Purpose – The editorial aims to describe the importance of the Cramér‐Rao lower bound (CRLB) in matters of risk, and consider why this inequality generally receives less attention than it deserves. Design/methodology/approach – The CRLB is discussed in the context of other celebrated...

Purpose – The purpose of this editorial is to study the relationship between the pure risks of insurance and the speculative risks of other financial markets in the context of financial services “convergence”. Design/methodology/approach – The editorial recasts the difference between...

Purpose – Following Hadar and Seo, the paper aims to determine, in the case of a portfolio with three assets, the condition of preservation of comparative statics results under which a change in risk increases the optimal value of the decision variables for all risk‐averse investors....

Purpose – The purpose of this editorial is to consider whether or not the classical “Lanchester equations” of military combat are useful for modeling the financial risks associated with contemporary terrorist attacks. Design/methodology/approach – The paper begins by describing...

Purpose – Small farmers in developing countries have very little means of managing the weather‐risk to their agricultural produce. Weather derivatives could provide a solution, but the demand for such instruments and the willingness to invest in them needs to be researched. The purpose of...

Purpose – New methods of integrated risk modeling play an important role in determining the efficiency of bank portfolio management. The purpose of this paper is to suggest a systematic approach for risk strategies formulation based on risk‐return optimized portfolios, which applies...

Purpose – The purpose of this paper is to use filtered extreme‐value theory (EVT) model to forecast one of the main emerging market stock returns and compare the predictive performance of this model with other conditional volatility models. Design/methodology/approach – This paper employs...

Purpose – The purpose of this paper is to investigate how queueing theory has been applied to derive results for a Sparre Andersen risk process for which the claim inter‐arrival distribution is hyper Erlang. Design/methodology/approach – The paper exploits the duality results between the...

Purpose – The purpose of this paper is to communicate the science and art of stop losses. Design/methodology/approach – This paper uses theoretical reasoning, Monte Carlo simulation, and empirical data to support and validate the claims made. Findings – The paper expands on the reasoning...

Purpose – The purpose of this editorial is to consider the existence and implications of epistemological constraints in the field of risk finance arising from statistical inequalities similar to the Cramér‐Rao lower bound (CRLB) of statistical estimation theory and the Heisenberg...