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Financial risk

About: Financial risk is a research topic. Over the lifetime, 11899 publications have been published within this topic receiving 231404 citations. The topic is also known as: economic risk.


Papers
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ReportDOI
TL;DR: In this paper, the authors proposed a new comprehensive approach to measure, analyze, and manage macroeconomic risk based on the theory and practice of modern contingent claims analysis (CCA) to assess the robustness of national economic and financial systems.
Abstract: The high cost of international economic and financial crises highlights the need for a comprehensive framework to assess the robustness of national economic and financial systems This paper proposes a new comprehensive approach to measure, analyze, and manage macroeconomic risk based on the theory and practice of modern contingent claims analysis (CCA) We illustrate how to use the CCA approach to model and measure sectoral and national risk exposures, and analyze policies to offset their potentially harmful effects This new framework provides economic balance sheets for inter-linked sectors and a risk accounting framework for an economy CCA provides a natural framework for analysis of mismatches between an entity's assets and liabilities, such as currency and maturity mismatches on balance sheets Policies or actions that reduce these mismatches will help reduce risk and vulnerability It also provides a new framework for sovereign capital structure analysis It is useful for assessing vulnerability, policy analysis, risk management, investment analysis, and design of risk control strategies Both public and private sector participants can benefit from pursuing ways to facilitate more efficient macro risk accounting, improve price and volatility discovery, and expand international risk intermediation activities

87 citations

Journal ArticleDOI
TL;DR: In this article, products from less developed countries received lower evaluations than those from industrialized countries under all tested conditions, and product country of origin interacted with other variables, so that evaluation differences between LDCs and ICs was significantly reduced when the product carried a famous brand name or low financial risk.
Abstract: In an experiment, products from less developed countries received lower evaluations than those from industrialized countries under all tested conditions. Product country of origin interacted with other variables, so that evaluation differences between LDCs and ICs was significantly reduced when the product carried a famous brand name or low financial risk. Product performance risk did not interact with origin.

87 citations

Posted Content
TL;DR: In this paper, the authors provide a comprehensive empirical evaluation of the patterns of risk sharing among different groups of countries and examine how international financial integration has affected the evolution of risk-sharing patterns.
Abstract: In theory, one of the main benefits of financial globalization is that it should allow for more efficient international risk sharing. In this paper, we provide a comprehensive empirical evaluation of the patterns of risk sharing among different groups of countries and examine how international financial integration has affected the evolution of risk sharing patterns. Using a variety of empirical techniques, we conclude that there is at best a modest degree of international risk sharing, and certainly nowhere near the levels predicted by theory. In addition, only industrial countries have attained better risk sharing outcomes during the recent period of globalization. Developing countries have, by and large, been shut out of this benefit. The most interesting result is that even emerging market economies, which have witnessed large increases in cross-border capital flows, have seen little change in their ability to share risk. We find that the composition of flows may help explain why emerging markets have not been able to realize this presumed benefit of financial globalization. In particular, our results suggest that portfolio debt, which has dominated the external liability stocks of most emerging markets until recently, is not conducive to risk sharing.

87 citations

Posted Content
TL;DR: In this article, the key challenges of energy access in emerging markets and developing countries is how to reach households and communities that are unlikely to get a grid connection in the long term or those that are connected to the grid but suffer from regular blackouts or low voltage.
Abstract: One of the key challenges of energy access in emerging markets and developing countries is how to reach households and communities that are unlikely to get a grid connection in the long term or those that are connected to the grid but suffer from regular blackouts or low voltage. By surveying entrepreneurs selling Solar Home Systems (SHSs) on a commercial basis in emerging and developing countries, this study is one of the first attempts to quantify the key elements of four potential Product Service Systems (PSSs): Cash, Credit, Leasing and Fee-for-Service. Whereas the Fee-for-Service approach was found to be suitable only under certain conditions, all PSSs share two key elements for successful market deployment: one or more years of maintenance, and customer support in financing these customers' new asset. Moreover, it appears that private sector companies are in principle able to deliver SHSs to households with incomes greater than USD 1000 per year. The implications for policy makers and development aid agencies are, first, to include maintenance services into public programmes or public-private partnerships and, second, to explicitly consider financial risks for entrepreneurs (e.g. customer commitment and repayment conditions). © 2012 Elsevier Ltd.

87 citations

Journal ArticleDOI
TL;DR: In this article, the determinants of the contribution of international banks to both global and local systemic risk during prominent financial crises were analyzed, and it was shown that global systemic risk in particular is predominantly driven by characteristics of the regulatory regime.
Abstract: We analyze the determinants of the contribution of international banks to both global and local systemic risk during prominent financial crises. We find no empirical evidence supporting the hypotheses that bank size, leverage, non-interest income or the quality of the bank’s credit portfolio are persistent determinants of systemic risk across financial crises. In contrast, our results show that global systemic risk in particular is predominantly driven by characteristics of the regulatory regime. We also confirm, for the subprime crisis, the hypothesis that the banks’ contribution to moderately bad tail events in the past predicts the financial sector’s crash risk.

87 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
2023122
2022250
2021643
2020658
2019673
2018541