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Various decision opinions comprise the foundation of emergency decision-making. However, decision-makers have difficulty establishing trust relationships within a short time because of decision-making groups being temporary. The paper aims to develop an ambiguity-incorporated opinion formation model that considers ambiguous opinions on relevant risks from a psychological perspective during the consensus reaching process.

Addressing the problem of forming a consensus decision-making opinion in an ambiguous environment and relevant risk opinions, different social network structures were first proposed. Subsequently, psychological factors affecting the decision-makers' perception of ambiguous opinions and tolerance for ambiguity under the multi-risk factors were considered. Accordingly, an ambiguity-incorporated opinion formation model was proposed by considering the ambiguity and relevant opinions on multi-risk factors.

A comparison between the ambiguity-incorporated opinion formation model and the F–J model illustrates the superiority of the proposed model. By applying the two types of network structures in the simulation process, the results indicate that the convergence of opinions will be affected by different decision-making network structures.

The research provides a novel opinion formation model incorporating psychological factors and relevant opinions in the emergency decision-making process and provides decision support for practitioners to quantify the influence of ambiguous opinions. The research allows the practitioners to be aware of the influence of different social network structures on opinion formation and avoid inaccurate opinion formation due to unreasonable grouping in emergency decision-making.

This paper reviews the theory and evidence on the effects of globalization of financial transactions on businesses. Two important benefits are identified. First, globalization reduces a company’s cost of capital. Second, globalization improves corporate governance so that manager actions are better aligned with shareholder interests. This improvement in corporate governance further contributes to a reduction in a firm’s cost of capital.

The purpose of this paper is to study connections between interest rate risk and credit risk and investigate the inter-risk diversification benefit due to the joint consideration of these risks in the banking book containing sovereign debt.

The paper develops the historical derivative-based value at risk (VaR) for assessing the downside risk of a sovereign debt portfolio through the integrated treatment of interest rate and credit risks. The credit default swaps spreads and the fixed-leg rates of interest rate swap are used as proxies for credit risk and interest rate risk, respectively.

The proposed methodology is applied to the decade-long history of emerging markets sovereign debt. The empirical analysis demonstrates that the diversified VaR benefits from imperfect correlation between the risk factors. Sovereign risks of non-core emu states and oil producing countries are discussed through the prism of VaR metrics.

The proposed approach offers a clue for improving risk management in regards to banking books containing government bonds. It could be applied to access the riskiness of investment portfolios containing the wider spectrum of assets beyond the sovereign debt. The approach represents a useful tool for investigating interest rate and credit risk interrelation.

The proposed enhancement of the traditional historical VaR is twofold: usage of derivative instruments’ quotes and simultaneous consideration of the interest rate and credit risk factors to construct the hypothetical liquidity-free bond yield, which allows to distil liquidity premium.

The purpose of this paper is to investigate the key drivers affecting property investment decisions within a context of sustainability and how these drivers are likely to change the investment product landscape and the management of existing property investment portfolios.

Examples from the Australian property market are discussed in order to demonstrate how sustainability principles may form part of the wider agenda of corporate property investment strategy and social responsibility.

A full understanding of the impact of sustainability on the property investment landscape can only be found by adopting an holistic approach, including the behavioural effects of economic, social, ecological, policy and regulative environments.

This paper provides important new insights as to the effect that sustainability may have on future investment decisions and the future investment product landscape.

The term “charity hazard” refers to the issue of the crowding out of insurance by co-existing relief programs in the context of different institutional governmental disaster schemes. In this context, the aim of this paper is to verify if the charity hazard phenomenon exists in the Italian agricultural insurance scheme.

Annual data regarding crop insurance, subsidies and farm structure were extracted from ISMEA, ISTAT and FADN databases. A SYS-GMM dynamic panel model was estimated, considering the 2010–2017 time period and the Italian Regions as units of the analysis.

The empirical results highlight a negative relation between crop subsidies and the farmers' policies and total premium paid. The disincentive and crowd-out effects of public aid and subsidies on the choice of whether or not to take out an agricultural insurance policy ends up being one of the key factors for the low level of penetration of the agricultural insurance in Italy.

Since the diffusion of agricultural insurance can contribute to the general objective of sustainability and resilience, the implementation of alternative solutions to subsidies could be needed (e.g. the introduction of mandatory insurance against adversities or financial support for a geographically specific insurance tool).

Investigating empirically the determinants of the agricultural insurance policy diffusion among the Italian Regions, this study ensures an original contribution to the scientific progress in the field, demonstrating the existence of charity hazard caused by the public subsidies provision.

Urban resilience is becoming increasingly important due to increasing degree of urbanization and a combination of several factors affecting urban vulnerability. Urban resilience is also understood as a capacity of a system to prepare, respond and recover from multi-hazard threats. The purpose of multi-risk approach (MRA) is to take into consideration interdependencies between multiple risks, which can trigger a chain of natural and manmade events with different spatial and temporal scales. The purpose of this study is to understand correlation between multi-risk approach and urban resilience.

