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Ranking Fuzzy Numbers based on Circumcenter and
Nagel Point for Financial Risk Management
Loh Pooi Ling
Supervisor: Prof. Dr. Mohd Lazim Bin Abdullah
Bachelor of Science (Financial Mathematics)
School of Informatics and Applied Mathematics
Banks have been practising financial risk management ever since the exposure of various
types of risks, which affect the performance of banks. However, authentic risk factors led
to financial risk management in banking sector are indecisive. This paper aims to propose
risk values for the selected risk factors contributed to the financial risk management in
banking sector using ranking fuzzy number. The method of ranking fuzzy numbers based
on circumcenter and Nagel point is proposed to determine the highest ranking risk factor
for each method for financial risk management in banking sector. Five experts were
invited to provide qualitative linguistic evaluation over the rank of risk factors in financial
risk management. The risk values obtained from the two proposed methods review the
highest and the lowest risk factor. An implication for banks is that the importance of
addressing risk and paying close attention to the risk management to avoid losses.
816 | UMT UNDERGRADUATE RESEARCH DAY 2018