Banking sector is suffering a huge chunk of non-performing loan in Pakistan, Due to this profitability and survivals of banks are at risk in Pakistan. “A large number of banks in economies like Thailand, Indonesia, Japan and Mexico experienced a high level of non-performing loan and has faced a significant increase in credit risk during the financial and banking crisis. Due to these financial and economic crises many banks closed down their operations in Indonesia and Thailand (Ahmad & Arif, 2007)”. Keeping in consideration to increase in non-performing in Pakistan, study will explore the relationship between Credit Risk and performance of banking sector.By providing reliable data and evidences about the credit risk and its consequences on banks performance in Pakistan, it is clear that how this important factor non- performing loans (NPLs) is influencing the performance of the banks in Pakistan. It also contributes in addressing the problem and finding a research based solution to the problem of non-performing loans in Pakistani banking context. It also contributes efforts toward the financial risk management strategies and techniques.
The recent market turmoil caused by the sub-prime crisis highlighted how several key factors can strongly affect the banks’ capability to preserve their financial equilibrium under stress. Current liquidity risk models demonstrated to undervalue extreme events affecting funding and market risk in global scenarios. There was not an integrated measurement tool able to cover all the dimensions of liquidity risk and commonly adopted by the majority of institutions. This work, therefore, intends to highlight the most significant features to consider in order to implement an effective liquidity risk measurement and management.
Investors typically face problems when they are in position of deciding on capital investments to be undertaken. Problems they face are related primarily with evaluation of the project, and secondarily with risk related to the project that is supposed to be undertaken. This book introduces methods of capital budgeting investment criteria, in order to choose the best project, by applying some of the risk management methods that are offered. At the very end of the book, practical examples of capital investment and risk management are presented, on a case done on legislative regulations on minimum standards of risk management in commercial banks.
Financial crisis in Zimbabwe have been a common phenomenon in the financial services sector,year after year banks have collapsed despite the fact that they have risk management departments which regularly meet to review their exposure to risk and look at different measures on how to mitigate these risks.Financial institutions practice and value risk management in Zimbabwe because they understand that risk management is core to banking survival, but it was found that risk management techniques and practices are not being practiced effectively due to a variety of reasons and problems.This book provides a variety of risks financial services sector face and their implications to the economy.Financial services sector is core to the economy whenever stakeholders loose confidence in the financial services sector the economy will be affected greatly leading to economic woes as witnessed in Zimbabwe.
This work has the goal to provide a risk management procedure in order to improve fire protection of Valuable Contents in Historical Heritage Buildings. The core of the procedure is structured in two parts: Risk Assessment and Risk Treatment. In Risk Assessment phase, by means of a risk analysis and evaluation method, we want to point out which are the weak points in contents’ protection due both to building features and to management strategies. In Risk Treatment phase is proposed a method to choose the best set of mitigation measures to reduce risk for Valuable Contents. The procedure suggests to the user sets of coherent actions to reduce specific risks by means of managerial strategies and interventions on the building. The procedure could be useful for insurance risk managers, fire engineers and managers of historical buildings that have responsibility for the Valuable Contents.
In an attempt to restore banking stability and safety during the 1980''s, bank regulators typically introduced explicit minimum capital regulation to increase capital ratios and moderate risk-taking. The effects of bank regulation on the capital and risk levels of banks are not always as intended; in some cases, promoting moral hazard behaviour and further increasing the probability of insolvency. Some of these effects were at the roots of the Global Financial Crisis. This book aims to explore in greater detail the relationship between capital and risk, the reasons for this relationship and why this relationship in emerging market banks may differ from that of banks in developed markets. A comprehensive analysis of corporate financial theory relating to capital and risk are carried out and form the theoretical basis of this study.
This book highlights the essentials of Operational Risk management as applied to the Banking industry in Ghana. An empirical study that seeks to deeply inform the reader on the extent to which banks in Ghana report operational risk by way of disclosures. It is a' must-read' for all students and professionals of banking and financial services interest as a basis of intellectual comparison of what pertains in the developed and developing world contexts. The book highlights the post 2008 global banking and financial crisis regulations as contained in the Basel Accords. It presents a true value for money for every reader.
