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The purpose of the study is to fabricate a joint between two aluminium metal matrix composites using microwave hybrid heating (MHH).

Taguchi design of experiments was applied to conduct the experimental study. The mechanical properties such as ultimate tensile strength, micro-hardness and porosity were studied. Grey Relational Analysis was applied to understand the significance of fabrication parameters of best performing sample. The dominant factor of fabrication was analysed using ANOVA. The best performance sample was further characterised using X-ray diffraction and field emission scanning electron microscopy. Energy dispersive X-ray was used to analyse the elemental composition of the sample.

The Aluminium Metal Matrix Composite (AMMC) joint was successfully fabricated using MHH. The mechanical properties were mainly influenced by the fabrication factor of exposure time.

The formation of AMMC joint using MHH might explore the way for the industries in the field of joining.

Option pricing based on Black‐Scholes model is typically obtained under the assumption that the volatility of the return is a constant. The purpose of this paper is to develop a new method for pricing derivatives under the jump diffusion model with random volatility by viewing the call price as an expected value of a truncated lognormal distribution.

Using Taylor series expansion the call price under random volatility is expressed as a function of kurtosis of the observed volatility process and applied to various class of GARCH models.

A modified option pricing formula is developed for jump diffusion process model with random volatility.

The main contribution of the paper is the development of a kurtosis‐dependent option pricing formula for a jump diffusion model with random volatility.

The purpose of this paper is to consider the problem of using “black‐box” methods to forecast catastrophe events, and illustrate the value of independent peer review.

The problem with black‐box catastrophe forecasts is the absence of both extensive validation data and impartial peer review. These issues may be addressed by comparing black‐box forecasts with a set of naïve alternative forecasts provided by an independent party. To illustrate this approach, the historical hurricane forecasts of Dr William M. Gray, professor at Colorado State University, are considered and a simple ARIMA analysis is offered as a naïve alternative.

The analysis shows that Dr Gray's complex forecasting methodology does in fact provide reasonable forecasts, and may indeed offer value beyond a naïve alternative model.

The editorial identifies a major problem in catastrophe forecasting, and suggests one way to address this problem.

The purpose of this paper is to show that subordinated debt regulatory proposals assume that transactions in the secondary market of subordinated debt can attenuate moral hazard on the part of management if secondary market prices are informative signals of the risk of the institution. Owing to the proprietary nature of dealer prices and the liquidity of secondary transactions, the practical value of information provided by subordinated debt issues in isolation is questionable.

A multivariate dynamic risk signal is proposed that combines fluctuations in equity prices, subordinated debt and senior debt yields. The signal is constructed as a coincident indicator that is based in a time series model of yield fluctuations and equity returns. The extracted signal monitors idiosyncratic risk of the intermediary because yields and equity returns are filtered from market conditions. It is also predictable because it is possible to construct a leading indicator based almost entirely on spreads to Treasury.

The signal for the Bank of America and Banker's Trust is implemented. For Bank of America, the signal points mainly to two events of uprising risk: January 2000 when the bank disclosed large losses in its bond and interest‐rate swaps portfolios; and November 2000 when it wrote off $1.1 billion for bad loans. For Banker's Trust, the signal points to October/November 1995 after the filing of federal racketeering charges against Banker's Trust; and October 1998 when the bank suffered substantial losses from its investments in emerging markets.

The signal is a complementary instrument for regulators and investors to monitor and assess in real time the risk profile of the financial institution.

The purpose of this research is to develop and test a mathematical method of deriving zero yield curve from market prices of government bonds.

The method is based on a forward curve approximated by a linear (or piecewise constant) spline and should be applicable even for markets with low liquidity. The best fitting curve is derived by minimizing the penalty function. The penalty is defined as a sum of squared price discrepancies (theoretical curve based price minus market closing price) weighted by trade volume and an additional penalty for non‐smoothness of the yield curve.

This method is applied to both nominal and CPI linked bonds traded in Israel (some segments of these markets have low liquidity). The resulting two yield curves are used for derivation of market expected inflation rate.

