The Presentation of a Model Based on MADM to Rate the Strategies in Confronting Financial Risks
Davod Behniamehr, Kardgar Ebrahim
Abstract
Davod Behniamehr, Kardgar Ebrahim
Abstract
Decisions on investment plans are usually made on the basis of the amount of managers’ and stakeholders’ profitability, risk, and risk taking. Risks are inevitable; but the competitive rules make the firms and organizations take a closer look at risk management strategy and this way, increase their operational efficiency and competitive advantage. Effective risk management can improve decision making. In this article, the overall framework of risk management in financial systems was investigated; then, using MADM technique, the problem was modeled and rated using risk management strategies. The statistical population of this research was made up of financial and senior managers; since their number was 24 people, the sample was chosen the same as the population; in other words, head count has been used due to the few number of the sample. The research results showed that rating led to the categorization of the strategies which were separated from each other accurately.
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Decisions on investment plans are usually made on the basis of the amount of managers’ and stakeholders’ profitability, risk, and risk taking. Risks are inevitable; but the competitive rules make the firms and organizations take a closer look at risk management strategy and this way, increase their operational efficiency and competitive advantage. Effective risk management can improve decision making. In this article, the overall framework of risk management in financial systems was investigated; then, using MADM technique, the problem was modeled and rated using risk management strategies. The statistical population of this research was made up of financial and senior managers; since their number was 24 people, the sample was chosen the same as the population; in other words, head count has been used due to the few number of the sample. The research results showed that rating led to the categorization of the strategies which were separated from each other accurately.
Key concepts: Profitability index, Sample (material), Risk management, Competitive advantage, Actuarial science, Financial risk, Population, Statistical population