies that financial managers will continue to face a major challenge in terms of how to manage and prevent a financial catastrophe. They have given a particular attention to a possible cooperation with one another. In the case of East Asia, this will lead to the formation of a Regional Financial Arrangement (RFA). This study analyzes this process by focusing on the search for a particular form of RFA that would enable financial managers to better deal with the challenge of a crisis and prevent it whenever possible. Given the fact that the issue and the process of forming a regional cooperation/arrangement involves not only economic considerations but also political factors and other intangibles, a specific model known as the Analytic Network Process (ANP) is employed. It is revealed that financial managers and policy makers alike should not only consider the benefits and costs of each alternative form of RFA, but also the possible risks and opportunities that may arise. The extent to which financial managers will be able to cope with the challenge of a financial crisis depends on all these factors.
THE MANAGERIAL DECISION TO IMPLEMENT ELECTRONIC SURVEILLANCE AT WORK: A RESEARCH FRAMEWORK
Authors: Victor Chen Jeng‐Chung , Ross William H.
Published: February 2008

In recent years, electronic performance monitoring (EPM) has increased dramatically. The managerial decision to implement an EPM system is important for it has significant implications for an organization. Even so, little attention has been paid by researchers to this decision. The present paper reviews the published research on EPM and identifies factors that probably impact this decision. A model is offered to help researchers identify relevant psychological and organizational variables that may impact the decision to implement an EPM system. Psychologically, issues of trust, privacy, social facilitation, justice beliefs and stress reactions must be considered. Organizationally, a firm's Human Resource strategy, organizational culture, and anticipated consequences of EPM (i.e., increasing performance, reducing theft) are also discussed.
Critical Parameters of Measurement Using the Wetting Balance
Authors: Barranger J.
Published: February 2008

The accuracy of severability measurements using the wetting balance depends on a number of parameters, some of which will be studied and discussed. Particular attention will be given to the influence of temperature, standard test pieces for measuring the wetting ability of fluxes, calibration of the measuring apparatus and the composition of the alloy used. Where necessary, tolerance limits will be given.
Surface Mount Solder Joint Long‐term Reliability: Design, Testing, Prediction
Authors: Engelmaier W.
Published: February 2008

In this paper an overview of the issues underlying surface mount solder joint long‐term reliability is presented. The paper gives state‐of‐the‐art solutions for ‘Design for Reliability’ in simple design tool form, discusses the important accelerated reliability test issues, and provides the equations to estimate the reliability of SM product in use as well as the expected cyclic life in accelerated tests.
Heat Transfer Fluids for Vapour Phase Soldering — An Appraisal
Authors: Lea C.
Published: February 2008

The success of vapour phase soldering for electronic assemblies has led to the availability of several heat transfer fluids for the purpose. This paper aims to demonstrate the significance of the differing properties of fluids, illustrated by measurements on the three most commonly used in the UK. These three, as well as any future fluids, can be judged in terms of (i) vapour temperature and its influence on soldering yields and materials properties; (ii) stability of soldering temperature with time; (iii) heat transfer efficiency; (iv) power requirements and thermal control; (v) rosin solubility and flux wash‐off; (vi) toxicity, especially under thermal stress; (vii) corrosivity and its dependence on process control; and (viii) consumption of fluid.
International Tin Research Institute, Uxbridge, Middlesex
Authors: Ellis B.N.
Published: February 2008

The ITRI is well known in the soldering field for its technical contributions to industry, in the form of papers presented at conferences, slide sets and its own publications. Other than the fact that it exists, its main activities remain a little obscure: for this reason, Soldering & Surface Mount Technology decided that a profile of the Institute would make an interesting article for its inaugural issue.
Thermal Fatigue Strength Estimation of Solder Joints of Surface Mount IC Packages
Authors: Kitano M. , Kawai S. , Shimizu I.
Published: February 2008

