Default Risk Mitigation Mechanisms in Derivatives Markets

2008 ◽  
Author(s):  
Rajna Gibson ◽  
Carsten Murawski
Keyword(s):  
Default Risk ◽  
Risk Mitigation ◽  
Derivatives Markets

scholarly journals Strategi Pencegahan Pembiayaan Bermasalah pada BPRS di Kabupaten Bogor

Al-Muzara ah ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 73-93
Author(s):  
Aulia Nur Cahyani ◽  
Neneng Hasanah ◽  
Mohammad Iqbal Irfany
Keyword(s):  
Default Risk ◽  
Risk Mitigation ◽  
External Solution ◽  
Analytic Network Process ◽  
Influential Factor ◽  
Internal Solution ◽  
Financing Risk ◽  
Network Process ◽  
Safe Limit ◽  
Finance Officers

Financing is channeling funds carried out by Islamic banks, such as Islamic rural banks (BPRS). Risk arising from financing is default risk assessed by the ratio of Non Performing Financing (NPF). BPRS in the area of Kabupaten Bogor have NPF values above the safe limit set by Bank Indonesia. The purpose of this study is to identify the causes and solutions of default financing and formulate strategies for preventing default financing of BPRS in Kabupaten Bogor. The method used in this study is Analytic Network Process (ANP). The total respondents in this study are five. The result showed that external cause is the most influential factor towards the occurrence of default financing. The most influential external cause is customer's bad intention. External solution is the priority solution that need special attention. The priority external solution is strengthening the analysis. The most influential internal cause is adverse selection. Internal solution that is prioritized is training for finance officers. The priority of the default financing prevention strategy in this study is formulating financing risk mitigation.    

scholarly journals TEKNIK MITIGASI RISIKO PEMBIAYAAN PEMILIKAN RUMAH (PPR) SYARIAH PADA DEVELOPER PROPERTI SYARIAH

2020 ◽  
Vol 6 (9) ◽  
pp. 1814
Author(s):  
Nur Sa’diyah ◽  
Noven Suprayogi
Keyword(s):  
Default Risk ◽  
Home Ownership ◽  
Risk Mitigation ◽  
Secondary Data ◽  
Qualitative Approach ◽  
Primary Data ◽  
Descriptive Case Study ◽  
Financing Risk ◽  
Two Stages

The purpose of this study is to find out the technique of risk mitigation in home ownership financing (PPR) conducted by PT Indo Tata Graha. This study uses qualitative approach with descriptive case study strategy. The data in this study were obtained through primary data in the form of interviews and secondary data in the form of documentation. The results of this study indicate that the risk of home ownership financing (PPR) consists of risks of cancel, default risk, risk of miss manage and the risk of delays in the delivery of goods). To minimize the occurrence of losses and impacts due to risk, Sharia Property Developer has risk mitigation carried out which is divided into two stages, namely before the occurrence of risk and after the occurrence of risk.Keywords: house ownership financing (PPR), PT Indo Tata Graha, risk in house ownership financing, risk mitigation of sharia property developer

Risk Management on Information Security in ABC Company

2017 ◽  
Vol 4 (1) ◽  
pp. 62-66
Author(s):  
Luyen Ha Nam
Keyword(s):  
Risk Management ◽  
Information Security ◽  
Data Management ◽  
Management System ◽  
Risk Mitigation ◽  
Data Management System ◽  
Data Centre ◽  
Long Time ◽  
Mitigation Action ◽  
Better Than

From long, long time ago until nowadays information still takes a serious position for all aspect of life, fromindividual to organization. In ABC company information is somewhat very sensitive, very important. But how wekeep our information safe, well we have many ways to do that: in hard drive, removable disc etc. with otherorganizations they even have data centre to save their information. The objective of information security is to keep information safe from unwanted access. We applied Risk Mitigation Action framework on our data management system and after several months we have a result far better than before we use it: information more secure, quickly detect incidents, improve internal and external collaboration etc.

Issues on Interbank Commodity Murabaha (CM) for Liquidity Management in Malaysia

2020 ◽  
Vol 8 (2) ◽  
pp. 9
Author(s):  
Mohamad Zabidi Bin Ahmad ◽  
Rosylin Mohd. Yusof ◽  
Ahmad Rizal Mazlan
Keyword(s):  
Risk Mitigation ◽  
Banking System ◽  
Islamic Banks ◽  
Liquidity Management ◽  
Standard Guideline ◽  
Growth Area ◽  
Islamic Financial Institutions ◽  
Enhance Efficiency ◽  
Analyze Structure ◽  
Operational Issues

Purpose: The objective of this research is to highlight issues and review the Interbank Commodity Murabahah (CM) practice as a tool of liquidity requirement from both the Shariah and industry’s operational perspectives. Accordingly, this study seeks to analyze structure and mechanism of CM as instrument to meet the liquidity need of the Islamic financial institutions and provides an opportunity for investments. In doing so, the paper seeks to review issues related to Shariah and operations in Islamic banking. Design/methodology/approach: By conducting interview with Treasurers, Shariah Scholars and funding dealers of Islamic banks in Malaysia, the study evaluates reassessment on CM practices and operational issues in relation risk and compliance. The study focuses on Islamic Treasury Division of Islamic banks in Malaysia. Findings: The findings of the study suggest that the two most significant issues in Islamic liquidity management of Islamic banks in Malaysia are i) resembling interest ii) nature of tradability iii) structure of CM iv) the timing the transaction to be completed and v) the real brokerage cost involved in adopting the CM transactions. Research limitations/implications: The research proposes a risk mitigation and enhanced Shariah compliance framework such as strait through processing (STP) and commodity broker’s standard guideline for Islamic banks to adopt CM practices. Practical implications: This study provides direction and guidance to the Islamic Commercial Banks, Commodity Brokers and regulator (BNM) involved in the banking system to reflect upon the importance to understand the issues and limitation of CM. By highlighting the importance of efficiency in terms of time and cost saving together with Shariah issues, Islamic banks can design policies to enhance efficiency in order to either decide to maintain the adoption of CMP or to consider the proposed alternative. Social implications:Understanding the Shariah compliance and operational issues will enhance the integrity of Islamic banks which is consistent with Key Economic Growth Area of making Malaysia as International Islamic Financial Hub 2.0.

Impact of Correlated Default Risk on Credit Portfolios

CFA Digest ◽  
2002 ◽  
Vol 32 (3) ◽  
pp. 97-98
Author(s):  
Stephen M Horan
Keyword(s):  
Default Risk
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