In an attempt to transfer the loss rate risks in motor insurance to the capital market, we use the tranche technique to hedge the motor insurance risks. This paper illustrates AXA and their securitization of French motor insurance in 2005 as an example. Though this application is new, this...

Extreme losses caused by leverage and financial derivatives highlight the need to backtest Value-at-Risk (VaR) based on sizes of tail losses, for the risk measure disregards losses beyond the VaR boundary and there is no formal statistical analysis required for stress testing. While Basel II...

This research was set in the People’s Republic of China. As former socialist China moves from central planning toward a more market-driven economy, improved knowledge about the new environment and firm decisions within such an environment has significant implications. For organizational...

The energy business is in transition from a cost structure based on fuel and capital to a business that also accounts for the carbon footprint of energy production, transmission and end use. In the European Union (EU), this is already the case, with a liquid and functioning carbon emissions...

Catastrophic risks are rare events with major consequences, e.g. catastrophic climate change or extinction of a species. The article summarizes decision theory involving catastrophic risks within Von Neumann is axiomatic theory of choice under uncertainty, and within new extensions of the theory...

We study the risk sharing implications that arise from introducing a disaster relief fund to the cat insurance market. Such a form of intervention can increase efficiency in the private market, and our design of disaster relief suggests a prominent role of catastrophe reinsurance. The model...

Chapter 1. Introduction to Corporate Governance, Organizational Ethics, and Prevention Strategies Against Financial Crime -- Part I: Governance Structures and Mechanisms: Their Relevance, Impact, and Deficiencies -- Chapter 2. The Evaluation of the Concept of Corporate Governance Within the...