Risk Management in Kuwait - Research Proposal Example

Risk Management in Kuwait Name Instructor’s name Institution of study Date Number of words (1891) Risk management in Kuwait Introduction According to (R. Vithal) and (Kothari), developing a research proposal and research outline is one and the same. In any case a research proposal is a research plan. While (R. Vithal) state that the outline of a research proposal consist of selection of focus, identification of research questions, statement of the rationale, literature review, framework development, data collection methods, identifying appropriate data analysis designs, developing report outline, stating the methods you intend to employ while assessing the validity and reliability and stating the challenges facing the research, on the other hand, it is important to note that any research has three main sections namely; introduction, literature review and research methodology (R. Vithal, 1997) (Kothari, 2008). The introduction section contains the background of the study, statement of the problem, purpose of the study, objectives of the study, hypothesis, significance, scope, limitation, assumptions and definition of terms. Similarly, the literature review will have an introduction to the research topic, and useful information by other scholars in the area. In addition, literature review will works of renowned writers and researchers that is already published in areas of interest showing their contribution, it is a summary of the writers works. Finally, the research methodology section also contains an introduction to what is contained in the section and the following subsections; research design, location of the study, population of the study, sampling procedures and sample size, instrumentation to validity and reliability, data collection methods and data analysis and the summary (Kothari). In addition, the work plan and the budget must be given as well a list of sources from which the researcher borrowed most of his ideas. Finally, the work should also have the appendix containing questionnaires and interview questions that the researcher intends to use to enable him/her collect information for the completion of the research successfully and conclusively. Risk management in Kuwait According to (Michel Crouhy, p. 4), man encounters risks in his daily activities. In any case risks form an integral part of his life however how we deal or plan for them is what differentiates our abilities. In addition, the same is used as major parameter to differentiate one manager from the other. The author defines risks as uncertainties which can be expressed in monetary terms. He argues that the degree of difficulty in anticipating the future has always been one big challenge to man it continues to deter his ability to predict possible profits or losses in business and other non profit making ventures. Therefore, risk management is the process of identifying possible risks, evaluating the expected and unexpected losses and deciding in terms of priority how bests to plan for all or most of the risks in order to alleviate their effects on a firm or a state in total. However, it may be impossible to avoid the effect of a certain risk in total therefore plans would be made reduce by transferring or spreading it thus increasing the ability of a firm to manage possible losses (Michel Crouhy, 2006). The international monetary fund observed among many oil producing countries Kuwait in particular has had its share experiencing risk (International Monetary Fund., 1976, pp. 16-18). (By International Monetary Fund. Monetary and Financial Systems Dept, International Monetary Fund. Middle East and Central Asia Dept, 2010)As a matter of facts the organization reveals that the state exhibited an improvement in term of its economic measure in 2008. However, a brief evaluation shows that the future does not seem that promising because the prices of oil and related products are unpredictable. According to the monetary fund the country had to adopt measures such as reducing rewards for extreme risk taking and evaluating risk strain. In any case the need for more sound economic policies is inevitable in order to manage risk. Therefore this project will be a timely in providing possible solutions. Aims and objectives The following objectives will act as a guideline. To explore the degree to which risks/uncertainties influences major firms in Kuwait To explore the levels of risk management in different firms in Kuwait To establish whether time duration affects the ability of a company risk management in major firm in Kuwait. To investigate the role risk management in the performance of major firms in Kuwait. Research methodology This section presents the research design, location of the study, population of the study, sampling procedures and sample size, instrumentation to validity and reliability, data collection methods and data analysis and the summary. According to (Schwab, 2004, p. 53) the choice of a research design depends on the aim of the study, its validity and reliability as well as the cost. Survey research design is among the designs appropriate for this study because it is a degree of accurate while assessing economic trends. However, the design allows some levels of inaccuracy because it difficult to control external variables and people may not be willing to provide the necessary information. This study could be carried out in several major firms in Kuwait selected owing to their resent performance and their overall contribution to the economic wellbeing of the country and their proximity to the researcher. In addition the research will target management personnel of oil drilling companies within Kuwait specifically those involves in risk management in order to limit the number of participants involved and lower the cost. Moreover, validity is the level to which an instrument performs it role and reliability refers to uniformity which will be assessed with the help of the supervisor after the researcher develops inline with the aims and objectives. Piloting will be necessary in testing the instruments reliability (Neuendorf, 2002, pp. 162-163). Data collection will be done through questionnaires and interviews as well as having access to national data base to establish national trend. However, the researcher should seek authorization from relevant authorities. Finally, this data will be organized and analyzed using chosen statistical tests and a summary will be provided to proof the realization of expected objectives. Research questions This research will seek to answer the following questions which are derived from the proposals’ aims and objectives. According to (R. Vithal, p. 8), developing research questions should follow a certain procedure. He argues that