Journal of Risk Finance: Volume 4 Issue 1

Quantitative Terrorism Risk Assessment

GORDON WOO

Traditionally, terrorism risk has been priced based exclusively on the relationship between supply and demand in the insurance market, with no basis in actuarial principles. This…

Advanced Techniques for Modeling Terrorism Risk

JOHN A. MAJOR

The attack of September 11, 2001, demonstrated that terrorism is capable of inflicting damage and loss of life with a severity that is many multiples of the most extreme U.S…

The Near‐Miss Management of Operational Risk

ALEXANDER MUERMANN, ULKU OKTEM

Over recent decades, banks and bank regulators have devoted substantial resources to managing market risk and credit risk. More recently industry and regulatory focus has shifted…

The Financial Market Consequences of 9/11

RICHARD A. KOSS

The events of September 11, 2001, challenged basic assumptions regarding market access, liquidity, clearing, and account reconciliation fundamental to the functioning of the…

The Basel 2 Approach to Bank Operational Risk: Regulation on the Wrong Track

RICHARD J. HERRING

The banking industry has adopted an approach to managing financial risk based on economic capital, the amount of capital necessary to achieve a specified level of protection…

Operational Risk Capital: A Problem of Definition

ANDREW KURITZKES

This article discusses the three approaches for setting capital charges for operational risk as proposed by the New Basel Accord. The article addresses a series of questions…

Legal Solvency Tests and Financial Economics

J.B. HEATON

Legal solvency tests play a crucial role in high‐stakes financial transactions. This article presents a brief introduction to legal solvency tests that play important roles in…

The Fundamentals of Insurance Markets II: Advanced Principles and Concepts in Alternative Risk Transfer

Alternative risk solutions describe the transactions and vehicles that manifest the convergence of insurance and financial markets. This brief article surveys the concepts and…