Journal of the Korean Data and Information Science Society
- 제19권3호
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- Pages.831-844
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- 2008
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- 1598-9402(pISSN)
Segmentation of Cooperatives' Mutuality Bank for Effective Risk Management using Factor Analysis and Cluster Analysis
초록
Since cooperatives consist of many distinct members in the management environment and characteristics, it is necessary to make similar cooperatives into a few groups for the effective risk management of cooperatives' mutuality bank. This paper is a priori research for suggesting a guidance for effective risk management of cooperatives with different management strategy. For such purpose, we propose a way to group the members of cooperative's mutuality bank. The 30 continuous variables which is relative to cooperatives' management status are considered and six factors are extracted from those variables through factor analysis with empirical consideration to avoid wrong grouping and to enhance the practical interpretation. Based on extracted six factors and additional 3 categorical variables, six representative groups are derived by the two step clustering analysis. These findings are useful to execute a discriminatory risk management and other management strategy for a mutuality bank and others.