Details
| Originalsprache | Englisch |
|---|---|
| Seiten (von - bis) | 57-82 |
| Seitenumfang | 26 |
| Fachzeitschrift | GENEVA Risk and Insurance Review |
| Jahrgang | 37 |
| Ausgabenummer | 1 |
| Frühes Online-Datum | 28 Juni 2011 |
| Publikationsstatus | Veröffentlicht - März 2012 |
Abstract
This paper investigates a corporation's risk management response to highly dynamic risks. Using a unique data set on the German terrorist insurance market, the paper tests whether corporate risk managers have a clear understanding of the probability distribution of highly dynamic risks or if risk managers learn from severe losses and base their decisions upon day-to-day experience. The paper further investigates whether risk managers become more confident in their risk management decisions over time. For this purpose, we apply Viscusi's prospective reference theory to a corporate context. We find that firms learn from single events when making their risk management decisions, and that risk managers become more confident with their risk management decisions over time.
ASJC Scopus Sachgebiete
- Betriebswirtschaft, Management und Rechnungswesen (insg.)
- Bilanzierung
- Betriebswirtschaft, Management und Rechnungswesen (insg.)
- Betriebswirtschaft, Management und Rechnungswesen (sonstige)
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Finanzwesen
- Volkswirtschaftslehre, Ökonometrie und Finanzen (insg.)
- Volkswirtschaftslehre und Ökonometrie
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in: GENEVA Risk and Insurance Review, Jahrgang 37, Nr. 1, 03.2012, S. 57-82.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
}
TY - JOUR
T1 - Corporate Management of Highly Dynamic Risks
T2 - Evidence from the Demand for Terrorism Insurance in Germany
AU - Thomann, Christian
AU - Pascalau, Razvan
AU - Von Der Schulenburg, J. Matthias Graf
PY - 2012/3
Y1 - 2012/3
N2 - This paper investigates a corporation's risk management response to highly dynamic risks. Using a unique data set on the German terrorist insurance market, the paper tests whether corporate risk managers have a clear understanding of the probability distribution of highly dynamic risks or if risk managers learn from severe losses and base their decisions upon day-to-day experience. The paper further investigates whether risk managers become more confident in their risk management decisions over time. For this purpose, we apply Viscusi's prospective reference theory to a corporate context. We find that firms learn from single events when making their risk management decisions, and that risk managers become more confident with their risk management decisions over time.
AB - This paper investigates a corporation's risk management response to highly dynamic risks. Using a unique data set on the German terrorist insurance market, the paper tests whether corporate risk managers have a clear understanding of the probability distribution of highly dynamic risks or if risk managers learn from severe losses and base their decisions upon day-to-day experience. The paper further investigates whether risk managers become more confident in their risk management decisions over time. For this purpose, we apply Viscusi's prospective reference theory to a corporate context. We find that firms learn from single events when making their risk management decisions, and that risk managers become more confident with their risk management decisions over time.
KW - corporate insurance
KW - expected utility
KW - prospect theory
KW - risk management
KW - terrorism insurance
UR - http://www.scopus.com/inward/record.url?scp=84857869239&partnerID=8YFLogxK
U2 - 10.1057/grir.2011.3
DO - 10.1057/grir.2011.3
M3 - Article
AN - SCOPUS:84857869239
VL - 37
SP - 57
EP - 82
JO - GENEVA Risk and Insurance Review
JF - GENEVA Risk and Insurance Review
SN - 1554-964X
IS - 1
ER -