Corporate social responsibility and Risk transmission: Difference between pages

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(CSR).
''Risk - systemic risk.''


''Corporate governance''.  
Risk transmission is the spread of risk from one sector to another, or within a sector.


A form of corporate self-regulation integrated into a business model.


:<span style="color:#4B0082">'''''Credit risk transmission during crisis events'''''</span>


Ideally, CSR policy is a built-in, self-regulating mechanism where the business or other organisation  monitors and ensures its adherence to law, ethical standards, and international norms.  
:"... we model a high-dimensional network of European CDS [Credit Default Swap] spreads to assess the transmission of credit risk to the non-financial corporate sector.  


The organisation embraces responsibility for the impact of its activities on the environment, consumers, employees, communities, other stakeholders and all other members of the public sphere.  
:Our findings suggest a sectoral clustering in the CDS network, where financial institutions are located in the center and non-financial as well as sovereign CDS are grouped around the financial center.  


The organisation also proactively promotes the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere.  
:The network has a geographical component reflected in differences in the magnitude and direction of real-sector risk transmission across European countries.  


:While risk transmission to the non-financial sector increases during crisis events, risk transmission within the non-financial sector remains largely unchanged."


All this means both:
:''Analyzing credit risk transmission to the non-financial sector in Europe: a network approach - European Systemic Risk Board - Working Paper 78, July 2018.''
#Adherence to existing laws and
#Acting in a way that is significantly better than the minimum standards required by law.




== See also ==
==See also==
* [[Business in the Community]]
*[[Contagion]]
* [[Carbon footprint]]
*[[Credit default swap]]
* [[Corporate governance]]
*[[Credit risk]]
* [[ESG investment]]
*[[European Systemic Risk Board]]
* [[Ethics]]
*[[Sovereign]]
* [[Fair trade]]
*[[Systemic risk]]
* [[Free trade]]
* [[Greenwash]]
* [[Modern Slavery Act]]
* [[Public interest]]
* [[Reporting]]
* [[SRI]]
* [[Stakeholder]]
* [[Sustainability]]
* [[Profit maximisation]]


[[Category:Corporate_finance]]
[[Category:The_business_context]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 02:37, 16 November 2021

Risk - systemic risk.

Risk transmission is the spread of risk from one sector to another, or within a sector.


Credit risk transmission during crisis events
"... we model a high-dimensional network of European CDS [Credit Default Swap] spreads to assess the transmission of credit risk to the non-financial corporate sector.
Our findings suggest a sectoral clustering in the CDS network, where financial institutions are located in the center and non-financial as well as sovereign CDS are grouped around the financial center.
The network has a geographical component reflected in differences in the magnitude and direction of real-sector risk transmission across European countries.
While risk transmission to the non-financial sector increases during crisis events, risk transmission within the non-financial sector remains largely unchanged."
Analyzing credit risk transmission to the non-financial sector in Europe: a network approach - European Systemic Risk Board - Working Paper 78, July 2018.


See also