Risk Management Strategy Assignment

Added on - 21 Jul 2020

  • 18

    pages

  • 2257

    words

  • 8

    views

  • 0

    downloads

Showing pages 1 to 4 of 18 pages
SPSS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Description of problem....................................................................................................................1(1)Detail description of data set...................................................................................................1(2) Proposal and matter of classification.....................................................................................1Analysis of the data.........................................................................................................................1(1)Propose to do with data...........................................................................................................1(2)Technique proposed to use and reason behind it....................................................................1(3)Proposal to carrying out analysis............................................................................................2Interpretation of results....................................................................................................................2(1)Descriptive statistics...............................................................................................................2(2)Decision tree analysis..............................................................................................................5CONCLUSION................................................................................................................................6
INTRODUCTIONAnalytics is commonly used in banks to assess risk in business and do prevent fradulentactivities and to formulate proper risk management strategy so that NPA level remain low inbusiness. In current report, bank related data is analyzed and on that basis group where there ishigh probability of failure in making payment of debt amount on time is identified. At end of thereport, conclusion and recommendation section is prepared.Description of problem(1)Detail description of data setData set is related to banking which comprise facts related to multiple variables likeincome level, bank balance and education etc. In banks every year loan is given to multiplepeople but some of them become default and failed to pay installments on time (Non performingloans, 2016). Due to all these reasons NPA is increasing at rapid rate in some of private sectorbanks and this problem is faced by all sort of banks across the nations. In order to sort out thisproblem data is analyzed.(2) Proposal and matter of classificationVariables that are in data set are reviewed and identification of customers groups areproposed that may failed to pay debt on time or may successfully pay same. This will help bankin understanding that in case of which sort of customers there is high probability of failure. It ismatter of classification and in this regard decision tree analysis method is used in presentresearch study.1|P a g e
Analysis of the data(1)Propose to do with dataBy using data main target is to identify sort of group where there is chance of failure tomake payment of debt amount on time. In other words specific group will be attempted toidentify where due attention need to be paid as part of risk mangement strategy.(2)Technique proposed to use and reason behind itDecision tree analysis is proposed to be used because it cleaarly and more extensivelyreflect scenerio is perfect way and individual even does not have any technical background caneasily by viewing graph can make interpretation. Other main reason behind using it is that noassumptions like outlier detection and normality need to be satisfied in case of decisions treeanalysis.(3)Proposal to carrying out analysisFirst of all data cleaning will be done and recoding will happened in excel sheet so thatdata analysis can be made possible. If there is any missing value then same will be filled bymode value. After processing of entire data set according to aim of analysis dependent variablewill be selected which is success and failure of individuals to pay loan on time. Accoridingly, inmodel independent variables will be selected. Finally, interpetation of results will be made inresearch study.Interpretation of results2|P a g e
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document