The European Association for Banking and Financial History (EABH) e.V. is kindly inviting you to participate in the 2014 Annual Meeting, held June 12 – 13, 2014 in Rüschlikon, Switzerland.
The term RISK has experienced inflationary use over the last years, resulting in a multitude of linguistic combinations. While everyday notions of risk are closely associated with danger and uncertainty, financial services, banking and insurance associate the term mainly with deviations from the expected.
Such attempts aim at separating economic risk from uncertainty and at making risks insurable. They imply that risk can be quantified or measured and thus managed. Banking and insurance have both developed individual ways of dealing with risk, which, to some degree, show signs of a parallel evolution. Besides actuarial methods, both insurance and modern finance have applied portfolio selection or diversification as a guiding principle. Both industries were exposed to major challenges after the demise of the Bretton Woods System and had to develop instruments to hedge against inflation and fluctuating interest rates. Capital markets developed options and futures and, later, swaps. Reinsurance futures were suggested for the insurance industry. These products were slow to develop.
In the wake of the 1987 equity market crash they became more popular and the capital markets (and later insurance) started applying Sharpe‘s CAPM and the Black-Scholes model more widely to tackle increasingly mathematical problems. JP Morgan finally developed the ‘Value-at-Risk’ (VaR) concept to take into account what later was called ‘Black Swans’, a concept which had been known and applied in insurance for much longer. The Basle Committee then adopted the VaR approach to set minimum capital requirements for banks. Enterprise-wide risk management gradually developed in conjunction with regulatory requirements to include operational and other risks.
However, risk management in financial services is a relatively new concept. The 2014 eabh conference aims to investigate the ways in which today’s corporate risk management approaches came about.
Speakers and Presentations
- Hugo Bänziger (Lombard Odier): “From the End of Bretton Woods to the Global Financial Crisis: 40 Years of Turbulence.“
- Hugo Bänziger (Lombard Odier), Lothar Weber (Bluewin), Christian Casal (McKinsey), Rolf Bachmann (Lazard): “How Everything Started.“
- Hans Bühlmann (Eidgenössische Technische Hochschule): “From Risk Engineering to Risk Management.“
- Valentino Cattelan (University of Oxford): “In the Name of God: Managing Risk in Islamic Finance.“
- Jean-François Daudrix (BNP Paribas): “Creating a Risk Management Department: Banque Paribas’ Experience.“
- Alexander Engel (Goettingen University): “Derivates as a Risk Management Product: A History of Concepts and Markets.“
- Luca Froelicher (University of Zurich): “Conservative Risk Management: The Asset Management of Zurich Insurance Company in the Interwar Period.“
- Andreas Gottschling (Erste Oesterreich): “Market Risk Management — Early Days.“
- Walter Kielholz (Swiss Re)
- Alexandros Andreas Kyrtsis (University of Athens): “Insurance, Reinsurance, and Technologies of Financial Anti-Fragility: A Note on the Origins of Junk Bonds and CDOs.“
- Christopher Kobrak (ESCP Europe /The Rotman School of Management), Daniel Zuberbühler (KPMG), Clifford Smout (Deloitte): “From the Cook Committee to Basel 3: The Introduction of Risk into Regulation.“
- Anders Løhde Mikkelsen (King’s College London): “Dealing with Underwriting Risk in Connection with Sovereign Loan Issues in London, 1870 – 1914.“
- John Mooney & Doug Neilson: “Early Days of Credit Risk Management: When Paper Was Credit-based.“
- Jéronia Pons Pons & Pablo Guitérrez González (University of Seville): “Actuarial Backwardness in Spanish Life Insurance: Life Tables and Profits (1890−1937).“
- Michael Troege (ESCP Europe): “From Basel to Bailouts: Thirty Years of International Attempts to Bolster Bank Safety.“
- Natacha Postel Vinay (London School of Economics): “Out of the Shadows: Commercial Bank Mortgage Securitisation and the Great Depression in the Chicago Area.“
- Thorsten Wegner (McKinsey): “Enterprise-wide Risk Management.“
2014 EABH Archival Workshop: Banks at War I
Financial Institutions confronted by the Great War
This project aims to reconstitute the reaction and adaption of banks, insurance companies and related financial institutions in the first days, weeks and months of what became the Great War. The objective is to deliver a comprehensive study, rich with case studies and illustrations from different international archival centres.
Banks and insurance companies were altogether competing against each other and complementing their activities on a global level in Germany and France. All of a sudden, war imposed drastic borders between two fighting camps and created two economic and finance areas. Governments had to finance the immediate needs of military entities. Moreover, the creation of an ‘economics of war’ fostered a new structure of productive processes, where banks and insurance companies assumed their functions and tasks.
How did banks and insurance companies fare throughout the conflict? Records of loans to companies offer a good way of understanding the economic war effort and the policy of investment. Archival sources could foster analysis of the destabilizing aspects of war and of the new role of the state imposed on business and daily life. Archival materials offer excellent opportunities for (comparative) analysis of the changing strategies and business models as a reaction to crises, which also created barriers to free markets and exchanges.
Thursday, 12 June 2014
- 09:00 – Academic Council (AC) meeting
- 13:00 – Banks at War. Fincial Institutions confronted by the Great War. archival workshop
- 17:00 – General Members’ Meeting (GMM)
- 19:00 – Reception (Apero)
- 19:30 – Dinner
Friday, 13 June 2014
- 08:00 – Risk Management. annual conference. Part 1: Oral history
- 13:00 – Lunch
- 14:00 – Risk Management. annual conference. Part 2: Research papers
- 16:30 – End of conference