Long‐term fatigue life estimation for solder joints of surface mount IC packages is studied through elasto‐plastic stress analysis and temperature cycling tests. Strain on the solder joint induced by thermal expansion mismatch between package and substrate has been analysed by considering elasto‐plastic behaviour of the solder and by treating leads as rigid frames. Validity of the analysis has been confirmed by stiffness measurement of the soldered leads. Dynamic shear stress‐strain relationships of type 60Sn/40Pb solder are obtained as a function of temperature and frequency using hollow solder specimens of 15 mm in diameter and hollow solder joint specimens with the same diameter in the temperature range of −60°C to 150°C with frequencies of 0.01 Hz and 0.3 Hz. Fatigue tests are carried out for the solder specimens and the solder joint specimens under shear strain control and for the solder joints of the real IC packages under displacement control. All fatigue tests are conducted at room temperature with a frequency of 1 Hz. Fatigue test data of solder, solder joint and the solder joints of real IC packages fall in the same scatter band in the stra'un‐cycles to failure diagram. A fatigue life estimation model for solder joints of surface mount IC packages is proposed, which is derived by combining the strain calculated by the elasto‐plastic analysis and the fatigue data. To apply the proposed model to IC packages, the temperature cycling test between −55°C and +150°C is performed for two IC packages with different lead designs mounted on two different substrates (ceramics and glass‐epoxy). It is found that the fatigue life of solder joints by the temperature cycling test can be estimated by the proposed fatigue life estimation model. The proposed method is viable because it has sufficient accuracy with a cost of less than 1/100 when compared with the finite element method.
Fatigue Failure in a Model SMD Joint
Authors: Chilton A.C. , Whitmore M.A. , Hampshire W.B.
Published: February 2008

A model SMD test‐piece has been developed which permits mechanical stressing of a solder joint in a similar mode to that occurring in the process of thermal fatigue. The failure mechanisms in the 60Sn40Pb alloy studied have been in agreement with those frequently observed in thermal fatigue. Further, the fatigue life of model joints was found to increase with increasing solder volume whilst, upon ageing at room temperature, fatigue resistance decreased. These effects were attributed to microstructural changes occurring within the solder.
A New Aramid Base Material for Advanced SMT
Authors: Hirakawa T. , Watanabe H. , Nishimura K.
Published: February 2008

A new aramid base material for use in laminates to be applied to advanced surface mount technology was developed. A new fibre based on PPDETA (Poly‐p‐phenylene/3,4'‐diphenylether terephthalamide) was found to have negative thermal and hygroscopic expansion coefficients, low ionic impurities and high affinity to epoxy and polyimide resins. The fibre was processed into fabrics and papers to be used as a base material for printed circuit boards for advanced surface mount technology. Impregnation with a new epoxy resin with high purity and high temperature resistance implemented the development of a new laminate with minimal electromigration and high dimensional stability. Thus, a new laminate was developed to be used for LCCC, PGA, COB, TAB, Flip‐Chips and other advanced surface mount technologies. Reliability of the laminate to electromigration between surface conductors, between plated‐through barrels, and between opposed conductors was found to be one of the highest available today. These types of behaviour were related to the high purity and high temperature resistance of both the reinforcement material and the resin. The short life of through‐hole plating in thermal shock was improved by the application of a new plating technology. Application to multilayer boards and laminates with a low dielectric constant is also being investigated.
Amalgams as Alternative Bonding Materials
Authors: MacKay C.A.
Published: February 2008

Amalgams, which are mechanically alloyed mixes of a liquid metal with a powder, offer advantages in situations where large devices are to be bonded to materials with significant coefficient of expansion differences or where extremely temperature‐sensitive devices are to be bonded. This is because these materials will set or harden at or near room temperature to yield hard metallic bonds with melting points from 280°C up to ∼600°C depending upon the systems used. In this paper the results of a survey study of three binary systems of gallium with copper, nickel and silver are described. Wetting characteristics, bond strengths with and without metallisation, bulk properties including electrical and thermal properties and thermal cycle performance of joints are described. The feasibility of using these materials for bonding metallised and unmetallised surfaces of a variety of ceramics and semiconductors is clearly demonstrated.
The Effect of Ageing on the Microstructure of 60:40 Tin‐lead Solders
Authors: Harris P.G. , Chaggar K.S. , Whitmore M.A.
Published: February 2008

Studies have been made of ageing effects, both at room temperature and at 125°C, on the microstructure of 60:40 tin‐lead solders. A comparison was made of the effect of ageing on slow and rapidly cooled matrices. Precipitation of tin within lead dendrites was observed to occur very rapidly after solidification of the alloy. Subsequently the precipitates coarsened markedly over a period of a few weeks. The matrix of the alloy also coarsened at room temperature over this period. At elevated temperatures a similar sequence of events occurred, but substantially faster. The microstructural origins of the known loss in mechanical strength of solders with ageing are discussed.
The Influence of Solder Powder on the Properties and Storage Performance of an RMA Solder Paste
Authors: Warwick M. , Steen H.
Published: February 2008

