Financial risk

About: Financial risk is a research topic. Over the lifetime, 11899 publications have been published within this topic receiving 231404 citations. The topic is also known as: economic risk.

Financial credit risk assessment: a recent review

Abstract: The assessment of financial credit risk is an important and challenging research topic in the area of accounting and finance. Numerous efforts have been devoted into this field since the first attempt last century. Today the study of financial credit risk assessment attracts increasing attentions in the face of one of the most severe financial crisis ever observed in the world. The accurate assessment of financial credit risk and prediction of business failure play an essential role both on economics and society. For this reason, more and more methods and algorithms were proposed in the past years. From this point, it is of crucial importance to review the nowadays methods applied to financial credit risk assessment. In this paper, we summarize the traditional statistical models and state-of-the-art intelligent methods for financial distress forecasting, with the emphasis on the most recent achievements as the promising trend in this area.

Method for minimizing financial risk for wireless services

Abstract: A method and system for managing financial risk through the use of postpaid processing during use of wireless services is presented within the scope of the following invention. The present invention uses credit card authorization to pre-reserve credit card funds for wireless services in excess of planned usage. Authorizations eliminate the credit risk associated with overages and payment timing, and also maintain a customer experience identical to postpaid processing. The authorizations are invisible to the customer and no charge is brought to a customer's credit card until the monthly bill is settled. Separating the authorization and settlement stages of retail wireless payment processing allows the branded wireless provider to avoid inherent areas of credit risk during the tenure of a customer's wireless service, while maintaining a familiar customer experience.

The financial risks in build‐operate‐transfer projects

Abstract: The build–operate–transfer (BOT) approach for developing infrastructure projects is a technique that allows fast realization of public works in cases of a shortage of public funds. This process is full of risks, due mainly to the complexity and extend of the disciplines, public agencies and stakeholders involved. The identification, classification and presentation of a comprehensive list of this type of risks will provide BOT project practitioners with a useful tool in the effort of setting up successfully a BOT concession agreement. The approach presented provides a practical insight into 27 financial risks, which are associated with the BOT projects in their lifecycle. This is achieved through proper justification and description of the content of each risk. Furthermore, a categorization of the risks is presented, according to the stage at which they occur and the sources of their origin. The findings of this research would facilitate the risk analysis process that is being conducted by risk managers pr...

A critique on the theory of financial intermediation

Abstract: This comment discusses the review by Franklin Allen and Anthony Santomero of the theory of financial intermediation in the 20th anniversary special issue of the Journal of Banking and Finance. We do not fully agree with their view that risk management is only of recent importance to the financial industry and with putting central the concept of participation costs. We suggest how the theory of financial intermediation might be developed further in order to understand present-day phenomena in the financial services sector.