Next Article in Journal
Bayesian Modelling, Monte Carlo Sampling and Capital Allocation of Insurance Risks
Previous Article in Journal
An Integrated Approach to Pricing Catastrophe Reinsurance
Article Menu
Issue 4 (December) cover image

Export Article

Open AccessArticle
Risks 2017, 5(4), 52;

The Impact of Risk Management in Credit Rating Agencies

SP Jain School of Global Management, 10, Hyderabad Road, Singapore 119579, Singapore
School of Communication, Taylors University, 57500 Petaling Jaya, Malaysia
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
Full-Text   |   PDF [1669 KB, uploaded 21 September 2017]   |  


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

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Share & Cite This Article

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.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Risks EISSN 2227-9091 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top