Description: This paper discusses the martingale approach for pricing American-type options without an expiry date. These options include the perpetual American put option and the perpetual maximum option in one stock case. The word “perpetual” means that the option has no expiry date. A main tool in this approach is the principle of smooth pasting.

Description: The presenters will discuss the current interest rate market environment and what insurance companies can do to best protect themselves from interest rate risk. The presenters, industry leaders in financial risk management, will explore how different products and strategies—including swaps, options, and other derivatives—are being used in today’s market. The discussion will include how to model and measure interest rate risk, how to quantify hedge effectiveness, and how to improve hedging operations.

Description: After a very challenging year, actuaries need to look back and consider the lessons learned. Have we returned to where we were, or have we moved on to a new norm? What does the COVID-19 pandemic market data tell us that will help us to prepare for future global crises?

Description: This article provides a retrospective on investment risk management while highlighting actuarial tools used by portfolio risk managers.

Description: The article makes reference to how the intervention by government agencies and institutions into the financial marketplace are creating distortions. This artificial tampering into market mechanisms will likely result in major financial dislocations down the road as natural economic forces (coined by the term "invisible hand") eventually are allowed to come into play.

Description: Risk management techniques do not include system science. System science requires that the uncertainty of the world is incorporated into the results. The articles explains the difference between risk and uncertainty. Learn how risk practices create an overoptimistic view of future outcomes.

Description: As an ongoing feature in Risk Management, we will provide recent publications we find noteworthy to our readers.

Description: Discussant comments for the 2009 Housing Wealth monograph paper, “Modigliani, Miller and Mortgages.” The paper is about the genesis of the credit crisis. The discussant finds the paper makes some interesting points but leaves too much out of the story.

Description: This is a continuation of an article published for the speculative future contest in 2023. It mentions how the collapse of China would cause a global recession in 2029 due to the current and predicted geopolitical climate in 2023.

Description: The effects of climate change have been widely documented. Whether it’s rising temperatures, more frequent and violent storms or disruption to wild life, there is a consensus in the scientific community that these effects are real. What are the risks and opportunities that climate change brings to an investment portfolio? As society transitions to more sustainable sources of energy and tries to find more sustainable ways to consume, there will be winners and losers. In this presentation, speakers will discuss their process to identify winners in this changing world and highlight the risks to various industries.