This paper considers a simple stochastic model of international trade with three countries. Two of the tree countries are in an economic union. Comparisons are made between equilibrium welfare for these two countries under fixed and flexible exchange rate regimes. Within the model it is shown that flexible exchange rate regimes generate greater welfare. However, we then consider comparisons of ...

THE JOURNAL OF DERIVATIVES 1 The notion of extreme movements in asset prices is implicit in current risk management practices. Capital adequacy assumes a threshold that classifies observed changes in market risk factors either as extreme or ordinary. A probability is first chosen to measure the “extremeness” of events that may affect a particular portfolio. This probability then determines the ...

In modern day’s institutions, risk management plays a crucial role as it aims to minimize the likelihood of adverse events and contributes to improve the quality of services delivery. In health care, an effective risk management is only possible if supported by information systems that can produce high quality measures and meaningful risk indicators. These indicators will then allow the healthc...

This report distills the finer points of public awareness and social marketing in urban disaster risk management practice in Asia. It reviews more than dozen case studies of country demonstration projects that have been implemented as a part of Asian Urban Disaster Mitigation Program (AUDMP). It draws principles, methodologies, examples and lessons learned from each public awareness and social ...

This paper investigates the role of the board in monitoring corporate risk. Proponents of riskrelated governance structures such risk committees or Enterprise Risk Management (ERM) programs contend that risk monitoring adds value by ensuring that corporate risks are managed. An alternative view is that such governance structures are nothing more than window-dressing in response to regulatory or...

In this paper we explore some crude approximation, calibration and estimation procedures for Normal Inverse Gaussian (NIG) variates of potential use in risk management. Among others we treat in some detail the calibration of bivariate NIG consistent with marginal NIG.

Risk assessment has been widely used as a tool for the development of waste management facilities. At the strategic level, risk assessment is used to inform decision makers about the planning process. In terms of a specific site, environmental risk assessment is used to identify risk management options. As an engineering tool, risk assessment is used to optimize the mitigation measures required...

The sheer magnitude and growth of public monies directed toward farm-level risk management programs in developed countries is staggering. Canadian Business Risk Management (BRM) subsidies were just under $1.4 billion in 2014 (U.S. premium subsidies totalled $6.2 billion). Risk management has become the backbone of many countries’ agricultural programs and the vehicle of choice to funnel monies ...

This research explores key aspects involved in the process of managing risk associated with acquisition projects within the US Department of Defense (DOD). First, various US Government Accountability Office reports are analyzed to identify the strengths and weaknesses of the DOD’s overall program management practices, as well as individual projects. Then, the evolution and progress of United St...

Our study of 267 U.S. firms shows that improved environmental risk management is associated with a lower cost of capital. Our findings provide an alternative perspective on the environmentaleconomic performance relationship, which has been dominated by the view that improvements in economic performance stem from better resource utilization. Firms also benefit from improved environmental risk ma...