complexity offers an opportunity to hide risks or to pass them to clueless financial market participants. Nowadays, the ubiquitous combination of performance incentives with quantitative targets rewards short-term success and induces financial providers to obtain market products with nontransparent risks. Fu...
December 16, 2024- Leading companies are using transformation to achieve profitable growth—enabled by specific behaviors. Article The cybersecurity provider’s next opportunity: Making AI safer November 14, 2024- New technology means new challenges—and new solutions—for cybersecurity providers. ...
giving clients the opportunity to make peer comparisons increases outcome bias. We further find that clients do not hold decision makers accountable for their risk choices when they cannot observe the risk-taking decision, but have to infer it from observing the outcome...
Call for papers - Special Issue on uncertainty, risk & opportunity, resilience & anti-fragility. BredilletC. and Tywoniak S. (2014) Call for papers - Special Issue on uncertainty, risk & opportunity,resilience & anti-fragility. International Journal of Project Management, 32 2: 363-364....
What Is Positive Risk-Taking? Positive risk-taking requires gathering information and taking time to think things through. You will weigh all possible outcomes and plan solutions should the worst-case scenario happen. Positive risks are also called opportunity risks because of the potential to catapul...
rate offered by the foreign currency bond, thereby undermining the rationale for investing in such a bond in the first place. Depending on the method of hedging employed, the investor may be locked into a rate even if the foreign currency appreciates, and incurring anopportunity costas a result...
[32]. To maintain relevance in this changing landscape, regulators are shifting towards more flexible approaches like regulatory sandboxes, outcome-based regulation, risk-weighted regulation, and adaptive regulation [91]. While this evolving regulatory paradigm offers organizations the opportunity to ...
Following Perold and Schulman (1988), by not hedging the firm is foregoing a “free lunch” opportunity. A practical objective of hedging could be to cause fluctuations in the firm’s market value to arise from changes in the firm’s business activities, not (random) changes in financial ...
(s) is restored. An indirect impact may result because financial resources needed to replace or repair an asset would have been used elsewhere (opportunity cost), or owing to the cost of interrupted operations or to potential misuse of information obtained through a security breach, or because ...