BASICS FOR A GRAPHICAL MODEL OF RISK – PERFORMANCES CORRELATION

A company runs a business with the goal to get a minimum level of performance.Before making an investment decision, an adequate analysis of the risk-performance correlationhas to be done. In order to emphasize the connection between these two terms, in this paper, wepropose a graphical model for analyzing the correlation between the size of the risk and the size ofthe performances. In this respect, we’ll define the performance as a function of two variables:efficiency and efficacy. The risk is considered as a function of the same variables, the efficiencyand the efficacy, and it comprises two components: the operational risk and the financial risk. Thegraphical model analyses the strategy of the company regarding the concentration of its effort onthe efficiency or the efficacy and, respectively, the correlation between the performance and therisk depending on the adopted ways.performances, risk, efficiency, degree of operating leverage, degree of financial leverage

FLUCTUATION IN PENSION FUND ASSETS PRIVATELY MANAGED UNDER THE INFLUENCE OF CERTAIN FACTORS. STATISTICAL STUDY IN ROMANIA

On international level, the economic and financial crisis has determined a diminution of the asset value of compulsory pension funds, reflecting a reallocation of funds towards alternative or low-risk investments. The present paper indicates how the net asset value of privately managed pension funds in Romania may be affected or not by certain influence factors in direct correlation with different asset allocation strategies of pension funds. In this way, on literature review there are many studies which have analyzed the fluctuation of pension funds assets and a better reallocation of their investment in order to improve their efficiency. The experience of the value fluctuation of privately administered pension fund net assets is highly important, firstly beacause of its effects on the increase and the decrease of invested values for the insured personsâ€(tm) accounts, under the circumstances of constantly maintaining their contributions and, implicitly, the results achieved through these investments. The research methodology consists in testing of five variables: currency exchange rate, credit interest rate, bank deposit interest rate, reference interest rate and value of the stock exchange market index (BET-C index), by means of the multiple linear regression method. The conclusion is that only two of these factors, namely, the currency exchange rate and the reference interest rate, influence net asset value of privately managed pension funds, the second pillar, one in direct and the other in indirect correlation. In order to neutralize the effects generated by the diminution of the net asset value of privately managed pension funds, considering a short time horizon, we shall elaborate a dynamic mix of their investments able to adapt to the fluctuations of the influence factors. Thus, new opportunities will be generated in order to achieve the efficiency of pension funds and to prevent the diminution of the value of insured individualsâ€(tm) contributions to these pension funds.privately managed pensions, net assets, investments, factors of influence, statistical correlations

THE EFFECTS OF REEVALUATING THE BALANCE SHEET ON THE FINANCIAL STANDING OF THE COMPANY

The annual financial statements of different companies must emphasize, for theinternal and external users, the activity that was run and the standing at a specific moment oftime. The assessment of a business doesn’t affect the accounting registrations. However, theaccurate image provided by the book-keeping is a significant landmark for the evaluatorwhen applying the evaluation methods. In this paper, in order to emphasize the effects ofreevaluating the balance sheet on pointing out the financial standing, we have presented thecalculation and the significance of the analysis indicators on a case study, before and afterthe reassessment operations.Financial analysis, reevaluation, financial standing, balance sheet

The Effects of Reevaluating the Balance Sheet on the Financial Standing of the Company

The annual financial statements of different companies must emphasize, for the internal and external users, the activity that was run and the standing at a specific moment of time. The assessment of a business doesn’t affect the accounting registrations. However, “the accurate image” provided by the book-keeping is a significant landmark for the evaluator when applying the evaluation methods. In this paper, in order to emphasize the effects of reevaluating the balance sheet on pointing out the financial standing, we have presented the calculation and the significance of the analysis indicators on a case study, before and after the reassessment operations.Financial analysis, reevaluation, financial standing, balance sheet

RISKS IN IMPLEMENTING PROJECTS WITH EUROPEAN FINANCING

The risk represents a future probable event and its appearance could cause damages, could represent a danger or a possible incovenience. Therefore the risk is characterized by probability, exposure and vulnerability. In practice, most of the times exposure is included in consequences’ evaluation. Risks analysis represents the activity of objectively establish the risk, the probability and the consequences of its appearance. Obviously risks analysis will also produce the necessary signals for finding alternatives, for evaluating the probability that distortions may appear along the path and for defining the necessary elements in decision making process in the analyzed field. There is always a risk in public administration that is also assumed by the partners when supplying services with the explicit or tacit acceptance of the manager of that authority or public institutionrisk, european funds, public administration

Developing the Management Competencies for Getting a Competitive Position in the Organic Food Market

Although almost any conference tackles the issue of organic foods, we consider that this article does not fit into normal patterns of research. Our paper proposes a complex analysis in the field of organic food products. It also highlights the need of developing new competences of managers and marketers in analysing market for getting a competitive position on it. The method used is the Six Thinking Hats, devised by Edward de Bono. This method appeals to the driving creative thinking; it can be applied in almost any field of analysis. The outcomes show that, using creative thinking, the leaders develop new competences which enable them to better analyse organic food market and to identify and gain competitive positions on it.management competencies, organic food, six hats method, creative thinking, leaders, competitive position.

A study regarding the risk of the micro-entreprises in the Dolj district

The study of the risk has become very important in the last years, due to the increase of the competition on the Romanian market and also due to the consolidation of the market economy mechanisms that have determined the augmentation of the number of bankruptcies in Romania. The micro-enterprises are, obviously, the most exposed at the risk of bankruptcy, fact that justifies a study of the risk that these enterprises face. In this paper, we have analyzed the risk of the micro-enterprises during the period 2004-2005, on a database that included 1401 companies. For this aim, we have used two specific instruments: a score function, for the estimation of the bankruptcy risk, and the degrees of leverage, for the assessment of the operating and financial risk. After making this study, we noticed that the micro-enterprises from the Dolj District have dealt with a risk augmentation in 2005, fact emphasized both by the decrease of the average score and by the augmentation of the weight of the bankrupt companies in the total number of analyzed enterprises. Also, the other drawn conclusion was linked with the lack of correlation between the Z score and the degrees of operating and financial leverage, due to the different foundations of these instruments in appreciating the risk dimension.risk, score function, degree of operating leverage, degree of financial leverage.

Risks in implementing projects with european financing

The risk represents a future probable event and its appearance could cause damages, could represent a danger or a possible incovenience. Therefore the risk is characterized by probability, exposure and vulnerability. In practice, most of the times exposure is included in consequences’ evaluation. Risks analysis represents the activity of objectively establish the risk,the probability and the consequences of its appearance. Obviously risks analysis will also produce the necessary signals for finding alternatives, for evaluating the probability that distortions may appear along the path and for defining the necessary elements in decision making process in the analyzed field. There is always a risk in public administration that is also assumed by the partners when supplying services with the explicit or tacit acceptance of the manager of that authority or publicinstitution