Non-Knowledge Risk and Bank-Company Management

In the current economic scenario, the intangible assets contribute significantly to the construction of the competitive positioning of a company. It follows that this intangible information must be appropriately considered in the internal rating system (IRSs). Currently key aspects of business risk and operational risk such as potential for growth, competitive capabilities, core competencies, role in the supply chain of membership, and governance are being considered as secondary in this system. Intangible factors such as the milieu of the company and the environment in which it operates, are not being appropriately considered. In this book, Vincenzo Formisano proposes new guidelines aimed to set desirable IRSs in which the weight of intangible assets is appropriately and properly valued. He addresses practical rules for achieving a rating system capable of understanding and enhancing the intangible assets of a company and for the assessment of creditworthiness. The first part of the book focuses on existing practices; the second part exposes a general model for the classification and interpretation of intangibles. The third part provides practical guidelines designed to configure desirable rating models in which the weight of intangible assets is correctly considered. This book offers theoretical and practical insights and an easy-to-read approach which provides a valuable source of information for teachers and students in Finance. It is also a useful reference point for the Banking, Accounting and Finance managerial communities.

Autorentext
Vincenzo Formisano is an Associate Professor in Economics and Business Management at the University of Cassino in Italy where he teaches Marketing and Strategic Business Management. His research activity spans the subjects of local banks, business finance, and SME innovations; and focusses in particular on ratings between companies, banks and territories, banking growth factors, intangible assets and industrial districts.

Inhalt

Introduction
PART I: THE CONTEXT: THE FINANCIAL SYSTEM
1.1. The viable financial system
1.2. Government body of the European financial system
1.3. The operational structure: components, relations and management processes with a particular regard to the Italian experience
1.4. The purpose of the financial system: between efficiency and stability
1.5. Globalization, crisis and values in the Italian bank system: theoretical framework
1.6. Recent changes in the Italian bank system
1.7. Evolution in the segment of cooperative banks and related system of corporate governance
1.8. The role of cooperative banks in the development of local networks of mutuality
PART II: THE EVOLUTION OF THE PRUDENTIAL REGULATION
2.1. Examination of the essential points of Basel Accords
2.2. Standardized Approach and the Internal Ratings-Based Approach
2.3. Transaction towards Basel 3
PART III: THE BANKING BUSINESS: THE GOVERNMENT BODY AND THE OPERATIONAL STRUCTURE
3.1. The bank such as a viable system enterprise
3.2. The area of government decisions and the area of management deals
3.3. Government of the bank firm
3.4. The re-engineering of the credit process
3.5. Main risks in the implementation of a credit risk management system
3.6. The activity of control on bank risks management
3.7. The operational structure
PART IV: THE BANK-COMPANY RELATIONSHIP
4.1. The relevance of inter-systemic relationships
4.2. The evolution of the bank-company relationship
4.3. The specificity of the financial structure of Italian SMEs, from financing to the contribution of capital
4.4. The European market of SMEs
4.5. The bank-company relationship: the importance of the risk-yield profile
4.6. The concept of capital allocation in the viable system enterprise
4.7. The system of capital allocation
4.8. The relationship bank-control body
PART V: INTANGIBLES IN THE ASSESSMENT OF CREDITWORTHINESS
5.1. Introductory remarks
5.2. The critical success factors of a business
5.3. The intangible assets in companies and rating models
5.4. Concluding remarks
PART VI: AN EMPIRICAL CASE
6.1. The credit scenario analyzed at European, national and regional level
6.2. The financing of the economy analyzed as part of the province of Frosinone
6.3. Sample survey carried out on a dataset of a panel of companies in the province of Frosinone
6.3.1. Premise
6.3.2. Definition of the sample
6.3.3. Sample survey through the preparation of the questionnaire
6.3.4. Administration of the questionnaire to selected companies
6.3.5. Descriptive analysis of the results
6.3.6. Final considerations and conclusions
Closing remarks
References
Web references
Attachment A - Letter of presentation of the questionnaire
Attachment B - Questionnaire