Search results for: Risk preference
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 1165

Search results for: Risk preference

1165 A Study of the Role of Perceived Risk and User Characteristics in Internet Purchase Intention

Authors: Ali Hajiha, Farhad Ghaffari, Nooshin Gholamali Tehrani

Abstract:

This study aims at investigating the empirical relationships between risk preference, internet preference, and internet knowledge which are known as user characteristics, in addition to perceived risk of the customers on the internet purchase intention. In order to test the relationships between the variables of model 174, a questionnaire was collected from the students with previous online experience. For the purpose of data analysis, confirmatory factor analysis (CFA) and structural equation model (SEM) was used. Test results show that the perceived risk affects the internet purchase intention, and increase or decrease of perceived risk influences the purchase intention when the customer does the internet shopping. Other factors such as internet preference, knowledge of the internet, and risk preference affect the internet purchase intention.

Keywords: Perceived risk, Internet preference, Internetknowledge, Risk preference, Internet purchase intention

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1164 Aircraft Selection Using Preference Optimization Programming (POP)

Authors: C. Ardil

Abstract:

A multiple-criteria decision support system is proposed for the best aircraft selection decision. Various strategic, economic, environmental, and risk-related factors can directly or indirectly influence this choice, and they should be taken into account in the decision-making process. The paper suggests a multiple-criteria analysis to aid in the airline management's decision-making process when choosing an appropriate aircraft. In terms of the suggested approach, an integrated entropic preference optimization programming (POP) for fleet modeling risk analysis is applied. The findings of the study of multiple criteria analysis indicate that the A321(neo) aircraft type is the best alternative in this particular optimization instance. The proposed methodology can be applied to other complex engineering problems involving multiple criteria analysis.

Keywords: Aircraft selection, decision making, multiple criteria decision making, preference optimization programming, POP, entropic weight method, TOPSIS, WSM, WPM

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1163 New Fuzzy Preference Relations and its Application in Group Decision Making

Authors: Nur Syibrah Muhamad Naim, Mohd Lazim Abdullah, Che Mohd Imran Che Taib, Abu OsmanMd. Tap

Abstract:

Decision making preferences to certain criteria usually focus on positive degrees without considering the negative degrees. However, in real life situation, evaluation becomes more comprehensive if negative degrees are considered concurrently. Preference is expected to be more effective when considering both positive and negative degrees of preference to evaluate the best selection. Therefore, the aim of this paper is to propose the conflicting bifuzzy preference relations in group decision making by utilization of a novel score function. The conflicting bifuzzy preference relation is obtained by introducing some modifications on intuitionistic fuzzy preference relations. Releasing the intuitionistic condition by taking into account positive and negative degrees simultaneously and utilizing the novel score function are the main modifications to establish the proposed preference model. The proposed model is tested with a numerical example and proved to be simple and practical. The four-step decision model shows the efficiency of obtaining preference in group decision making.

Keywords: Fuzzy preference relations, score function, conflicting bifuzzy, decision making.

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1162 Attribute Selection for Preference Functions in Engineering Design

Authors: Ali E. Abbas

Abstract:

Industrial Engineering is a broad multidisciplinary field with intersections and applications in numerous areas. When designing a product, it is important to determine the appropriate attributes of value and the preference function for which the product is optimized. This paper provides some guidelines on appropriate selection of attributes for preference and value functions for engineering design.

Keywords: Decision analysis, engineering design, direct vs. indirect values.

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1161 Risk Assessment of Building Information Modelling Adoption in Construction Projects

Authors: Amirhossein Karamoozian, Desheng Wu, Behzad Abbasnejad

Abstract:

Building information modelling (BIM) is a new technology to enhance the efficiency of project management in the construction industry. In addition to the potential benefits of this useful technology, there are various risks and obstacles to applying it in construction projects. In this study, a decision making approach is presented for risk assessment in BIM adoption in construction projects. Various risk factors of exerting BIM during different phases of the project lifecycle are identified with the help of Delphi method, experts’ opinions and related literature. Afterward, Shannon’s entropy and Fuzzy TOPSIS (Technique for Order Preference by Similarity to Ideal Situation) are applied to derive priorities of the identified risk factors. Results indicated that lack of knowledge between professional engineers about workflows in BIM and conflict of opinions between different stakeholders are the risk factors with the highest priority.

Keywords: Risk, BIM, Shannon’s entropy, Fuzzy TOPSIS, construction projects.

