In Banking, Asset and Liability Management (often abbreviated ALM) is the practice of managing risks that arise due to mismatches between the assets and liabilities (debts and assets) of the bank. Banks face several risks such as the liquidity risk, interest rate risk, credit risk and operational risk. Asset liability management (ALM) is a strategic management tool to manage interest rate risk and liquidity risk faced by banks, other financial services companies and corporations. Banks manage the risks of asset liability mismatch by matching the assets and liabilities according to the maturity pattern or the matching of the duration, by hedging and by securitization. . Modern risk management now takes place from an integrated approach to enterprise risk management that reflects the fact that interest rate risk, credit risk, market risk, and liquidity risk are all interrelated.
For all countries especially developing countries, banking system is the main component of the financial system.Hence, researchers and regulation authorities have focused on a banking system as a main cause or preventing factor responsible for financial and economic crises. This study presents comprehensive analysis of overall risk level, market risk and how selected variables affect credit risk in the Jordanian banks. This study provides a new theoretical background to understand how an overall level of banks risk and market risk has changed during 1995-2008. It also identifies the variables affecting credit risk in the Jordanian banks.The outcome of this study would increase the understanding and awareness of banks'' management about the adverse effect of credit risk on their profit. Further, it helps the managers to minimize the credit risk level and improve their appropriate lending policies by taking in their consideration the significant variables that are identified by this study. In addition, the results of this study help supervising authorities to ensure that adequate policies and procedures are in place at various banks to minimize risks as far as possible.
Studies reveled that risk management practice has significant impact on the institution goal, mission and objective achievements. Although a risk mgt practice has been studied by some scholars, such types of studies are not made on the sector of cooperative. Thus the purpose of this study is to assess the Risk Management Practice of Saving and Credit Cooperatives Union. The study also come across major gap in practicing the risk mgt; the union doesn’t practice the risk mgt & risk mgt process is poor, there is no a department or individual personally responsible for risk mgt system, risk identification process is not going on a regular basis; qualitative risk analysis is not employed, standard tools and techniques were not used for identifying risk , there is no risk appetite and operational risk is the major risk that the union had confront. The researcher recommend, it is advisable for the union to have a department for risk mgt system, follow risk identification process to undertake it on a regular basis, Better to employ qualitative analysis, The management and control committee have to give emphasis for risk mgt and practical implementation of risk management.
This study examines transparency and risk reporting issues in Islamic banks. Based on a postal questionnaire survey of 28 Islamic banks in 14 countries, supplemented by a follow-up e mails and interviews, the study addresses the following specific issues on: (a) the nature of risks that Islamic banks are exposed; (b) the risk measurement and management used by Islamic banks; (c) the information required by Islamic bank supervisors to monitor the risk profile of Islamic banks; (d) the importance of transparency and market discipline in Islamic banks; and (e) the adequacy of current risk reporting in Islamic banks. The results of the study indicate that Islamic banks are exposed to similar risks as those in conventional banks. Furthermore, the results also reveal that the degree of the importance of the risks is also similar to those in conventional banks, except the nature of the risks.
The book explains how interest rate risk exposure affects the financial performance of commercial banks in Uganda. The banking sector in Uganda is extremely exposed to various risk exposures in terms of volatility from exchange rates, currency fluctuations, oil prices shocks and inflation which later affects the lending activities of the banks. The purpose of the study was to highlight the key measures, strategies and best practices of minimizing risk exposures in the banking sector by practicing best risk management approaches in line with the international best practices of managing interest rate risks. The study has created avenues for discussion to the extent that the commercial banks in Uganda has achieved good sound and strong measures of the Camel rating risks measures of financial performance and risk reduction strategies in order to curb future risk exposures in the sector. We explore to encourage readers to compare our approach to bring in more insights to the banking sector best practices of interest rate risk management and best ways to sustain bank performance in the fragile environments especially financial crisis in the global financial markets and fragile economies
The existence of sound market risk management practices is crucial to promote investors confidence required for capital market development. This study would therefore help in guiding management, especially in the financial sector, in determining the best risk management strategy to be adopted by their organizations. The study will also bring to the fore, certain risk management practices that when paired with existing global events, can be detrimental to the performance of the financial sector.Both private and corporate investors will benefit from understanding the current practices of risk management in Nigeria and how these fit with recommendations in literature.
