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Classification and Quantification of Credit Risk

  • Erik Banks
Chapter
Part of the Finance and Capital Markets series book series (FCMS)

Abstract

In any business it is necessary to classify, measure and manage accurately variables which represent uncertainty, or risk, to the normal functioning of operations. This is especially true in the banking industry, where the essence of the business is to reward an institution for risks taken and managed. The effective management of risks is typically accomplished through a risk management framework where an institution identifies, classifies, measures and manages the different risks inherent in its line of businesses. Knowledge of risks affecting a given business allows losses to be controlled or avoided and profits to be maximized.

Keywords

Stock Price Credit Risk Market Risk Risk Equivalency Volatility Measure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Erik Banks 1997

Authors and Affiliations

  • Erik Banks

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