Financial risk management and capital investment in risk conditions

  Prof. univ. dr. ARCADIE HINESCU – Universitatea „1 Decembrie 1918” Alba Iulia
      Conf. univ. dr. IULIA IUGA – Universitatea „1 Decembrie 1918” Alba Iulia
                            e-mail: iuga_iulia@yahoo.com


Abstract :
For banking institutions, loans are often the primary source of credit risk. Traditional
lending practice has been to grant loans that have a positive net present value (NPV) and
to deny those that do not. Recently, the use of statistical models has increased
significantly.

Key words: risk management, capital investment

JEL Code: G32