Purpose
Financial firms announcing large operational losses have empirically been shown to cause significant negative spillover effects in other non-announcing firms in case of the banking and ...insurance industry. The purpose of this paper is 1) to model such spillover effects in a network from a portfolio perspective and 2) to holistically assess operational risk, reputational risk and the risk of spillover effects, taking into account the dependencies between these risk types.
Design/methodology/approach
The authors propose different approaches to model spillover effects with different complexity, including stochasticity and influencing factors within the industry network. They then calibrate the model based on information from previous empirical literature.
Findings
The results emphasize that spillover effects can represent a considerable (non-diversifiable) risk, especially in portfolios, and that neglecting them may lead to a severe underestimation of the actual impact of single operational loss events.
Originality/value
This study is relevant not only for a firm’s risk management strategy but also for investors holding a portfolio of firms potentially subject to spillover effects.
Growing urban areas are facing an increased complexity of coordination and sustainable management whereby the handling of the interests of businesses, residents and tourists demands increased ...flexibility and openness. Such challenges are partly addressed by the concept of an Entrepreneurial Ecosystem. The idea of an Entrepreneurial Destination also adds the perspective of living and leisure and serves therefore as an overarching concept that defines economic roles and activities by highlighting urban attractiveness and the interplay of the abovementioned stakeholders.
The conducted case study of Munich aims to explore the interconnectedness of work, life and leisure in an urban ecosystem. To do so, 17 semi-structured interviews are processed using the GABEK® method.
Results indicate that residents, entrepreneurs and tourists in Munich benefit greatly from the high attractiveness caused by the interplay and interaction of those groups. Initiatives involving new concepts like coliving, coworking and coexperience have emerged in Munich with the main strength to extended networking and communication of stakeholders.
This paper contributes to open the sector- and stakeholder-specific view and to regard urban development as a multidisciplinary approach, which combines entrepreneurship, changing social life concepts, participation and sustainability of regions.
Purpose
The corporate reputation of a firm and reputation risk is becoming increasingly important because of the rise of social media and the ongoing globalization. While defining and measuring ...corporate reputation and reputation risk represent the first steps in corporate reputation (risk) management, there is no general agreement in defining and measuring these two terms. Hence, this paper aims to give an overview of the existing literature in this regard, discuss it with respect to the operability in corporate reputation (risk) management and, based on this, present a holistic and consistent approach to define and measure corporate reputation and reputation risk.
Design/methodology/approach
The paper gives an overview of the literature regarding definitions and measurement methods of corporate reputation and reputation risk. Moreover, it discusses such definitions and measurement methods with respect to the operability in corporate reputation (risk) management.
Findings
Based on an overview of the literature regarding definitions and measurement methods of corporate reputation and reputation risk, the authors present a holistic and consistent approach to define and measure corporate reputation and reputation risk.
Originality/value
The authors present an holistic and consistent approach to define and measure corporate reputation and reputation risk with focus on (risk) management purposes.
The aim of this paper is to propose the first mathematical model for spillover effects caused by operational losses and to calibrate it based on an extensive empirical study of spillover effects and ...their influencing factors in the US and European banking and insurance industry. Our event study shows significant spillover effects due to operational losses, whereby a higher number of firms faces contagion effects than competitive effects. A regression analysis further reveals that spillover effects are rather information-based than pure, as event and firm characteristics have a significant impact, specifically external fraud, the return on equity of the announcing firm and the similarity between the announcing and the non-announcing firm in terms of size. Based on the empirical findings, we fit a distribution and model spillover effects and underlying operational losses to assess respective risk measures by means of a simulation analysis. The results show that spillover risk can be considerable for non-announcing firms as well as from a portfolio view, which has important risk management implications.
As the US cyber insurance market is the largest worldwide, this paper presents an analysis of the effects of data breaches in the US financial services industry in relation to the stocks of US ...insurance companies. We conduct an event study, focusing on publicly announced data breaches that occurred between 2005 and 2018, and observe significant negative spillover effects for US insurers. However, in the subsample of non-announcing cyber insurers between 2015 and 2018, we not only find significant negative spillover effects especially for longer event windows, but also significant positive effects in case of 'mega data breaches' with more than 1 million breached records, which may be due to an increasing demand for cyber insurance. To understand these findings in more detail, we further analyze event as well as firm characteristics and find that spillover effects are information-based rather than pure.