The most complete, up to date guide to risk management in finance "Risk Management and Financial Institutions" explains all aspects of financial risk and financial institution regulation, helping readers better understand the financial markets and potential dangers. This new fourth edition has been updated to reflect the major developments in the industry, including the finalization of Basel III, the fundamental review of the trading book, SEFs, CCPs, and the new rules affecting derivatives markets. There are new chapters on enterprise risk management and scenario analysis. Readers learn the different types of risk, how and where they appear in different types of institutions, and how the regulatory structure of each institution affects risk management practices. Comprehensive ancillary materials include software, practice questions, and all necessary teaching supplements, facilitating more complete understanding and providing an ultimate learning resource. All financial professionals need a thorough background in risk and the interlacing connections between financial institutions to better understand the market, defend against systemic dangers, and perform their jobs. This book provides a complete picture of the risk management industry and practice, with the most up to date information. Understand how risk affects different types of financial institutions Learn the different types of risk and how they are managed Study the most current regulatory issues that deal with risk. Risk management is paramount with the dangers inherent in the financial system, and a deep understanding is essential for anyone working in the finance industry; today, risk management is part of "everyone's" job. For complete information and comprehensive coverage of the latest industry issues and practices, "Risk Management and Financial Institutions" is an informative, authoritative guide.
Seismic risk management is concerned with complexity of diverse impacts and sorts of uncertainties involved in modeling, assessing and managing the earthquake risk. The way to handle uncertainty is a critical challenge in risk management and can mislead the overall decisions particularly in seismic risk mitigation programs where several projects are involved. Emergent complexity and uncertainties necessitate establishing a risk management system to address the risk in a reliable and realistic way. Current research proposes a heuristic model that combines both theoretically well-grounded system approach and risk analysis on a common framework. Hierarchical system approach is proposed to reduce the complexity of the risk inventory and turn it to set of manageable sub-systems. To capture uncertainties associated with observation and expert judgments, fuzzy modeling techniques was used. The applicability of the proposed models was tested over a group of retrofitting schools. Unlike conventional risk assessment methods, the methodology demonstrated more transparency and flexibility in practice.
The recent financial crises determined the Basel Committee to improve the risk controls for banks in general and operational risk. Operational risk has received increasing attention from financial institutions and policymakers, large losses have resulted in the failure of large banks and investment firms. This research examine the magnitude of operational risk in the lending process with views of member of twelve banks. It seeks to resolve the extent of operational risks involved in lending and capital allocated to risk by Basel II in banks is set at 15% for operational risk. The literature related to risk in the lending process refers to the systematic and organized decision making aspect that effectively identifies risks and efficiently reduces risks of failure achieving the objectives. Result of the study in rethinking capital allocation to risks within businesses and strategy reviews in banks. Banks consider assessment of operational risk to reduce risks on business. Failure of banks in obtaining required documentation during the lending process, proper notarization and collateral lead to risk when the transaction defaults which leads to losses and charges on credit risk.
This book provide insights on risk management in education. It gives a practical and theoretical sides of risk management in education. Strategic planning, time management and decision making, applicability of risk management in education and importance in education management is discussed. In addition, this book underlines the importance of risk management in schools by comparing developed and developing countries.
Which is the most efficient way to hedge bunker fuel risk in the liner shipping industry since the abolition of the BAF conferences? This work aims to provide a complete description of the possibilities available to shipowners to hedge fuel price risk, both available on markets and OTC. Furthermore an analysis of the efficiency of such strategies is carried on, to propose an ideal best way to perform the hedging strategy.
Credit risks are the most crucial for banks since ancient cultures to present days. Various financial organizations failures, connected with the negative social impact, additionally raise the question of proper credit risk management during history. The best way to cope with risks is an understanding of their nature. Usage of risk reducing strategies, risk control, monitoring and assessment significantly reduce losses and bring advantages to all economic players. This book describes the recent nature of credit risks from different leading experts and scientists. It provides a practical overview of the most important credit risk management approaches in developed and developing countries. The given work discovers main types of risks for Ukrainian commercial banks, analyze credit risk management methods and their efficiency in Ukraine. It is useful for all types of financial organizations, credit risk practitioners, academics and anyone interested in risks.