Solder pastes are complex products which are designed to meet the conflicting requirements of printability, slump resistance, good tack and a range of reflow conditions. This paper describes how the metal content and solder particle size distributions in solder pastes affect these properties for a typical RMA type product. The major effects are explained by reference to the purely physical effects of alloy density, metal content and solder powder size on the mean particle separation within the paste. Lower alloy density, high metal content and smaller solder powder size all reduce inter‐particle separations causing viscosity to increase, slump resistance to improve and peak tack force to increase. The paper also discusses the more subtle effects of the chemical interactions between solder powder and flux medium on the same properties. These are illustrated by reference to the changes which take place in performance of a typical solder paste during storage over 12 months. Ageing by solvent loss and rosin drying brought about by the effects of metal soaps formed between solder and activators probably contribute to these changes. Ageing can result in improved performance in tests like slump resistance and consequently solder balling, while in others, such as open time, there is a decrease in performance.
Application of Experimental Design to the Solder Paste Screen Printing Process
Authors: Molamphy T.A. , Stephenson M.I. , Murphy E.A.
Published: February 2008

Experimental design has proved to be a useful statistical tool in reducing process variation. The technique has been applied to a wide range of processes, including electronics assembly and soldering processes. For effective SMT assembly the screen printing of solder paste requires tight process control, especially as pad geometries become ever smaller. However, printing of solder paste is a rather complex process which is affected by machine, material, environmental and human factors, which make it difficult to characterise effectively. This paper examines the practical application of experimental design to solder paste printing for SMT and also the results from a number of experiments carried out on a semi‐automatic ‘clamshell’ type screen printer. The experimentation concentrates on the important printer and squeegee parameters and their effect on paste deposition, with measured solder paste height and ‘measle’ diagrams used as process outputs. The usefulness of the experimental results in determining the best printer settings, as well as the problems encountered during the experimentation, are highlighted.
Thermal Fatigue Behaviour of Low Melting Point Solder Joints
Authors: Seyyedi J.
Published: February 2008

An empirical study was conducted to determine the thermal fatigue behaviour of 1.27 mm pitch, J‐bend and gullwing surface mount solder joints, manufactured with four low‐temperature solders. Selected solder alloys were: 58Bi‐42Sn (wt %), 43Sn‐43Pb‐14Bi, 52ln‐48Sn and 40ln‐40Sn‐20Pb. Accelerated thermal cycling was used in conjunction with metallographic analysis and mechanical (pull) strength measurement to test their behaviour. The relative merit of each solder composition was determined by comparing it with 63Sn‐37Pb solder, subjected to identical testing conditions. The strength decreased linearly with increased number of thermal cycles for gullwing solder joints of all four solder alloys. The fatigue lifetime was relatively longer for 58Bi‐42Sn and 40ln‐40Sn‐20Pb than for other alloys, but significantly lower than that obtained with 63Sn‐37Pb solder. No discernible degradation of strength was observed with the J‐bend solder joints of any solder alloy, even after the completion of 6000 thermal cycles. Thermal fatigue resistance of the latter joints was attributed to a more favourable coefficient of thermal expansion (CTE) mismatch. Solder joint cracking occurred only in gullwing components soldered with 52ln‐48Sn, 40ln‐40Sn‐20Pb and 43Sn‐43Pb‐14Bi alloys, after 1000 or 2000 thermal cycles. The crack initiated on the outside surface of the solder fillet, and appeared to propagate through both phases of the microstructure. The stress‐induced heterogeneous coarsening of the microstructure was evident only with 43Sn‐43Pb‐14Bi solder, although not as prevalent as that usually observed with eutectic Sn‐Pb solder. Fatigue cracks were absent from solder joints of 58Bi‐42Sn and 63Sn‐37Pb alloys.
Solderability Changes of Printed Wiring Board Surfaces during Electronic Assembly Operations
Authors: Evans H.E. , Partridge J.P. , Miller A.G. , Jackson M.W.
Published: February 2008

Today's electronic assembly manufacturing operations can be complex combinations of process steps such as IR reflow, wave soldering, special soldering of connectors or sensitive components, cleaning, rework, etc. Such multiple exposures to elevated temperatures and/or oxidising environments (e.g., aqueous cleaning) can have a negative effect on the solderability of printed wiring board (PWB) surfaces. This in turn may limit the effectiveness of subsequent soldering operations, such as wave soldering following an IR reflow step. The purpose of this study is to assess the impact of individual assembly process steps on the solderability of PWB surfaces. The PWB surfaces are initially treated with protective coatings of benzotriazole (BTA). The process steps investigated include: IR reflow in air and in nitrogen; vapour phase reflow; aqueous cleaning; adhesive cure; and wave soldering as a function of solder temperature and flux type. Meniscograph wettability testing is used to measure relative solderability changes, and Auger electron spectroscopy (AES) is used to monitor surface chemical changes, particularly oxide formation. The overall result is a body of fundamental information providing insight into optimisations of process flows, equipment operating specifications, process temperatures and selection of flux types.
The Search for Lead‐free Solders
Authors: Hampshire W.B.
Published: February 2008

