Search results for " Risk management"
showing 10 items of 110 documents
The Risk-Relevance of Accounting Data: Evidence from the Spanish Stock Market
2006
This paper analyses the relevance of accounting fundamentals to inform about equity risk as measured by the cost of equity capital. Assuming the latter is a summary measure of how investors make decisions regarding the allocation of resources, the strength of the association between the cost of capital and the accounting-based measures of risk indicates how important these measures are for market participants when making economic decisions. To infer the cost of equity capital, we use the O'Hanlon and Steele's method, which is based on the residual income valuation model. Moreover, we use the insights from this model to provide a theoretical underpinning for the choice of the accounting vari…
Volatility transmission patterns and terrorist attacks
2009
The objective of this study is to analyze volatility transmission between the US and Eurozone stock markets considering the effects of the September 11, March 11 and July 7 financial crises. In order to do this, we use a multivariate GARCH model and take into account the asymmetric volatility phenomenon, the non-synchronous trading problem and the crises themselves. Moreover, a graphical analysis of the Asymmetric Volatility Impulse-Response Functions (AVIRF) is introduced, which takes into consideration the crisis effect. Results suggest that there is bidirectional and asymmetric volatility transmission and show the different impact that terrorist attacks had on both markets. El objetivo d…
Economic Adaptation to Risky Environment in the Late Middle Ages: The Case of the "Accrues" of the Doubs in Chaussin (Jura, France) from c. 1370 to c…
2017
Located along the meanders of the Doubs, the people of Chaussin had to deal with the particular impact of the river on their environment. Due to the impact of the Little Ice Age on water levels in the area, the Doubs sometimes had special floods, which frequently changed its course from the end of the fourteenth century. As a result, some lands were absorbed, and others emerged, which were called the “accrues.” From 1377 the first observation of lost lands appears in the accounts of the castellan, in a petition from landowners who did not want to pay taxes on these fields. More than twenty years later, in the first decade of the fifteenth century, the duke of Burgundy, facing the same situa…
Enterprise-Wide Risk Management in Microfinance Institutions: The ASA Experience
2010
This paper explores the typical risks that microfinance institutions (MFIs) face in their operations and outlines some of the steps that ASA, one of the world largest NGO MFI, takes to mitigate them. This discussion is from a practitioner’s perspective and is intended to provide examples of how a typical MFI might respond to risks that face them.
Credit Risk Disclosure Practices in the Annual Financial Reporting of Large Italian Banks
2019
Risk disclosure in banking is particularly important for the efficacy of market discipline, the assessment of bank performance, the efficiency of the financial market, and the overall stability of the financial system. The European banking union and the financial crisis have enhanced the strategic role of credit risk disclosure in banking. The topic of this chapter is the evaluation of credit risk disclosure practices in banks’ annual financial reporting. The empirical research is conducted on a sample of ten large Italian banks. The authors employ content analysis and provide a hybrid scoring model for the assessment of credit risk disclosure. The chapter provides empirical findings which …
CREDIT RISK MANAGEMENT IN COMMERCIAL BANKS
2016
The article proposes a model of credit risk assessment on the basis of factor analysis of retail clients / borrowers in order to ensure predictive control of the level of risk posed by potential clients in commercial banks engaged in consumer lending. The aim of the study is to determine the level of risk represented by different groups (classes) of retail clients (borrowers) in order to reduce and prevent credit risk in the future as well as to improve the management of banking risks. The main results of the study are the creation of a model of borrowers internal credit ratings and the development of the methods of improving credit risk management in commercial banks.
Bank Lending in Project Finance: The New Regulatory Capital Framework
2012
The paper aims to examine the new regulatory framework of project finance in the economics of banking firms. In particular, the paper investigates the uniqueness of the project finance, the significant importance of the project finance in bank activity, and the role of the new bank capital requirements to promote the innovative financial scheme. In the project finance business loans terms and characteristics are primarily based on the assets and quality of the project to be financed. It means that the usual bank rating models for lending business might not been implemented in the project finance lending. Quantitative estimates of credit risk could not be always possible in project finance l…
Operational and financial effectiveness of e-collaboration tools in supply chain integration
2004
This paper develops a comprehensive model of supply chain integration and uses it to analyze and assess the operational and financial effectiveness of different e-collaboration tools at various levels of supply chain integration. This model is also used to evaluate the importance of the sequence in which e-collaboration tools are adopted in supply chain integration. Computational results from a validated system dynamics simulation model with different implementation sequences of e-collaboration tools and different financial scenarios show that local financial constraints can also severely impact operational and financial performance of the entire supply chain. (C) 2003 Elsevier B.V. All rig…
How Pioneering Managers Strive to Integrate Social Risk Management in Government Debt Collection
2019
This study explores risk management issues in local government-owned enterprises in accordance to the third wave of governance, organization and management logics of Public Administration: the Public Value approach. However, the coexistence between the emerging Public Value approach and the more traditional and consolidated ones is often difficult, also because of the resistance of shareholders who may not consider the management of system-level risks as a priority mission for their company. For this reason, we have analysed the strengths and weaknesses of the Traditional Approach and the New Public Management approach in the public sector management. The case study presented reveals some i…
New Tendencies of Management and Control of Operational Risk in Financial Institutions
2013
Abstract Nowadays, financial institutions highly recognize a great influence of effective risk management on profit abilities. Therefore risk management became an important part of the financial instrument. According to the latest researches, there still remain problems related to the management of various types of risks. For instance, the Basel Committee of the Bank of International Settlements imposes financial institutions for more intensive devoting their attention to operational risk management problems. Due to the increased intensity of performed financial operations, financial institutions became very vulnerable to operational risks. In many cases, the high level of operational risks…