IDEAS home Printed from https://ideas.repec.org/p/mil/wpdepa/2010-002.html
   My bibliography  Save this paper

Integrating operational and financial risk assessments

Author

Listed:
  • Silvia FIGINI
  • Ron S. KENETT
  • Silvia SALINI

Abstract

This paper proposes a novel methodology for integrating financial risk and operational risk. In order to demonstrate the approach, we use real data from a telecommunication company providing services to enterprises in di different business lines and geographical locations. For each enterprise, we have collected information about operational and financial performance. Our objective is to produce a coherent measure of risk, integrating operational losses from various types of equipment failures and financial risks derived from balance sheet information. The approach demonstrated in this case study can be generalized to general service providers who need to account for both the quality of service and the financial solvency of their customers. Addressing risks in both dimensions is critical to long term sustainability and business continuity.

Suggested Citation

  • Silvia FIGINI & Ron S. KENETT & Silvia SALINI, 2010. "Integrating operational and financial risk assessments," Departmental Working Papers 2010-002, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2010-002
    as

    Download full text from publisher

    File URL: http://wp.demm.unimi.it/tl_files/wp/2010/DEMM-2010_002wp.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2010-002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: DEMM Working Papers (email available below). General contact details of provider: https://edirc.repec.org/data/damilit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.