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1160 Difference in the Color Preference by a Geographical Factor

Authors: Kazuko Sakamoto

Abstract:

Recently, the design is becoming important in product development. The technology which is a strong point of Japan is immediately caught up by the foreign countries, and the price competition begins. Therefore companies tend to plan differentiation of products by the design or a color. The purpose of my work was to consider the optimal color for using by product development. We needed to clarify the thing leading to color preference for this purpose. Two kinds of investigations were made. By the first investigation, we found out that a geographical factor difference existed in color preference. Then, investigation which regarded the difference as latitude was conducted. However, the result expected from the difference in latitude was not obtained. It seems that it is necessary to set up difference of latitude a little more greatly, or to reexamine by other geographical factors.

Keywords: Color preference, product color, difference of latitude, design marketing, international comparison.

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1159 Socio-Demographic Effects on Digital Libraries Preference and Use: A Case Study at Higher Learning Institutions

Authors: A. K. Razilan, A. B. Amzari, B. Ap-azli, A. R. Safawi

Abstract:

Explosion in information management and information system technology has brought dramatic changes in learning and library system environments. The use of academic digital libraries does witness the spectacular impact on academic societies’ way of performing their study in Malaysia, a country with a multi-racial people. This paper highlights a research on examining the socio-demographic differences on the preference and use of academic digital libraries as compared to physical libraries at higher learning institutions. Findings indicate that preference towards digital libraries differed between ethnicity, gender and university. However none of the socio-demographic factors is statistically significant in terms of the use of digital libraries.

Keywords: Socio-demographic, academic digital library, preference, use.

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1158 Analysis of Factors Used by Farmers to Manage Risk: A Case Study on Italian Farms

Authors: A. Pontrandolfi, G. Enjolras, F. Capitanio

Abstract:

The study analyses the strategies Italian farmers use to cope with the risks that face their production. We specifically explore the potential and the limitations of the economic tools for climatic risk management in agriculture of the Common Agricultural Policy 2014-2020, that foresees contributions for economic tools for risk management, in relation to farms’ needs, exposure and vulnerability of agricultural areas to climatic risk. We consider at the farm level approaches to hedge risks in terms of the use of technical tools (agricultural practices, pesticides, fertilizers, irrigation) and economic/financial instruments (insurances, etc.). We develop cross-sectional and longitudinal analyses as well as analyses of correlation that underline the main differences between the way farms adapt their structure and management towards risk. The results show a preference for technical tools, despite the presence of important public aids on economic tools such as insurances. Therefore, there is a strong need for a more effective and integrated risk management policy scheme. Synergies between economic tools and risk reduction actions of a more technical, structural and management nature (production diversification, irrigation infrastructures, technological and management innovations and formation-information-consultancy, etc.) are emphasized.

Keywords: Agriculture and climate change, climatic risk management, insurance schemes.

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1157 Empirical Research on Preference for Conflict Resolution Styles of Owners and Contractors in China

Authors: Junqi Zhao, Yongqiang Chen

Abstract:

Preference for different conflict resolution styles is influenced by cultural background and power distance of two parties involving in conflict. This research put forward 7 hypotheses and tested the preference differences of the five conflict resolution styles between Chinese owner and contractor as well as the preference differences concerning the same style between two parties. The research sample includes 202 practitioners from construction enterprises in mainland China. Research result found that theories concerning conflict resolution styles could be applied in the Chinese construction industry. Some results of this research were not in line with former research, and this research also gave explanation to the differences from the characteristics of construction projects. Based on the findings, certain suggestions were made to serve as a guidance for managers to choose appropriate conflict resolution styles for a better handling of conflict.

Keywords: Chinese Owner and Contractor, Conflict, Construction Project, Conflict Resolution Styles.

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1156 Model of MSD Risk Assessment at Workplace

Authors: K. Sekulová, M. Šimon

Abstract:

This article focuses on upper-extremity musculoskeletal disorders risk assessment model at workplace. In this model are used risk factors that are responsible for musculoskeletal system damage. Based on statistic calculations the model is able to define what risk of MSD threatens workers who are under risk factors. The model is also able to say how MSD risk would decrease if these risk factors are eliminated.

 

Keywords: Ergonomics, musculoskeletal disorders, occupational diseases, risk factors.

