Search results for "Risk Management"

Private–Public Partnerships as Strategic Alliances

2008

A new approach to the design of concession contracts of port infrastructures that adapts some of the methods used in the design and start-up of strategic alliances is presented. From a cost–benefit analysis of the project, based on the industry benchmarks, a revenue-sharing model dependent on the investment interest and the risk undertaken or transferred by each partner was formulated. This model aids in the calculation of the amount of the canons (lease and royalty charges) that should be stated in the contract. Also, to avoid complicated renegotiations and undesired deadlock situations, methods are presented for the dynamic actualization of such canons according to changes that might occ…

On the Tail Risk of Cyberattacks in the Bitcoin Market

2020

In the era of digitalization, cryptocurrencies have become an alternative asset for both retail and institutional investors. While the new emerging digital ecosystem based on blockchain technology has been praised for offering plenty of advantages such as decentralization, discretion or increased efficiency in terms of faster settlements among others, investors need to be aware of new types of risks such as hacking incidents. In the 2011-2018 period, about 1.7 million unit of Bitcoin have been stolen corresponding to losses accumulating more than $655 million highlighting the societal impact of this criminal activity. The novel aspect of our study is that it employs a recently proposed appr…

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.

Risk Taking by Banks in the Transition Countries

2007

The banking sectors of the transition countries have progressed remarkably in the last 15 years. In fact, banking in most transition countries has largely shaken off the traumas of the transition era. At the start of the 21st century banks in these countries look very much like banks elsewhere. That is, they are by no means problem free but they are struggling with the same issues as banks in other emerging market countries. There have been a surprisingly large number of studies that have told us about the performance of these banks but we know very little about their risk taking behaviour and how the banking environment influences it.

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 …

Managing Risk in the Financial System

2015

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.

Direct Compensation and Risk Management: A Key Study from the Insurance Sector

2019

This paper examines the business model of an Italian company (TIS) that manage the claims for non-life insurance companies with innovative solutions. When a policy-holder make a claim for a loss or damage, the insurer may decide either to repair, rebuild or replace the property or to offer a cash settlement. To provide these services, many insurance companies have started developing strategic relationships directly with building firms, repairers, specialist suppliers and project managers, in order to find reliable contractors that will repair or replace the policy holder’s property quickly, with high quality and at a low cost. Opposite to other EU Countries, in Italy many insurance companie…

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…