In the recent financial crisis, risk management tools have been proven inadequate. Model risk, a key component of bank … risk, has shown its negative impact. It seems that risk models did not cover the included risks comprehensively and were … their models to reduce model risk. We discuss if banks undertake enough effort to improve their risk models. Furthermore …

-step signalling model with uninformed agents and endogenize competing principals' decisions to acquire information on risk types. We … that allow consumers to gain information about their risk type without risking to enter a system entry. …

CESifo Seminar Series "Competitive Failures in Insurance Markets Theory and Policy Implications" edited by Pierre …-André Chiappori and Christian Gollier Risk sharing is a cornerstone of modern economies. It is valuable to risk-averse consumers and … essential for investment and entrepreneurs. The standard economic model of risk exchange predicts that competition in insurance …