Estimation of Economic Capital Concerning Operational Risk in a Brazilian Banking Industry Case

The advance of globalization of the international financial market has implied a more complex portfolio risk for the banks. Furthermore, several points such as the growth of e-banking and the increase in accounting irregularities call attention to operational risk. This article presents an analysis for the estimation of economic capital concerning operational risk in a Brazilian banking industry case making use of Markov chains, extreme value theory, and peaks over threshold modelling. The findings denote that some existent methods present consistent results among institutions with similar characteristics of loss data. Moreover, even when methods considered as goodness of fit are applied, such as EVT-POT, the capital estimations can generate large variations and become unreal.

Derivation of Monotone Decision Models from Non-Monotone Data

The objective of data mining is the extraction of knowledge from databases. In practice, one often encounters difficulties with models that are constructed purely by search, without incorporation of knowledge about the domain of application.In economic decision making such as credit loan approval or risk analysis, one often requires models that are monotone with respect to the decision variables involved.If the model is obtained by a blind search through the data, it does mostly not have this property even if the underlying database is monotone.In this paper, we present methods to enforce monotonicity of decision models.We propose measures to express the degree of monotonicity of the data and an algorithm to make data sets monotone.In addition, it is shown that monotone decision trees derived from cleaned data perform better compared to trees derived from raw data.decision models;knowledge;decision theory;operational research;data mining

Theory Informing Decision-Making on Outsourcing: A Review of Four ‘Five- Year’ Snapshots Spanning 47 Years

This study investigates how researchers use theory for decision-making on outsourcing through a longitudinal systematic literature review covering four five-year intervals spanning 1965–2011. Each of the 249 retrieved papers has been categorised based on theory used, nature of literature review, research method, type of industry investigated, organisational functions, performance criteria and level of decision making. Notwithstanding a surge in academic writings on outsourcing, our analysis of the four periods shows that few papers contribute to theory or provide further insight into outsourcing. The focus of most papers tends to be on the practitioner’s perspective with decision making shifting from mainly financial–economic and operational considerations to strategic, long-term and multidimensional criteria that are not necessarily linked to a particular theoretical stance. The findings also imply that a full account of theories, their application as well as systematic testing in the context of outsourcing decision making, is still needed for advancing such knowledge. However, the evidence also suggests that methods for decision making do not vary much between domains and functions, although there are some exceptions, such as R&D, logistics and public sector functions. This study also identifies a framework for future research into decision-making on outsourcing

Making the Middle: Planning to Create Socially and Economically Vibrant Middle-Class Communities

Making the Middle acknowledges trends toward greater inequality within the United States (US) and makes a case for expanding middle-class communities through the tactics available to planners. Equity, deliberative, and actuarial planning theory advocates for operational frameworks planners can employ to help foster and expand socially and economically vibrant middle-class communities. Growing class stratification within the US provides a rationale for the importance of a socially and economically vibrant middle class. Social and economic vibrancy, and the ability of middle-class communities to create such environments, is defined through the incisive lens of Jane Jacobs. By connecting theoretical frames of equity, deliberative, and actuarial planning, planners can foster and grow middle-class communities.Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/143829/1/A_12 Making the Middle.pd

Towards a Semantic Data Quality Management - Using Ontologies to Assess Master Data Quality in Retailing

Since its inception Information Systems has relied heavily on older, more established, reference disciplines for much of its theory development and practical application. The relationship between the economic sciences and information quality has been the subject of much of the work recognized through the Nobel Prize in Economic Sciences. Beginning with Simon’s decision-making model published before a discipline known as Information Systems existed, this paper reviews this relationship and the parallel development of information quality and computing capability from an Information System perspective and changing paradigms in economics as recognized in the works of the Nobel laureates. From economic theories based on assumed knowledge, the paradigm is shifting to methods of empirical testing and experimentation. Organizations continue to make operational and strategic decisions. Additionally, now information is being aggregated, warehoused, mined, and analyzed to make a host of societal decisions and to understand economic behaviors through experimentation and empirical analysis

