In research performed I watched to present methods of classification of loans and methods of establishing internal ratings within the banks. The result of the method of classifying assets consists in identifying good quality loans and their separation by the nonperforming loans. I also conducted an analysis of the situation of currency risk in case of the commercial banks. Thus I determined a set of indicators that can be measured both at the level of territorial units as well as the level of Central Bank. Another important issue addressed in the paper is the importance of ensuring solvency of the bank in overtaking difficulties generated by the financial crisis. In the chapter relating to the measurement the risk of interest rate I identified a technique used in banking to reduce interest rate risk, named GAP model or model of discrepancy between assets and liabilities of banks. In terms of reduction of the liquidity risk I presented a method that allows monitoring the indicators of liquidity on maturity bands. In the chapter concerning to management of the operational risk I presented a new method for managing this type of risk, respectively the insurance of operational risk.
Risk Management, the process of measuring the risks, controlling them and implementing measures in order to achieve the desired risk profile, is fundamental to all aspects of a bank’s activities. Due to the liberalization of financial markets, advances in technology and the various risks brought by these developments, the way that banks practice Risk Management has substantially changed during the last years. The important role that an effective Risk Management plays in ensuring banks’ profitability and continuity is widely proven. This survey was conducted to provide a status position on the extent to which Risk Management is practiced by banks in North Cyprus. The survey revealed that risk management systems in TRNC banks are relatively underdeveloped and there is a low level of awareness in banks on the importance of employing an integrated Risk Management framework. There are various gaps that demonstrate the need for developing Risk Management in TRNC banking sector and employing innovative Risk Management tools to manage the risks, non-credit risks in particular.
Islamic Banking and Finance is known to be the fastest growing economic system of the current time. It has always been in discussion that how the unique engraved risks of Islamic Finance be avoided or reduced to minimum. This book provides a comprehensive and all-encompassing view of different Risk Management Practices in Islamic Banking and Finance. This Book is equally helpful for students to build a theoretical understanding of Risk Management Techniques in Islamic Banking as well as for professionals who are practically applying these practices. This book will help them manage different risks in Islamic Banking field more appropriately.
Apply risk management concepts for better understanding Risk Management in Banking – Workbook is the definitive resource that makes Risk Management in Banking more accessible to both students and practitioners. Following the seminal text chapter-by-chapter, this useful workbook reinforces the material from a practical aspect, dispelling confusion and providing hands-on practice. Each chapter contains sample questions with Excel-based solutions, and a detailed set of slides that highlight the key points. Fully worked examples allow readers to follow along step by step to see how solutions are found, helping them understand the process as well as the foundational theory. Instructors will find the slides useful for classroom lectures, and practitioners will find the material to be a practical resource to illustrate real-world application. Reading through theory only takes learning so far – especially for a topic as critical as risk management, it is important to gain the deeper understanding that only hands-on practice can bring. This workbook provides plenty of practice and review opportunities, designed specifically to align directly with the text. Test information retention with sample questions for each chapter Follow worked examples to clarify complex problems Review slides that highlight key points from each chapter Understand the material from a more practical perspective Whether used as a course textbook, a comprehensive study aid, or a professional quick reference, this workbook is a valuable resource to those interested in risk management, regardless of level. For those who prefer to learn by doing, Risk Management in Banking – Workbook contains all the 'need-to-know' topics assembled in a single volume.
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.
Commitment to prudent lending is an important and current issue of discussion in the global banking system today. Banking prudence and efficiency to manage their risks in different business cycle and environment would help to alleviate crises and losses. The objectives of the study were to examine the credit risk management techniques applied by micro-finance institutions in Kenya; to find out how micro-finance institutions analyze the credit worthiness of their customers and to determine the credit risk management process utilized by micro-finance institutions (MFIs). From 35 MFIs sampled, this study found out that credit criteria, the six c’s of credit (character, capacity, capital, condition, collateral and common sense), diversification of loan services, credit reminder, training and development of staff, collateralizations as well as guidelines for credit approval process are important techniques to manage credit risk. The completion of this study is of great significance as it helps micro-finance institutions reduce the costs associated with managing credit risks. Good risk management techniques enable companies to seize opportunities as well as prevent disasters.
The current situation of the financial sector clearly shows us that the ways of predicting the future losses, along with their monitoring and management, are rather underdeveloped or being taken as separate mathematical models, thus using only quantitative analysis without the qualitative one. The role of the risk-management system cannot be underestimated, especially after (and during) the world economy crisis. The current problem of the Russian risk-management system is the low power given to the risk-management personnel. That’s why one of the key points to the better risk evaluation is the possibility of the risk-management department to report directly to the board of directors, not to the management of the bank, as it is the shareholders’ money to lose. The goal is to find the proper balance between the risk and the profit while presenting the transparency of the business. It should be done in a clear way, better an algorythm, which can be applied in many organisations by the starting employees. This book presents a sample of such an algorythm.
Flood is the one of the most important natural hazard in India that occurs frequently due to some natural and anthropogenic factors. The delta region of Mahanadi river basin located in eastern part of India which is densely populated and major paddy growing region in the state of Orissa. Floods are frequent phenomena occurring in this part of the state during south-west monsoon, which causes severe damage of lives, property as well as agriculture. Remote sensing and GIS is an important tool for the flood mapping and its damage assessment. It provides timely assistance and save lives and property. The main objective of the present book is to give flood damage assessment and vulnerability analysis in part of Mahanadi Delta Basin, India. Using SAR data flood hazard map and flood depth the vulnerability of each element at risk is calculated. Finally the total risk has been identified. So, Remote sensing and GIS can be used for the risk communication among the people in our society for different strategic management and planning. This book meets the requirements of Under Graduate and Post Graduate courses in geography, earth science, environmental management and Disaster management.
In view of growing complexity of banks’ business and the dynamic operating environment, risk management has become very significant, especially in the financial sector. Risk at the apex level may be visualized as the probability of a banks’ financial health being impaired due to one or more contingent factors. While the parameters indicating the banks’ health may vary from net interest margin to market value of equity, the factor which can cause the important are also numerous. For management of risk at corporate level, various risks like credit risk, market risk or operational risk have to be converted into one composite measure. Therefore, it is necessary that measurement of operational risk should be in tandem with other measurements of credit and market risk so that the requisite composite estimate can be worked out. So, regarding to international banking rule (Basel Committee Accords) and RBI guidelines the investigation of risk analysis and risk management in Co-Op banks is being most important.
This book seeks to capture essence of credit risk management to the forefront of the finance and banking industry. Also provides a self explanatory guided credit rating model was presented in lucid manner for easy understanding of the intricate and complex process of risk management and credit rating. The high light of the book is on most detailed presentation of various aspects of risk management with cases as examples. Analytical part of the model building has been explained trough series of steps. Model presented in this book provides three types of classification of clients. The model application ability has been tested through industry wise examples.
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.
Now in its third edition, this seminal work by Joel Bessis has been comprehensively revised and updated to take into account the changing face of risk management. Fully restructured, featuring new material and discussions on new financial products, derivatives, Basel II, credit models based on time intensity models, implementing risk systems and intensity models of default, it also includes a section on subprime that discusses the crisis mechanisms and makes numerous references throughout to the recent stressed financial conditions. The book postulates that risk management practices and techniques remain of major importance, if implemented in a sound economic way with proper governance.