Impact of climate change on financial institutions

After the long-acknowledged fact that global warming has catastrophic consequences, it is also increasingly recognized that climate change will impact the financial industry. The Bank of England is even of the opinion that climate change represents the tragedy of the horizon: “by the time it is clear that climate change is creating risks that we want to reduce, it may already be too late to act” [1]. This article provides a summary of the type of financial risks resulting from climate change, various initiatives within the financial industry relating to the shift towards a low-carbon economy, and an outlook for the assessment of climate change risks in the future.

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Stay focused on objectives

Technological developments are changing the world around us at an ever-increasing pace. This speed of change has become the new reality – and it won’t be slowing down any time soon. What opportunities does this present to insurers and banks?

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Cash Pooling at Insurance Companies

The cash management trend of pooling and centralizing excess cash has been a focus area for most treasury departments over the past decade. The are many benefits to this approach, including gaining a centralized visibility of cash, an improved utilization of funds and the optimization of bank account structures. With this centralization, the aim is to ensure the best utilization of the organization’s cash, typically either paying off credit lines or by making short- or medium-term investments at better rates.

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Are more complex models always better?

A part of the curriculum of the Econometrics & Mathematical Economics master’s degree given in the VU University Amsterdam is the course Time Series Econometrics. In this course, students are taught how to analyze time series with the aid of ‘state-space models’, on the assumption that observations over time (such as the content of the Nile, for example) are driven by non-observed factors.

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Hardware remains a hard value

Take a moment to look at your smartphone. It has played an irreversible role in globalization. Remember that this device was only invented twelve years ago. Just a few years after its introduction, it is already a commodity. An expensive one: it is apparently that essential. This speed of change is our new reality and it won’t slow down. This comprehensively frightens people – just google ‘Teller curve’.

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