A new approach to assessing risks to financial stability
... A first step towards assessing the significance of vulnerabilities is to develop a better understanding of the ways in which they affect the functioning of the financial system. What are the potential shocks that could trigger the vulnerability? Which parts of the financial and non-financial sectors ...
... A first step towards assessing the significance of vulnerabilities is to develop a better understanding of the ways in which they affect the functioning of the financial system. What are the potential shocks that could trigger the vulnerability? Which parts of the financial and non-financial sectors ...
contents - Wrexham County Borough Council
... Factor (CEF) Score’, a percentage determining the building’s level of risk. This is based on an assessment of the building’s condition, its individual rate of deterioration and the building’s occupancy level. The condition of each Listed Building has been determined based upon a detailed appraisal o ...
... Factor (CEF) Score’, a percentage determining the building’s level of risk. This is based on an assessment of the building’s condition, its individual rate of deterioration and the building’s occupancy level. The condition of each Listed Building has been determined based upon a detailed appraisal o ...
Managing the consequences of macroeconomic and (geo
... When I started working on bubbles many years ago, I was following in the footsteps of Allais, Samuelson and Diamond: I applied their ideas to asset bubbles, which I defined as the difference between the price and the fundamental, as described in the formula in Figure 1 in the case of investor risk n ...
... When I started working on bubbles many years ago, I was following in the footsteps of Allais, Samuelson and Diamond: I applied their ideas to asset bubbles, which I defined as the difference between the price and the fundamental, as described in the formula in Figure 1 in the case of investor risk n ...
Communicating Asset Risk: How Name
... these expectations related to asset choice. Respondents were provided with the names of 16 domestic and foreign investment options, with 10-year historical return information for these options, or with both. Historical returns were presented either as a bar graph of returns per year or as a continuo ...
... these expectations related to asset choice. Respondents were provided with the names of 16 domestic and foreign investment options, with 10-year historical return information for these options, or with both. Historical returns were presented either as a bar graph of returns per year or as a continuo ...
a PDF of the full article
... of all changed risk factors, a correlation matrix and a choice of financial behaviour model. • Probable scenarios based on implied volatility. • Fund strategy-specific scenarios, where there is little influence from previous scenarios and real sensitivity to traditional risk factors is hard to calcu ...
... of all changed risk factors, a correlation matrix and a choice of financial behaviour model. • Probable scenarios based on implied volatility. • Fund strategy-specific scenarios, where there is little influence from previous scenarios and real sensitivity to traditional risk factors is hard to calcu ...
The Economic Risks of Globalization
... significantly diminished financial and political reserves for handling further crises. Another financial market crash, an oil price shock caused by the Iran ...
... significantly diminished financial and political reserves for handling further crises. Another financial market crash, an oil price shock caused by the Iran ...
The Impacts of Risk Reduction Strategy on Customer
... Deregulation in the financial services industry, along with mergers and acquisitions, has led to increasing competition between sectors of the financial services industry such as banks, securities corporations, and insurance companies. As a consequence, institutions from one sector have attempted to ...
... Deregulation in the financial services industry, along with mergers and acquisitions, has led to increasing competition between sectors of the financial services industry such as banks, securities corporations, and insurance companies. As a consequence, institutions from one sector have attempted to ...
The remainder of the paper is as follows
... combined entity. Although it may make sense for firms to counteract some of the risk reduction induced by asset diversification by taking greater advantage of the tax shield provided by debt (Lewellen, 1971) or recapture wealth from bondholders (Kim and McConnell, 1977), theories have thus far not p ...
... combined entity. Although it may make sense for firms to counteract some of the risk reduction induced by asset diversification by taking greater advantage of the tax shield provided by debt (Lewellen, 1971) or recapture wealth from bondholders (Kim and McConnell, 1977), theories have thus far not p ...
Risk and De-Collectivisation in the Czech Republic Dirk
... most Central and Eastern European countries have been suggested, including malfunctioning factor markets and credit markets, asset incompatibility, land fragmentation, contract enforcement, and human capital problems (e.g. Sarris et al., 1999; Cungu and Swinnen, 1999; Mathijs et al, 1999). The aim o ...
... most Central and Eastern European countries have been suggested, including malfunctioning factor markets and credit markets, asset incompatibility, land fragmentation, contract enforcement, and human capital problems (e.g. Sarris et al., 1999; Cungu and Swinnen, 1999; Mathijs et al, 1999). The aim o ...
