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Fuzzy Cognitive Maps pp 161–200Cite as

Fuzzy Cognitive Maps in Banking Business Process Performance Measurement

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Part of the book series: Studies in Fuzziness and Soft Computing ((STUDFUZZ,volume 247))

Abstract

This paper addresses the problem of designing an “intelligent” decision support methodology tool to act as a back end to financial planning. The methodology tool proposes a novel approach to supplementing typical financial strategy formulation projects by utilizing the fuzzy causal characteristics of Fuzzy Cognitive Maps (FCMs) to generate a hierarchical and dynamic network of interconnected profit and loss (P&L) concepts. By using FCMs, the mechanism simulates the efficiency of complex hierarchical financial models with imprecise relationships and external stimuli while quantifying the impact of strategic changes to the overall P&L status. Generic maps that supplement the decision making process demonstrate a roadmap for integrating hierarchical FCMs into the P&L model of typical financial sector enterprises. Preliminary experiments indicate that ex ante reasoning of the impact of strategic changes (actual or hypothetical) to the status of financial performance can be effective and realistic, without employing detailed P&L numerical calculations.

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Author information

Authors and Affiliations

  1. Department of Informatics, University of Piraeus, 80, Karaoli & Dimitriou St., 185 34, Piraeus, Greece

    George Xirogiannis

  2. Department of Financial and Management Engineering, University of Aegean, 31, Fostini Street, Chios, 82 100, Greece

    Michael Glykas

  3. Department of Accounting and Finance, Athens University of Economics and Business, 76, Patision Street, Athens, 10 434, Greece

    Christos Staikouras

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  1. George Xirogiannis
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  2. Michael Glykas
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  3. Christos Staikouras
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Editors and Affiliations

  1. University of Aegean, Chios, Greece

    Michael Glykas

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Xirogiannis, G., Glykas, M., Staikouras, C. (2010). Fuzzy Cognitive Maps in Banking Business Process Performance Measurement. In: Glykas, M. (eds) Fuzzy Cognitive Maps. Studies in Fuzziness and Soft Computing, vol 247. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-03220-2_7

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  • DOI: https://doi.org/10.1007/978-3-642-03220-2_7

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-03219-6

  • Online ISBN: 978-3-642-03220-2

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