Fast Public Key Cryptosystem Based On Matrix Rings

A public key cryptosystem is proposed, which is based on the assumption that finding the square root of an element in a large finite ring is computationally infeasible in the absence of a knowledge of the ring structure. The encryption and decryption operations are very fast, and the data expansion is 1:2.

The credit risk(+) model with general sector correlations

We consider an enhancement of the credit risk+ model to incorporate correlations between sectors. We model the sector default rates as linear combinations of a common set of independent variables that represent macro-economic variables or risk factors. We also derive the formula for exact VaR contributions at the obligor level.

Application of nonlinear filtering to credit risk

Merton's model views equity as a call option on the asset of the firm. Thus the asset is partially observed through the equity. Then using nonlinear filtering an explicit expression for likelihood ratio for underlying parameters in terms of the nonlinear filter is obtained. As the evolution of the filter itself depends on the parameters in question, this does not permit direct maximum likelihood estimation, but does pave the way for the `Expectation-Maximization' method for estimating parameters. (C) 2010 Elsevier B.V. All rights reserved.

New Ventures’ influence on the Growth of SME Employment, Production and Exports in India: Does Institutional Credit matter?

New ventures are considered to be a major source of small firm growth. In Indian context the contribution of new ventures in terms of new employment, production and exports has largely remained unexplored. It is equally important and unexplored, the significance of the contribution of bank credit to the growth of new ventures in India. This paper is an attempt to throw light on these two aspects. The research is based on secondary data of the liberalized period provided by Ministry of Micro, Small and Medium Enterprises, Government of India and Reserve Bank of India. To analyze the influence of bank credit growth on new ventures and the influence of new ventures on growth of additional employment, additional production and additional exports, we used a Bi-Variate Vector Auto Regression. Based on the model generated, Granger causality tests are conducted to obtain the results. The study found that rate of growth of bank credit causes the number of new ventures, implying any increase in the rate of growth of bank credit will be beneficial to the growth of new ventures. The study also concluded that new ventures are not causing the growth of additional employment or additional production. However new ventures cause the growth of additional exports. This is reasonable as entrepreneurs start their new ventures with minimum possible employment and relatively low rate of capacity utilization and they come up to take advantage of the process of globalization by catering to the international market.

Pricing credit derivatives

The financial crisis set off by the default of Lehman Brothers in 2008 leading to disastrous consequences for the global economy has focused attention on regulation and pricing issues related to credit derivatives. Credit risk refers to the potential losses that can arise due to the changes in the credit quality of financial instruments. These changes could be due to changes in the ratings, market price (spread) or default on contractual obligations. Credit derivatives are financial instruments designed to mitigate the adverse impact that may arise due to credit risks. However, they also allow the investors to take up purely speculative positions. In this article we provide a succinct introduction to the notions of credit risk, the credit derivatives market and describe some of the important credit derivative products. There are two approaches to pricing credit derivatives, namely the structural and the reduced form or intensity-based models. A crucial aspect of the modelling that we touch upon briefly in this article is the problem of calibration of these models. We hope to convey through this article the challenges that are inherent in credit risk modelling, the elegant mathematics and concepts that underlie some of the models and the importance of understanding the limitations of the models.

Corporate social responsibilities of Indian public sector enterprises-a case study of Bharat Heavy Electricals Limited (BHEL)

The high level of public accountability attached to Public Sector Enterprises as a result of public ownership makes them socially responsible. The Committee of Public Undertakings in 1992 examined the issue relating to social obligations of Central Public Sector Enterprises and observed that ``being part of the `State', every Public Sector enterprise has a moral responsibility to play an active role in discharging the social obligations endowed on a welfare state, subject to the financial health of the enterprise''. It issued the Corporate Social Responsibility Guidelines in 2010 where all Central Public Enterprises, through a Board Resolution, are mandated to create a CSR budget as a specified percentage of net profit of the previous year. This paper examines the CSR activities of the biggest engineering public sector organization in India, Bharath Heavy Electricals Limited. The objectives are twofold, one, to develop a case study of the organization about the funds allocated and utilized for various CSR activities, and two, to examine its status with regard to other organizations, the 2010 guidelines, and the local socio-economic development. Secondary data analysis results show three interesting trends. One, it reveals increasing organizational social orientation with the formal guidelines in place. Two, Firms can no longer continue to exploit environmental resources and escape from their responsibilities by acting separate entities regardless of the interest of the society and Three the thrust of CSR in public sector is on inclusive growth, sustainable development and capacity building with due attention to the socio-economic needs of the neglected and marginalized sections of the society.

Certificate-less on-demand public key management (CLPKM) for self-organized MANETs

In this paper, we have proposed a novel certificate-less on-demand public key management (CLPKM) protocol for self-organized MANETs. The protocol works on flat network architecture, and distinguishes between authentication layer and routing layer of the network. We put an upper limit on the length of verification route and use the end-to-end trust value of a route to evaluate its strength. The end-to-end trust value is used by the protocol to select the most trusted verification route for accomplishing public key verification. Also, the protocol uses MAC function instead of RSA certificates to perform public key verification. By doing this, the protocol saves considerable computation power, bandwidth and storage space. The saved storage space is utilized by the protocol to keep a number of pre-established routes in the network nodes, which helps in reducing the average verification delay of the protocol. Analysis and simulation results confirm the effectiveness of the proposed protocol.

Self-organized public key management in MANETs with enhanced security and without certificate-chains

In the self-organized public key management approaches, public key verification is achieved through verification routes constituted by the transitive trust relationships among the network principals. Most of the existing approaches do not distinguish among different available verification routes. Moreover, to ensure stronger security, it is important to choose an appropriate metric to evaluate the strength of a route. Besides, all of the existing self-organized approaches use certificate-chains for achieving authentication, which are highly resource consuming. In this paper, we present a self-organized certificate-less on-demand public key management (CLPKM) protocol, which aims at providing the strongest verification routes for authentication purposes. It restricts the compromise probability for a verification route by restricting its length. Besides, we evaluate the strength of a verification route using its end-to-end trust value. The other important aspect of the protocol is that it uses a MAC function instead of RSA certificates to perform public key verifications. By doing this, the protocol saves considerable computation power, bandwidth and storage space. We have used an extended strand space model to analyze the correctness of the protocol. The analytical, simulation, and the testbed implementation results confirm the effectiveness of the proposed protocol. (c) 2014 Elsevier B.V. All rights reserved.