Risk has become one of the main topics in fields as diverse as engineering, medicine, and
economics, and it is also studied by social scientists, psychologists, and legal scholars. But the
topic of risk also leads to more fundamental questions such as:What is risk?What can decision
theory contribute to the analysis of risk? What does the human perception of risk mean for
society? How should we judge whether a risk is morally acceptable or not? Over the last couple
of decades, questions like these have attracted interest from philosophers and other scholars
into risk theory.
In recent years, enormous strides have been made in the art and science of
credit risk measurement and management. Much of the energy in this area
has resulted from dissatisfaction with traditional approaches to credit risk
measurement and with the current Bank for International Settlements (BIS)
The eight studies presented in this volume are put together to provide
a new insight into the design of risk-management models in emerging
markets. The objective is to identify the specific characteristics
of emerging markets and specify the most appropriate methods of
risk management that suits those markets. The chapters report on
empirical studies carried out on a number of countries in Asia, Eastern
Europe, North Africa and other emerging markets in various continents.
The objective of this study is to develop an early‐warning system (EWS) for identifying
systemic banking risk, which will give policymakers and supervisors time to prevent or mitigate a
potential financial crisis. It is important to forecast—and perhaps to alleviate—the pressures that
lead to systemic crises, which are economically and socially costly and which require significant
time to reverse (Honohan et al., 2003). The current U.S.
The so called portfolio approach to credit supply (for an overview see Fase (1995))
starts with the assumption that banks maximize a utility function under a set of balance sheet
constraints which allows to derive directly credit supply functions. However, the derivation
assumes a perfect financial market while treating the private sector (comprising the corporate
and household sectors) as one homogeneous entity. These limitations restrict the use of this
model when trying to address the specific issues related to corporate finance in imperfect
These capital requirements were notable because, for
the first time, regulatory minimum capital requirements could
be based on the output of banks’ internal risk measurement
models. The market risk capital requirements thus stood in
sharp contrast to previous regulatory capital regimes, which
were based on broad, uniform regulatory measures of risk
Chapter 5 lays the groundwork, defining the terms risk and return and explaining why investors think about risk in different ways depending on whether they want to understand the risk of a specific investment or the risk of a broad portfolio of investments.
This article reviews the current status of the market for catastrophic risk (CAT)
bonds and other risk-linked securities. CAT bonds and other risk-linked securities
are innovative financial vehicles that have an important role to play in financing
mega-catastrophes and other types of losses. The vehicles are especially
important because they access capital markets directly, exponentially expanding
risk-bearing capacity beyond the limited capital held by insurers and reinsurers.
This chapter begins with a general introduction to project risk and follows with the consideration of its specific measurement. Next, an investment project is examined with respect to its firm-portfolio risk – that is, the marginal risk of a project to the firm as a whole. Finally, the effect of managerial (real) options on project desirability is studied.
Two tests are available to screen for prostate cancer: prostate-specific antigen (PSA) and digital rectal
examination (DRE). The first of these is a blood test, and the second is a physical examination by a
doctor where a finger is passed into the rectum to directly feel for enlargement or a nodule in the
prostate gland. The subsequent diagnostic test is a prostatic biopsy taken through the rectum. This
paper will discuss the use of PSA as part of a screening program. In clinical practice DRE is used to
supplement rather than replace PSA.
Wilson and Jungner described a...
This report presents the findings of the Behavioural Risks and HIV Sero-Status Survey (BSS) for the Central Serowe Sub-district and Kweneng District in Botswana. The purpose of the survey was to determine the knowledge, attitudes, sexual behaviours, practices, prevention, care and support issues concerning HIV/AIDS among the population in the Central Serowe Sub-district and Kweneng District. Specifically, the survey quantified HIV prevalence, sexual risk behaviours and other practices among adults and children....
Consistent with real-life credit-card and subprime mortgage
contracts but (we argue) inconsistent with natural specifications of rational time-consistent
theories, in the competitive equilibrium of our model firms offer seemingly cheap credit to be
repaid quickly, but introduce large penalties for falling behind this front-loaded repayment schedule.
The contracts are designed so that borrowers who underestimate their taste for immediate
gratification both pay the penalties and repay in an ex ante suboptimal back-loaded manner
more often than they predict or prefer.
Topic 1A - Country selection/research and suggested approach. In this chapter, students will be able to understand: Country selections, country risk selection methodology, empirical research on country selection, research: survey of risk factors, project specific risk measure approach.
To understand an entity’s internal control, the auditor will evaluate the design and implementation of a control.
The auditor's primary consideration is whether, and how, a specific control prevents, or detects and corrects, material misstatements in classes of transactions, account balances or disclosures.
The heaviest emphasis by auditors is on controls over classes of transactions rather than account balances or disclosures
World Map Financial Derivatives
Financial derivatives are financial instruments that are linked to a specific financial instrument or indicator or commodity, and through which specific financial risks can be traded in financial markets in their own right. Transactions in financial derivatives should be treated as separate transactions rather than as integral parts of the value of underlying transactions to which they may be linked. The value of a financial derivative derives from the price of an underlying item, such as an asset or index.
Ecotoxicological models have been applied increasingly to perform chemical risk assessments since the first models of this kind emerged about 25 years ago. The first ecotoxicological models were applied to very specific cases — for instance, cadmium contamination of Lake Erie or mercury contamination of Mex Bay, Alexandria. The models were inspired by the experience gained in ecological modeling and therefore contained good descriptions of ecological processes. Slightly later, the so-called fate models emerged, which were first developed by McKay and others.
minimize the risk of noncompliance with export control laws.
Export Management and Compliance Program Defined
An EMCP includes both the operational export compliance policies and
procedures an organization implements and a written set of guidelines
that captures those policies and procedures.
This much-needed book, from a selection of top international experts, fills a gap by providing a manual of applied quantitative financial analysis. It focuses on advanced empirical methods for modelling financial markets in the context of practical financial applications.Data, software and techniques specifically aligned to trading and investment will enable the reader to implement and interpret quantitative methodologies covering various models.
Some people believe that success in life comes from taking risks or chances. Others believe that success results from careful planning. In your opinion, what does success come from? Use specific reasons and examples to support your answer.