The El Niño–Southern Oscillation (ENSO) phenomenon is modeled as a stochastically driven dynamical system. This was accomplished by adding to a Hybrid Coupled Model (HCM) of the tropical Pacific ...ocean–atmosphere system a stochastic wind stress anomaly field that was derived from observations. The model exhibits irregular interannual fluctuations, whose space–time characteristics resemble those of the observed interannual climate variability in this region. To investigate the predictability of the model, the authors performed ensemble integrations with different realizations of the stochastic wind stress forcing. The ensembles were initialized at various phases of the model’s ENSO cycle simulated in a 120-yr integration with a particular noise realization. The numerical experiments indicate that the ENSO predictability is severely limited by the stochastic wind stress forcing. Linear stochastic processes were fitted to the restart ensembles in a reduced state space. A predictability measure based on a comparison of the stationary and the time-dependent probability distributions of the fitted linear models reveals an ENSO predictability limit of considerably less than an average cycle length.
This study applies an adapted approach of the traditional view on local participation in tourism development. First, the study mainly focuses on exploring the patterns behind participation instead of ...the reasons for participation. Second, a case is chosen that transcends the interest in researching participation in developing countries. Third, the study focuses on non-tourism related residents, an under-researched group of stakeholders. It is thus investigated how non-tourism related residents face the process of participation in tourism development and what the main barriers and drivers are in this regard. To discuss this issue, the study takes a closer look at the case of Bad Reichenhall, an Alpine Destination in Germany. 15 qualitative interviews are conducted with non-tourism related residents and further evaluated through a qualitative content analysis. The results underline that tourism represents a public domain that concerns all stakeholders of a destination. The typology derived throughout the study reflects the heterogeneity of non-tourism related residents, coming up with four types of non-tourism related residents facing participation in tourism development rather differently. Various barriers and drivers are revealed that impact non-tourism related residents from both a personal and general point of view. Non-tourism related residents turn out as a promising and important target group in the discourse of stakeholder participation in tourism development.
In this paper, we focus on the impact of digital transformation on traditional ways to sell insurance products. Our goal is to investigate how widespread the use of digital technologies in insurance ...sales is and which values of these digital technologies are perceived by insurance intermediaries. Moreover, we aim to analyze underlying influencing factors in this regard. We conducted a survey in July 2020, i.e., after the first wave of COVID-19, in which 671 exclusive agents from various insurance companies, independent agents and independent brokers from Germany participated. Our results show that even at this point of time, in a high proportion of sales workforces, digital transformation is not yet very advanced. Further analyses show that exclusive agents and younger people are further ahead in digital transformation even though COVID-19 pushes digital life across all ages and social classes. Based on our results, we derive initial recommendations for action for the insurer.
Calcineurin B-like proteins (CBLs) represent a family of calcium sensor proteins that interact with a group of serine/threonine kinases designated as CBL-interacting protein kinases (CIPKs). CBL-CIPK ...complexes are crucially involved in relaying plant responses to many environmental signals and in regulating ion fluxes. However, the biochemical characterization of CBL-CIPK complexes has so far been hampered by low activities of recombinant CIPKs. Here, we report on an efficient wheat germ extract-based in vitro transcription/translation protocol that yields active full-length wild-type CIPK proteins. We identified a conserved serine residue within the C terminus of CBLs as being phosphorylated by their interacting CIPKs. Remarkably, our studies revealed that CIPK-dependent CBL phosphorylation is strictly dependent on CBL-CIPK interaction via the CIPK NAF domain. The phosphorylation status of CBLs does not appear to influence the stability, localization, or CIPK interaction of these calcium sensor proteins in general. However, proper phosphorylation of CBL1 is absolutely required for the in vivo activation of the AKT1 K+ channel by CBL1-CIPK23 and CBL9-CIPK23 complexes in oocytes. Moreover, we show that by combining CBL1, CIPK23, and AKT1, we can faithfully reconstitute CBL-dependent enhancement of phosphorylation of target proteins by CIPKs in vitro. In addition, we report that phosphorylation of CBL1 by CIPK23 is also required for the CBL1-dependent enhancement of CIPK23 activity toward its substrate. Together, these data identify a novel general regulatory mechanism of CBL-CIPK complexes in that CBL phosphorylation at their flexible C terminus likely provokes conformational changes that enhance specificity and activity of CBL-CIPK complexes toward their target proteins.
PDF
