As risk-taking is an essential part of the banking industry, banks must practise efficient risk management to ensure survival in uncertain financial climates. Banking operations are specifically affected by fluctuations in interest rates which cause financial imbalance; thus banks are now required to put in place an effective management structure that incorporates risk management efficiency measures that help mitigate the wide range of risks they face. In this book, the authors have developed a new modelling approach to determine banks' financial risk management by offering detailed insights into the integrated approach of dollar-offset ratio and Data Envelopment Analysis (DEA), based on derivatives usage. It further analyses the efficiency measurement under stochastic DEA approaches, namely (i) Bootstrap DEA (BDEA), (ii) Sensitivity Analysis and (iii) Chance-Constrained DEA (CCDEA). As demonstrated in the modelling exercise, this integrated approach can be applied to other cases that require risk management efficiency measurement strategies. Additionally, this is the first book to comprehensively review the derivative markets of both the developed and developing countries in the Asia-Pacific region, by examining the differences of risk management efficiency of the banking institutions in these countries. Based on this measurement approach, strategies are provided for banks to improve their strategic risk management practices, as well as to reduce the impacts from external risks, such as changes in interest rates and exchange rates. Furthermore, this book will help banks to keep abreast of recent developments in the field of efficiency studies in management accounting, specifically in relation to hedge accounting, used by banks in the Asia-Pacific region.

As risk-taking is an essential part of the banking industry, banks must practise efficient risk management to ensure survival in uncertain financial climates. Banking operations are specifically affected by fluctuations in interest rates which cause financial imbalance; thus banks are now required to put in place an effective management structure that incorporates risk management efficiency measures that help mitigate the wide range of risks they face. In this book, the authors have developed a new modelling approach to determine banks' financial risk management by offering detailed insights into the integrated approach of dollar-offset ratio and Data Envelopment Analysis (DEA), based on derivatives usage. It further analyses the efficiency measurement under stochastic DEA approaches, namely (i) Bootstrap DEA (BDEA), (ii) Sensitivity Analysis and (iii) Chance-Constrained DEA (CCDEA). As demonstrated in the modelling exercise, this integrated approach can be applied to other cases that require risk management efficiency measurement strategies. Additionally, this is the first book to comprehensively review the derivative markets of both the developed and developing countries in the Asia-Pacific region, by examining the differences of risk management efficiency of the banking institutions in these countries. Based on this measurement approach, strategies are provided for banks to improve their strategic risk management practices, as well as to reduce the impacts from external risks, such as changes in interest rates and exchange rates. Furthermore, this book will help banks to keep abreast of recent developments in the field of efficiency studies in management accounting, specifically in relation to hedge accounting, used by banks in the Asia-Pacific region.

In a post-Global Financial Crisis (2008) and post-COVID-19 (2020) competitive world, an organisational strategy needs to be promoted for gaining sustained competitive advantage by creating value. So, there is a need for a thorough study to explore the current value creation practices in commercial organisations and recommend a framework to accelerate the process of value creation. This book explores how sustainability and shared value are facilitating the process of value creation within banking organisations and property organisations. Considering a multiple case study approach and constructivist paradigm, eight Australian case studies are exemplified to denote how practical issues can be examined through the new sustainability lens. The four thematic components explored in this book are a) clean technology, b) sustainability vision at the bottom of the pyramid, c) reconceiving products/services and d) redefining the value chain. In the context of social and economic value creation by the Australian organisations, the underlying objectives of the book are to a) explore the adoption of components of the applied sustainable value and shared value business models by Australian banking and property organisations for social and economic value creation; and b) empirically develop an alternative business model for the Australian banking and property industries, based on emerging components from industry-wide interview responses. Our research resulted in many findings that showed a number of industry-wide differences. However, the notable and main difference was that a) banking organisations predominantly leverage sustainability based on product/service innovation at the bottom of the pyramid level, and b) property organisations predominantly leverage environmental sustainability based on the application of clean technology through redefining the value chain. The primary interview data analysis suggests that the selected Australian sustainable and shared value organisations also emphasise the co-creation of value based on their engagement with customers, stakeholders, and communities. The secondary data analysis suggest that the selected Australian property organisations ensure a higher increase in net profit after tax and return on equity compared to the selected banking organisations. The main recommendation emanating from industry case interviews and presented in this book is an empirically developed alternative business model for value co-creation based on two new thematic components, which are a) stakeholder engagement and b) community resilience. The book will come as a guide to future academic researchers and practice managers in implementing the recommended value co-creation business model to create social and economic value.