An Integrated Risk Management Methodology for Deposits and Loans
This paper presents an integrated risk management methodology for measuring and managing the economics, risks, and financial resources/constraints related to deposits and loans in a commercial bank. Within a comprehensive and integrated framework, we develop valuation and risk models for all financi...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-03-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/13/3/52 |
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| author | Gregory R. Hackworth Weidong Tian Michael R. Vandenberg |
| author_facet | Gregory R. Hackworth Weidong Tian Michael R. Vandenberg |
| author_sort | Gregory R. Hackworth |
| collection | DOAJ |
| description | This paper presents an integrated risk management methodology for measuring and managing the economics, risks, and financial resources/constraints related to deposits and loans in a commercial bank. Within a comprehensive and integrated framework, we develop valuation and risk models for all financial products on the bank’s balance sheet. Our proposed methodology aligns with regulatory requirements while offering a practical implementation. Unlike traditional industry practices, which often rely on fragmented and siloed risk management solutions, our approach integrates risk modeling across all aspects of the bank’s balance sheet. This new perspective provides a more accurate and consistent assessment of financial risks, improving the bank’s ability to navigate regulatory and economic challenges. |
| format | Article |
| id | doaj-art-e688c50923a046b2a77d9ec6700c0efd |
| institution | DOAJ |
| issn | 2227-9091 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj-art-e688c50923a046b2a77d9ec6700c0efd2025-08-20T02:43:02ZengMDPI AGRisks2227-90912025-03-011335210.3390/risks13030052An Integrated Risk Management Methodology for Deposits and LoansGregory R. Hackworth0Weidong Tian1Michael R. Vandenberg2Bulls-Eye Solutions, LLC, Charlotte, NC 26173, USABelk College of Business, University of North Carolina at Charlotte, Charlotte, NC 28223, USABulls-Eye Solutions, LLC, Charlotte, NC 26173, USAThis paper presents an integrated risk management methodology for measuring and managing the economics, risks, and financial resources/constraints related to deposits and loans in a commercial bank. Within a comprehensive and integrated framework, we develop valuation and risk models for all financial products on the bank’s balance sheet. Our proposed methodology aligns with regulatory requirements while offering a practical implementation. Unlike traditional industry practices, which often rely on fragmented and siloed risk management solutions, our approach integrates risk modeling across all aspects of the bank’s balance sheet. This new perspective provides a more accurate and consistent assessment of financial risks, improving the bank’s ability to navigate regulatory and economic challenges.https://www.mdpi.com/2227-9091/13/3/52depositloaninterest rateeconomic factorsrisk metrics |
| spellingShingle | Gregory R. Hackworth Weidong Tian Michael R. Vandenberg An Integrated Risk Management Methodology for Deposits and Loans Risks deposit loan interest rate economic factors risk metrics |
| title | An Integrated Risk Management Methodology for Deposits and Loans |
| title_full | An Integrated Risk Management Methodology for Deposits and Loans |
| title_fullStr | An Integrated Risk Management Methodology for Deposits and Loans |
| title_full_unstemmed | An Integrated Risk Management Methodology for Deposits and Loans |
| title_short | An Integrated Risk Management Methodology for Deposits and Loans |
| title_sort | integrated risk management methodology for deposits and loans |
| topic | deposit loan interest rate economic factors risk metrics |
| url | https://www.mdpi.com/2227-9091/13/3/52 |
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