Risk Assessment Framework & Techniques on Taiwan Financial Institutions－the Application of Multiple Criterion Method and TOPSIS

• Main Authors: Liao, Pi-Ling, 廖碧玲
• Other Authors: 管孟忠
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/50701576592109205392

碩士 === 開南大學 === 資訊管理學系 === 96 === The purpose of this study is to effectively assess risks and build correct risk management concept through the building a risk assessment system in Financial Institutions. The risk assessment system in this study was based on scoring data of one year. After considering and weighting a basket of risk factors, there were two analysis framework and techniques : First, multivariate analysis to find out the risk allocation relationship between the frequency of risk occurrence and risk management capability . Second, using TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) to assess risk monitoring, risk control and effective risk management system by assessment criteria. However, high risk often means high yield and it becomes very important to find a balance between risk and business in Financial Institutions via this risk assessment system. In Financial Institutions, the current risk assessment system which is done before and after the internal audits suffices for being the base of audit frequency and can be used CSA(Control Self-Assessment) to assess the effectiveness and suitability of risk management methods to reach the goal of risk management. There are three basic characteristics of CSA value the business processes and effectiveness, should be done by management team and staff and using systematic methods to do self-assessment. Under the competitive and changeable circumstances, such as globalization, organization change, technology evolvement and uncertainty of regulations, Financial Institutions need effective risk management to maximize revenues, meet the expectation of stakeholders and mitigate losses. This study uses TOPSIS model to identify risks, analyze qualitatively and quantitatively, develop response strategy, monitor and assess the results. Risk management indeed is an extension of internal control.