This paper measures the impact of crime on firm investment by exploiting variation in kidnappings in Colombia from 1996 … forms of crime--homicides, guerrilla attacks, and general kidnappings--have no significant effect on investment. This … results are consistent with the hypothesis that managers are reluctant to invest when their freedom and life are at risk …

portfolio size and degree of risk aversion of potential investors, the ability to borrow, and the hedging opportunities provided …

"correlation breakdown." As a result, risk managers worry that their hedges will be useless when they are most needed, namely …. We make this point analytically, by way of several numerical examples, and via an empirical illustration. ; But, risk …

Risk management information systems are designed to overcome the problem of aggregating data across diverse trading … units. The design of an information system depends on the risk measurement methodology that a firm chooses. Inherent in the … design of both a risk management information system and a risk measurement methodology is a tradeoff between the accuracy of …

as the basis for estimates of the appropriate absolute level of economic capital allocations for portfolio credit risk …

Financial dealer firms have invested heavily in recent years to develop information systems for risk measurement. I … firms to assemble risk information. I look beyond questions of risk measurement methodology to investigate the implications … of risk management information systems. By examining several theoretical models of the firm in the presence of asymmetric …