Rozhodný limit a jeho přesažení

2021 ◽  
pp. 250-263
Author(s):  
Zuzana Šiková
Keyword(s):  
Risk Management ◽  
Investment Funds ◽  
Asset Value ◽  
Bank Managers ◽  
National Bank ◽  
Managed Funds

This paper deals with a relevant threshold, occurs of exceeding and calculations of asset value of investment funds or other managed assets that are managed. The paper also focuses on the process of the manager when there is exceeded the relevant threshold without authorization from Czech National Bank. Managers shall constantly assess the overall value of the managed funds and other managed asset and should provide an appropriate mechanism warning especially with regard to risk management. The aim of the paper is a deeper analysis of the term relevant threshold, to which subjects it applies and how it can be calculated.

Risk management in student-managed funds

2018 ◽  
Vol 46 (5) ◽  
pp. 692-702
Author(s):  
J. Christopher Hughen ◽  
Peter P. Lung
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Earnings Announcements ◽  
Investment Funds ◽  
Content Type ◽  
Risk Management Strategies ◽  
Reduction Strategies ◽  
Option Strategies ◽  
Risk Reduction Strategies ◽  
Managed Funds

Purpose Student-managed investment funds typically pursue “plain vanilla” objectives. The purpose of this paper is to demonstrate the value of adding option strategies to reduce the risk of equity positions around earnings announcements. The collar strategy is one such technique with the advantages of a low net cost and limited potential losses. Design/methodology/approach The authors provide recommendations for utilizing the collar strategy around earnings announcements. The authors also discuss how the value of this strategy is related to the literature on option pricing and earnings announcement returns. Findings Risk management strategies can enhance the pedagogical value of student-managed investment funds. The authors document how students have successfully utilized the collar strategy to immunize risk. Originality/value The collar strategy can enhance the pedagogical value of student-managed investment classes in several ways. First, students learn how to implement risk reduction strategies. Second, the proper implementation of these strategies requires students to learn the complex mechanisms associated with corporate earnings dissemination and analyst coverage. This also provides an opportunity to study earnings drift, which is a persistent and economically significant financial anomaly.

Problems of financial and legal regulation of private pension funds’ activity

2021 ◽  
pp. 162-168
Author(s):  
R. Polischuk
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
State Intervention ◽  
Legal Regulation ◽  
Pension Funds ◽  
Private Pension ◽  
Eu Directive ◽  
National Bank ◽  
State Pension ◽  
State Pension Funds

The problem of lack of interest of the population to participate in the formation of pension savings is one of the key problems of private pension funds. Accounting and registration of various rights, licensing and accreditation of institutions, establishment of norms, quotas and other restrictions, control and supervision, as well as the application of material sanctions and measures of administrative coercion are state regulation of private pension provision. The National Securities and Stock Market Commission, the National Bank of Ukraine, and the Antimonopoly Committee of Ukraine exercise state supervision and control over the activities of non-state pension funds. The current distribution of powers to oversee the activities of private pension funds between regulators is not effective enough. State intervention in the field of private pension funds should be timely, appropriate and limited. The need to invest heavily in setting up an administrator and an asset management company significantly reduces the attractiveness of private pension provision for potential investors, and the over-regulation of the institution under review reduces the level of confidence of ordinary citizens, employers and investors. The lack of components in the management system of non-state pension funds responsible for risk management and internal audit, the purpose of which is to protect against risks and exercise internal control, respectively, is a significant shortcoming of today. Ways to solve the above problems are, in particular: the unification of state regulators of the financial market in Ukraine and the creation of a mega-regulator for the activities of NPFs; abolition of normative legal acts, which in practice have proved their ineffectiveness, in terms of regulating the activities of NPFs, with the simultaneous adoption of new legislation that would “reduce the cost” of the mechanism of creation and operation of the institution of NPFs; implementation of EU Directive 2016/2341 of 14 December 2016 into the legislation of Ukraine regarding the functions of risk management and internal audit of NPFs; introduction of legal norms prohibiting, in particular, the National Bank of Ukraine from interfering in the activities of NPFs in terms of return of their assets by insolvent banks and investment activities, on grounds not expressly provided by the Law of Ukraine “On Non-State Pension Provision” and establishing legal grounds for personal liability persons for such actions.

