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RISK MANAGEMENT
RISK MANAGEMENT

... Shinsei Bank has identified risk management as one of its most important management issues, and the Bank has undertaken various measures to strengthen risk management frameworks. These include improvements of our various committees and further empowerment of their functions, and the establishment of ...
Information for investors
Information for investors

... liquidity risk is associated to the possibility of changes in the difference between the value of market offers for purchase and for sale (the bid-ask spread), as well as the fact that there is no bid-ask quotation for the appropriate volume of transactions at any moment (or period). Therefore, the ...
Equilibrium asset prices with undiversifiable labor income risk
Equilibrium asset prices with undiversifiable labor income risk

... Every consumer receives a known endowment y, > 0 of the consumption good (a fruit) in the first period of life and a random second-period endowment y’ > 0. All consumers face the same probability distribution of F, but realizations of 9 are idiosyncratic: agents therefore differ ex post, although no ...
Racial/Ethnic Disparities in Risky Asset Ownership
Racial/Ethnic Disparities in Risky Asset Ownership

... and Whites (Altonji, Ulrich, & Segal, 2000; Barsky, Bound, Kervin, & Lupton, 2002; Blau & Graham, 1990; Smith, 1995; Sharmila, 2002; Wolff, 1998). Investment in risky, high return assets is an important factor in future economic well-being of households, especially in terms of potential retirement a ...
SM_Ch06
SM_Ch06

... Quality of earnings refers to the company’s ability to contine to earn profits on a similar basis to its current earnings, both in terms of the amounts and the trends over relatively long periods of time. Quality earnings will be consistent and highly associated with the underlying core business act ...
the relationship between corporate philanthropy and shareholder
the relationship between corporate philanthropy and shareholder

... rationally and intend to maximize shareholder wealth through their decisions; agency problems either do not exist, or adequate control systems and governance mechanisms can be installed to minimize the presence and severity of agency problems. Stakeholders construct reputational assessments and eval ...
Document
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... increases in value and bears the risk for any decreases in value. ...
working paper / xx/12 - Ministry of Social Development
working paper / xx/12 - Ministry of Social Development

... policy problems inasmuch as the rules governing the institutions concerned are made or influenced by the government, and the consequences of institutional failure if it occurs are likely to be public policy problems themselves. Although the desired outcome – efficient decumulation – is known, the pr ...
Probability of Default for Microfinance Institutions
Probability of Default for Microfinance Institutions

... missing typically indicate that the information is difficult to obtain. This information should therefore not be included in the final model » Factors must be intuitive. Experienced credit analysts should be familiar with the factor and its relationship with credit risk given the credit culture in w ...
Valuation Risk chapter 02
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... Risky Alternatives (cont’d) Example (cont’d) Solution (cont’d):  Choice A is like buying shares of a utility stock.  Choice B is like purchasing a stock option.  Choice C is like a convertible bond.  Choice D is like writing out-of-the-money call ...
StrongPCMP4e-ch02
StrongPCMP4e-ch02

... Portfolio Construction, Management, & Protection, 4e, Robert A. Strong Copyright ©2006 by South-Western, a division of Thomson Business & Economics. All rights reserved. ...
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PowerPoint-Präsentation

... If asset prices unpredictable, then what is the use of CAPM? CAPM gives analyst a model to measure the systematic risk of any asset. On average, assets with high systematic risk should earn higher returns than assets with low systematic risk. CAPM offers a way to compare risk and return on investmen ...
Introduction
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... downgrades will be avoided and investors will be more protected. Portfolio managers will base on a more valid model. Bank regulation is supported by credit-risk models at the level of the capital requirements. Securitization allowed them to avoid excessive capital provisions in the light of Basel I ...
Lecture Presentation to accompany Investment
Lecture Presentation to accompany Investment

... Given a choice between two assets with equal rates of return, most investors will select the asset with the lower level of risk. ...
Coherent Measures of Risk
Coherent Measures of Risk

