A survey comparative analysis of cartesian and complexity science frameworks adoption in financial risk management of Zimbabwean banks

IF 3.2 Q1 BUSINESS, FINANCE Quantitative Finance and Economics Pub Date : 2022-01-01 DOI:10.3934/qfe.2022016
Gilbert Tepetepe, Easton Siment-Phiri, D. Morton
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Abstract

Traditionally, financial risk management is examined with cartesian and interpretivist frameworks. However, the emergence of complexity science provides a different perspective. Using a structured questionnaire completed by 120 Risk Managers, this paper pioneers a comparative analysis of cartesian and complexity science theoretical frameworks adoption in sixteen Zimbabwean banks, in unique settings of a developing country. Data are analysed with descriptive statistics. The paper finds that overally banks in Zimbabwe are adopting cartesian and complexity science theories regardless of bank size, in the same direction and trajectory. However, adoption of cartesian modeling is more comprehensive and deeper than complexity science. Furthermore, due to information asymmetries, there is diverging modeling priorities between the regulator and supervisor. The regulator places strategic thrust on Knightian risks modeling whereas banks prioritise ontological, ambiguous and Knightian uncertainty measurement. Finally, it is found that complexity science and cartesianism intersect on market discipline. From these findings, it is concluded that complexity science provides an additional dimension to quantitative risk management, hence an integration of these two perspectives is beneficial. This paper makes three contributions to knowledge. First, it adds valuable insights to theoretical perspectives on Quantitative Risk Management. Second, it provides empirical evidence on adoption of two theories from developing country perspective. Third, it offers recommendations to improve Quantitative Risk Management policy formulation and practice.
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津巴布韦银行金融风险管理中笛卡儿和复杂性科学框架采用的调查比较分析
传统上,金融风险管理是用笛卡尔和解释主义的框架来检查的。然而,复杂性科学的出现提供了一个不同的视角。利用120名风险管理人员完成的结构化问卷,本文率先对16家津巴布韦银行在发展中国家的独特环境中采用笛卡尔和复杂性科学理论框架进行了比较分析。用描述性统计分析数据。本文发现,无论银行规模大小,津巴布韦的银行总体上都在同一方向和轨迹上采用笛卡尔和复杂性科学理论。然而,笛卡尔模型的采用比复杂性科学更全面、更深入。此外,由于信息不对称,监管者和监管者之间存在不同的建模优先级。监管机构将战略重点放在奈特风险建模上,而银行则优先考虑本体论、模糊和奈特不确定性测量。最后,发现复杂性科学与笛卡笛卡尔主义在市场学科上的交叉。从这些发现可以得出结论,复杂性科学为定量风险管理提供了一个额外的维度,因此这两个观点的整合是有益的。本文对知识有三个贡献。首先,它为定量风险管理的理论视角增加了有价值的见解。第二,从发展中国家的角度对两种理论的采用提供了实证证据。第三,提出了改进量化风险管理政策制定和实践的建议。
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来源期刊
CiteScore
0.30
自引率
1.90%
发文量
14
审稿时长
12 weeks
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