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1155 Inferring User Preference Using Distance Dependent Chinese Restaurant Process and Weighted Distribution for a Content Based Recommender System

Authors: Bagher Rahimpour Cami, Hamid Hassanpour, Hoda Mashayekhi

Abstract:

Nowadays websites provide a vast number of resources for users. Recommender systems have been developed as an essential element of these websites to provide a personalized environment for users. They help users to retrieve interested resources from large sets of available resources. Due to the dynamic feature of user preference, constructing an appropriate model to estimate the user preference is the major task of recommender systems. Profile matching and latent factors are two main approaches to identify user preference. In this paper, we employed the latent factor and profile matching to cluster the user profile and identify user preference, respectively. The method uses the Distance Dependent Chines Restaurant Process as a Bayesian nonparametric framework to extract the latent factors from the user profile. These latent factors are mapped to user interests and a weighted distribution is used to identify user preferences. We evaluate the proposed method using a real-world data-set that contains news tweets of a news agency (BBC). The experimental results and comparisons show the superior recommendation accuracy of the proposed approach related to existing methods, and its ability to effectively evolve over time.

Keywords: Content-based recommender systems, dynamic user modeling, extracting user interests, predicting user preference.

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1154 Analysis of the Visual Preference of Patterns in Pedestrian Roads

Authors: Kang, Eun Sung, Song, Hyeong Wook, Kim, Hong Kyu

Abstract:

The purpose of this study is to analyze the visual preference of patterns in pedestrian roads. In this study, animation was applied for the estimation of dynamic streetscape. Six patterns of pedestrian were selected in order to analyze the visual preference. The shapes are straight, s-curve, and zigzag. The ratio of building's height and road's width are 2:1 and 1:1. Twelve adjective pairs used in the field investigation were selected from adjectives which are used usually in the estimation of streetscape. They are interesting-boring, simple-complex, calm-noisy, open-enclosed, active-inactive, lightly-depressing, regular-irregular, unique-usual, rhythmic-not rhythmic, united-not united, stable-unstable, tidy-untidy. Dynamic streetscape must be considered important in pedestrian shopping mall and park because it will be an attraction. So, s-curve pedestrian road, which is the most beautiful as a result of this study, should be designed in this area. Also, the ratio of building's height and road's width along pedestrian road should be reduced.

Keywords: Visual preference, streetscape, animation, simulation, pedestrian.

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1153 On Identity Disclosure Risk Measurement for Shared Microdata

Authors: M. N. Huda, S. Yamada, N. Sonehara

Abstract:

Probability-based identity disclosure risk measurement may give the same overall risk for different anonymization strategy of the same dataset. Some entities in the anonymous dataset may have higher identification risks than the others. Individuals are more concerned about higher risks than the average and are more interested to know if they have a possibility of being under higher risk. A notation of overall risk in the above measurement method doesn-t indicate whether some of the involved entities have higher identity disclosure risk than the others. In this paper, we have introduced an identity disclosure risk measurement method that not only implies overall risk, but also indicates whether some of the members have higher risk than the others. The proposed method quantifies the overall risk based on the individual risk values, the percentage of the records that have a risk value higher than the average and how larger the higher risk values are compared to the average. We have analyzed the disclosure risks for different disclosure control techniques applied to original microdata and present the results.

Keywords: Anonymization, microdata, disclosure risk, privacy.

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1152 Adaptive Educational Hypermedia System for High School Students Based on Learning Styles

Authors: Stephen Akuma, Timothy Ndera

Abstract:

Information seekers get “lost in hyperspace” due to the voluminous documents updated daily on the internet. Adaptive Hypermedia Systems (AHS) are used to direct learners to their target goals. One of the most common AHS designed to help information seekers to overcome the problem of information overload is the Adaptive Education Hypermedia System (AEHS). However, this paper focuses on AEHS that adopts the learning preference of high school students and deliver learning content according to this preference throughout their learning experience. The research developed a prototype system for predicting students’ learning preference from the Visual, Aural, Read-Write and Kinesthetic (VARK) learning style model and adopting the learning content suitable to their preference. The predicting strength of several classifiers was compared and we found Support Vector Machine (SVM) to be more accurate in predicting learning style based on users’ preferences.

Keywords: Hypermedia, adaptive education, learning style, lesson content, user profile, prediction, feedback, adaptive hypermedia, learning style.