scholarly journals The importance of a project level risk management methodology for EU Structural and Investment Funds accession in Romania

2017 ◽  
Vol 11 (1) ◽  
pp. 927-936
Author(s):  
Ciprian Nicolae ◽  
Dumitru Badea
Keyword(s):  
Risk Management ◽  
Research Methodology ◽  
Online Questionnaire ◽  
Investment Funds ◽  
Investment Projects ◽  
Key Issues ◽  
Additional Costs ◽  
Risk Management Methodology ◽  
The Eu ◽  
Project Level

Abstract Accessing EU funds is considered to be an important development chance for all type of beneficiaries in Romania: public bodies, nongovernmental organizations and firms. The grounds for this are the amount of funds available per beneficiary and the co financing rate (for example, the investment projects for firms amounted up to 5 million Euro of EU funding at a EU co financing rate up to 70%). As the Romanian responsible authorities strive to conduct a fast and smooth process, the reality shows the funds accession is rather unpredictable and costly, both in terms of time consumption and financial resources. Lots of causes contribute to this situation, amongst which the inefficient risk management conducted, both by the state authorities responsible with the EU funds management and by the beneficiaries of funds. The effects are visible: a poor absorption rate of the EU structural and cohesion funds (79,23% at the level of January 2017 for the 2007-2013 financial period). The authors' research follows the importance that risk management should have in the process of managing and accessing EU funds. The research methodology starts from the responses that 170 people involved in managing EU funded projects within 2007-2013 financial period gave to an online questionnaire carried on in 2016. The focus was to establish if and how risk management methodologies/procedures/guidelines were used within the implementation of projects and in what measure this kind of approach should be compulsory or optional for the financial period 2014-2020. The research methodology further implied the analysis of key issues for projects financing such as: feasibility and opportunity determination, budgeting, projects' evaluation, etc. The main finding of the research is that applicants and beneficiaries need to implement project level risk management methodologies. Based on this, the authors propose a guideline for drafting project level risk management methodologies, that put into practice might increase predictability during the preparation and implementation and reduce the additional costs of the EU funded projects. It is envisaged that this guideline should be treated as recommendation in order not to enable abuse of regulatory actions from the part of the managing authorities.

Variation in the structure and administration of student-managed investment funds

2019 ◽  
Vol 46 (4) ◽  
pp. 481-488
Author(s):  
Charles M. Boughton ◽  
Katherine L. Jackson
Keyword(s):  
Best Practices ◽  
Design Methodology ◽  
Past Research ◽  
Primary Data ◽  
Future Research ◽  
Primary Research ◽  
Investment Funds ◽  
Content Type ◽  
Managed Funds ◽  
Practical Implications

Purpose The purpose of this paper is to understand the differences present in student-managed investment funds (SMIF). Design/methodology/approach The paper uses primary data collected by survey and interviews. Findings The findings of this paper suggest that research efforts need to be focused on the topical area and transparency in the field needs to be improved. Research limitations/implications Past research is validated and future research is needed. Practical implications The need to develop and disseminate best practices in the management of SMIF’s. Social implications Student-managed funds are widespread and growing but operate as independent entities. Originality/value The paper is original and based on primary research.

scholarly journals The Relationship between Credit Risk Management and Profitability between Investment and Commercial Banks in Palestine

2015 ◽  
Vol 7 (11) ◽  
pp. 163
Author(s):  
Mohammed Bayyoud ◽  
Nermeen Sayyad
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Regression Model ◽  
Commercial Banks ◽  
Banking Sector ◽  
Structured Interview ◽  
Investment Banks ◽  
Credit Risk Management ◽  
Bank Managers ◽  
The Relationship

