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Risks 2017, 5(4), 52; doi:10.3390/risks5040052

The Impact of Risk Management in Credit Rating Agencies

1
SP Jain School of Global Management, 10, Hyderabad Road, Singapore 119579, Singapore
2
School of Communication, Taylors University, 57500 Petaling Jaya, Malaysia
3
Faculty of Management, Multimedia University, 63000 Cyberjaya, Malaysia
*
Author to whom correspondence should be addressed.
Academic Editor: Mogens Steffensen
Received: 19 February 2017 / Revised: 8 May 2017 / Accepted: 2 August 2017 / Published: 21 September 2017
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Abstract

An empirical study was conducted to determine the impact of different types of risk on the performance management of credit rating agencies (CRAs). The different types of risks were classified as operational, market, business, financial, and credit. All these five variables were analysed to ascertain their impact on the performance of CRAs. In addition, apart from identifying the significant variables, the study focused on setting out a structured framework for future research. The five independent variables were tested statistically using structural equation modelling (SEM). The results indicated that market risk, financial risk, and credit risk have a significant impact on the performance of CRAs, whereas operational risk and business risk, though important, do not have a significant influence. This finding has a significant implication for the examination and inter-firm evaluation of CRAs. View Full-Text
Keywords: credit rating financial risk; credit risk; business risk; operational risk; market risk credit rating financial risk; credit risk; business risk; operational risk; market risk
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MDPI and ACS Style

Seetharaman, A.; Kumar Sahu, V.; Saravanan, A.S.; Rudolph Raj, J.; Niranjan, I. The Impact of Risk Management in Credit Rating Agencies. Risks 2017, 5, 52.

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