Integrated Methods of Assessing and Managing Risks of Securities: Developing Models and Proposals for Automation

This academic paper conducted research in the area of integrated methods of assessments of risk of securities. The subject of this work is the development of a comprehensive securities risk assessment model and proposals for automating the decision-making process with its application. The aim of the research is the development of an integrated model of risk assessment of securities and suggestions on automation of the decision-making process with its application, which leads to the increase of quality of investment decision making. This study hypothesizes that the use of integrated risk assessment models contributes to improving the quality of investment decision-making. In accordance with the goal, the following tasks were solved in the work: 1. To analyze the main methods and areas of securities risk assessment. To assess the predictive ability of various methods of risk assessment. 2. To conduct a factor analysis. To evaluate the quality of risk assessment and to justify the choice of an effective method. 3. To substantiate and recommend a model of comprehensive risk assessments for securities. To develop a comprehensive model of risk assessments for securities. 4. To develop recommendations for automation of decision-making on risk assessment and management. The structure of this work consists of an introduction, three chapters, a conclusion, and appendices. In the first chapter, the review of modern methods and techniques used to manage and assess the risks of securities was performed. In the second chapter, the forecasting abilities of these methods were evaluated, and the comprehensive model itself was developed to evaluate the risk of securities. In the third chapter, recommendations for automating the decision-making process for risk assessment and management were developed.