Vision
Research of the Financial Risk group aims to improve the understanding, integration, management and pricing of financial risk, allowing its efficient and equitable distribution within our economic system.Scope
Financial risk pervades the daily activities of individuals, corporations, governments and other organisations. For example, financial risks faced by individuals include: uncertainty in relation to the value of superannuation savings; fluctuations in interest rates on home loans; changes in the price of investments in assets, equities and derivatives; the illiquidity of certain investments; and risks associated with changes in foreign exchange rates and rates of inflation. The scale of these risks is greatly magnified in the case of organisations, corporations and governments, particularly where these bodies actively trade in financial markets. In response, the range of financial instruments designed to manage financial risks has expanded dramatically both in number and complexity.The Financial Risk research group (comprising eight leading and 11 associate researchers) uses financial economic theory to better understand and improve the pricing, causes, management and consequences of financial risk. Focusing on a number of key issues facing New South Wales’ largest industrial sector, its research builds on ARC-funded research projects and collaborations with the Financial Integrity Research Network, the Capital Markets CRC and SIRCA Limited, the Australian Prudential Regulatory Authority.
Main areas of research include:
1. Integrity of global capital markets
2. Financial statement risk
3. Investment management
4. Foreign exchange risk and the role of central banks
5. Financial Econometrics
6. Bankruptcy Risk and Financial Regulation
7. Actuarial risk
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