Model for evaluating the commercial banks financial risk with interval grey uncertain linguistic variables

Article type: Research Article

Authors: Xu, Sheng

Affiliations: College of Finance, Zhongnan University of Economics and Law, Wuhan, China

Note: [] Corresponding author. Sheng Xu, College of Finance, Zhongnan University of Economics and Law, Wuhan 430073, China. Tel./Fax: +86 18610211388; E-mail: [email protected]

Abstract: The New Basel Capital Accord takes the lead in bringing operational risks into the commercial banks' risk management framework, and also confirms the risk mitigating effects of operational risk insurance, thus insurance, as an important tool of operational risk management, came into the focus of international banks. During the past couple years the loss events of operational risks in China's commercial banks happened frequently, but the application of insurance for banks covering operational risks still drops behind. And the academic circles in China paid insufficient attention to operational risks and their insurance. In this paper, we investigate the multiple attribute decision making problems with interval grey uncertain linguistic variables. Then, we develop the induced interval grey uncertain linguistic ordered weighted geometric (I-IGULOWG) operator. Then, we apply the induced interval grey uncertain linguistic ordered weighted geometric (I-IGULOWG) operator to deal with multiple attribute decision making with the interval grey uncertain linguistic variables. Finally, an illustrative example for evaluating the commercial banks financial risk with the interval grey linguistic variables is given to verify the developed approach.

Keywords: Multiple attribute decision making, interval grey uncertain linguistic variables, induced interval grey uncertain linguistic ordered weighted geometric (I-IGULOWG) operator, commercial banks, financial risk

DOI: 10.3233/IFS-141358

Journal: Journal of Intelligent & Fuzzy Systems, vol. 28, no. 2, pp. 767-773, 2015