The growing concern over the possibility of lead elimination from electronics solders has prompted the initiation of several studies by various groups. The same basic approach is a feature of most of these efforts — a programme of alloy development aimed at finding a new alloy which may substitute for most, if not all, applications for tin‐lead. Many factors must be considered in such an approach and these are outlined in the present paper, along with some consideration of the alloys available. An alternative approach of process adaptation is also presented.
Lead‐free solders — The next environmental challenge?
Authors: WHITMORE MARK
Published: February 2008

The electronics assembly industry has experienced many changes in recent years and continues to meet new challenges on technical, economic and environmental fronts. Throughout its history, however, one aspect of assembly has remained constant — the joining medium. Tin‐lead alloys have been used for joining at least since Roman times, and not without good reason. Their excellent soldering efficiency, proven reliability and relatively low cost have meant that tin‐lead solders have remained unchallenged as the industry standard. This situation, however, is coming under increasing threat from the ‘green’ lobby.
Solder Paste Dispensing in Robotic SMD Rework
Authors: Geren N. , Ekere N.N.
Published: February 2008

Although rework is labour intensive and conflicts with most modern manufacturing/assembly philosophies, realistic defect levels in surface mount technology (SMT) printed circuit board (PCB) assembly render rework indispensable on the shop floor. Most commercially available rework tools are manual or require very skilled operators for their efficient operation. The challenges of automating SMD rework are significant because the tools, their specifications and rework processes required are not fully understood, and the impact of rework processes on assembly quality and reliability are hotly debated. This paper describes an automated robotic rework cell for SMD and TH boards, and the method used for process characterisation of the solder paste dispensing system. The paper also describes equipment selection, the integration and interfacing of the dispensing equipment to the cell controller and the process characterisation experiments.
New Soldering Process Using Light Beam Technology
Authors: Takagi M. , Yamaji T.
Published: February 2008

Today, approximately three years since its development, the non‐contact micro soldering method (local soldering method) continues to be highly regarded due to its superiority over other soldering methods (i.e., soldering irons, etc.) and is being used in a wide range of applications in the industrial electronics field. This technology has been incorporated into the production lines of numerous plants worldwide including the USA and Japan. This paper focuses on introducing the following: (1) the micro spot soldering method, the method most frequently utilised in production lines; (2) the continuous soldering method newly developed for use with surface‐mount components such as connectors of PCMCIA memory cards; and (3) the upward soldering method in which the light beam is irradiated upward, enabling the components to be soldered without flipping printed circuit boards (PCBs). The paper will also include practical examples, the optimal circuit board design, and an evaluation of soldering quality.
Conductive Adhesives: A Critical Review of Progress to Date
Authors: Harris P.G.
Published: February 2008

Conductive adhesives (CAs) have been with us for a number of years and have found use in a variety of applications. More recently pressure from environmentalists has led to a reappraisal of the potential of the materials to replace solders in mainstream assembly operations. In this respect they have the advantages that they do not contain lead and do not use fluxes. At present, however, there is no substitute for flow soldering operations which still account for a substantial part of the assembly market. There also appear to be serious grounds for concern regarding the reliability of adhesive joints. In particular, recent reports suggest that their resistance to mechanical shock may be unsatisfactory. In the light of these drawbacks it seems likely that CAs will continue to find niche applications, where their particular properties give them advantages, but that soldering will continue to be the dominant technology for PCB assembly for the foreseeable future.
Initial and Ongoing Training Requirements
Authors: Boswell D.
Published: February 2008

This paper is a chapter from David Boswell's latest book entitled ‘Setting Up In‐house Surface Mount Technology: Practical Management and Technical Guidelines’, published by Electrochemical Publications Ltd. It has been seen that failure to afford suitable training before starting a surface mount technology project can lead to mistakes in equipment selection, product design or process control, any of which can bring reliability problems and severe financial penalties. This text focuses on the needs of the workforce teams in all departments of a typical manufacturing company, beginning with the managing director (the person most in need of training before the event, but usually the least aware of it) and working down through each main management level to the production line and quality staff. Vital training subject headings are reviewed for senior and middle management in each of the design, procurement and stores, production engineering and factory services, manufacturing, quality, sales and accounts departments — all of which are affected. Both subject matter and timescales covering typical needs for production technicians and assembly operators are given in greater detail so that initial and ongoing training costs can be estimated.
SMART group news
Authors: Pryor Gordon
Published: February 2008