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1151 An Optimization Model of CMMI-Based Software Project Risk Response Planning

Authors: Chun-guang Pan, Ying-wu Chen

Abstract:

Risk response planning is of importance for software project risk management (SPRM). In CMMI, risk management was in the third capability maturity level, which provides a framework for software project risk identification, assessment, risk planning, risk control. However, the CMMI-based SPRM currently lacks quantitative supporting tools, especially during the process of implementing software project risk planning. In this paper, an economic optimization model for selecting risk reduction actions in the phase of software project risk response planning is presented. Furthermore, an example taken from a Chinese software industry is illustrated to verify the application of this method. The research provides a risk decision method for project risk managers that can be used in the implementation of CMMI-based SPRM.

Keywords: Software project, risk management, CMMI, riskresponse planning.

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1150 A New Dimension in Software Risk Managment

Authors: Masood Uzzafer

Abstract:

A dynamic risk management framework for software projects is presented. Currently available software risk management frameworks and risk assessment models are static in nature and lacks feedback capability. Such risk management frameworks are not capable of providing the risk assessment of futuristic changes in risk events. A dynamic risk management framework for software project is needed that provides futuristic assessment of risk events.

Keywords: Software Risk Management, Dynamic Models, Software Project Managment.

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1149 Facility Location Selection using Preference Programming

Authors: C. Ardil

Abstract:

This paper presents preference programming technique based multiple criteria decision making analysis for selecting a facility location for a new organization or expansion of an existing facility which is of vital importance for a decision support system and strategic planning process. The implementation of decision support systems is considered crucial to sustain competitive advantage and profitability persistence in turbulent environment. As an effective strategic management and decision making is necessary, multiple criteria decision making analysis supports the decision makers to formulate and implement the right strategy. The investment cost associated with acquiring the property and facility construction makes the facility location selection problem a long-term strategic investment decision, which rationalize the best location selection which results in higher economic benefits through increased productivity and optimal distribution network. Selecting the proper facility location from a given set of alternatives is a difficult task, as many potential qualitative and quantitative multiple conflicting criteria are to be considered. This paper solves a facility location selection problem using preference programming, which is an effective multiple criteria decision making analysis tool applied to deal with complex decision problems in the operational research environment. The ranking results of preference programming are compared with WSM, TOPSIS and VIKOR methods.

Keywords: Facility Location Selection, Multiple Criteria Decision Making, Multiple Criteria Decision Making Analysis, Preference Programming, Location Selection, WSM, TOPSIS, VIKOR

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1148 Classification and Analysis of Risks in Software Engineering

Authors: Hooman Hoodat, Hassan Rashidi

Abstract:

Despite various methods that exist in software risk management, software projects have a high rate of failure. When complexity and size of the projects are increased, managing software development becomes more difficult. In these projects the need for more analysis and risk assessment is vital. In this paper, a classification for software risks is specified. Then relations between these risks using risk tree structure are presented. Analysis and assessment of these risks are done using probabilistic calculations. This analysis helps qualitative and quantitative assessment of risk of failure. Moreover it can help software risk management process. This classification and risk tree structure can apply to some software tools.

Keywords: Risk analysis, risk assessment, risk classification, risk tree.

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1147 Matching on Bipartite Graphs with Applications to School Course Registration Systems

Authors: Zhihan Li

Abstract:

Nowadays, most universities use the course enrollment system considering students’ registration orders. However, the students’ preference level to certain courses is also one important factor to consider. In this research, the possibility of applying a preference-first system has been discussed and analyzed compared to the order-first system. A bipartite graph is applied to resemble the relationship between students and courses they tend to register. With the graph set up, we apply Ford-Fulkerson (F.F.) Algorithm to maximize parings between two sets of nodes, in our case, students and courses. Two models are proposed in this paper: the one considered students’ order first, and the one considered students’ preference first. By comparing and contrasting the two models, we highlight the usability of models which potentially leads to better designs for school course registration systems.

Keywords: Bipartite graph, Ford-Fulkerson Algorithm, graph theory, maximum matching.

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1146 UEMSD Risk Identification – Case Study

Authors: K. Sekulová, M. Šimon

Abstract:

The article demonstrates on a case study how it is possible to identify MSD risk. It is based on a dissertation Risk identification model of occupational diseases formation in relation to the work activity that determines what risk can endanger workers who are exposed to the specific risk factors. It is evaluated based on statistical calculations. These risk factors are main cause of upperextremities musculoskeletal disorders.

Keywords: Case study, upper-extremity musculoskeletal disorders, ergonomics.

