Application of the SAW Method in Credit Risk Assessment

Aleksandra Wójcicka-Wójtowicz , Anna Łyczkowska-Hanćkowiak , Krzysztof Piasecki

Abstract

Credit risk assessment usually is a complex process, which consists of many successive steps and numerous criteria. Selection of good customers and rejection of potentially bad ones is vital as it directly and significantly affects the quality of bank’s credit portfolio. Also, ordering the decision alternatives is an important part of the whole decision-making analysis which takes place before making a final decision. The importance and complexity of the problem on one hand call for strictly analytical methods, however, on the other, also for a method which enables intuitive decision-making, imprecision and inaccurate linguistic ranks based on experts’ personal experience. The paper presents the utility of Simple Additive Weighting method in case of a credit risk assessment. The presented illustrative example bases on experts’ knowledge and their perception and evaluation of various linguistic, frequently imprecise criteria. Therefore, the order scale is described by trapezoidal oriented fuzzy numbers.
Author Aleksandra Wójcicka-Wójtowicz (WIiGE / KBO)
Aleksandra Wójcicka-Wójtowicz,,
- Department of Operations Research
, Anna Łyczkowska-Hanćkowiak - Wyższa Szkoła Bankowa w Poznaniu
Anna Łyczkowska-Hanćkowiak,,
-
, Krzysztof Piasecki (WZ / KIiN)
Krzysztof Piasecki,,
- Department of Investment and Real Estate
Pages189-205
Publication size in sheets0.8
Book Jajuga Krzysztof, Locarek-Junge Hermann, Orłowski Lucjan T., Staehr Karsten (eds.): Contemporary Trends and Challenges in Finance : Proceedings from the 5th Wroclaw International Conference in Finance, Springer Proceedings in Business and Economics, 2020, Springer, ISBN 978-3-030-43077-1, [978-3-030-43078-8], 250 p., DOI:10.1007/978-3-030-43078-8
Keywords in Polishryzyko kredytowe, zorientowana liczba rozmyta, metoda SAW
Keywords in Englishcredit risk, oriented fuzzy number, SAW method
DOIDOI:10.1007/978-3-030-43078-8_16
URL https://link.springer.com/chapter/10.1007/978-3-030-43078-8_16
Languageen angielski
Score (nominal)20
Score sourcepublisherList
ScoreMinisterial score = 20.0, 27-05-2020, ChapterFromConference
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