This paper describes the use of Hybrid Dynamic Bayesian Networks (HDBNs) to model the operational risk faced by financial institutions in terms of economic capital. It describes a methodology for modelling financial losses resulting from intentional or accidental events and characterises these by their ability to evade controls and ultimately lead to increasingly severe financial consequences. ...

I ran Insurance Company intends to raise its financial credit and render enhanced services to the insured and the public. The need to meet financial obligations arising from the claims requires determination of the optimum deposited claims reserve with banks. Therefore, the present research study aimed at finding the loss ratio (incurred losses to premiu...

the main focus in this study is on data pre-processing, reduction in number of inputs or input space size reduction the purpose of which is the justified generalization of data set in smaller dimensions without losing the most significant data. in case the input space is large, the most important input variables can be identified from which insignificant variables are eliminated, or a variable ...

We assess the severity of phishing attacks in terms of their risk levels and the potential loss in market value to the firms. We analyze 1,030 phishing alerts released on a public database as well as financial data related to the targeted firms using a hybrid text and data mining method that predicts the severity of the attack with high accuracy. Our research identifies the important textual an...

Emerging findings imply that distinct neurobehavioral systems process gains and losses. This study investigated whether individual differences in gain learning and loss learning might contribute to different life financial outcomes (i.e., assets versus debt). In a community sample of healthy adults (n = 75), rapid learners had smaller debt-to-asset ratios overall. More specific analyses, howeve...

Health monitoring of world economy is an important issue, especially in a time of profound economic difficulty world-wide. The most important aspect of health monitoring is to accurately predict economic downturns. To gain insights into how economic crises develop, we present two metrics, positive and negative income entropy and distribution analysis, to analyze the collective "spatial" and tem...

We consider a dynamic asset allocation problem formulated as a mean-shortfall model in discrete time. A characterization of the solution is derived analytically under general distributional assumptions for serially independent risky returns. The solution displays risk taking under shortfall, as well as a specific form of time diversification. Also, for a representative stock-return distribution...