The SMART Group Aims to Promote the Advancement of the Electronics Manufacturing Industry through the Education, Training and Notification of its Members in Surface Mount and Related Assembly Technologies, and by the Promotion of a Community of Electronics Manufacturing Professionals.
Solderability Standard: A Gold Plated Nickel Reference Material
Authors: Hunt C. , Wallis D.
Published: February 2008

A gold plated nickel solderability reference material has been developed. The as‐plated material has very good solderability, which can be degraded in a controlled manner by heat treatment to form a poorly solderable surface containing nickel oxide. Three heat treatments were used to give four different sample conditions. This allows testing of the wetting balance over a wide range with various IEC fluxes. The material has a shelf life of at least two years which confers two major advantages compared with existing reference material types. First, since no sample preparation is required the material is easy to use and secondly a large batch can be made, so ensuring that reproducibility between various machines and operators is maximised.
CYNICISM AND ALIENATION AS MARKETING CONSIDERATIONS: SOME NEW WAYS TO APPROACH THE FEMALE CONSUMER
Authors: Kanter Donald L. , Wortzel Lawrence H.
Published: February 2008

In this article we will report the results of a study that measured the degree to which cynicism and alienation, together with some related dimensions, were found among American women. The results of this study strongly suggest that, if cynicism and alienation are taken into account, many marketers may be positioning their offerings to reach only a minority of American women, perhaps as few as one‐third. We will also, therefore, discuss the larger marketing ramifications of these findings.
COPING WITH RAPID RETAIL EVOLUTION
Authors: Kaufman Sylvia
Published: February 2008

A blurring of distinctions among stores and consumers in a changing market‐place has broad ramifications for retailers, manufacturers, and wholesalers. In this paper we will first examine how stores are becoming alike, using a strategic tool to identify problems and anticipate competitive response. Second, we will see how several retail leaders have not fallen into a mold but have been able to differentiate, diversify, and grow. Next, we will consider the implications of the wholesale/warehouse club as a new stage in the evolution of retailing and wholesaling. Finally, we will examine manufacturers' concerns in coping with rapid retail evolution.
SEGMENTING THE SENIOR CITIZEN MARKET
Authors: Fox Richard , French Warren A.
Published: February 2008

Senior citizens adjust to retirement living in distinctly different manners. These adjustment mannerisms could be used as a basis for market segmentation. Although some of the potential segments might be alienated by appeals aimed solely to the elderly, others might be successfully approached by appeals positioned specifically toward their needs.
What's In An Image
Authors: Dichter Ernest
Published: February 2008

The concept of “image” can be applied to a political candidate, a product, a country. It describes not individual traits or qualities, but the total impression an entity makes on the minds of others. It is a most powerful influence in the way people perceive things, and should be a crucial concept in shaping our marketing, advertising, and communications efforts. Thus, more attention must be paid to the overall impression, the “melody,” of an advertising or marketing campaign, rather than to its specific claims. An image is not anchored in just objective data and details. It is the configuration of the whole field of the object, the advertising, and, most important, the customer's disposition and the attitudinal screen through which he observes. A politician who suddenly starts wearing glasses can radically change his impression on others. Wearing dark glasses will do so even more. Yet he remains the same person. It is his aura, his image, that people have reacted to. By the same token, repackaging a product that has been on the market for decades can make it seem “young” again. The product hasn't changed, but its image has.
Analyzing Insurance‐Linked Securities
Authors: Canabarro Eduardo , Finkemeier Markus , Anderson Richard R. , Bendimerad Fouad
Published: February 2008

Insurance‐linked securities can benefit both issuers and investors; they supply insurance and reinsurance companies with additional risk capital at reasonable prices (with little or no credit risk), and supply excess returns to investors that are uncorrelated with the returns of other financial assets. This article explains the terminology of insurance and reinsurance, the structure of insurance‐linked securities, and provides an overview of major transactions. First, there is a discussion of how stochastic catastrophe modeling has been applied to assess the risk of natural catastrophes, including the reliability and validation of the risk models. Second, the authors compare the risk‐adjusted returns of recent securitizations on the basis of relative value. Compared with high‐yield bonds, catastrophe (“CAT”) bonds have wide spreads and very attractive Sharpe ratios. In fact, the risk‐adjusted returns on CAT bonds dominate high‐yield bonds. Furthermore, since natural catastrophe risk is essentially uncorrelated with market risk, high expected excess returns make CAT bonds high‐alpha assets. The authors illustrate this point and show that a relatively small allocation of insurance‐linked securities within a fixed income portfolio can enhance the expected return and simultaneously decrease risk, without significantly changing the skewness and kurtosis of the return distribution.
A Survey of Contingent‐Claims Approaches to Risky Debt Valuation
Authors: BOHN JEFFREY R.
Published: February 2008

