The high cost of capital for firms conducting medical research and development (R&D) has been partly attributed to the government risk facing investors in medical innovation. This risk slows down medical innovation because investors must be compensated for it. We propose new and simple financial...

This paper shows that the presence of conditional staging in R&D (Research & Development) has a critical impact on portfolio risk, and changes diversification arguments when a portfolio is constructed. When R&D projects exhibit option-like characteristics, correlation between projects plays a...

Operationalizing the Cartagena Protocol on Biosafety will require resolving disputes about the meaning of the term 'precautionary approach' in the treaty text. Although the terms precautionary approach and precautionary principle have been referred to in the regulation of transgenic plants for...

Recent advances in AI represent improvements in prediction. We examine how decision-making and risk management strategies change when prediction improves. The adoption of AI may cause substitution away from risk management activities used when rules are applied (rules require always taking the...

The problem studied in this paper consists in the fact that the social and financial risks of investments in innovations are managed in isolation, which leads to limited results (reduces certain risks but raises other risks). This paper is devoted to the search for a new strategy of managing the...

Objective: Nowadays, Organizations have adopted process-driven approaches in order to improve their operations. Process identification and refining them in organizations is essential to save time and reduce costs. Process management, enterprise risk management and compliance checking with the...

Outsourcing to Contract Research Organizations (CROs) has become a widespread practice by pharmaceutical and biotechnological firms seeking to reduce risks and costs associated to the development of new products. This paper analyzes empirically the efficiency of the CROs industry by looking at a...

In this, the third paper in the Economists’ Hubris series, we highlight the shortcomings of academic thought in developing models that can be used by financial institutions to institute effective enterprise-wide risk management systems and policies. We find that pretty much all of the models...

Aimed at energy organizations adapting to the competitive demands associated with liberalization, transaction and risk management software “A-Trade” was part of the shift from a traditional engineer-led culture of risk cognition to market-oriented financial risk management. The story of...

Cloud computing adoption by organizations has been minor despite the initial optimism. The primary concerns obstructing adoption of cloud-based services are security, loss of control, and inadequate legislative. In a cloud-based model, information technology services are distributed and accessed...