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Optimal reinsurance when Value at Risk and expected surplus is balanced through their ratio is studied, and it is demonstrated how results for risk-adjusted surplus can be utilized. Simplifications for large portfolios are derived, and this…
Given ongoing, human-induced, loss of wild species we propose the Target and Cost Analysis (TCA) approach as a means of incorporating biodiversity within government appraisals of public spending. Influenced by how carbon is priced in…
We analyse growth vulnerabilities in the US using quantile partial correlation regression, a selection-based machine-learning method that achieves model selection consistency under time series. We find that downside risk is primarily driven…
Sustainability commonly refers to entities, such as individuals, companies, and institutions, having a non-detrimental (or even positive) impact on the environment, society, and the economy. With sustainability becoming a synonym of…
Owing to recorded incidents of Information technology inclined organisations failing to respond effectively to threat incidents, this project outlines the benefits of conducting a comprehensive risk assessment which would aid proficiency in…
Digitization increases business opportunities and the risk of companies being victims of devastating cyberattacks. Therefore, managing risk exposure and cybersecurity strategies is essential for digitized companies that want to survive in…
Urban land growth presents a major sustainability challenge, yet its growth patterns and dynamics remain unclear. We quantified urban land evolution by analyzing its statistical distribution in 14 regions and countries over 29 years. The…
This paper is the continuation of "Pricing with coherent risk" and deals with further applications of coherent risk measures to problems of finance. First, we study the optimization problem. Three forms of this problem are considered.…
The financial industry should be involved in mitigating the risk of downturns in the financial wellbeing indices around the world by implementing well-developed financial tools such as insurance instruments on the underlying wellbeing…
We investigate the formation of stable ecological networks where many species share the same resource. We show that such stable ecosystem naturally occurs as a result of extinctions. We obtain an analytical relation for the number of…
AI safety practitioners invest considerable resources in AI system evaluations, but these investments may be wasted if evaluations fail to realize their impact. This paper questions the core value proposition of evaluations: that they…
Inspired by ideas from health risk assessment, this paper presents a new perspective for flood risk assessment. The proposed perspective focuses on three pillars for examining flood risk: (1) inherent susceptibility, (2) mitigation…
Global warming is often framed in broad planetary numbers such as the 1.5C and 2C warming thresholds, creating the false impression that individual corporations efforts to reduce emissions are meaningless in the absence of collective…
Climate change poses substantial risks to the global economy. Kotz, Levermann and Wenz (Nature, 2024) statistically analyzed economic and climate data, finding significant projected damages until mid-century and a divergence in outcomes…
Research in Data Envelopment Analysis has created rankings of the ecological efficiency of countries' economies. At the same time, research in economic complexity has provided new methods to depict productive structures and has analyzed how…
Ecosystems are complex systems, currently experiencing several threats associated with global warming, intensive exploitation, and human-driven habitat degradation. Such threats are pushing ecosystems to the brink of collapse. Because of a…
Carbon credits are a key component of most national and organizational climate strategies. Financing and delivering carbon credits from forest-related activities faces multiple risks at the project and asset levels. Financial mechanisms are…
The potential of extreme environmental change driven by a destabilized climate system is an alarming prospect for humanity. But the intricate, subtle ways Earth's climate couples to social and economic systems raise the question of when…
Biodiversity loss driven by agricultural intensification is a pressing global issue, with significant implications for ecosystem stability and human well-being. Existing policy instruments have so far proven insufficient in halting this…
Environmental, Social and Governance (ESG) rating is a way for investors to prioritise investments in companies with good corporate behaviour. However, ESG ratings are vulnerable to greenwashing in a number of ways. In this paper we study…