2013-01-012024-05-17https://scholars.lib.ntu.edu.tw/handle/123456789/677980Abstract: Risk management has long been a leading research topic in academics and is practically relevant to real world problems. Economic agents and entities face various kinds of risk from time to time. Individuals must deal with medical risk and employment risk. At firm level, there may be market risk, credit risk, liquidity risk, exchange rate risk, and operational risk. An economy may be largely affected by unanticipated catastrophic risk, such as earthquake, hurricane, and tsunami. The financial crisis in 2007-8 further shows how the lack of risk management at financial institutions may threaten the stability of the entire world economy. In particular, it has been found during the recent financial crisis that many conventional risk management tools failed to protect investors. This prompts us to re-investigate the theory and practice of risk management. In this project, we propose a comprehensive study of risk management from different perspectives. There are seven sub-projects. The first project studies the relation between operational risk, internal control, and corporate governance. The second project is concerned with risk management of foreign reserves. The third project focuses on systemic risks related to financial institutions and measures of systemic risk. In the fourth project, we study the risks associated with stock options. The fifth project proposes an approach to deriving implied default probabilities. In the sixth project, different notions of risks are studied and econometric tests are proposed to evaluate these risks. The seventh project investigates risk assessment and capital adequacy measurement in different ways. We shall emphasize on both theories and empirical studies of these theories. This project will help to build up the reputation of this research team in the field of risk management. We will promote our research results and research team by publishing in top international journals and working with internationally renowned scholars. We will also set up a platform that allows domestic scholars to exchange their research ideas and discuss their results. Moreover, we want to train our students and prepare them with risk management skills. By doing so, our students ought to be more competitive in the Asian job market.