Reports Summarize Risk Management Study Results from NOVA University Lisbon (Approaching European Supervisory Risk Assessment with SupTech: A Proposal of an Early Warning System): Insurance – Risk Management

2022 MAY 06 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on risk management are presented in a new report. According to news reporting out of Lisbon, Portugal, by NewsRx editors, research stated, “Risk analysis and scenario testing are two of the core activities carried out by economists at central banks.”

Our news correspondents obtained a quote from the research from NOVA University Lisbon: “With the increasing adoption of machine learning to enhance decision-support systems, and the amount of collected data spiking, institutions provide countless use-cases for the application of these innovative technologies. Consequently, in recent years, the term sup-tech has entered the financial jargon and is here to stay. In this paper, we address risk assessment from a central bank’s perspective. The uptrending number of involved banks and institutions raises the necessity of a standardised risk methodology. For that reason, we adopted the Risk Assessment Methodology (RAS), the quantitative pillar from the Supervisory Review and Evaluation Process (SREP). Based on real-world supervisory data from the Portuguese banking sector, from March 2014 until August 2021, we successfully model the supervisory risk assessment process, in its quantitative approach by the RAS.”

According to the news reporters, the research concluded: “Our findings and the resulting model are proposed as an Early Warning System that can support supervisors in their day-to-day tasks, as well as within the SREP process.”

For more information on this research see: Approaching European Supervisory Risk Assessment with SupTech: A Proposal of an Early Warning System. Risks, 2022,10(71):71. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks10040071.

Our news editors report that more information may be obtained by contacting Pedro Guerra, Nova Information Management School (NOVA IMS), NOVA University Lisbon, Campus de Campolide, 1070-312 Lisbon, Portugal. Additional authors for this research include Mauro Castelli, Nadine Corte-Real.

(Our reports deliver fact-based news of research and discoveries from around the world.)