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Vol.9, No.3, August 2020. ISSN: 2217-8309 eISSN: 2217-8333
TEM Journal
TECHNOLOGY, EDUCATION, MANAGEMENT, INFORMATICS Association for Information Communication Technology Education and Science |
Development and Implementation of Alternative Concept for Expected and Unexpected Losses in Corporations
Viktoriya Manuylenko, Denis Ryzin, Mariia Koniagina, Nina Lipchiu, Lubov Setchenkova
© 2020 Viktoriya Manuylenko, published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)
Citation Information: TEM Journal. Volume 9, Issue 3, Pages 1116-1125, ISSN 2217-8309, DOI: 10.18421/TEM93-37, August 2020.
Received: 25 March 2020. Revised: 30 July 2020.
Abstract:
The study suggests alternative conception of expected and unexpected losses in corporations. Unlike the classical conception, it suggests backing up expected losses with risk capital, taking into account loss causes during different phases of business cycle. Whereas unexpected losses that are the source of uncertainty should be adjusted based on adapted VaR method tests, stress tests and limitations that include principles of dynamic back up allocations. That should ensure timely forecast of significant financial risks guaranteeing efficient development of risk profile of corporations, and in the end increasing potential for efficient control on financial risks. From the standpoint of further conception advancing, a method for determining unexpected VaR losses was developed and implemented; it is supported with special software dedicated to bankruptcy risk symptoms identification in corporations.
Keywords –Expected and unexpected losses,alternative concept, financial risk, risk management. |
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