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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Main Authors: Gregory R. Hackworth, Weidong Tian, Michael R. Vandenberg
Format: Article
Language:English
Published: MDPI AG 2025-03-01
Series:Risks
Subjects:
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.
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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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