Publications

2010
Chapter

Understanding and Coping with the Increasing Risk of System-Level Accidents

By: Dutch Leonard and Arnold M. Howitt

The world has seen a number of recent events in which major systems came to a standstill, not from one cause alone but from the interaction of a combination of causes. System-level accidents occur when anomalies or errors in different parts of an interconnected system... View Details

Keywords: Economics; Globalization; Risk Management; Boundaries; System Shocks

2016
Working Paper

Options-Pricing Formula with Disaster Risk

By: Robert J. Barro and Gordon Y. Liao

A new options-pricing formula applies to far-out-of-the money put options on the overall stock market when disaster risk is the dominant force, the size distribution of disasters follows a power law, and the economy has a representative agent with Epstein-Zin utility.... View Details

Keywords: Option Pricing; Rare Disaster; Price; Stock Options; Financial Crisis

Read Now

June 2024
Case

Virya Therapeutics: The Certain Uncertainties of Preclinical Development

By: Satish Tadikonda, William Marks and Shardule Shah

1996
Working Paper

Liability Rules and Risk Taking in Commercial Banks

By: Benjamin C. Esty

Article

MIT Roundtable on Corporate Risk Management

By: Robert C. Merton

Against the backdrop of financial crisis, a distinguished group of academics and practitioners discusses the contribution of financial management and innovation to corporate growth and value, along with the pitfalls and unintended consequences of such innovation.... View Details

Keywords: Financial Crisis; Market Participation; Finance; Innovation and Invention; Growth and Development Strategy; Value; Distribution; Capital Structure; Risk Management; Business Ventures; Business Model; Strategy

July 2003 (Revised June 2004)
Case

Managing Business Risk of Information Technology

By: Richard L. Nolan and Robert D. Austin

Sets up a situation in which participants must create presentations that assess the IT risk of a large company. View Details

Keywords: Risk Management; Information Technology

August 1984 (Revised March 1994)
Case

The Toro Company S'no Risk Program

By: David E. Bell

Toro introduced a promotion in which purchasers of their snowthrower would receive a refund if the next winter brought only modest snowfall. The principal focus of the class is to understand what the risk implications are for the customer and for the company. May be... View Details

Keywords: Risk and Uncertainty; Customers; Insurance

15 May 2012
Panel Discussion

Capitalism at Risk

By: Lynn S. Paine and Joseph L. Bower

Keywords: Capital Markets; Innovation; Capital Structure; Innovation Leadership; Consumer Products Industry

February 2021
Case

Veracity Worldwide: Environmental, Social, and Governance (ESG) Risk

By: Kristin Fabbe

Keywords: ESG (Environmental, Social, Governance) Performance

9 Feb 2012
Keynote Speech

Capitalism at Risk

By: Lynn S. Paine, Joseph L. Bower and Dutch Leonard

June 2010
Case

Enterprise Risk Management at Hydro One (Multimedia)

By: Anette Mikes

An early adopter of Enterprise Risk Management, energy giant Hydro One anticipated new threats and opportunities in an industry that faced climate change and carbon legislation, the deregulation of electricity markets, and the greater adoption of renewable... View Details

Keywords: Risk Management; Energy; Energy Industry; Canada

December 2002 (Revised October 2006)
Teaching Note

Genzyme's Gaucher Initiative: Global Risk and Responsibility (TN)

By: Christopher A. Bartlett

Teaching Note for (9-303-048). View Details

Article

Leave No Risk Behind

By: David Moss

Keywords: Risk and Uncertainty

February 2005
Article

Swapping Your Country's Risks

By: Robert C. Merton

Keywords: Risk and Uncertainty

28 Sep 2012
Conference Presentation

Accounting and Risk Management, and Interactive Control Selection: Which, When and Why?

By: Anette Mikes

August 1988
Background Note

Note on Inventory Risk and Soft Goods Merchandising

By: John A. Quelch

2025
Working Paper

Climate Risk and the U.S. Insurance Gap: Measurement, Drivers and Implications

By: Parinitha Sastry, Tess Scharlemann, Ishita Sen and Ana-Maria Tenekedjieva

In a world with rising risk, how much are U.S. households willing to pay for homeowners insurance, and what does their demand imply for the future of insurance markets? We provide the first estimates of household willingness to pay for homeowners insurance and the... View Details

Keywords: Climate Change; Risk and Uncertainty; Insurance; Personal Finance; Consumer Behavior; Mortgages