The Flow of Funds Matrix and Financial Risk Measurement

2020 ◽  
pp. 89-133
Author(s):  
Nan Zhang
Keyword(s):  
Financial Risk ◽  
Risk Measurement ◽  
Flow Of Funds

scholarly journals Research on Risk Measurement of Supply Chain Emergencies in International Capacity Cooperation

2019 ◽  
Vol 11 (19) ◽  
pp. 5184
Author(s):  
Bo-Rui Yan ◽  
Qian-Li Dong ◽  
Qian Li
Keyword(s):  
Supply Chain ◽  
Financial Risk ◽  
Fuzzy Ahp ◽  
Risk Index ◽  
Risk Measurement ◽  
Country Risk ◽  
Analytic Hierarchy ◽  
Analytic Hierarchy Process Method ◽  
Measurement Index System ◽  
Hierarchy Process

International capacity cooperation is easily affected by the interweaving of its internal and external environment. As the risk accumulation exceeds the threshold, a supply chain crisis and even emergency will occur and serious losses will be caused. Regarding multinational operation and international capacity cooperation, 208 cases were summarized to identify risk types and high-incidence areas, and a risk measurement index system was established. A Fuzzy AHP (Analytic Hierarchy Process) method was used to evaluate the importance of each risk index. It was found that country risk was the main cause of supply chain emergencies in international capacity cooperation. Construction, water and electricity supply, mining and manufacturing were major areas of emergencies. In international capacity cooperation, country risk and cross-cultural risk were more important in external risks, while in internal risk, financial risk and decision risk were more important.

scholarly journals Risk Analysis and Portfolio Modelling

2019 ◽  
Vol 12 (4) ◽  
pp. 154 ◽  
Author(s):  
David Edmund Allen ◽  
Elisa Luciano
Keyword(s):  
Risk Analysis ◽  
Financial Risk ◽  
Measurement Techniques ◽  
Risk Measurement ◽  
Risk Takers

Financial risk measurement is a challenging task because both the types of risk and their measurement techniques evolve quickly. This book collects a number of novel contributions for the measurement of financial risk, which addresses partially explored risks or risk takers in a wide variety of empirical contexts.

Bootstrap-based Budget Allocation for Nested Simulation

2021 ◽  
Author(s):  
Kun Zhang ◽  
Guangwu Liu ◽  
Shiyu Wang
Keyword(s):  
Confidence Intervals ◽  
Financial Risk ◽  
Budget Allocation ◽  
Risk Measurement ◽  
Allocation Rule ◽  
Sample Sizes ◽  
Bootstrap Sampling ◽  
Asymptotically Optimal ◽  
Optimal Sample ◽  
Asymptotic Validity

Nested simulation (also referred to as two-level simulation) finds a variety of applications such as financial risk measurement, and a central issue of nested simulation is how to allocate a finite amount of simulation budget to achieve the highest accuracy. In “Bootstrap-based Budget Allocation for Nested Simulation”, Zhang, Liu, and Wang propose a bootstrap-based rule for simulation budget allocation for nested simulation. By utilizing the asymptotically optimal inner- and outer-level sample sizes that are typically unknown, the proposed method employs bootstrap sampling on a small amount of initial samples to estimate the unknown optimal sample sizes, thus providing a reasonably good allocation rule for the main simulation. An allocation rule to ensure the asymptotic validity of confidence intervals is also given.

General Stein-Type Covariance Decompositions with Applications to Insurance and Finance

2010 ◽  
Vol 40 (1) ◽  
pp. 369-375 ◽  
Author(s):  
Edward Furman ◽  
Ričardas Zitikis
Keyword(s):  
Financial Risk ◽  
Risk Measurement

AbstractA general ‘multivariate’ decomposition of covariances is formulated and proved, and its role in the context of financial risk measurement and pricing is demonstrated.

scholarly journals Research on the Risk Measurement Algorithm of Supply Chain Order Financing Based on Insurance Actuarial

2021 ◽  
Vol 2021 ◽  
pp. 1-9
Author(s):  
Gushuo Li ◽  
Menglin Yin
Keyword(s):  
Supply Chain ◽  
Financial Risk ◽  
Foreign Currency ◽  
Risk Measurement ◽  
Raw Material ◽  
Financial Risks ◽  
Efficient Operation ◽  
Supply Chain Finance ◽  
Chain Order ◽  
New Perspective

In today’s globalized economy, all the links of supply chain are interlinked. Most of the upstream raw material manufacturers or producers in the said chain are small- and medium-sized enterprises (SMEs) that provide the basis for the efficient operation of the whole supply chain. However, SMEs in China, especially those playing a pivotal role in China’s export-oriented economy at this stage, do not have access to the corresponding financial treatment. Supply chain finance provides a new perspective to solve this contradiction. Henceforth, this paper introduces modern financial engineering risk measurement tools to measure the financial risk in supply chain finance, specifically while evaluating the single financing business. Moreover, the chief objective of this paper will be the analysis of the characteristics and connotations of order financing business model. In addition, the focus will be to analyze the risk of order financing from the perspective of banks and other financial institutions. Additionally, this paper will use the CreditRisk + model based on insurance actuarial principles to manage credit risk in order financing business based on foreign currency settlement, in conjunction with the characteristics of supply chain finance and multinational supply chain. Furthermore, a risk measurement method for the application of order financing in multinational supply chains will be provided. Ultimately, the experiments show that the solution of this paper defines and analyzes the financial risks brought by order financing business to bank financing.

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