Consumer education is often considered an integral part of microinsurance schemes; a win-win solution that benefits both microinsurance practitioners and their clients. It is supposed to help low-income households make sound choices and practitioners stimulate demand. The current lack of...

Nowadays, when we speak about the economic performance of a firm, region or country, at the regional or world level, we always mention their state in economy of knowledge as well their competitive advantage and how their risk for doing business is being improved.This article tries to establish...

This research explores the relationship between personal values and the tendency to take cyber-risks. We first develop and add six cyber-risk items to the well-known Domain-Specific Risk-Taking (DOSPERT) scale. Importantly, we show that like the other five domains examined by the scale (Health,...

In this paper we provide a review of copula theory with applications to finance. We illustrate the idea on the bivariate framework and discuss the simple, elliptical and Archimedean classes of copulae. Since the copulae model the dependency structure between random variables, next we explain the...

In this paper we provide a review of copula theory with applications to finance. We illustrate the idea on the bivariate framework and discuss the simple, elliptical and Archimedean classes of copulae. Since the copulae model the dependency structure between random variables, next we explain the...

We study Aumann and Serrano's (2008) risk index for sums of gambles that are not dependent. If the dependent parts are similarly ordered, then the risk index of the sum is always larger than the minimum of the risk indices of the two gambles. For negative dependence, the risk index of the sum is...

This teaching note provides step-by-step instruction for simulating the net present value and the internal rate of return of a five-year project. The uncertainty lie in the initial level of sales, sales growth rates, gross profit margins, operating expenses before depreciation, and the terminal...

It is important to incorporate diverse heavy-tailed dependency between risks in estimating economic capital. Copulas can be a useful technique to capture dependence structure where extreme events occur simultaneously. Using the sample of U.S. property liability insurance industry, we examine the...

It is well known that a plain riskless floater is worth par and has zero interest rate delta immediately before a fixing in a classic one curve setup. We investigate the structure of the delta under credit risk, a first fixing and a margin added to the payoff. We decompose the delta into three...

A framework which consistently and fully integrates market, credit and country transfer risks of a general portfolio of financial assets in a multi-period setup is developed. An appropriate definition of exposure, loss-given-defaults and loss-given-transfer-events provides a unified treatment of...