Iliya Markov

Risk perception and risk management in cloud computing: Results from a case study of Swiss companies

Abstract In todays economic turmoil, the pay-per-use pricing model of cloud computing, its flexibility and scalability and the potential for better security and availability levels are alluring to both SMEs and large enterprises. However, cloud computing is fraught with security risks which need to be carefully evaluated before any engagement in this area. This article elaborates on the most important risks inherent to the cloud such as information security, regulatory compliance, data location, investigative support, provider lock-in and disaster recovery. We focus on risk and control analysis in relation to a sample of Swiss companies with regard to their prospective adoption of public cloud services. We observe a sufficient degree of risk awareness with a focus on those risks that are relevant to the IT function to be migrated to the cloud. Moreover, the recommendations as to the adoption of cloud services depend on the companys size with larger and more technologically advanced companies being better prepared for the cloud. As an exploratory first step, the results of this study would allow us to design and implement broader research into cloud computing risk management in Switzerland.

Does Manager Offshore Experience Countin the Alternative UCITS Universe

This article examines the performance of alternative UCITS funds on the basis of manager offshore experience and, additionally, the existence of an “equivalent” offshore hedge fund. Managers with offshore experience are defined as management companies managing offshore hedge funds in addition to managing UCITS. For a sample period from 2008 to 2011, the authors find that such UCITS have a positive alpha, still with a P-value of 0.12 due to the limited size of the subsamples, which could provide some evidence of offshore manager added value. Among these UCITS, they identify further those that have an equivalent offshore hedge fund whose performance is replicated by using the same or a similar strategy, or through a swap. The authors find that “offshore-experienced” UCITS without offshore equivalents 1) exhibit no meaningful differences in mean performance compared to those with equivalents, but are 2) generally less volatile and show a positive significant alpha at the 95% level. Concentrating then on those with equivalent offshore hedge funds, the onshore-offshore comparison shows no significant differences in mean performance and volatility when they use equally-weighted indexes but an offshore outperformance when they do a cross-sectional study. The authors also find a sizable regulation-induced tracking error.