Market Risk, Mortality Risk, and Sustainable Retirement
... in worst case scenarios than those minimizing the more traditional probability of failure measure. Using downside risk-based metrics to minimize the severity of retirement outcomes, we then investigate how these allocations might change with varying sets of assets, market conditions, and assumptions ...
... in worst case scenarios than those minimizing the more traditional probability of failure measure. Using downside risk-based metrics to minimize the severity of retirement outcomes, we then investigate how these allocations might change with varying sets of assets, market conditions, and assumptions ...
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... of corporate loan portfolio or credit card portfolio) and are typically reserved for in some manner. Unexpected losses are those associated with unforeseen events (e.g. losses experienced by banks in the aftermath of nuclear tests, Losses due to a sudden down turn in economy or falling interest rate ...
... of corporate loan portfolio or credit card portfolio) and are typically reserved for in some manner. Unexpected losses are those associated with unforeseen events (e.g. losses experienced by banks in the aftermath of nuclear tests, Losses due to a sudden down turn in economy or falling interest rate ...
stock and mutual financial firms - American Risk and Insurance
... value non-financial firm safety. Mortgage customers of mutual deposit institutions pay higher prices than do mortgage customers of stock deposit institutions. Organizational form theory primarily focuses on agency issues, which arise from the separation of ownership and control. Agency issues are pr ...
... value non-financial firm safety. Mortgage customers of mutual deposit institutions pay higher prices than do mortgage customers of stock deposit institutions. Organizational form theory primarily focuses on agency issues, which arise from the separation of ownership and control. Agency issues are pr ...
perspectives on dynamic asset allocation
... LHP and the liabilities must then have virtually identical dollar-durations. This usually requires that derivatives are used to supply the LHP with needed long duration for example. One may want to improve upon the duration hedging approach by also taking convexity into account. One way of doing thi ...
... LHP and the liabilities must then have virtually identical dollar-durations. This usually requires that derivatives are used to supply the LHP with needed long duration for example. One may want to improve upon the duration hedging approach by also taking convexity into account. One way of doing thi ...
Is Default Risk Priced in Equity Returns?
... BM earn higher expected returns. As FF (1993) suggest, the reasons for these ME and BM effects lie in ME’s and BM’s association with financial distress. Therefore, small and value stocks (with high BM) should be compensated due to their high sensitivities to state variables, such as specific busines ...
... BM earn higher expected returns. As FF (1993) suggest, the reasons for these ME and BM effects lie in ME’s and BM’s association with financial distress. Therefore, small and value stocks (with high BM) should be compensated due to their high sensitivities to state variables, such as specific busines ...
CAPITAL MARKETS PRODUCT RISK BOOK
... (disadvantages) and risks of the financial instruments covered therein (the “Capital Markets Products”) so as to enable them to make investment decisions on an informed basis. Part A of this Product Risk Book contains the basic principles related to the Capital Markets Products (cash and derivative ...
... (disadvantages) and risks of the financial instruments covered therein (the “Capital Markets Products”) so as to enable them to make investment decisions on an informed basis. Part A of this Product Risk Book contains the basic principles related to the Capital Markets Products (cash and derivative ...
Basel Committee guidance on accounting for IFRS 9 expected credit
... recognition, considering all reasonable and supportable information, including that which is forward looking. The objective of the impairment requirements in IFRS 9 is to recognise lifetime ECL for all financial instruments for which there have been significant increases in credit risk since initial ...
... recognition, considering all reasonable and supportable information, including that which is forward looking. The objective of the impairment requirements in IFRS 9 is to recognise lifetime ECL for all financial instruments for which there have been significant increases in credit risk since initial ...
Sequencing riSk a key challenge to creating SuStainaBle
... experiencing returns in an unfavourable order during periods facing changes in invested capital, either through contributions or distributions. The unfavourable order is observed when large negative returns are experienced during the period with the greatest portfolio balance (that is, the worst ret ...
... experiencing returns in an unfavourable order during periods facing changes in invested capital, either through contributions or distributions. The unfavourable order is observed when large negative returns are experienced during the period with the greatest portfolio balance (that is, the worst ret ...
NBER WORKING PAPER SERIES BELIEFS ARE HETEROGENEOUS
... ity of output (endowments in our models), and by the participants’ tastes for risk and tradeoff across time, as well as their beliefs. As far as consumption and risk sharing are concerned, our formulation identifies a simple tradeoff between these two key, but seemingly quite different factors. Tha ...
