This paper analyzes the relation between agency conflicts and risk management in a contingent claims model of the firm … issued. The paper also examines managers risk-shifting incentives and provides an analysis of the benefits associated with … risk management in different economic enviromnents. …

Market liquidity is the ease of trading an asset. Its risk is the potential loss, because a security can only be traded … long remained a more or less elusive concept. Treatment of liquidity risk is still under development.This paper provides an … overview on important aspects of market liquidity and its risk. We also survey existing models to integrate market liquidity …

exchange policy, in the 1850s), it shows that risk management practices in the past differed considerably from nowadays. The … structure of the international monetary system allowed central banks to minimize financial risk, while poor institutional design … enhanced operational risk: this is in stark contrast with the present situation, in which operational risk has been minimized …

exhibit relatively high proportions of unsystematic risk in outstandingly negative market climates, and vice versa. Thus the …

This paper investigates model risk issues in the context of mean-variance portfolio selection. We analytically and …, we perform simulations leading to the conclusion that, under classical estimation, model risk bias dominates estimation … risk bias. Finally, we suggest a diagnostic tool to warnthe analyst of the presence of extreme returns that have an …

investment strategy that does not take liquidity shocks into account, exposes insurance companies to the risk of bankruptcy. This …