As outsourcing is becoming mandate for today’s business, there has been a variety of researches taking place. This paper discusses on managing operational risks in an organization where one or more business processes are being outsourced. We first review on changing nature of operational risks not only in outsourced process itself, but also among any other interrelated processes. Then a concept...

this paper explores people’s behavior when they are facing financial risks. through the setting of an economics experiment, people’s willingness to bear financial risks and their tendency to impose risks on others are investigated. the experiment result shows that most people are risk-neutral or risk-averse when making decision under financial environment, and their tendency to impose risks on ...

Investors use different approaches to select optimal portfolio. so, Optimal investment choices according to return can be interpreted in different models. The traditional approach to allocate portfolio selection called a mean - variance explains. Another approach is Markov chain. Markov chain is a random process without memory. This means that the conditional probability distribution of the nex...

This paper explores people’s behavior when they are facing financial risks. Through the setting of an economics experiment, people’s willingness to bear financial risks and their tendency to impose risks on others are investigated. The experiment result shows that most people are risk-neutral or risk-averse when making decision under financial environment, and their tendency to impose risks on ...

investors use different approaches to select optimal portfolio. so, optimal investment choices according to return can be interpreted in different models. the traditional approach to allocate portfolio selection called a mean - variance explains. another approach is markov chain. markov chain is a random process without memory. this means that the conditional probability distribution of the nex...

8 Correlated Default 19 I am extremely grateful for the wonderful work done by Maurizio Pratelli in arranging my visit to Pisa and for organizing this course, for the hospitality of the Scuola Normale Superiore, and for the support for the course offered by the Associazione Amici della Scuola Normale Superiore, who were generously represented by Mr. Carlo Gulminelli. These notes are currently i...

In this paper we consider the probabilities of finiteand infinite-time absolute ruin in the renewal risk model with constant premium rate and constant force of interest. In the particular case of compound Poisson model, explicit asymptotic expressions for the finiteand infinite-time absolute ruin probabilities are given. For the general renewal risk model, we present an asymptotic expression fo...

In this paper; survival (non-ruin) probability after a definite time period of an insurance company is studied in a discrete time model based on nonhomogenous claim occurrences. Furthermore, distributions of the minimum and maximum levels of surplus in compound binomial risk model with nonhomogeneous claim occurrences are obtained and some of its characteristics are given.

Estimation of economic capital of a financial institution requires modeling of operational losses of the business units of the organization. Operational losses of the financial institution are usually represented as an aggregate sum of the losses incurred by the operational events of the business units. Simulation of these events requires the introduction of a co-dependence structure for a more...

In the lead-up to the peak of the financial bubble (and before the onset of the global financial crisis), UK newspapers regularly touted property including owneroccupied homes as ready-made alternatives to private pensions. Having previously considered the significance of investment property (buy-to-let etc), in this paper we explore the significance of home ownership for respondents’ intended ...