... ity of output (endowments in our models), and by the participants’ tastes for risk and tradeoff across time, as well as their beliefs. As far as consumption and risk sharing are concerned, our formulation identifies a simple tradeoff between these two key, but seemingly quite different factors. Tha ...
Here - Punter Southall Transaction Services
... Whilst legislation allows schemes to utilise bond yields in their valuations directly, the majority of schemes do not choose to do so. Instead they set their discount rate based on the expected return on their assets, taking advantage of some of the flexibility in the funding regime. Data from t ...
... Whilst legislation allows schemes to utilise bond yields in their valuations directly, the majority of schemes do not choose to do so. Instead they set their discount rate based on the expected return on their assets, taking advantage of some of the flexibility in the funding regime. Data from t ...
the use of portfolio credit risk models in central banks
... to market loss on the collateral. The latter risk is mitigated by applying haircuts to the collateral. The security from a collateral framework is not absolute – nor should it be: there is a trade-off between security and costs/ efficiency of monetary policy implementation (Bindseil and Papadia, 200 ...
... to market loss on the collateral. The latter risk is mitigated by applying haircuts to the collateral. The security from a collateral framework is not absolute – nor should it be: there is a trade-off between security and costs/ efficiency of monetary policy implementation (Bindseil and Papadia, 200 ...
Document
... Corporate governance issue becomes an attractive issue in Asian countries, including Malaysia in late 1990s following the 1997-1998 crises (Cheung & Chan, 2004; Tze, 2003). Agency theory and many corporate guidelines suggest having a good corporate governance system for more transparent disclosing i ...
... Corporate governance issue becomes an attractive issue in Asian countries, including Malaysia in late 1990s following the 1997-1998 crises (Cheung & Chan, 2004; Tze, 2003). Agency theory and many corporate guidelines suggest having a good corporate governance system for more transparent disclosing i ...
Joint Dynamics of Bond and Stock Returns - Wisconsin-School
... rebalancing and flight-to-safety mechanisms. Contribution of the rebalancing mechanism is positive for all assets, resulting in a “common factor” in returns on all assets. Contribution of the flight-to-safety mechanism is negative for bonds and positive for stocks. Bonds therefore hedge the stock ma ...
... rebalancing and flight-to-safety mechanisms. Contribution of the rebalancing mechanism is positive for all assets, resulting in a “common factor” in returns on all assets. Contribution of the flight-to-safety mechanism is negative for bonds and positive for stocks. Bonds therefore hedge the stock ma ...
Regulatory guidance – Integrated risk
... This will then be repaid as the framework is used by current and future trustees, for and between subsequent valuations. 16. The extent of that initial investment will vary between schemes. Many schemes already have a risk assessment and management process in place. It may not be labelled as IRM but ...
... This will then be repaid as the framework is used by current and future trustees, for and between subsequent valuations. 16. The extent of that initial investment will vary between schemes. Many schemes already have a risk assessment and management process in place. It may not be labelled as IRM but ...
Development of Simulation based Model to quantify the degree of
... January 2015 that emphasises a strong liquidity framework to support funding. The importance of holding more capital has become the main pre-requisite for Basel III but taking the aftermath of Global Financial Crisis starting at the end of 2007 poses even a greater challenge to all the emerging bank ...
... January 2015 that emphasises a strong liquidity framework to support funding. The importance of holding more capital has become the main pre-requisite for Basel III but taking the aftermath of Global Financial Crisis starting at the end of 2007 poses even a greater challenge to all the emerging bank ...
Risk-taking behavior of Commodity Trading Advisors
... provision that requires the fund manager to make up past deficits prior to earning incentive fees. The HWM provision is intended to protect investors by requiring payment of incentive fees only on the amount attributable to new trading gains, or the gains in excess of the previous HWM. The performan ...
... provision that requires the fund manager to make up past deficits prior to earning incentive fees. The HWM provision is intended to protect investors by requiring payment of incentive fees only on the amount attributable to new trading gains, or the gains in excess of the previous HWM. The performan ...
Risk
Risk is potential of losing something of value. Values (such as physical health, social status, emotional well being or financial wealth) can be gained or lost when taking risk resulting from a given action, activity and/or inaction, foreseen or unforeseen. Risk can also be defined as the intentional interaction with uncertainty. Uncertainty is a potential, unpredictable, unmeasurable and uncontrollable outcome, risk is a consequence of action taken in spite of uncertaintyRisk perception is the subjective judgment people make about the severity and/or probability of a risk, and may vary person to person. Any human endeavor carries some risk, but some are much riskier than others.