... a regulator who takes into account the unfavorable states when allowing a risky position that may draw on the resources of the government—for example as a guarantor of last resort; (b) an exchange’s clearing firm, which has to make good on the promises to all parties of transactions being securely c ...
View PDF - CiteSeerX
View PDF - CiteSeerX

... a regulator who takes into account the unfavorable states when allowing a risky position that may draw on the resources of the government—for example as a guarantor of last resort; (b) an exchange’s clearing firm, which has to make good on the promises to all parties of transactions being securely c ...
P a g e 1
P a g e 1

... resorted to lying as a way of introducing it into the minds which were ignorant of its charms.” I rest my case. Friedrich Nietzsche has said: “I'm not upset that you lied to me, I'm upset that from now on I can't believe you.” He has also said: “The visionary lies to himself, the liar only to others ...
Key Investor Information
Key Investor Information

... At least 80% of the fund will be invested in shares of UK companies. The fund has no bias to any particular industry. The fund follows an investment approach based around the business cycle, where the managers attempt to identify turning points in the cycle and then focus on the types of companies t ...
An Analysis of Default Risk in the Home Equity Conversion
An Analysis of Default Risk in the Home Equity Conversion

... liquidity constraints, and poor financial management are likely more important. Further, the way in which borrowers structure their withdrawals of equity from reverse mortgages, principally the proportion of funds distributed as a lump sum at closing, may exacerbate or reduce default risk. Our analy ...
The Renewable Heat Incentive: a reformed and refocused scheme
The Renewable Heat Incentive: a reformed and refocused scheme

... As with solar panels, lenders will want to ensure that leases meet their requirements; in particular lenders will want to know that no security of tenure arises. Since there is no standard form lease these are likely to be considered on a case by case basis at present, which is time consuming and re ...
the design of successful rural financial intermediaries: evidence from
the design of successful rural financial intermediaries: evidence from

... The highest corresponded to Bali's LPD (54.2 percent), and the lowest to Central Java's BK.K (13 percent). These RFis have been able to reach large numbers of the rural poor and still remain financially viable (profitable). This is the mark of their achievement. ...
Another Look at Risks in Financial Group Structures
Another Look at Risks in Financial Group Structures

... theory, subject to the limits allowed by law or regulation, where integration can occur across products, across sectors, or across borders. At one end of this spectrum would be complete specialisation, as reflected, for example, in a single-sector, single-product institution, such as a mortgage brok ...
New risks. New insights.
New risks. New insights.

... How these tilts relate to the portfolio’s established benchmark is critical to portfolio construction. It is dangerous to create such deviations in any portfolio and not understand the implications of their potential outcomes — both good and bad. As examples, consider that the effect of interest rat ...
Download Full Article
Download Full Article

... community pooling of informal insurance contributions to cover burial costs. Community-based insurance mechanisms surmount the problems of transactions costs and lack of legally enforceable contracts through personal relationships and piggybacking on traditional small-scale financial collection mech ...
Public  Enterprise  Finance: Towards  a Synthesis Jenkins
Public Enterprise Finance: Towards a Synthesis Jenkins

... less component of the future uncertain return i:; valued as debt, the remaining component will be riskier than the whole and will command a proportionately higher risk premium. ...
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Moral hazard

In economics, moral hazard occurs when one person takes more risks because someone else bears the burden of those risks. A moral hazard may occur where the actions of one party may change to the detriment of another after a financial transaction has taken place.Moral hazard occurs under a type of information asymmetry where the risk-taking party to a transaction knows more about its intentions than the party paying the consequences of the risk. More broadly, moral hazard occurs when the party with more information about its actions or intentions has a tendency or incentive to behave inappropriately from the perspective of the party with less information.Moral hazard also arises in a principal–agent problem, where one party, called an agent, acts on behalf of another party, called the principal. The agent usually has more information about his or her actions or intentions than the principal does, because the principal usually cannot completely monitor the agent. The agent may have an incentive to act inappropriately (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned.
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