Modern systems of risk management in financial institutions require a process of estimation of the amount of capital that is needed to cover losses arising from various types of risk and its allocation to business units in order to measure their risk-adjusted performance. In this paper we describe the structure of operational risk economic capital estimation model suitable for implementation of...

Si Chuan University , Sichuan, China Drawing specific reserve separately for operational risk is the requirement of the New Basel Capital Accord. Since 1990, as serious loss incidents in operation risk often happened all over the world, operational risk is taken account into the risk management framework for the first time in New Basel Capital Accord, becoming the three main risk get along with...

Abstract Considering the importance of conducting studies on youth, young girls in particular, and also the importance of paying attention to social capital and its role in development process of a society and decreasing social problems and loss; the present study is an attempt to investigate the structure of social capital and its constructing components (solidarity, social participation, eth...

With the drafting of new banking regulation via the Basel II capital accord, bank regulatory capital and its adequacy has become the subject of much debate. In our contribution, we strive to construct a stochastic dynamic model to describe the evolution of bank capital that incorporates capital gains and losses. In our paper, such gains and losses are represented by loan loss reserves and the u...

today continuation of economic activities requires access to timely and adequate financial resources to provide working capital for enterprises, and any decision in this area  has a considerable effect on the operational efficiency of the business unit and will lead to changes in the value of the company and ultimately shareholders' wealth.       in current conditions, because of  the volu...

Because human capital is often the largest asset an investor possesseswhenhe is young, protecting human capital from potential risks should be considered as a part of overall investment advice. The risk of the loss of the policyholder’s human capital – themortality risk – to the household can be partially hedged by a term life insurance policy. Guaranteed Minimum Death Benefits (GMDB) in Variab...

The Basel II Capital Accord of 2004 sets guidelines on operational risk capital requirements to be adopted by internationally active banks by around year-end 2007. Operational loss databases are subject to a minimum recording threshold of roughly $10,000 (internal) and $1 million (external) – an aspect often overlooked by practitioners. We provide theoretical and empirical evidence that ignorin...