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Techniques and Simulation Models in Risk Management

Author

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  • Mirela GHEORGHE

    () (The Bucharest University of Economic Studies, Romania)

Abstract

In the present paper, the scientific approach of the research starts from the theoretical framework of the simulation concept and then continues in the setting of the practical reality, thus providing simulation models for a broad range of inherent risks specific to any organization and simulation of those models, using the informatics instrument @Risk (Palisade). The reason behind this research lies in the need for simulation models that will allow the person in charge with decision taking inside the field of risk management to adopt new corporate strategies which will answer their current needs. The results of the research are represented by two simulation models specific to risk management. The first model follows the net profit simulation as well as simulating the impact that could be generated by a series of inherent risk factors such as losing some important colleagues, a drop in selling prices, a drop in sales volume, retrofitting, and so on. The second simulation model is associated to the IT field, through the analysis of 10 informatics threats, in order to evaluate the potential financial loss.

Suggested Citation

  • Mirela GHEORGHE, 2012. "Techniques and Simulation Models in Risk Management," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(2), pages 354-362, December.
  • Handle: RePEc:rom:econmn:v:15:y:2012:i:2:p:354-362
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    More about this item

    Keywords

    Monte Carlo simulation method; risk management; simulation;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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