This article surveys available research on the contingent‐claims approach to risky debt valuation. The author describes both the structural and reduced form versions of contingent claims models and summarizes both the theoretical and empirical research in this area. Relative to the progress made in the theory of risky debt valuation, empirical validation of these models lags far behind. This survey highlights the increasing gap between the theoretical valuation and the empirical understanding of risky debt.
Pricing Weather Derivatives
Authors: ZENG LIXIN
Published: February 2008

This article briefly reviews the background of weather derivatives. The primary goal is to develop a pricing scheme that accommodates and reflects their unique characteristics. Because the underlying indexes of weather derivatives are not traded, a no‐arbitrage model cannot be directly applied for the purpose of pricing. The actuarial technique is a feasible choice but cannot be applied in the traditional fashion, because the historical data are characterized by long‐term variability and trends that are difficult to define and correct based purely on the data. The pricing scheme developed in this article attempts to address these concerns by combining information from both empirical analysis of historical data and numerical simulations.
Memoryless Trading
Authors: ECKHARDT WILLIAM , POLSON NICHOLAS G.
Published: February 2008

An optimal investment strategy is “memoryless,” because it depends on present and expected future conditions, but not on the past. This article discusses the conditions required for a single, optimal investment strategy which the authors refer to as the memoryless trading rule. As a normative theory for investment decisions, memoryless trading requires an investment strategy or future course of action to describe what the trader will do when the markets achieve a given state. Memoryless trading also implies that when traders share a common utility function (which incorporates their risk preferences), wealth level, and trading orientation, there is a single, optimal investment strategy based upon market conditions. The authors show how some standard financial tools for comparing traders and measuring risk‐adjusted portfolio performance, e.g., the Sharpe ratio, violate the memoryless trading rule. They also discuss the relationship between memoryless trading and traditional equilibrium models of asset pricing.
Actuarial versus Financial Pricing of Insurance
Authors: EMBRECHTS PAUL
Published: February 2008

This article discusses issues common to the pricing of both insurance and finance. These include increasing collaboration between insurance companies and banks, deregulation of various insurance and finance markets, integrated risk management, and the emergence of financial engineering as a new profession. Rather than attempting to give an exhaustive exposition of the issues at hand, the author highlights developments that, from a methodological point of view, offer new insight into the comparison of pricing mechanisms between insurance and finance.
Estimating Value at Risk: A Subjective Approach
Authors: DOWD KEVIN
Published: February 2008

This article outlines a subjective approach to estimating value at risk (VaR) and its related confidence intervals based on priors of the profit/loss distribution and its parameters. In the tradition of Bayesian statistics, this pro‐duces probability density functions for VaR that allow for subjective uncertainty. The author shows that imple‐menting this approach can be intuitive, straightforward, and applicable to any parametric VaR. One of the more difficult issues in this area is how to assess the precision of estimates: VaR estimation is usually straightforward, but estimating a confidence interval for a VaR estimate is not. This article suggests that, by inferring VaR from prior beliefs, rather than thinking of VaR as dependent on an “objective” P/L distribution, interpreting estimated confidence intervals is less problematic
Cumulative Losses, Capital Reserves, and Loss Limits
Authors: Shen Hubert
Published: February 2008

This article addresses the issue of cumulative losses that fund managers, reinsurers, and bankers all face. The author shows how to estimate expected multi‐period (cumulative) losses, given projections of single‐period trading losses or insurance claims. For fund managers, these results provide guidelines for interpreting the fund's daily Value‐at‐Risk (VaR) in cumulative‐loss terms, for calibrating the short‐ and long‐term risk appetites of the fund against each other, and for setting loss limits. For bankers, these results have direct implications for the range of validity of the much‐debated regulatory mandate for international banks to hold in reserves three times their VaR.
The Emerging Role of Patent Law in Risk Finance
Authors: Heaton J.B.
Published: February 2008

Until recently, financial intermediaries have behaved as though immune from the bite of intellectual property law. However, recent decisions of the federal courts and acquiescence by Congress have created a new legal landscape. This article explores the basic principles and implications of patent law for risk finance, specifically in terms of emerging opportunities and incentives related to structured risk management solutions. In so doing, the discussion introduces the trade‐off between past reliance on trade secret law versus the evolving trend toward financial patents. The author addresses its influence within the convergence markets, and argues that patents may play a significant role in future financial and insurance innovation.
Calculating VaR Through Quadratic Approximations
Authors: Mina Jorge
Published: February 2008