the questions identified should all linkable to the statement of the problem. Answering the fist question should allow the researcher to comfortable address subsequence questions (R. Vithal, 1997). Do major firms plan for risks before-hand? Do risks and uncertainties affect the performance of major firms in Kuwait? Is there a relationship between risk management and stability in business in Kuwait? What are levels of risks management in existence among major firms in Kuwait? Does the time duration affect risk management in major firms in Kuwait? What is the effect of risk management in the performance of major firms in Kuwait? The outline of seven chapters expected for this research Chapter outline Research outline ABSTRACT TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION 1.1 Introduction This part present background information to the study it comprise of relevant information in connection to this research. Background information consists of the history of risk and risk management in Kuwait. Secondly, the research problem will be stated here in relation to this research our problem states that risk management influences the performance of major firms in Kuwait. In addition, the purpose of the study is to establish the relationship between risk management and performance of major firms. Furthermore, the section will address the aims and objectives of the study including, exploring the degree to which risks/uncertainties influences major firms in Kuwait, exploring the levels of risk management in different firms in Kuwait, establishing whether time duration affects the ability of a company risk management in major firm in Kuwait and investigating the role risk management in the performance of major firms in Kuwait. Moreover, the hypothesis of the study for instance one of the hypothesis state that risk management improves the performance if firms in Kuwait. On the other hand, a null hypothesis state that there is relationship between risk management and the performance firms in Kuwait. The significance of the research is to provide useful information to the state, private institutions, and other sectors to sensitize them on the need to plan and lay strategies to avoid, transfer, mitigate or keep the effect of risks by estimating risks, assessing and strategizing. The study involves oil drilling companies selected randomly within the state. The study is will be limited to oil drilling companies and this will undermine its applicability to non-oil drilling companies. 1.2 Background of the Study 1.2 Statement of the Problem 1.3 Purpose of the Study 1.4 Objectives of the Study 1.5 Hypotheses of the Study 1.6 Significance of the Study 1.7 Scope of the Study 1.8 Limitations of the Study 1.9 Assumptions of the Study 1.10 Definition of Terms CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction This section presents a summary of other writers work on risk management in Kuwait. It starts off by providing the definitions of risks/certainties, management and risk management in relation to Kuwait. Secondly, risk preferences and major risks popular within the country such as unpredictable fall in the international oil prices (International Monetary Fund., 1976)and explosions in oil wells will be featured in the discussion. Thirdly, scales upon which stability is determined will be established and employed to analyze economic trends. The discussion will also contain various strategies used by firms in Kuwait to anticipate risks, the influence of risk management in major firms in Kuwait as well as the theoretical and conceptual framework. 2.2 Definition of risks and risk management 2.3 Risk prevalence in Kuwait 2.4 Determinants of stability in business 2.5 Risk management in major firms 2.6 The influence risk management in firms in Kuwait 2.7 Theoretical Framework 2.8 Conceptual Framework CHAPTER THREE: RESEARCH METHODOLOGY 3.1Introduction This part presents the study design preferred for the research in an attempt to realize specific objective. The section will also specify the location of the study which is in oil drilling companies in Kuwait and the population of the study identified as the managerial personnel dealing risk management within targeted companies. 3.2Research design 3.3 Location of the study 3.4 Population of the study 3.5 conclusions Chapter four: research tools 4.1 Introduction This section presents tools used to collect data sampling techniques and data collection procedures for the completion of the thesis (Valenza, 2003). The tools will include available document, computer data bases and online sources with information regarding risk management in Kuwait. 4.2 Tools for data collection hardware and software 4.3 Method (questionnaires interviews) 4.4 Sampling procedures and sample size 4.5 Data collection procedures 4.6 Conclusion Chapter five: variables, validity and reliability 5.1 Introduction This section will identify variable to be tested in the research as well as the appropriate measure of validity and reliability. Furthermore, instrumentation to validity and reliability test (Kothari, 2008)fall in this area and finally data collection methods and data analysis and the summary will be provided here. 5.2 Variables 5.3 Test for validity 5.4 Test for reliability 5.5 Conclusion CHAPTER six: CRITICAL ANALYSIS 6.1 Introduction This section will present an analysis of the results after collection therefore it will demand that the analyst should have statistical knowledge and the software necessary for a conclusive analysis. 6.2 Data analysis 6.3 Conclusions CHAPTER seven: DISCUSSION 7.1 Introduction The section presents a summary of the data analysis and interpretations with respect to project objectives as well as testing of the hypothesis. It will also include a statement of the limitations to the research project. 7.2 Summary of Data Analysis 7.3 Limitations 7.4 Conclusion WORK PLAN RESEARCH BUDGET REFERENCES APPENDIX A: A LETTER TO THE RESPONDENTS APPENDIX B: QUESTIONNAIRES LIST OF TABLES LIST OF FIGURES References Alan Bryman, E. B. (2007). Business research methods. Oxford University Press. Anthony E. Davis, Peter R. Jarvis, American Bar Association. Section of Law Practice Management, Center for Professional Responsibility (American Bar Association). (2007). Risk Management: Survival Tools for Law Firms. American Bar Association. Bajpai, N. Business Research methods. Pearson Education India. Bernard, H. R. (2000). Social research methods: qualitative and quantitative approaches. SAGE. Boella, M. J. (2000). Human Resource Management in the Hospitality Industry. Nelson Thornes. By International Monetary Fund. Monetary and Financial Systems Dept, International Monetary Fund. Middle East and Central Asia Dept. (2010). 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