Strengthening Financial Stability and Stability in Times of Risk, Crisis and Conflict

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Sustainability and Finance".

Deadline for manuscript submissions: closed (30 September 2024) | Viewed by 1683

Special Issue Editor


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Guest Editor
Department of Economic Cybernetics, National University of Life and Environmental Sciences of Ukraine, Heroiv Oborony 16a, 03041 Kyiv, Ukraine
Interests: finance; risk management; digital transformation; mathematical modelling; econometrics; sustainability; crisis management; machine learning; FoodTech; classification; regression; forecasting; innovations; stock market; ESG; agriculture

Special Issue Information

Dear Colleagues,

The COVID-19 pandemic and the Russia–Ukraine war have created a heightened state of economic uncertainty, leading to an unprecedented increase in market volatility. These disruptions, manifested in acute stock market falls, have had a noticeable impact on investor confidence, triggering a pronounced prevalence of panic selling. The impact of these crises on profitability was heterogeneous and varied across industries and markets. COVID-19 and geopolitical conflicts introduced a spectrum of political and regulatory risks that required careful integration into the fabric of corporate risk management frameworks. In the face of such uncertainties, companies have embarked on a strategic reassessment of their supply chain paradigms, with a deliberate focus on reducing reliance on single suppliers and encouraging the adoption of agile and responsive models.

The era of economic turbulence has witnessed a paradigmatic shift in corporate priorities, with companies strategically prioritising resilience within their operational frameworks, supply chains and financial structures. The exigencies of these crises have led to a heightened awareness within the corporate echelons of the need for robust scenario planning as an essential mechanism for addressing and managing unforeseen disruptions. The impact of the COVID-19 pandemic and geopolitical conflicts such as the Russia–Ukraine war underscore the importance of organisational agility, resilience, and proactive risk management in the face of unforeseen challenges, as well as highlight the urgent need for comprehensive and interdisciplinary research to understand, respond to and mitigate the multiple impacts on financial stability, risk management and corporate sustainability. Thus, businesses and financial systems must constantly recalibrate their strategic approaches to navigate the intricacies of an evolving and complex global environment.

This Special Issue aims to explore innovative approaches, share empirical findings and incorporate valuable perspectives to enhance our understanding of how companies, financial institutions and communities manage and strengthen financial stability in times of unprecedented challenges, including, but not limited to, pandemics and conflicts.

Prof. Dr. Maryna Nehrey
Guest Editor

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Keywords

  • finance
  • sustainability
  • resilience
  • economic uncertainty
  • risk
  • COVID-19 pandemic
  • Russia–Ukraine war
  • stock market
  • supply chain
  • market volatility
  • global challenges
  • crisis management
  • innovation

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Published Papers (1 paper)

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Research

27 pages, 696 KiB  
Article
The Role of Political Uncertainty in Climate-Related Disaster Impacts on Financial Markets
by Richard Paul Gregory
J. Risk Financial Manag. 2024, 17(7), 273; https://doi.org/10.3390/jrfm17070273 - 29 Jun 2024
Viewed by 1101
Abstract
This research presents a new model for analyzing the effects of government policies on climatic disasters on financial markets. Using Fama–MacBeth rolling regressions and the construction of model-proposed risk factors, three major risk factors are found to be significant in explaining stock returns. [...] Read more.
This research presents a new model for analyzing the effects of government policies on climatic disasters on financial markets. Using Fama–MacBeth rolling regressions and the construction of model-proposed risk factors, three major risk factors are found to be significant in explaining stock returns. First, there is the risk of climate disasters. Second, there is the risk of uncertainty regarding government actions. Third, there is the risk of government response to climatic disasters. Through the increase in the cost of capital from climate disasters and the uncertainty of government response, the future cost of capital is higher, leading to less investment and lower productivity. However, the government’s actions to compensate for losses due to climate damage help offset the damages from disasters. This implies that the previous estimates of economic damages due to climate risk have been underestimated. This work adds to the literature by providing a fuller estimate of the economic implications of climate change. Full article
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