<p>Credit risk management is one of the vital aspects of the financial institutions regardless of their nature. For a more comprehensive analysis of Palestine banking sector, investment and commercial banks both were chosen for assessing the relationship between credit risk management and profitability. Explanatory design of study helped in assessing the casual effect relationship between the research variables. The regression model was used for gathering quantitative findings while structured interview from bank managers was selected for gathering qualitative data. The findings of the regression model in the current study confirmed that there is no consequence of credit risk on profitability of commercial and investment banks of Palestine. Additionally, it was also found that there is no difference between the Palestinian commercial and investment banks concerning the relationship.</p>

scholarly journals Management Strategies for Bank’s Liquidity Risk

2017 ◽  
Vol 9 (6) ◽  
pp. 98
Author(s):  
Sviatlana Hlebik ◽  
Lara Ghillani
Keyword(s):  
Risk Management ◽  
Financial Markets ◽  
Cash Flow ◽  
Management Strategies ◽  
Liquidity Risk ◽  
Major Focus ◽  
Single Institution ◽  
Short Term ◽  
Bank Managers

Liquidity risk management is today a major focus for regulators, due to increasing complexity of financial markets and concerns related to inadequate identification and managing liquidity risk, exacerbated by the financial crisis. Because the financial market is increasingly interconnected, a liquidity shortfall at a single institution can have system-wide consequences.This paper aims to provide analytical explanations of how important decisions made by bank managers can influence the capability of an institution to finance increases in assets and meet their commitments without impairing cash flow. Banks are particularly susceptible to liquidity risk because the maturity transformation from short-term deposits into long-term loans is one of their key business activity. Further, there can be uncertainties in cash-flow in the external occurrences and agents' behavior. Skillful liquidity risk management is essential, and the present work analyses impact of some management strategies on Basel III liquidity ratios.

scholarly journals MODERN APPROACHES TO ASSESS BANKING RISKS

2021 ◽  
Author(s):  
Olena Zarutska ◽  
Ludmila Novikova ◽  
Tetiana Rudianova ◽  
Anna Kovalenko
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Interest Rate Risk ◽  
Risk Modeling ◽  
Mathematical Methods ◽  
Risk Management Process ◽  
National Bank ◽  
Domestic Banks

The article examines modern approaches to the organization of the risk management process in Ukrainian banks. Requirements for modeling banking risks are growing in modern conditions. Recent financial and economic crises have demonstrated the devastating effects of unforeseen risks. The dynamic development of banking technologies and products requires a detailed analysis of the possible consequences of their implementation. Contingency losses require a probabilistic study. The buffer for the absorption of these losses is the capital of the bank. Losses from anticipated risks include the creation of reserves. The basis of modern approaches to risk modeling is the recommendations of the Basel Committee on Banking Supervision. The National Bank of Ukraine clearly regulates the requirements for the organization of risk management systems, but does not interfere in the construction of models. Banks develop internal policies, procedures and risk management models independently. In recent years, domestic banks have made significant progress in modeling and stress testing of risks. Each bank carries out a comprehensive assessment of at least the following significant types of risks: credit risk, liquidity risk, interest rate risk of the banking book, market risk, operational risk, compliance risk, and other significant types of risks. The issue of validation of risk assessment models by external experts is very relevant. Such specialists may be scientists who conduct research in the field of finance, banking and economic and mathematical methods of modeling complex systems. The interaction of scientists and practitioners has a double effect. Scholars are able to provide useful advice on the features of models and tools for assessing risks, systemic risks and financial stability of the banking sector at the macro level. Specific models of banks lay the foundations for current research topics of teachers and graduates. The authors of the article share the experience of model validation, analyze the current state of the banking system and the risk profile of domestic banks. Bank reporting data are considered in the dynamics and analyzed in terms of specific risks. The obtained conclusions are compared with the Risk Map of banks of the National Bank of Ukraine.

