A Study on Risk Management in Evaluation of Enterprise Business
Yuko Iwasaki, Kenji Watanabe · 2018
As for the risk management of the financial institution, a change is demanded to risk permission based on risk appetite from the risk aversion corresponding to the bad-loan problem. The financial institutions which performed risk management based on VaR (value at risk) fell into a situation of the management aggravation by the outbreak of the global financial crisis. They used an index to measure based on a past price change statistically. Many local financial institutions work on "business evaluation" included there since 2014. In 2016 Financial Services Agency demand "an evaluation (= business evaluation) depending on growth possibility of the business of the client appropriately without depending on a security, a guarantee excessively for a financial institution". In this way, policy demands switching the financing posture that came to the local financial institution depending on a security, a guarantee to the financing based on the business evaluation" Authors suggest a scheme to evaluate business value and risk and connect with the financing for the new risk that is hard to become an insufficient measurement with the conventional risk management model. In this study, authors analyzed the structure of the risk management when financial institution financed by business evaluation and decided the evaluation of the risk from the influence of the factor of the individual risk, and showed decision-making model,