"…. the surplus of an insurance company is routinely approximated by a Brownian motion, as opposed to the geometric Brownian motion used to model assets in finance. Furthermore, exposure to risk is controlled "downwards" via reinsurance, rather than "upwards" via risky investments. This leads to interesting qualitative differences in the optimal solutions."
Information about #fdic #insurance and communication about #bank #stability by the #federalreserve can reassure depositors and mitigate #bankruns, while communication from political leaders only influ
Advanced #machinelearning models were found to be more effective than #linearregression in predicting firm performance under #naturaldisaster #risks. The study suggests that textual data in #financial
#regulators recently issued #cybersecurity #disclosure guidelines to enhance #transparency and #accountability among firms. A study analyzed cybersecurity disclosure practices among a sample of Toront