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1145 The Effects on the People's Preference on the Cityscape by the Spatial Characteristics of the Streetscape-Centered on 'Design Seoul Street'-

Authors: Eun-JungKo, Bur-Deul Yoon, Sung-Won Choi, Hong-Kyu Kim

Abstract:

Jacobs, A.B. (1993) stated that "When I think of a city, the first thing that comes to mind is the street. If the street is interesting, the rest of the city is interesting. If the street is mundane, the city is also mundane." In this statement, he expresses the importance of the streetscape and the street environment. The objective of this paper is to analyze the spatial relationships of the streetscape that affect the general public's preference of the cityscape. Furthermore, this research focuses on the important role that streetscape plays in public perception of the city by the pedestrians who experience it daily. The subject of this paper is eight of the "Design Seoul Street."The analysis and survey results show the preference criteria that affect the streetscape and ultimately the cityscape. This research endeavor shows that differences in physical form, shape, size, color, locations, and context are important.

Keywords: Cityscape, Design Seoul Street, street, streetscape.

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1144 Semantic Preference across Research Articles: A Corpus-Based Study of Adjectives in English

Authors: Valdênia Carvalho e Almeida

Abstract:

The goal of the present study is to investigate the semantic preference of the most frequent adjectives in research articles through a corpus-based analysis of texts published in journals in Applied Linguistics (AL). The corpus used in this study contains texts published in the period from 2014 to 2018 in the three journals: Language Learning and Technology; English for Academic Purposes, and TESOL Quaterly, totaling more than one million words. A corpus-based analysis was carried out on the corpus to identify the most frequent adjectives that co-occurred in the three journals. By observing the concordance lines of the adjectives and analyzing the words they associated with, the semantic preferences of each adjective were determined. Later, the AL corpus analysis was compared to the investigation of the same adjectives in a corpus of Chemistry. This second part of the study aimed to identify possible differences and similarities between the two corpora in relation to the use of the adjectives in research articles from both areas. The results show that there are some preferences which seem to be closely related not only to the academic genre of the texts but also to the specific domain of the discipline and, to a lesser extent, to the context of research in each journal. This research illustrates a possible contribution of Corpus Linguistics to explore the concept of semantic preference in more detail, considering the complex nature of the phenomenon.

Keywords: Applied linguistics, corpus linguistics, chemistry, research article, semantic preference.

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1143 Contemplating Preference Ratings of Corporate Social Responsibility Practices for Supply Chain Performance System Implementation

Authors: Mohit Tyagi, Pradeep Kumar

Abstract:

The objective of this research work is to identify and analyze the significant corporate social responsibility (CSR) practices with an aim to improve the supply chain performance of automobile industry located at National Capital Region (NCR) of India. To achieve the objective, 6 CSR practices have been considered and analyzed using expert’s preference rating (EPR) approach. The considered CSR practices are namely, Top management and employee awareness about CSR (P1), Employee involvement in social and environmental problems (P2), Protection of human rights (P3), Waste reduction, energy saving and water conservation (P4), Proper visibility of CSR guidelines (P5) and Broad perception towards CSR initiatives (P6). The outcomes of this research may help mangers in decision making processes and framing polices for SCP implementation under CSR context.

Keywords: Supply chain performance, corporate social responsibility, CSR practices, expert’s preference rating approach.

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1142 Overview of Operational Risk Management Methods

Authors: Milan Rippel, Pert Teplý

Abstract:

Operational risk has become one of the most discussed topics in the financial industry in the recent years. The reasons for this attention can be attributed to higher investments in information systems and technology, the increasing wave of mergers and acquisitions and emergence of new financial instruments. In addition, the New Basel Capital Accord (known as Basel II) demands a capital requirement for operational risk and further motivates financial institutions to more precisely measure and manage this type of risk. The aim of this paper is to shed light on main characteristics of operational risk management and common applied methods: scenario analysis, key risk indicators, risk control self assessment and loss distribution approach.

Keywords: Operational risk, economic capital, key risk indicators, loss distribution approach.

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1141 A Self-stabilizing Algorithm for Maximum Popular Matching of Strictly Ordered Preference Lists

Authors: Zhengnan Shi

Abstract:

In this paper, we consider the problem of Popular Matching of strictly ordered preference lists. A Popular Matching is not guaranteed to exist in any network. We propose an IDbased, constant space, self-stabilizing algorithm that converges to a Maximum Popular Matching an optimum solution, if one exist. We show that the algorithm stabilizes in O(n5) moves under any scheduler (daemon).

