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2016 » Papers » Volume 1 » Decision models in Romanian Banking sector after the last world financial crisis: an AHP approach 1. DECISION MODELS IN ROMANIAN BANKING SECTOR AFTER THE LAST WORLD FINANCIAL CRISIS: AN AHP APPROACH Authors: Radutu Andrei, Pop Ionut Daniel Volume 1 | DOI: 10.12753/2066-026X-16-067 | Pages: 463-470 | Download PDF | Abstract
After the early start of the financial crisis from 2007, the representatives of the banking system have taken some important decisions in order for the global and local economies to become more stable. The risk management activities became exponential, as the effects of the crisis were being felt by each country in the world. Therefore, in this crisis counter-measures mix, their specific policy decisions have been regarded as one of the most important variables for the recovery process. Every day, each financial institution is searching for the best decisions that could reduce the risk. But is there an optimum decision that can be taken? The purpose of this paper is to find the proper answer to this question, by analyzing the data and decisions taken by the risk management experts within the Romanian banking system. Previous studies have shown that at the present moment, on the Romanian Banking sector, the efficiency of this specific market is rather low, hence the need for improvement of the risk management policies used. By using the Analytical Hierarchical Processes (AHP) and the experts' input, an optimum model of decision making regarding the decrease of risk in the banking sector has been defined. This innovative method of decision making is decomposing a specific problem into a hierarchy, using several clusters of criteria and alternatives and the principle of pairwise comparison for reaching to consistent and relevant decisions. Thus, this paper follows the implications of the policies implemented until now, which are about to be put face to face with the designed model, in order for a series of recommendations to be offered to the risk management experts. | Keywords
AHP, financial crisis, risk management experts, optimum decisions, banking risk |
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