VaR calculations often require the valuation of complex payoffs over a large set of scenarios. Since pricing complex derivatives is computationally expensive, there is a direct tradeoff between accuracy and computational cost (e.g. time). Hence, full valuation of these instruments over the set of all feasible scenarios is rarely viable. This article describes a method to approximate expensive pricing functions that allows for fast and accurate VaR calculations. The author discusses general applications of the model to the risk management of portfolios comprised of complex instruments.
Have Your Cake and Eat It, Too: Increasing Returns While Lowering Large Risks!
Authors: ANDERSEN J.V. , SORNETTE D.
Published: February 2008

In the real world, the variance of portfolio returns provides only a limited quantification of incurred risks, as the distributions of returns have “fat tails” and the dependence between assets are only imperfectly accounted for by the correlation matrix. Value‐at‐risk and other measures of risks have been developed to account for the larger moves allowed by non‐Gaussian distributions. In this article, the authors distinguish “small” risks from “large” risks, in order to suggest an alternative approach to portfolio optimization that simultaneously increases portfolio returns while minimizing the risk of low frequency, high severity events. This approach treats the variance or second‐order cumulant as a measure of “small” risks. In contrast, higher even‐order cumulants, starting with the fourth‐order cumulant, quantify the “large” risks. The authors employ these estimates of portfolio cumulants based on fat‐tailed distributions to rebalance portfolio exposures to mitigate large risks.
Better Dynamic Hedging
Authors: WILCOX JARROD
Published: February 2008

Many investors have been disappointed with the practical results of portfolio insurance programs, which attempt to achieve option‐like results through dynamic hedging. This article takes the simplest form of dynamic hedging, constant proportion portfolio insurance (CPPI), as a model for developing a more optimal approach. The author uses Monte Carlo simulation to model the multi‐period median growth in discretionary wealth. In addition, he constructs leverage policies that mitigate the practical drawbacks to dynamic hedging. The article also shows that self‐imposed ex ante borrowing constraints (not the ex post constraint imposed by a margin call) can, under certain conditions, improve the performance of dynamic hedging with respect to median terminal wealth.
The Tail that Wags the Dog: Integrating Credit Risk in Asset Portfolios
Authors: JOBST NORBERT J. , ZENIOS STAVROS A.
Published: February 2008

Tails probabilities are of paramount importance in shaping the risk profile of portfolios with credit risk sensitive securities. In this context, risk management tools require simulations that accurately capture the tails, and optimization models that limit tail effects. Ignoring tail events in the simulation or using inadequate optimization metrics can have significant effects and reduce portfolio efficiency. The resulting portfolio risk profile can be grossly misrepresented when long‐run performance is optimized without accounting for short‐term tail effects. This article illustrates pitfalls and suggests models to avoid them.
Factor Models: Portfolio Credit Risks When Defaults are Correlated
Authors: SCHÖNBUCHER PHILIPP J.
Published: February 2008

This article discusses factor models for portfolio credit. In these models, correlations between individual defaults are driven by a few systematic factors. By conditioning on these factors, defaults observed within are independent. This allows a greater degree of analytical tractability in the model with a realistic dependency structure.
Have Financial Markets Learned from Past Crises?
Authors: TILMAN LEO M.
Published: February 2008

The author surveys how recent crises—in particular, the LTCM collapse of 1998 and the events of September 11, 2001—have influenced the application and interpretation of risk models by various practitioners within the financial markets. The article highlights notable differences in risk management practices within the fixed income and swaps markets between these two market periods. The conclusion is that, exclusive of certain fundamental differences between the two events (the moral hazard inherent in the LTCM collapse, and the Fed intervention during the fall of 2001), the institutional response to market shocks has evolved over the past three years, although measurement methods remain essentially unchanged.
The Pricing of Insurance‐Linked Securities Under Interest Rate Uncertainty
Authors: PONCET PATRICE , VAUGIRARD VICTOR E.
Published: February 2008

In this article, the authors develop an arbitrage approach to valuing insurance‐linked securities (ILS) for non‐catastrophic events within a framework of stochastic interest rates. The prices of these transactions are driven by both an interest rate process and a non‐trivial actuarial risk process. The authors find that the duration of ILS is, in most cases, higher than the Macaulay duration of risk‐free bonds, which implies that the alleged relative out‐performance of ILS is illusory.
Assessing the Pre‐Commitment Approach to Bank Capital Regulation
Authors: DOWD KEVIN
Published: February 2008