This book examines the links between policy, zoonoses, and risk in Zambia and assessed the feasibility of a World Organisation for Animal Health (OIE) risk analysis in informing risk management in this context. The analysis demonstrates how external international agendas had considerable influence on pandemic preparedness policy in Zambia, prioritizing the involvement of health and agricultural actors in the policy process and excluded those from trade and other sectors. In using the OIE risk analysis approach, this book suggests weighing both local policy and ecological configurations in assessment of risk and the design of zoonotic disease mitigation policies. While feasible, the merits of an OIE risk analysis in informing policy development in this context would be enhanced by a careful consideration and inclusion of policy processes. An objective and discursive approach to analysis of risk, appropriately communicated to stakeholders, would improve collaboration in disease management across sectors.
Book DescriptionIn this volume the methodological aspects of the scenario logic and probabilistic (LP) non-success risk management are considered. The theoretical bases of scenario non-success risk LP-management in business and engineering are also stated. Methods and algorithms for the scenario risk LP-management in problems of classification, investment and effectiveness are described. Risk LP- models and results of numerical investigations for credit risks, risk of frauds, security portfolio risk, risk of quality, accuracy, and risk in multi-stage systems reliability are given. In addition, a rather large number of new problems of estimation, analysis and management of risk are considered. Software for risk problems based on LP-methods, LP-theory, andGIE is described too.
You bother to know how Basel II Accord is shaping the mechanics of risk management practices in Nigerian banks? Look no further. This paper chronicles some of the issues Nigerian banks have had to contend with while implementing Basel II Accord as directed by the Central Bank of Nigeria. The paper succinctly identifies the impacts of Basel II implementation in such areas as risk measurements, risk modelling, economic capital, capital allocation and management in Nigerian banks. As a professional, you will find this paper useful in appreciating how risk management mechanisms could be of help to your area of engagement. You will see how the concept of risk management affects different areas of banking business. Also as an academic or student, you will find the paper useful for your research in the areas of financial intermediation, risk management and Basel II Accord.
The management of operational value-at-risk (OpVaR) in financial institutions is pre-sented by means of a novel, robust calculation technique and the influence of this value on the capital held by a bank for operational risk. A clear distinction between economic and regulatory capital is made as well as the way OpVaR models may be used to calculate both types of capital. Under the Basel II Advanced Measurement Approach (AMA) banks may employ OpVaR models to calculate regulatory capital; this study therefore illustrates the differences in regulatory capital when using the AMA and the Standardised Approach (SA) by means of an example. Economic capital is found to converge to regulatory capital using the AMA, but not if the SA is used.
Health Professionals world over are expected to operate in a sterile environment in order to minimize clinical risks but this practice is not observed by many health workers in Uganda. Kibuli Police Dental Clinic is not exceptional.This study investigated the relationship between risk management and patients’ vulnerability to clinical risks in Uganda, a case study of Kibuli Police Dental Clinic, in the Kampala district. Risk management was the independent variable while patients’ vulnerability to clinical risks was the dependent variable in the study. The study objectives were to: .examine the relationship between risk identification and patients’ vulnerability to clinical risks, establish the relationship between risk analysis and patients’ vulnerability to clinical risks, identify the relationship between risk response planning and patients’ vulnerability to clinical risk and to explore how risk monitoring and control affect patients’ vulnerability to clinical risks in Kibuli Police Dental Clinic. The study employed across sectional survey design using both qualitative and quantitative approaches.
This book presents a critical analysis of project risk management and significant impacts of its application on the success of a specific project’s delivery. It identifies different types of project risk management processes and frameworks used by construction projects. The main purpose is to explore, describe and analyze the perceived risk management in practice. Managing risks has been recognised as a very important project management process. The study will examine and evaluate the risk management process in specific phases of Lehe Home project and essentially analyze the empirical findings. Finally, the study generalizes and develops the project risk analysis and management and suggests for public sectors to help project managers to make better decisions under risky conditions.
The text is designed to cater to the need of the students, as well as the research people of financial management, by giving a good understanding of the subject and its applications. This new edition seeks to enhance the coverage of the book and update it by including new statistical techniques.It makes the book more comprehensive and incorporates the changes that have incurred in the field of finance and management in India as well as the world. The purpose of this book is to clarify concepts in Liquidity, Profitability and Risk management of the particular industry and at the same time relate them to those examples which rendered the text meaningful to the reader. The book has been written for the student as well as the researcher in the field of finance and management, both of whom need to have good understanding of the subject and its applications.