Effectiveness of Financial Risk Management Framework: An Analysis of the Mauritian Banking Sector

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.

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Financial Risk Management

Risk and Contingency Management ◽

10.4018/978-1-5225-3932-2.ch009 ◽

2018 ◽

pp. 162-173

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.

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Financial Risk Management

Global Business Expansion ◽

10.4018/978-1-5225-5481-3.ch007 ◽

2018 ◽

pp. 97-108

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.

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Financial Risk Management in SMEs: A New Conceptual Framework

International Business Research ◽

10.5539/ibr.v13n10p85 ◽

2020 ◽

Vol 13 (10) ◽

pp. 85

Author(s):

René-Pascal van den Boom

Keyword(s):

Risk Management ◽

Financial Risk ◽

Principal Component ◽

Two Dimensions ◽

Financial Risk Management ◽

Management Framework ◽

Risk Management Framework ◽

Risk Manager ◽

Risk Management Process ◽

Comprehensive Framework

During the past decades, several risk management models have been developed and implemented. Merely, suitable for large firms. Nowadays, there is still a lack of a comprehensive framework for small and medium-sized enterprises (SMEs). This paper proposes a new conceptual Financial Risk Management framework for SMEs. The framework consists of two dimensions: Risk Management Process and Organizational Structure. Both dimensions contain several components, each component includes one or more items. To calculate scores on different levels Principal Component Analysis (PCA) is used to calculate weighting factors. We add a disparity factor to adjust the final score for an imbalance between dimensions. The educational level of the risk manager is tested positively as a determinant for FRM as well as for the two dimensions. The proposed framework may help individual SMEs evaluate and approve its financial risk management. 

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Regulacija financijskog tržišta prije i nakon svjetske krize

Oeconomica Jadertina ◽

10.15291/oec.295 ◽

2017 ◽

Vol 5 (1) ◽

Author(s):

Anita Radman Peša ◽

Vanja Zubak ◽

Duje Mitrović

Keyword(s):

Risk Management ◽

Financial Markets ◽

Interest Rates ◽

Financial Market ◽

Financial Risk ◽

Banking Sector ◽

Financial Regulation ◽

Banking System ◽

Financial Risk Management ◽

Macroeconomic Stability

The banking sector in the global economic system is an area of great impact on the preservation of macroeconomic stability. As it turned out, and during the recent economic crisis, whose consequences are still felt in many countries, the collapse of the financial markets has farreaching effects on all of the national financial markets. The aim of this paper is to analyze the existing regulation of the financial markets and its (lack of) performance in the current financial risk management in order to preserve macroeconomic stability, and provide a secure and stable banking system. The purpose of the study was to present financial regulation before the crisis of 2008 / 2009, and to compare it with the regulations issued after the global crisis of 2008 / 2009 in order to conclusion whether it is cosmetic or real changes of regulating the financial system, and whether existing regulation in the future successfully prevent minor and major disruptions of the financial markets. Croatian financial market is especially analysed in the case of manipulation using the benchmark interest rates.

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Risk Management Implementation in Indonesian State Budget Fiscal Risk Disclosure

Optimum Jurnal Ekonomi dan Pembangunan ◽

10.12928/optimum.v11i1.3277 ◽

2021 ◽

Vol 11 (1) ◽

pp. 24

Author(s):

Audra Rizki Himawan ◽

Yanuar Pribadi

Keyword(s):

Risk Management ◽

Financial Risk ◽

The State ◽

Management Unit ◽

Risk Disclosure ◽

State Budget ◽

Management Framework ◽

Risk Management Framework ◽

Fiscal Risk

Fiscal risk management is part of the management of financial risk in the State Budget. Basically, these risks are interrelated although they are different things. State financial risk as an inherent risk of State Budget has a different process from fiscal risk management. This study aims to evaluate the management process and disclosure of fiscal risk in the State Budget using a case study-qualitative approach. The integration of the risk management system between the risk management unit and the fiscal risk management unit, and development of fiscal risk management framework could improve the process of managing and disclosing fiscal risk in the Budget Statement.

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An analysis of the sufficiency of credit risk management framework in the banking sector in Zimbabwe

Corporate Ownership and Control ◽

10.22495/cocv10i1c5art3 ◽

2012 ◽

Vol 10 (1) ◽

pp. 515-520

Author(s):

Kunofiwa Tsaurai

Keyword(s):

Risk Management ◽

Credit Risk ◽

Software Package ◽

Inverse Relationship ◽

Banking Sector ◽

Credit Risk Management ◽

Management Framework ◽

Risk Management Framework ◽

Management Policies ◽

Management Competency

The research investigates sufficiency of credit risk management policies of banks in Zimbabwe from 2000 to 2007 using the E-Views statistical software package. The regression model suggests that high non performing loans were due to inefficient management of the banks’ credit risk activities. An inverse relationship between non performing loans and credit risk management competency was also detected. The t-statistic for size of the bank was found to be closer to 1.5 and that shows the size of the bank has a bearing on both the level of non performing loans and the sufficiency of credit risk management frameworks. The author therefore recommends enough credit risk management frameworks be instituted in Zimbabwe banking sector to ensure financial sector stability.

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COMMERCIAL BANK FINANCIAL RISK MANAGEMENT

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.04.03.012 ◽

2021 ◽

Vol 3 (4) ◽

pp. 84-89

Author(s):

I. Yu. SKLYAROV ◽

◽

Yu. M. SKLYAROVA ◽

L. A. LATYSHEVA ◽

◽

...

Keyword(s):

Risk Management ◽

Commercial Bank ◽

Management System ◽

Financial Risk ◽

Banking Sector ◽

Current Problem ◽

Financial Risk Management ◽

Risk Management System ◽

Banking Institutions ◽

Financial Losses

The article discusses the main ways and methods of financial risk management in a commercial bank. The main goal of financial risk management is to reduce financial losses through the implementation of certain methods, such as hedging, insurance, provisioning, etc. The current problem of financial risk management in the banking sector indicates the absence of an integral system of their management. To overcome critical situations and create an innovative risk management system in banking institutions, it is advisable to develop and implement new and more effective methods of banking risk management.

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