Keywords: self-stabilization, popular matching, algorithm, distributed computing, fault tolerance

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1140 Risk Monitoring through Traceability Information Model

Authors: Juan P. Zamora, Wilson Adarme, Laura Palacios

Abstract:

This paper shows a traceability framework for supply risk monitoring, beginning with the identification, analysis, and evaluation of the supply chain risk and focusing on the supply operations of the Health Care Institutions with oncology services in Bogota, Colombia. It includes a brief presentation of the state of the art of the Supply Chain Risk Management and traceability systems in logistics operations, and it concludes with the methodology to integrate the SCRM model with the traceability system.

Keywords: Supply risk, risk monitoring, supply chain risk management, cancer drugs, traceability systems.

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1139 Financial Analysis Analogies for Software Risk

Authors: Masood Uzzafer

Abstract:

A dynamic software risk assessment model is presented. Analogies between dynamic financial analysis and software risk assessment models are established and based on these analogies it suggested that dynamic risk model for software projects is the way to move forward for the risk assessment of software project. It is shown how software risk assessment change during different phases of a software project and hence requires a dynamic risk assessment model to capture these variations. Further evolution of dynamic financial analysis models is discussed and mapped to the evolution of software risk assessment models.

Keywords: Software Risk Assessment, Software ProjectManagement, Software Cost, Dynamic Modeling.

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1138 Toward a Risk Assessment Model Based On Multi-Agent System for Cloud Consumer

Authors: Saadia Drissi, Siham Benhadou, Hicham Medromi

Abstract:

The cloud computing is an innovative paradigm that introduces several changes in technology that have resulted a new ways for cloud providers to deliver their services to cloud consumers mainly in term of security risk assessment, thus, adapting a current risk assessment tools to cloud computing is a very difficult task due to its several characteristics that challenge the effectiveness of risk assessment approaches. As consequence, there is a need of risk assessment model adapted to cloud computing. This paper requires a new risk assessment model based on multi-agent system and AHP model as fundamental steps towards the development of flexible risk assessment approach regarding cloud consumers.

Keywords: Cloud computing, risk assessment model, multi-agent system, AHP model, cloud consumer.

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1137 Info-participation of the Disabled Using the Mixed Preference Data in Improving Their Travel Quality

Authors: Y. Duvarci, S. Mizokami

Abstract:

Today, the preferences and participation of the TD groups such as the elderly and disabled is still lacking in decision-making of transportation planning, and their reactions to certain type of policies are not well known. Thus, a clear methodology is needed. This study aimed to develop a method to extract the preferences of the disabled to be used in the policy-making stage that can also guide to future estimations. The method utilizes the combination of cluster analysis and data filtering using the data of the Arao city (Japan). The method is a process that follows: defining the TD group by the cluster analysis tool, their travel preferences in tabular form from the household surveys by policy variableimpact pairs, zones, and by trip purposes, and the final outcome is the preference probabilities of the disabled. The preferences vary by trip purpose; for the work trips, accessibility and transit system quality policies with the accompanying impacts of modal shifts towards public mode use as well as the decreasing travel costs, and the trip rate increase; for the social trips, the same accessibility and transit system policies leading to the same mode shift impact, together with the travel quality policy area leading to trip rate increase. These results explain the policies to focus and can be used in scenario generation in models, or any other planning purpose as decision support tool.

Keywords: Transportation Disadvantaged, Disabled, Mixed Preference, Stated Preference Data.

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1136 Credit Risk Management and Analysis in an Iranian Bank

Authors: Isa Nakhai Kamal Abadi, Esmaeel Saberi, Ehsan Mirjafari

Abstract:

While financial institutions have faced difficulties over the years for a multitude of reasons, the major cause of serious banking problems continues to be directly related to lax credit standards for borrowers and counterparties, poor portfolio risk management, or a lack of attention to changes in economic or other circumstances that can lead to a deterioration in the credit standing of a bank's counterparties. Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Banks need to manage the credit risk inherent in the entire portfolio as well as the risk in individual credits or transactions. Banks should also consider the relationships between credit risk and other risks. The effective management of credit risk is a critical component of a comprehensive approach to risk management and essential to the long-term success of any banking organization. In this research we also study the relationship between credit risk indices and borrower-s timely payback in Karafarin bank.

Keywords: Financial Ratios; Spearman Test; Bank OperationsRisk

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