scholarly journals Special aspects of using hybrid financial tools for project risk management in Ukraine

2018 ◽  
Vol 15 (2) ◽  
pp. 257-266 ◽  
Author(s):  
Volodymyr Mishchenko ◽  
Svitlana Naumenkova ◽  
Viktor Ivanov ◽  
Ievgen Tishchenko
Keyword(s):  
Risk Management ◽  
Investment Project ◽  
Financial Risks ◽  
Financial Instruments ◽  
Project Financing ◽  
Currency Options ◽  
Forward Contracts ◽  
Investment Projects ◽  
National Bank ◽  
Management Of Project

The relevance of the article is due to the need of using non-traditional tools for capital raising and hedging financial risks in Ukrainian conditions that allow investors to protect themselves against possible losses during the entire life cycle of the investment project. The study is based on the National Bank of Ukraine statistical data, data of Ukrainian commercial banks, as well as on the authors’ calculations based on empirical and economic-statistical methods. According to international practices, hybrid financial instruments were classified and the special aspects of their use in Ukraine were studied to manage the risks of project financing. Specific features of using the structured bonds for financing investment projects are determined based on the synthetic securitization scheme. The experience of Ukrainian banks was analyzed and the necessity to use financial instruments such as guarantees and letters of credit in risk management of project financing was substantiated. It has been established that forward contracts, currency swaps and over-the-counter currency options are the most acceptable instruments for hedging foreign exchange risks of project financing. Further studies of the problem should include the need for legislative regulation of using hybrid financial instruments, as well as methodological and regulatory support for the risk management of project financing at all stages of the investment project implementation.

scholarly journals Enterprise Risk Management and Firm Performance: A Financial Sector Analysis of Pakistan

2021 ◽  
pp. 1302-1318
Author(s):  
Muhammad Jawad ◽  
Munazza Naz ◽  
Nauman Waheed ◽  
Sohail Rizan ◽  
Muhammad Aftab Shamsi
Keyword(s):  
Risk Management ◽  
Firm Performance ◽  
Enterprise Risk Management ◽  
Return On Equity ◽  
Enterprise Value ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Asset Value ◽  
Return On Capital ◽  
Income Ratio

Enterprise faces many kinds of risks and therefore the attention differs across institutions and organizations. Risk as an event that will influence the performance of a corporation as well as environmental risks, moral problems and social problems. Furthermore, risk or uncertainty as a broad and well-organized structure for managing different kinds of risks like credit, operational, marketplace, operative, economical or capital risks and risk transmission to maximize organization worth. The research analysis the different performance indicator of firm, enterprise risk management and their effect on firm performance. The secondary data on Commercial Banks, Foreign Banks, Investment Banks, Insurance Companies, Development Finance Institutions (DFIs), Leasing Companies, Mutual Funds, Modaraba Companies and Housing Finance Companies are collected from Financial Statement Analysis (FSA) from 2008 to 2016 provided by Statistics and DWH Department of State Bank, Pakistan. This study used Debt to Asset Ratio (DTA) as dependent variable and dummy of firm performance while Cost to Income Ratio (CTI), Enterprise Risk Management (ERM), Equity to Asset Ratio (ETA), Enterprise Value to Asset Value (EVTAV), Leverage (LVG), Return on Capital Employed (ROCE) and Return on Equity (ROE) are used as independent variables. The research found long run relationship among the variables. OLS Regression Test that Enterprise Risk Management (ERM) implementation, Equity to Asset Ratio (ETA), Enterprise Value to Asset Value (EVTAV), Leverage (LVG), Return on Capital Employed (ROCE), Return on Equity (ROE) have significant effect on performance of financial firms in positive direction while Cost to Income Ratio (CTI) have insignificant impact on performance of financial firms.

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