Market liquidity is the ease of trading an asset. Its risk is the potential loss, because a security can only be traded … long remained a more or less elusive concept. Treatment of liquidity risk is still under development.This paper provides an … overview on important aspects of market liquidity and its risk. We also survey existing models to integrate market liquidity …

This paper analyzes the relation between agency conflicts and risk management in a contingent claims model of the firm … issued. The paper also examines managers risk-shifting incentives and provides an analysis of the benefits associated with … risk management in different economic enviromnents. …

became unprofitable when liquidity risk and exchange rate volatility increased after 2007. The analysis suggests that the …

exchange policy, in the 1850s), it shows that risk management practices in the past differed considerably from nowadays. The … structure of the international monetary system allowed central banks to minimize financial risk, while poor institutional design … enhanced operational risk: this is in stark contrast with the present situation, in which operational risk has been minimized …

We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices … climate risk hedge portfolios. The new mimicking portfolio approach is much more efficient than traditional sorting or maximum … delivering markedly higher and statistically significant alphas and betas with the climate risk indices. …

, demographics, and the asset portfolio composition under idiosyncratic wealth risk. Factors that increase inequality also reduce …