Robert called Peter at the city’s Building and Construction Trades Council. Peter is responsible for negotiating partnerships between the local union building trades and building contractors. Having worked with Peter in the past, Robert knew that he and Peter could figure out a way to meet each other’s needs. Robert set up a meeting. In [...]
Our study demonstrates that the increase of high-yield volatility effected by the desmoothing of the monthly return series moves the asset classes and the efficient frontier in a risk/return chart to the right. Evidence shows that consequently the composition and the risk-return profile of the optimal portfolios also change. While the weight of high yield [...]
Simply recognising the need to manage risk is not enough. The ethos of an organisation should recognise and reward behaviour that manages risk. This requires a commitment by senior managers and the resources (including training) to match. Too often, control systems are seen only as an additional overhead and not as something that can add [...]
Risks are triggered by, for example, new management structures or reporting lines, new strategies and commercial agreements (including mergers, agency or distribution agreements). The complexity of this risk is illustrated by UK retailer Marks & Spencer’s expansion into overseas markets. Unhappily for its managers and shareholders, the strategy failed to deliver the anticipated results. When [...]
According to The Mortgage Bankers Association, in the early 2000s, propelled by a low rates and questionable mortgage products, homeownership soared to a record 68% of U.S. households. Unfortunately, due to a “perfect storm” of factors, including consumers’ poor use of debt, homeownership is sliding from its highest point. There’s no doubt that owning a [...]
While the use of long-term debt clearly allows you to purchase the things that help you increase your net worth and employability, they can also present a number of risks. Whether you are considering taking out your first long-term loan, or you are re-evaluating your past choices, there are a number of important risks and [...]
My name is Emily Mortimer. I'm an academy professor with a degree in economy and considerable experience in training both students and private contractors in matters of business, finances and money management.