Risk Assessment of Financial Market under the Restriction of Market Incentive Mechanism

Financial Market Infrastructures (FMIs) are essential for the well-functioning of the financial system, as they play a central role in facilitating clearance and settlement of financial transactions such as payments, securities, and derivatives contracts. Nowadays, it is widely acknowledged that the proper functioning of systemically important FMIs is also vital to maintain financial stability; their failure for solvency reasons or operational disruptions could almost certainly lead to systemic instability. As a consequence, the adequate supervision of FMIs is inherent to the function of preserving financial stability. The aim of this chapter is to provide a general overview of the different FMIs; discuss their role in financial stability and to give an overview of the efforts made by some financial authorities towards the supervision, risk assessment and reinforcement of FMIs.

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Distributional Uncertainty for Spectral Risk Measures

Handbook of Research on Financial Management During Economic Downturn and Recovery - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-7998-6643-5.ch027 ◽

2021 ◽

pp. 476-494

Author(s):

Mohammed Berkhouch

Keyword(s):

Risk Assessment ◽

Financial Market ◽

Financial Crises ◽

Risk Measures ◽

Expected Shortfall ◽

Risk Measurement ◽

Spectral Risk Measures ◽

Quantifying Uncertainty ◽

Financial Losses ◽

Robust Framework

Spectral risk measures, primarily introduced as an extension for expected shortfall, constitute a prominent class of risk measures that take account of the decision-makersrisk-aversion. In practice, risk measures are often estimated from data distributions, and due to the uncertain character of the financial market, one has no specific criterium to pick the appropriate distribution. Therefore, risk assessment under different possible scenarios (such as financial crises or outbreaks) is a source of uncertainty that may lead to concerning financial losses. The chapter addresses this issue, first, by adapting a robust framework for spectral risk measures, by considering the whole set of possible scenarios instead of making a specific choice. Second, the author proposes a variability-type approach as an alternative for quantifying uncertainty, since measuring uncertainty provides us with information about how far our risk measurement process could be impacted by uncertainty. Furthermore, the stated theory is illustrated with a practical example from the NASDAQ index.

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Republic of Moldova: Financial Sector Assessment Program-Oversight and Supervision of Financial Market Infrastructures (FMIS) and Risk Assessment of Central Securities Depositories-Technical Note

IMF Staff Country Reports ◽

10.5089/9781513504322.002 ◽

2016 ◽

Vol 16 (72) ◽

pp. 1

Author(s):

International Monetary Fund

Keyword(s):

Risk Assessment ◽

Financial Market ◽

Financial Sector ◽

Technical Note ◽

Republic Of Moldova ◽

Assessment Program ◽

Central Securities Depositories

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Predict Risk Assessment in Financial Market System Based on Machine Learning Algorithm

10.1145/3482632.3484085 ◽

2021 ◽

Author(s):

Jiannan Yu ◽

Jinlou Zhao

Keyword(s):

Machine Learning ◽

Risk Assessment ◽

Financial Market ◽

Learning Algorithm ◽

Machine Learning Algorithm ◽

Market System

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Defining Indicators for Risk Assessment in Software Development Projects

CLEI electronic journal ◽

10.19153/cleiej.16.1.10 ◽

2013 ◽

Vol 16 (1) ◽

Cited By ~ 7

Author(s):

Júlio Menezes Jr. ◽

Cristine Gusmão ◽

Hermano Moura

Keyword(s):

Risk Assessment ◽

Risk Management ◽

Software Development ◽

Financial Market ◽

Management Practices ◽

Relevant Information ◽

Risk Identification ◽

Systematic Mapping Study ◽

Software Projects ◽

Practical Result

The usage of indicators acts in both strategic and tactical levels, it is effective for optimization of processes and also supports managerial decisions. Despite the relevance of risk management in software projects, it is in fact still usually overlooked by the organizations that develop software. One reason for this fact is that the concept of risk is abstract and subjective, and its management does not bring apparent immediate practical result. Differently, for example, in the financial market, where the risk management is consolidated and widely applied, and it is currently a need for the companies that work in this field. Briefly, risk management practices just became effectively consolidated in the financial market field when the uncertainties became measurable. In this context, this paper aims to define and propose indicators that are specific for environments of software projects in order to support risk assessment activities – risk identification and risk analysis. To achieve this objective, we first developed a systematic mapping study in order to collect evidences about metrics, indicators and relevant information for risk assessment. These findings were combined with the identification of measurable risk factors, providing, thus, a set of categorized indicators for software development environments.

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Canada

IMF Staff Country Reports ◽

10.5089/9781513527222.002 ◽

2020 ◽

Vol 20 (22) ◽

Author(s):

Keyword(s):

Risk Assessment ◽

Financial Market ◽

Bank Of Canada ◽

Operational Risks ◽

Quantitative Skills ◽

Severity Levels

This paper reviews assessment of financial market infrastructures (FMIs) and authorities’ responsibilities in Canada. The report shows that the FMIs have operated normally under a well-established legal and oversight framework that is distinct for Canada. The Bank of Canada (BOC) has issued a Guideline that defines the criteria for identifying FMIs. Recognition of a clearing agency is also required under provincial securities legislation where terms and conditions and the clearing rule would apply. The current oversight approach can benefit from stronger enforcement powers available to the BOC. Provincial securities regulators are encouraged to train FMI oversight staff in advanced quantitative skills to support risk assessment. Further enhancement in managing liquidity and operational risks will help ensure the robust functioning of FMIs. Improvements in cyber resiliency continue in line with international guidance, including industry-wide exercises carried out by FMI operators and participants. However, compliance to endpoint security needs to be tightened by self-attestations and audits of FMI participants. The categorization and reporting of operational incident severity levels could be further coordinated.

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The role of Financial Market Infrastructures in Financial Stability

Risk and Contingency Management ◽

10.4018/978-1-5225-3932-2.ch014 ◽

2018 ◽

pp. 256-276

Author(s):

Serafin Martinez-Jaramillo ◽

Jose Luis Molina-Borboa ◽

Bernardo Bravo-Benitez

Keyword(s):

Risk Assessment ◽

Financial Market ◽

Financial Stability ◽

Financial System ◽

General Overview ◽

Proper Functioning ◽

Financial Transactions ◽

Adequate Supervision

Financial Market Infrastructures (FMIs) are essential for the well-functioning of the financial system, as they play a central role in facilitating clearance and settlement of financial transactions such as payments, securities, and derivatives contracts. Nowadays, it is widely acknowledged that the proper functioning of systemically important FMIs is also vital to maintain financial stability; their failure for solvency reasons or operational disruptions could almost certainly lead to systemic instability. As a consequence, the adequate supervision of FMIs is inherent to the function of preserving financial stability. The aim of this chapter is to provide a general overview of the different FMIs; discuss their role in financial stability and to give an overview of the efforts made by some financial authorities towards the supervision, risk assessment and reinforcement of FMIs.

Download Full-text