Tag Archive | "risk"

Stress Testing of Credit Risk: Case Based on Loan Portfolio, Capital Adequacy and Non-Performing Loans in Kosovo

Nowadays the financial stability of the banking sector is a very controversial topic especially the assessment of the right quantity of capital that banks must set aside to be protect against various types of risks with which has to do the banking sector, it presents a big challenge. One of techniques that help to bring answer on the question whether a special bank or banking sector has a sufficient capital in case of crisis is a stress testing. So the stress testing analysis represents an important tool of sustainable assessment of the banking sector towards possible shocks on credit portfolio and on liquidity position, which can resulting from unfavorable economic development and changes on market conditions. Stress testing’s of the sensitivity of financial institutions towards macroeconomic shocks are a valuable assistance in the assessment of the economic stability. They allow a predictive analysis and an uniform approach for the identification of potential risks of the banking system in general.

The results of the analysis for stress testing that are made for the banking sector in Kosovo suggest satisfied abilities of this sector to meet unexpected situations of exposure toward possible risks. Although banks are facing with many risks, the credit risk which will be treated in this study aloud a great weigh. This study has intent to determine macroeconomic factors that have impact in quality of loan portfolios. Through the study we would present an analysis of financial situation in connection with the impending level of nonperforming loans, proceedings that are taken to reduce or to keep at sustainable level, also will be evaluated. The vulnerability of the banking sector toward sector risk as much as we have information on the macroeconomic level and to determine the indicators that warning the early worsening in the quality of loan portfolio. Also through stress scenarios we could understand what will happen in different situations with nonperforming loans.

  Stress Testing of Credit Risk: Case Based on Loan Portfolio, Capital Adequacy and Non-Performing Loans in Kosovo (1.5 MiB, 1,246 hits)

Posted in Economics, Information Technology, Knowledge Management, Volume VI, Issue no. 3

Management in the Innovation Project

The object of this research is to identify the sources of risk in innovation projects and to determine whether they could be managed better. Due to the diversity of opinions and theories over the nature of risk, reaching an agreement about risk management is difficult. This will be a major problem if any effort is made to proactively manage ‘risk’ in naturally ‘risky’ areas such as innovation. Some risk management could be valuable, but perhaps too much, or inappropriate risk management might stifle innovation. It is necessary and valuable to consider the process of innovation from conceptualization to commercialization, how uncertainties are formed, how they are managed in that context, and how the techniques of risk management can be further deployed to enhance the success rate of innovation projects. Various approaches have been proposed to risk management in general, however the extent to which they are relevant for managing innovation is uncertain. Thus, during this paper, the general model of innovation and the process of risk management for managing the parameters which create the risk in these projects are explained.

  Management in the Innovation Project (896.5 KiB, 5,639 hits)

Posted in Economics, Issue no. 7