Publications

27 Mar 2020
Working Paper Summaries

Novel Risks

Keywords: by Robert S. Kaplan, Dutch Leonard, and Anette Mikes

November–December 2020
Article

The Risks You Can't Foresee: What to Do When There's No Playbook

By: Robert S. Kaplan, Herman B. Leonard and Anette Mikes

No matter how good their risk management systems are, companies can’t plan for everything. Some risks are outside people’s realm of experience or so remote no one could have imagined them. Some result from a perfect storm of coinciding breakdowns, and some materialize... View Details

Keywords: Novel Risks; Risk Management; Crisis Management

Register to Read

8:30 AM – 10 AM EDT, 07 Apr 2020
Virtual Programming

Case Studies on Identifying (or not) and Managing Novel Risks #1

20 Aug 2024
News

Evolving Leveraged Loan Covenants May Pose Novel Transmission Risk

Web

COVID-19 as a Novel Event and Risk Management Framework

View Slide Presentation View Details

2022
Working Paper

Pricing of Climate Risk Insurance: Regulatory Frictions and Cross-Subsidies

By: Ishita Sen, Ana-Maria Tenekedjieva and Sangmin Oh

We study the consequences of state-level price (rate) regulation for U.S. homeowners' insurance, a $15 trillion market that provides households protection against climate losses. Using two distinct identification strategies and novel data on regulatory filings and ZIP... View Details

Keywords: Climate Risk; Homeowners' Insurance; Price Controls; Financial Regulation; Cross-subsidization; Climate Change; Household; Insurance; Price; Governance Controls; Financial Institutions; United States

SSRN

June 2009 (Revised June 2009)
Supplement

iPremier (C): Denial of Service Attack (Graphic Novel Version)

By: Robert D. Austin, Richard Nolan and Michael Parent

Describes an IT security crisis, and raises issues of risk management, preparation for crisis, management of crises, computer security, and public disclosure of security risks. View Details

Keywords: Safety; Risk Management; Information Technology; Crisis Management; Information Technology Industry

June 2009 (Revised June 2009)
Supplement

iPremier (B): Denial of Service Attack (Graphic Novel Version)

By: Richard Nolan, Robert D. Austin and Michael Parent

Describes an IT security crisis, and raises issues of risk management, preparation for crisis, management of crises, computer security, and public disclosure of security risks. View Details

Keywords: Safety; Risk Management; Information Technology; Crisis Management; Information Technology Industry

June 2009 (Revised June 2009)
Case

iPremier (A): Denial of Service Attack (Graphic Novel Version)

By: Richard Nolan, Robert D. Austin and Michael Parent

Describes an IT security crisis, and raises issues of risk management, preparation for crisis, management of crises, computer security, and public disclosure of security risks. View Details

Keywords: Information Technology; Crisis Management

Educators

April 2017
Article

Financing Risk and Innovation

By: Ramana Nanda and Matthew Rhodes-Kropf

We provide a model of investment into new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk―a forecast of limited future funding―by modifying... View Details

Keywords: Risk and Uncertainty; Financing and Loans; Innovation and Invention

2014
Working Paper

Financing Risk and Innovation

By: Ramana Nanda and Matthew Rhodes-Kropf

We provide a model of investment into new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk―a forecast of limited future funding―by modifying... View Details

Keywords: Business Startups; Venture Capital; Financial Markets; Financing and Loans; Investment; Price Bubble; Innovation and Invention; Technological Innovation; Risk and Uncertainty

August 2020
Article

Financial Market Risk Perceptions and the Macroeconomy

By: Carolin E. Pflueger, Emil Siriwardane and Adi Sunderam

We propose a novel measure of risk perceptions: the price of volatile stocks (PVS), defined as the book-to-market ratio of low-volatility stocks minus the book-to-market ratio of high-volatility stocks. PVS is high when perceived risk directly measured from surveys and... View Details

Keywords: Risk-centric Business Cycles; Cross-section Of Equities; Real Risk-free Rate; Real Investment; Financial Markets; Risk and Uncertainty; Perception; Investment

Program

Risk Management for Corporate Leaders—Virtual

potential threats, identifying and responding to novel risk events, and protecting enterprise value. By improving your ability to organize, manage, and govern the risk... View Details

20 Oct 2010
Working Paper Summaries

Financing Risk and Bubbles of Innovation

Keywords: by Ramana Nanda & Matthew Rhodes-Kropf; Financial Services

April 2023
Article

On the Privacy Risks of Algorithmic Recourse

By: Martin Pawelczyk, Himabindu Lakkaraju and Seth Neel

As predictive models are increasingly being employed to make consequential decisions, there is a growing emphasis on developing techniques that can provide algorithmic recourse to affected individuals. While such recourses can be immensely beneficial to affected... View Details

Keywords: Recourse; Privacy Threats; AI and Machine Learning; Information

2022
Article

Missing Novelty in Drug Development

By: Joshua Krieger, Danielle Li and Dimitris Papanikolaou

We provide evidence that risk aversion leads pharmaceutical firms to underinvest in radical innovation. We introduce a new measure of drug novelty based on chemical similarity and show that firms face a risk-reward trade-off: novel drug candidates are less likely to... View Details

Keywords: Drug Development; Risk Aversion; Research and Development; Innovation and Invention; Investment; Pharmaceutical Industry

02 Dec 2018
News

An Investor’s Guide to Climate Change: Risks and Opportunities

as well as land-use and climate-resilient infrastructure, which will require massive injections of capital in order to remain sustainable. Alumni were urged to be the change agents and ask the tough questions; now more than ever taking that extra bit of View Details

Keywords: Allison Webster; Electric Power Generation, Transmission, Distribution; Utilities; Management, Scientific, and Technical Consulting Services; Professional Services

November 2013
Article

Investment Cycles and Startup Innovation

By: Ramana Nanda and Matthew Rhodes-Kropf

We find that VC-backed firms receiving their initial investment in hot markets are more likely to go bankrupt, but conditional on going public are valued higher on the day of their IPO, have more patents, and have more citations to their patents. Our results suggest... View Details

Keywords: Innovation; Market Cycles; Financing Risk; Risk and Uncertainty; Venture Capital; Investment; Innovation and Invention

June 2023 (Revised February 2024)
Case

Betting on Green Steel

By: George Serafeim and Sofoklis Melissovas

'Betting on Green Steel' traces the innovative journey embarked upon by a group of MBA students who have set out to conceive a novel steelmaker that pioneers the production of green steel. The ensemble is confronted with a series of critical choices that will shape the... View Details

Keywords: Decarbonization; Sustainability Management; Technology; Industrialization; Climate Risk; Energy; Entrepreneurship; Environmental Sustainability; Technology Adoption; Climate Change; Innovation and Invention; Business Strategy; Family Business; Steel Industry; Middle East; India

Educators