The Economic Sciences and the Information Age: Lessons from the Nobel Laureates

Since its inception Information Systems has relied heavily on older, more established, reference disciplines for much of its theory development and practical application. The relationship between the economic sciences and information quality has been the subject of much of the work recognized through the Nobel Prize in Economic Sciences. Beginning with Simon’s decision-making model published before a discipline known as Information Systems existed, this paper reviews this relationship and the parallel development of information quality and computing capability from an Information System perspective and changing paradigms in economics as recognized in the works of the Nobel laureates. From economic theories based on assumed knowledge, the paradigm is shifting to methods of empirical testing and experimentation. Organizations continue to make operational and strategic decisions. Additionally, now information is being aggregated, warehoused, mined, and analyzed to make a host of societal decisions and to understand economic behaviors through experimentation and empirical analysis

Використання теорії нечіткої логіки при прийнятті рішень з підвищення енергоефективності промислового підприємства

Розглянуто процес прийняття рішень з підвищення енергоефективності промислового підприємства на основі теорії нечіткої логіки та лінгвістичної змінної. Наведено структурну схему системи нечіткого логічного висновку, охарактеризовано складові даної системи. Запропоновано класифікувати фактори впливу на процес прийняття рішень з інвестиційної привабливості енергозберігаючих проектів на економічні, експлуатаційні та технічні. Обґрунтовано вибір універсальних множин варіювання і лінгвістичних термів для оцінки факторів впливу.Decision-making process on increase of power efficiency of the industrial enterprise on the basis of the theory of fuzzy logic and a linguistic variable is considered. The block diagram of system of an fuzzy logic conclusion is provided, are characterized making this system. It is offered to classify factors of influence on decision-making process on investment appeal of energy saving projects on economic, operational and technical. The choice of universal sets of a variation and linguistic terms for an assessment of factors of influence is reasonabl

Covid-19 Modifies Student Psychology in Front of Remote Learning

The research shows that university sector management can successfully adapt to the digital field in a newly emerging reality. To maintain the economic and operational universities’ viability, from a theoretical contextualization that part of Abraham Maslow’s thought identifying the skills, limitations, and risks facing universities and contrast them with the United States vs. Latin America reality due to the COVID-19 outbreak. Additionally, the research uses the theory of restrictions (TOC) to identify an action plan within HEIs and develop projects that allow adequate decision-making and subsequent monitoring and control. Generate behavior changes in the university community, and create incentives reducing anxiety levels due to COVID-19

Asset management and governance: an analysis of fleet management process issues in an asset-intensive organization

Efficient asset management is a key performance driver for asset-intensive organizations. Achieving high utilization and return on investment on physical assets are central corporate objectives for public and private organisations alike. Current approaches on asset management include the engineering and governance perspectives. Both perspectives offer valuable but incomplete insights on the management of asset performance: experience demonstrates that an exclusive focus on one or the other may lead to sub-optimal asset and organizational performance. In this paper, we investigate how an integrated approach to asset management can be constructed in the context of vehicle fleets. Beginning with an analysis of how the asset management process is operated through the asset lifecycle, we identify key engineering and organizational factors influencing asset performance. The relationships between factors are analyzed to provide an integrated fleet asset management approach

A conceptual framework for changes in Fund Management and Accountability relative to ESG issues

Major developments in socially responsible investment (SRI) and in environmental, social and governance (ESG) issues for fund managers (FMs) have occurred in the past decade. Much positive change has occurred but problems of disclosure, transparency and accountability remain. This article argues that trustees, FM investors and investee companies all require shared knowledge to overcome, in part, these problems. This involves clear concepts of accountability, and knowledge of fund management and of the associated ‘chain of accountability’ to enhance visibility and transparency. Dealing with the problems also requires development of an analytic framework based on relevant literature and theory. These empirical and analytic constructs combine to form a novel conceptual framework that is used to identify a clear set of areas to change FM investment decision making in a coherent way relative to ESG issues. The constructs and the change strategy are also used together to analyse how one can create favourable conditions for enhanced accountability. Ethical problems and climate change issues will be used as the main examples of ESG issues. The article has policy implications for the UK ‘Stewardship Code’ (2010), the legal responsibilities of key players and for the ‘Carbon Disclosure Project’