Risk management has undergone a remarkable transformation over the past fifteen years, with most new methods having been designed for the concerns of large institutions operating in well-developed financial markets. This paper addresses a problem faced by smaller institutions operating in...

This paper attempts to provide a decision-theoretic foundation for the measurement of economic tail risk, which is not only closely related to utility theory but also relevant to statistical model uncertainty. The main result is that the only risk measures that satisfy a set of economic axioms...

Society has become increasingly interconnected with networks linking people, the environment, information, and technology. This complexity is a challenge for risk analysis. Traditional risk analysis methods typically underestimate the probability and impact of risks (e.g., terrorist attacks,...

Scholars have long recognized the difficulties of communicating risk to the public. The rise of mobile gaming presents unprecedented opportunities for risk communicators to reach millions of potential users in engaging and potentially effective ways. Gamifying risk communication may help users...

The SEC mandates firms to inform investors about their assessment of future contingencies in their 10 Ks. However lengthy and complex disclosures – mostly for dozens of firms in an investor’s portfolio – can barely be processed by a human being. To cope with the flood of information, we...

In practice, there is a massive time lag between data loss and its cause identification. The existing techniques perform it comprehensively, but they consume too much time, so there is a need for fast and reliable methods. The article’s purpose is to develop a rapid methodology to assess the...

We investigate the response of shareholders to Environmental, Social, and Governance-related reputational risk (ESG-risk), focusing exclusively on the impact of social media. Using a dataset of 114 million tweets about firms listed on the S&P100 index between 2016 and 2022, we extract...

In an evolving digital landscape marked by escalating operational complexity, the need for innovative operational risk management (ORM) methodologies is more pressing than ever. This thought-leadership paper explores the potential of generative artificial intelligence (AI) – specifically,...

Purpose - This paper aims to present a literature review of the most recent optimisation methods applied to Credit Scoring Models (CSMs). Design/methodology/approach The research methodology employed technical procedures based on bibliographic and exploratory analyses. A traditional...

Internationally operating firrns naturally face the decision whether or not to hedge the currencyrisk implied by foreign investments. In a recent paper, Bos, Mahieu and van Dijk (2000) evaluatethe returns from optimal and alternative currency hedging strategies, for a series of 7 models,using...