To increase urban resilience, MRA should also include multi-risk governance, which is based on understanding how existing institutional and governance structures, individual judgments and communication of risk assessment results shape decision-making processes.

This paper is based on extensive fieldwork in the test studies of Naples, Italy and Guadeloupe, France, the historical case study analysis and the stakeholders’ interviews, workshops and focus groups discussions.

Multi-risk is a relatively new field in science, only partially developed in social and geosciences. The originality of this research is in establishment of a link between MRA, including both assessment and governance, and urban resilience. In this paper, the authors take a holistic and systemic look at the MRA, including all stages of knowledge generation and decision-making. Both, knowledge generation and decision-making are reinforced by behavioural biases, different perceptions and institutional factors. Further on, the authors develop recommendations on how an MRA can contribute to urban resilience.

Multi-risk environments pose challenges for rural and coastal communities in the Asia-Pacific region, particularly with regard to disaster risk management and climate change adaptation strategies. While much research has been published on disaster response and recovery for specific climate-related hazards in the region, such as cyclones, floods and droughts, there is a growing need for insight into how communities respond, recover and adapt to the multiple, intersecting risks posed by environmental, societal and economic change. This chapter frames the body of new research presented in this book from the perspective of multi-risk environments, paying particular attention to concepts central to the disaster response and recovery cycle, and rejecting the notion of a distinct boundary between climate and society. Further, this introductory chapter foregrounds the importance of cultural values, power relations, Indigenous knowledge systems, local networks and community-based adaptive capacities when considering resilience, recovery and adaptation to climate-induced disasters at the community and household level. Overviews of the research presented in this book demonstrate a diverse range of responses and adaptive strategies at the local level in case studies from Solomon Islands, Fiji, Cambodia and Samoa, as well as implications for policy, planning and management.

The literature has revealed auditors' going concern risk disclosures are examined in research as a homogenous risk class. This is despite the various going concern modifications auditors are entitled to give pertaining to this issue. A five‐level risk class is established in this paper derived from Australian Auditing Standard pronouncements to examine the appropriateness of auditors' going concern reporting relating specifically to the likelihood of firm failure.

Time is necessary to reveal the appropriateness of going concern reporting therefore a longitudinal research methodology was adopted. The research focuses on all Australian listed companies within the building industry in 1989 and follows all of the reporting of going concern by auditors and directors through until 2007. The building industry was selected because of its volatility, which increased the possibility of going concern reporting allowing a more in‐depth focus in the research. All auditors' going concern modifications were examined along with all indications of going concern problems identified by directors. To properly investigate the appropriateness of auditors' reporting, all sampled audit reports were examined using Altman's Z‐score model which were matched with a risk class model using the relevant requirements to report in order to determine the appropriateness of the auditors' and directors' opinions.

The level of under reporting of going concern risk by auditors (75 per cent) implies they are more affected by the agency relationship found in literature than directors who are found to have an incidence of underreporting of 57 per cent.

Literature classifies auditors along with directors as part of the agency problem. Altman's Z‐score bankruptcy prediction model is used because of its enduring nature, reliability and ability to be externally calculated to independently compare the going concern reporting performance of auditors and directors as part of the contribution to this research area.

The paper for the first time examines going concern reporting at a multi‐risk level rather than the binomial level used in research previously. The approach is developed in this paper using auditing pronouncements. These risk levels are linked with an independent measure being the Altman Z‐score to determine the appropriateness of auditors' and directors' reporting of going concern issues.

The paper aims to explore the optimal strategies of inventory financing when the risk-averse retailer has different objectives, in the presence of multi-risk, i.e. demand risk, non-operational risk and retailer's strategic default risk.

This paper develops an inventory financing model consisting of a bank and a risk-averse retailer with strategic default. This paper considers two scenarios, i.e. the capital-constrained retailer cares about its profit or firm value. In the first scenario, the bank acts as a Stackelberg leader determining its interest rate, and the retailer acts as a follower determining its pledged quantity. In the second one, the bank capital market is perfectly competitive. Lagrange multiplier method is adopted to solve the optimization.

The optimal strategies in inventory financing scheme in two scenarios are derived. Only when the initial stock is relatively high, the retailer pledges part of the initial stock. Retailer's risk aversion reduces its pledged quantity and performance. The strategic default reduces its profit. When it is relatively high, the bank refuses to offer the loan.

Analytical inventory and financing strategies are specified to help retailers and banks to better understand the interaction of finance and operations management and to better respond to multi-risk.

New results and managerial insights are derived by incorporating partially endogenous strategic default and risk aversion into inventory financing, which enriches the interfaces of operations management and finance.