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4247. Stochastic dynamic optimization in strategic financial management
Invited abstract in session TC-57: Market dynamics and implications for portfolio decisions, stream Modern Decision Making in Finance and Insurance.
Tuesday, 12:30-14:00Room: S06 (building: 101)
Authors (first author is the speaker)
| 1. | Antti Korhonen
|
| Detech Decision Technologies |
Abstract
Financial institutions play a major role in the economy and the society as a whole. Securing their stability and success is utmost important in the current unpredictable financial markets. Recent bank failures have demonstrated that financial crises tend to move fast in the global economy. Managing uncertainty is the key issue in volatile operating environments.
The talk will compare stochastic dynamic optimization methodology with simulation-based approaches which are still widely used in financial institutions. Mathematical optimization offers great benefits in solving complex real world strategic financial management problems.
Only mathematical optimization is able to prepare institutions for diverse economic and financial market scenarios simultaneously and produce concrete decision recommendations. Simulation methodologies are insufficient for today`s business decision making.
Keywords
- Strategic Planning and Management
- Decision Support Systems
- Finance and Banking
Status: accepted
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