Design of international financial risk estimation model based on improved genetic algorithm

2021 ◽  
pp. 1-10
Author(s):  
Tianyu Mo
Keyword(s):  
Genetic Algorithm ◽  
Risk Management ◽  
Financial Institutions ◽  
Financial Risk ◽  
Risk Estimation ◽  
Accurate Estimation ◽  
Financial Risks ◽  
Improved Genetic Algorithm ◽  
Estimation Model ◽  
Model Based

The financial industry is developing rapidly, and risk management is an important part of the internal management of financial institutions. In order to accurately estimate international financial risks, improve the risk management performance of financial institutions, and ensure the sustainable development of the international financial market, an international financial risk estimation model based on improved genetic algorithms was designed, the value-at-risk model VAR model was selected to estimate the international financial risk by measuring the degree of economic loss, and the improved genetic algorithm was adopted to the seven parts of immature convergence to quickly obtain the VAR value of international financial risks, including initialize the population, real number coding, determine fitness function, selection operator, crossover operator, mutation operator and predict and process. Results show that the rapid estimation of international financial risks was realized, the designed model can achieve accurate estimation of international financial risks, and the time cost of financial risk estimation under different sample sizes is less than 500 ms.

FINANCIAL RISK MANAGEMENT IN ENTREPRENEURIAL ACTIVITY: CONCEPT, SYSTEM AND PRINCIPLE OF BUILDING

2020 ◽  
Vol 2 (4) ◽  
pp. 62-67
Author(s):  
M. M. KHAYTANOVA ◽  
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Entrepreneurial Activity ◽  
Financial Risks ◽  
Study Methods ◽  
Financial Risk Management ◽  
Concept System

The article reveals: theoretical justifications of the concept of “financial risk” in relation to the sphere of entrepreneurship; methods for its identification and processing. Financial risk management is the activity of identification, assessment, control and monitoring of risks. In the course of the study, methods for managing financial risks in entrepreneurial activity and their classification were identified.

Sustainable Development and Risk Management

2021 ◽  
Vol 18 (4) ◽  
pp. 16-27
Author(s):  
E. Yu. Pertseva ◽  
V. Yu. Skobarev ◽  
E. E. Telenkov
Keyword(s):  
Risk Management ◽  
Development Strategy ◽  
Management System ◽  
Financial Risk ◽  
Workplace Safety ◽  
Financial Risks ◽  
Performance Targets ◽  
Company Value ◽  
Risk Management System

In the context of the increasing role of non-financial factors of company value creation, many organizations, when developing a development strategy, go beyond exclusively financial and economic goals and include workplace safety, energy efficiency, customer satisfaction and other non-financial goals in their performance targets. Achieving such goals involves risks, but today there is no common understanding of the composition of the relevant risks, their sources (factors of occurrence), approaches to assessing these risks, as well as universal corporate tools for managing them. In this article, we offer our vision of the place of the so-called “non-financial risks” in the risk management system and show the possibilities of integrating non-financial risk management into the risk management system and the management model of the organization.

scholarly journals Hydrological Layered Dialysis Research on Supply Chain Financial Risk Prediction under Big Data Scenario

2018 ◽  
Vol 2018 ◽  
pp. 1-9
Author(s):  
Jia Liu ◽  
Shiyong Li ◽  
Xiaoxia Zhu
Keyword(s):  
Risk Management ◽  
Big Data ◽  
Supply Chain ◽  
Risk Analysis ◽  
Risk Prediction ◽  
Financial Institutions ◽  
Surface Runoff ◽  
Financial Risk ◽  
Supply Chain Finance ◽  
Runoff Model

In recent years, internet development provides new channels and opportunities for small- and middle-sized enterprises’ (SMEs) financing. Supply chain finance is a hot topic in theoretical and practical circles. Financial institutions transform materialized capital flows into online data under big data scenario, which provides networked, precise, and computerized financial services for SMEs in the supply chain. By drawing on the risk management theory in economics and the distributed hydrological model in hydrology, this paper presents a supply chain financial risk prediction method under big data. First, we build a “hydrological database” used for the risk analysis of supply chain financing under big data. Second, we construct the risk identification models of “water circle model,” “surface runoff model,” and “underground runoff model” and carry on the risk prediction from the overall level (water circle). Finally, we launch the supply chain financial risk analysis from breadth level (surface runoff) and depth level (underground runoff); moreover, we integrate the analysis results and make financial decisions. The results can enrich the research on risk management of supply chain finance and provide feasible and effective risk prediction methods and suggestions for financial institutions.

scholarly journals PARAMETRIZATION OF THE MECHANISM OF FINANCIAL RISK MANAGEMENT IN THE DIGITAL SECURITIES CIRCULATION

2019 ◽  
pp. 77-83
Author(s):  
Oleksandr Volodmyrovych Lutskevych ◽  
Keyword(s):  
Risk Management ◽  
Social Life ◽  
Financial Risk ◽  
State Regulation ◽  
Securities Market ◽  
Financial Risks ◽  
Negative Consequences ◽  
Management Mechanism ◽  
Financial Risk Management ◽  
The Impact

