Multi-Criteria Decision Analysis for Financial Investments Using AHP

Abstract

This article aims to analyse on a risk point of view financial investments. This analysis is possible by first of all defining one the one hand several financial operations, i.e. for customers with respect to funding opportunities, investment or credits reaching, and on the other hand different types of risks associated with this activity. This analysis is conducted through a method of multi-criteria decision support methodology: Analytic hierarchy Process (AHP). We must notice that a financial institution is risky and it is in no case possible to eliminate all sources of risk. Several types of risks, inherent in this activity, are examined. These risks are grouped into four criteria such as operational risk, financial risk, management risk and external risks. Although professionals in risk management are trying to better apprehend complexity of this activity and they use to do this complex models, but many of the risks are still not well understood. Therefore, this article contributes to the risks analysis, and delivers results that will allow the institution to address the factors that may prevent the achievement to better manage financial investment.