Risks, Volume 9, Issue 3

The aim of this article is to present the risk model premises related to worker recruitment. Recruitment affects the final selection of workers, whose activities contribute to corporate competitive advantages. Hiring unfavorable workers can influence...

This study aims to check market reaction to filing for bankruptcy and restructuring proceedings and to verify the short-term effect of a price reversal in the Polish market in the years 2004–2019. The research was conducted by dividing the analysed c...

This work documents a persistent life expectancy heterogeneity by gender and geography in Italy during the period 1995–2019. Based on deviations of life expectancy at age 65, it quantifies the implicit tax/subsidy mechanism triggered when pensions an...

Predicting if a client is worth giving a loan—credit scoring—is one of the most essential and popular problems in banking. Predictive models for this goal are built on the assumption that there is a dependency between the client’s profile before the...

For calculating non-life insurance premiums, actuaries traditionally rely on separate severity and frequency models using covariates to explain the claims loss exposure. In this paper, we focus on the claim severity. First, we build two reference mod...

The aim of this paper is to merge order statistics with natural catastrophe reinsurance pricing to develop new theoretical and practical insights relevant to market practice and model development. We present a novel framework to quantify the role tha...

Best practice life expectancy has recently been modeled using extreme value theory. In this paper we present the Gumbel autoregressive model of order one—Gumbel AR(1)—as an option for modeling best practice life expectancy. This class of model repres...

In micro-lending markets, lack of recorded credit history is a significant impediment to assessing individual borrowers’ creditworthiness and therefore deciding fair interest rates. This research compares various machine learning algorithms on real m...

To build adequate predictive models, a substantial amount of data is desirable. However, when expanding to new or unexplored territories, this required level of information is rarely always available. To build such models, actuaries often have to: pr...

In the context of current crises following COVID-19 and growing global economic uncertainties, the issues regarding financial transactions with FINTECH are increasingly apparent. Consequently, in our opinion, the utilization of FINTECH financial tran...