Urgency of the research. Digital technologies are transforming all spheres of social life, and the financial sphere is no exception. In general, such trends cannot but leave an imprint on approaches to managing the financial risk of digital securities. Target setting. Currently, scientific and methodological support for the formation of a mechanism for managing the financial risks of digital securities is in the early stages of development, while the quality of state regulation and supervision of participants in digital securities directly depends on the effectiveness of the current mechanism for managing such risks. Actual scientific researches and issues analysis. Theoretical and applied aspects of the securities market, features of the impact of financial innovations and financial risk management in the field of securities circulation, are researched by V. Bodrov [1], O. M. Kovaleva [2], I. V. Krasnova [3], N. V. Tkachenko [4], Yu. B. Kolupaeva [5] and others. Uninvestigated parts of general matters defining. The methodology of formation the mechanism for managing the financial risks of digital securities needs more precise research. The research objective. Deepening the scientific understanding of the term "financial risk management mechanism for the circulation of digital securities" will ensure to outline ways of increasing the efficiency of this financial instrument usage. The statement of basic materials. This article analyzes the essence of the term "financial risk management mechanism". The construction of the mechanism has been adapted to the specifics of digital securities risk management. Conclusions. The essence of the mechanism of financial risks management of digital securities circulation is improved due to application of a set of methods for identification, quantitative and qualitative analysis, measures to prevent realization and / or reduction of negative consequences of financial risks of digital securities circulation, ways of control over some events.

scholarly journals Financial Stability and Climate Change

2020 ◽  
Vol 9 (3) ◽  
pp. 27-43
Author(s):  
Nikola Fabris
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Risk ◽  
Negative Impact ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Financial Risks ◽  
Balance Sheets ◽  
Sea Levels

AbstractFighting climate change is one of the biggest challenges in the 21st century. Climate change that leads to global warming has been increasingly visible in our environment. Extreme weather conditions such as hurricanes, floods, and droughts have been escalating and their acceleration can be expected in the future. They cause changes in sea levels, epidemics, large fires, etc. Increasingly, we are witnessing minor or major damage caused by these extreme weather conditions. Numerous studies have proven that climate change has negative impact on economic growth and prosperity. However, this paper starts from the premise that in addition to unequivocally identified threats, climate change also creates opportunities.The paper reaches a conclusion that climate change can adversely affect balance sheets of financial institutions. Therefore, climate change is a source of financial risk and thus a part of the mandate of central banks and supervisors in preserving financial stability. This type of risk has not been given enough attention by either supervisors or financial institutions over the past period. This paper develops a model for managing financial risks as a result of climate change.

scholarly journals Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Risks ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 211
Author(s):  
Elena G. Popkova ◽  
Bruno S. Sergi
Keyword(s):  
Sustainable Development ◽  
Risk Management ◽  
Emerging Economies ◽  
Social Entrepreneurship ◽  
Financial Risk ◽  
Financial Risks ◽  
Financial Risk Management ◽  
Substantial Progress ◽  
The Stability ◽  
Commercial Entrepreneurship

The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management.

Financial Risk Management

2016 ◽  
pp. 301-311
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

THE METHODOLOGICAL VALUE OF THE CLASSIFICATION IN THE COMPANY FINANCIAL RISK MANAGEMENT SYSTEM

2020 ◽  
Author(s):  
A.A. Fathulin ◽  
N. A. Fathulina ◽  
S. N. Basova
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Risk ◽  
Methodological Approach ◽  
Financial Risks ◽  
Risk And Uncertainty ◽  
Financial Risk Management ◽  
Risk Management System

The complexity of understanding the nature of risks, as well as the diversity of their types and manifestations, including financial risks, requires the use of a methodological approach to their classification. Classification of financial risks is of particular importance in the company's activities in order to effectively manage them. The article analyzes the concepts of "risk" and "uncertainty", and provides risk classifications for various reasons. It is concluded that it is possible to control and manage risks through comprehensive accounting and, accordingly, prevention of various types of threats and uncertainties in the company's activities.

scholarly journals Knowledge is power – conceptualizing collaborative financial risk assessment

2019 ◽  
Vol 20 (3) ◽  
pp. 226-248 ◽  
Author(s):  
Thomas Michael Brunner-Kirchmair ◽  
Melanie Wiener
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Risk ◽  
Risk Identification ◽  
Modern World ◽  
Risk Governance ◽  
Financial Risks ◽  
Financial Risk Management ◽  
Content Type ◽  
New Findings

Purpose Inspired by new findings on and perceptions of risk governance, such as the necessity of taking a broader perspective in coping with risks in companies and working together in interactive groups with various stakeholders to deal with complex risks in the modern world, the purpose of this paper is looking for new ways to deal with financial risks. Current methods dealing with those risks are confronted with the problems of being primarily based on past data and experience, neglecting the need for objectivity, focusing on the short-term future and disregarding the interconnectedness of different financial risk categories. Design/methodology/approach A literature review of risk governance, financial risk management and open foresight was executed to conceptualize solutions to the mentioned-above problems. Findings Collaborative financial risk assessment (CFRA) is a promising approach in financial risk governance with respect to overcoming said problems. It is a method of risk identification and assessment, which combines aspects of “open foresight” and the financial risk management and governance literature. CFRA is characterized as bringing together members of different companies in trying to detect weak signals and trends to gain knowledge about the future, which helps companies to reduce financial risks and increase the chance of gaining economic value. By overcoming organizational boundaries, individual companies may gain the knowledge they would probably not have without CFRA and achieve a competitive advantage. Research limitations/implications A conceptual paper like the one at hand wants empirical proof. Therefore, the authors developed a research agenda in the form of five propositions for further research. Originality/value This paper discusses the existing problems of financial risk identification and assessment methods. It contributes to the existing literature by proposing CFRA as a solution to those problems and adding a new perspective to financial risk governance.

scholarly journals Editorial for Special Issue “Finance, Financial Risk Management and their Applications”

2018 ◽  
Vol 6 (4) ◽  
pp. 83
Author(s):  
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Financial Risks ◽  
Special Issue ◽  
Financial Risk Management

We are pleased to announce the Special Issue on the Finance, Financial Risk Management and their Applications in the International Journal of Financial Studies. This Special Issue collects papers pertaining to several lines of research related to finance and financial risks. This Guest Editor’s note synthesizes the contributing authors’ propositions and findings regarding these developments and hopes that new areas can be opened for future researches.

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