The main problems are low liquidity of some bonds and imperfect linkage to inflation in the CPI linked market.

A stable numerical procedure applicable even in markets with low liquidity.

Usage of forward curves as the state space for the minimization problem leads to a stable solution that fits the data very well and can be used for calculating forward rates.

Airtel, the leading mobile operator in India was going to launch the “Airtel Zero” platform that would charge service providers and OTT providers on the internet for mobile data traffic but would allow end consumers free access to the web sites that were signed up for the platform. The case revolves around the questions of pricing these data services to the service providers in a market where the price to one set of customers (the end consumer) was not independent of the price to another set of customers (the OTT service providers) - typical of two sided markets. Issues of net neutrality and competition have been considered alongside.

The learning objectives of this case study are based on Bloom’s taxonomy. Upon completion of the case study discussion and exercises, successful students will be able to design a leadership transition and succession plan for non-profit organisations; identify and evaluate critical skills and competencies required in leadership positions; and frame expectations and responsibilities for new and departing executives.

Apar Gupta co-founded Internet Freedom Foundation (IFF), a digital rights organisation born out of SaveTheInternet – Net Neutrality movement of 2015, credited for urging the Telecom Regulatory Authority of India to uphold net neutrality in India. And ban zero-cost internet services that promoted data discrimination in the country. After working on and winning the net neutrality movement, Gupta identified many areas in technology where democratic rights had not been identified or were yet to be clearly defined (like in the case of net neutrality). There was also a service gap between the existing internet volunteer groups and digital rights organisations, which could IFF fill. This was to provide objective clarity, stakeholder identification, handle policy discussions and, most importantly, arrange resources to support movements over the long term. This prompted him to co-found IFF in 2017, which he later joined as a full-time executive director in 2018. IFF worked at the intersection of technology, democratic rights and government policies and was comparable to some global organisations, such as the Electronic Frontier Foundation in the USA and the Open Rights Group in the UK. Still, none existed in India at the time. After four years as a full-time executive director in 2022, he was convinced that it was finally time for him to act on the pre-defined strategic departure plan and work towards succession for the executive director position. While there were visible gaps in the system, Gupta’s leadership design and plans had helped IFF overcome existential challenges in the past. Also, while digital rights were still at a nascent stage in emerging economies, under Gupta’s leadership, IFF had delivered unmatched value to its beneficiaries in the world’s biggest digital consumer market. However, constant changes in regulations and continuing financial constraints made him nervous about the outcomes of the succession and the overall sustainability of IFF. Gupta wanted to ensure that this phased transition from executive director after two years and then trustee manager after the next four years are carefully communicated to reduce the likelihood of attrition and loss of trust.

Being the co-founder and the first and only executive director IFF had seen, the organisation would also require significant skill and competency mapping to identify the new executive leadership. But with no clear internal successor in sight, the non-profit trust would also need a successor who not only was competent but also would share a passion for the type of work done by IFF, its unique delivery mode, and also would openly inherit its position in society. The other alternative strategic routes present were to look for dual leadership or interim leadership, but then there could be concerns about Gupta’s influence overshadowing any such alternative.

In the case scenario, IFF is planning for succession while navigating the organisation through financial constraints and constant regulatory changes to ensure long- and short-term sustainability.

The case study has been written to gain insights into departure-defined successive planning in non-profit organisations. The case study can also be used to gain insights into innovative start-ups and innovative non-profit start-ups, as digital rights are still at nascent stages in emerging markets. The case study will be valuable for courses such as human resource management, strategic human resource management, social entrepreneurial leadership, leadership development, start-up environment, innovation and entrepreneurship, public policy, development studies, cyber security and information technology. The case study also allows students and young professionals to take the perspective of an innovative start-up founder and design a departure-defined succession plan. The case study can also be useful for senior students wanting to undertake an entrepreneurial career by starting or joining a non-profit organisation. While the case study is suitable for postgraduate- and executive-level courses, it can also be used for conducting entrepreneurial workshops and skill training.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.