Purpose – It is essential for the welfare and growth of a society that it is able to share risk efficiently in the economy. However, extreme events have increased enormously during the last decades, so that catastrophe risks seem to become uninsurable in a free-market economy. With...

Purpose – The purpose of this paper is to introduce a methodology to evaluate sovereign risk. Hereby, a value-based approach using different market measures is introduced. Design/methodology/approach –This study’s approach aims to provide a value-based assessment of sovereign risk,...

Purpose – The recent financial crisis has shown that in substantial parts of the banking industry, bonus payments have a short-term focus and are not risk-adjusted. These remuneration structures persist as the banking industry is constrained by pressures on the labour market. The unilateral...

Purpose – It is essential for the welfare and growth of a society that it is able to share risk efficiently in the economy. However, extreme events have increased enormously during the last decades, so that catastrophe risks seem to become uninsurable in a free-market economy. With...

Purpose – The purpose of this paper is to introduce a methodology to evaluate sovereign risk. Hereby, a value-based approach using different market measures is introduced. Design/methodology/approach – This study’s approach aims to provide a value-based assessment of sovereign risk,...