EU institutions (Commission, Council and Parliament) have adopted the EU doctrine of the Precautionary Principle (PP) in year 2000, whereas the EU is the sole huge region where something called the PP is implemented and controlled by case law. There is nevertheless a huge contrast between this...

The study of tail events has become a central preoccupation for academics, investors and policy makers, given the recent financial turmoil. However, what differentiates a crash from a tail event? This article answers this question by taking a risk management perspective that is based on an...

Previous research focuses on the importance of modeling the multivariate distribution for optimal portfolio allocation and active risk management. However, available dynamic models are not easily applied for high-dimensional problems due to the curse of dimensionality. In this paper, we extend...

Abstract: In this study, we empirically investigate and evaluate various approaches to structurally assess credit risk using a panel of European banking groups. We consider not only the standard approaches in the literature, but also include models that allow the asset volatility to be...

This study aims to demonstrate the utility of derivative financial instruments for the management of interest rate risk that is faced by banks and financial institutions, and to provide an efficient flow of monitoring and control thereof. Banking institutions can now use a combination of balance...

The network of branches represents the backbone for commercial banks and their main distribution channel for financial products and services. The rapid growth in number of bank branches registered between 2004 and 2008 was a consequence of the low banking coverage in Romania compared to de...

Purpose – This study aims to examine the stock returns distributions in ten countries in the periods before and after the global financial crisis (GFC) to evaluate how well the empirical distributions conformed to the extreme value theory (EVT) which underlies a family of risk management...

Purpose – The purpose of this paper is to present a simulation-based approach for modeling multi-year non-life insurance risk in internal risk models. Strategic management in an insurance company requires a multi-year time horizon for economic decision making, for example, in the context of...

In Spain, there is significant opposition to the building of new base stations for cell phone communications. Since 1999, this situation has led most local councils to declare a moratorium on new aerials in cities and villages. In the meantime, following European Union recommendations, state...

The purpose of this essay is to identify the kinds of decisions where nonprofit organizations need to manage their risks in a strategic fashion, to review what we know about how they approach these decisions, and to offer a conceptual framework that nonprofits can use to develop a more...