The pre‐commitment approach to bank capital regulation proposes that banks self‐select capital reserve requirements, facing penalties ex post for incurring losses in excess of reserves, hence providing incentives for high‐ risk banks to choose higher capital requirements. In order to assess the validity of the pre‐commitment approach, this article analyzes its comparative statics within the context of a standard European option written against the bank's capital base. The author finds that this approach works when it is not needed (when banks possess unlimited capital and hence cannot fail), but not when it is.
Loss Ratio on Insurance Equity Securities: A New Step in Insurance Securitization
Authors: BOURIAUX SYLVIE , RUSSELL DAVID T.
Published: February 2008

The recent trend of integrated risk management has resulted in corporations reassessing their risk management practices. Insurance derivatives and insurance‐linked securities are emerging as alternatives or complements to traditional resisurance capacity. Despite its theoretical benefits, the market for insurance‐linked transactions has not matured, due to problems of information asymmetry and lack of transparency. This article proposes a solution to resolve the conflicting interests preventing insurers/reinsurers and investors from more widely trading insurance risk.
Objectives and Measures of Co‐ordination between Private and Public Manpower Planning with Particular Reference to the Use of Human Resource Measurement Systems
Authors: Weiermair K.
Published: February 2008

The technical term “co‐ordination” has the meaning of systematisation, methodisation, normalisation or adjustment of subsystems, parts, units or activities within a large entirety. The format and means of co‐ordination must therefore depend heavily on the way in which a total system (for example an economic system) is structured and organised, e.g. the kind of typical decision‐making and communication rules and existing distribution of economic and political power and influence across the various parts or subsystems to be co‐ordinated. Co‐ordination in its widest sense can range along a continuum from the one extreme of mere coercion to the other extreme of mere moral suasion. In between lies the grey and somewhat undifferentiated area of co‐ordination instruments such as joint decision‐making, indicative planning, use of advisory bodies, co‐operative agreements or information exchanges to name only a few of these devices commonly used in industrialised nations. The area of active labour market policy or manpower planning is no different in this respect. As concerns the interface of state and enterprise manpower planning we find the use of some form of open or subtle coercion in such countries as the USSR or the DDR and, on the other hand, relatively much reliance on moral suasion in a country like the United States. In between we find the majority of industrialised European countries, who employ a variety of co‐ordination activities and instruments such as, for example, the advisory bodies of the labour ministry and the indicative planning exercises of the planning commissions in France, the range of decision‐making, advisory and consultation bodies within the Swedish Labour Market Board or the somewhat similar structures within the West German labour administration.
Part‐time Workers and the Economy
Authors: Mallier A.T. , Rosser M.J.
Published: February 2008

In the last decade the growth of part‐time employment has been one of the most significant factors affecting the size and composition of the labour force in many industrialised countries. Part‐time employment grew in terms of absolute numbers and as a proportion of the total labour force in most EEC member states and a recent OECD report suggests that other industrialised countries, such as Japan, have had similar experiences. The vast majority of these part‐timers are women. In 1977 26.4 per cent of all females in employment in the EEC were part‐time workers, compared with only 2.6 per cent of all males in employment, and females constituted 85 per cent of all part‐time workers. Most of these women who work on a part‐time basis are married women between the ages of 25 and 59. This group made up 73 per cent of the total number of women working part‐time in Britain according to the 1971 Census. Most industrialised countries have experienced an increased participation of females in the labour force since the war and, as Figure 1 shows, between 1973 and 1977 the proportion of females in employment who worked part‐time rose in the majority of EEC member countries. Outside the Scandinavian countries the UK now has one of the highest proportions of part‐time workers in Europe.
Electronic Information Technology: Managing Change in the Office
Authors: Thornton Peter C. , Verner Wheelock J.
Published: February 2008

The office is an area of activity which to date has been largely untouched by major technological change. With the exception of the electric typewriter and the development of photocopying machines, office equipment has changed comparatively little during this century. As a result, while there have undoubtedly been advances made in office organisation and procedures, the basic systems have remained essentially manual and mechanical. The situation is reflected in the relative capitalisation of shop floor operatives and office workers. A recent study conducted by the Stanford Research Institute, for example, estimated that the average investment in capital equipment for an office worker was about $2,000, compared with an average of $25,000 on the shop floor. The labour intensity of office systems is similarly evident in their cost structure, with approximately 80 per cent of office costs being directly attributable to labour.
Trainer Role and effectiveness — A Review of the Literature
Authors: Leduchowicz T.
Published: February 2008

What contribution can the trainer make to the organisation? How can we go about assessing the level of contribution? These are two key questions that any manager may well ask. Yet, by far, most training research effort has been concerned with looking at the secondary issue of “training technology”. Nadler summed this up in the following way: