BACKGROUND Under the rapid change of the global financial environment, the risk control of the credit granting is viewed as the foremost task to each bank. With the impact one by one from financial crisis and European debt crisis, the steady bank business is also facing the severe challenge. Banks approve the credits for their customers and then make money from the interest. CASE PRESENTATION...

This paper presents a practical risk assessment methodology to provide drinking water infrastructure (DWI) decision-makers with an objective risk assessment tool. The purpose of this risk assessment tool is to maintain the desired level-of-service or systems reliability [r(f)], while managing the financial uncertainty of the expected budgetary impact within the capital improvement program (CIP)...

This paper presents a method for determining the network lines and buses where the occurrence of faults will lead to voltage sags causing severe financial losses in the power system. The proposed method is based on a typical stochastic assessment of voltage sags. The network regions where fault occurrences will simultaneously lead to voltage sags at different sensitive load points can be determ...

Value at Risk and similar measures of financial risk exposure require predicting the tail of an asset returns distribution. Assuming a specific form, such as the normal, for the distribution, the standard deviation (and possibly other parameters) are estimated from recent historical data and the tail cutoff value is computed. But this standard procedure ignores estimation error, which we find t...

We present a model in which the importance of financial intermediation for economic development can be measured. We generate financial differences by varying the degree to which contracts can be enforced. Economies where enforcement is poor direct less capital to the production sector, and employ less efficient technologies. Calibrated simulations reveal that the resulting effect on output is i...