Addressing Financial Risks and Uncertainties Through Financial Literacy Education

2019 ◽  
pp. 199-218
Author(s):  
Danielle McKain
Keyword(s):  
Climate Change ◽  
Stock Market ◽  
Financial Literacy ◽  
Financial Stability ◽  
Literacy Education ◽  
Financial Instability ◽  
Financial Risks ◽  
Increased Risk ◽  
The World ◽  
The Impact

The world is full of financial risks and uncertainties even for those who have financial literacy. There are many factors to consider when planning financially: the stock market, hyperinflation, and climate change all play roles and are unpredictable. This chapter will focus on the actions that are being taken to establish financial literacy across the world and the impact these actions have on individual financial stability. Although financial literacy certainly cannot eliminate the risks and uncertainties that accompany unforeseen events, it is one way to prepare for these events. Even in times of normalcy, lack of financial literacy can put individuals at an increased risk of financial instability. This chapter presents a variety of recommendations and resources for financial literacy education as well as the risks and uncertainties that accompany their use.

Addressing Financial Risks and Uncertainties Through Financial Literacy Education

2021 ◽  
pp. 437-456
Author(s):  
Danielle McKain
Keyword(s):  
Climate Change ◽  
Stock Market ◽  
Financial Literacy ◽  
Financial Stability ◽  
Literacy Education ◽  
Financial Instability ◽  
Financial Risks ◽  
Increased Risk ◽  
The World ◽  
The Impact

The world is full of financial risks and uncertainties even for those who have financial literacy. There are many factors to consider when planning financially: the stock market, hyperinflation, and climate change all play roles and are unpredictable. This chapter will focus on the actions that are being taken to establish financial literacy across the world and the impact these actions have on individual financial stability. Although financial literacy certainly cannot eliminate the risks and uncertainties that accompany unforeseen events, it is one way to prepare for these events. Even in times of normalcy, lack of financial literacy can put individuals at an increased risk of financial instability. This chapter presents a variety of recommendations and resources for financial literacy education as well as the risks and uncertainties that accompany their use.

scholarly journals BUSINESS REPUTATION AND ITS IMPACT ON FINANCIAL STABILITY OF BANKS

2021 ◽  
Vol 1 (54) ◽  
Author(s):  
Victoria V. Kovalenko ◽  
Keyword(s):  
Financial Stability ◽  
Large Scale ◽  
Social Role ◽  
Financial Institution ◽  
Financial Instability ◽  
Financial Risks ◽  
Economic Relations ◽  
Stage Of Development ◽  
Banking Business ◽  
The Impact

In the article, the author considers the main aspects of the impact of goodwill on the financial stability of banks. It is substantiated that among the numerous threats that lead to financially unstable development of the banking business, a special place should be given to the support of banks’ business reputation. The main reasons are the phenomena of financial instability caused not only by the cyclical development of the economy, but also the ability to take into account a certain state in which the financial system is able to: effectively allocate resources, assess and manage financial risks, absorb shocks. It is proved that the relationship between business reputation and financial stability is determined by the characteristics of the conceptual apparatus; the system of risks to which they are exposed in the course of their activities; methodical approaches to assessing their level. The author concludes that the key challenges for the banking business in the context of digital transformation should be considered from the standpoint of customer interests, from the standpoint of investors (owners) of the banking business and from the standpoint of the regulator. In today’s realities, when the systemic banking crisis has imposed on a large-scale economic, the decisive factor for success and continued activity in the market is the quality of business reputation. The methods of quantitative assessment of the bank’s business reputation include balance-normative, methods of additional and excess profits, methods of royalties and residual value, the method of rating and comprehensive assessment. It is proved that the level of business reputation is related to the life cycle of banks, which includes the stages of formation, growth, maturity and decline. Measures to ensure business reputation depending on the stage of development of the bank are considered. Both the business reputation and financial stability are affected by the established image of the bank. The article states that a positive image is able to maintain the bank in times of financial instability. It is determined that depending on the group of users (non-financial corporations, households, government agencies or social organizations) the image of the bank should be different and meet all requirements.It is determined that a modern bank is not only an institution of the financial market, but also a financial institution for which social role and reputation in social and economic relations become the primary criteria for ensuring their competitive position.

scholarly journals The Impact of COVID-19 on the Dynamic Topology and Network Flow of World Stock Markets

2021 ◽  
Vol 7 (4) ◽  
pp. 241
Author(s):  
Bilal Ahmed Memon ◽  
Hongxing Yao
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Network Flow ◽  
Financial Stability ◽  
Minimum Spanning Tree ◽  
Centrality Measures ◽  
Topological Evolution ◽  
The World ◽  
Tree Length ◽  
The Impact

Studies examining the impact of COVID-19 using network dynamics are scant and tend to evaluate a specific local stock market. We present a thorough investigation of 58 world stock market networks using a complex network approach spanning across the uncertain times that have resulted from the coronavirus outbreak. First, we use the daily closing prices of the world stock market indices to construct dynamic complex networks and sixteen minimum spanning tree (MST) maps for the period from December 2019 to March 2021. Second, we present the topological evolution properties of time-varying MSTs by applying normalized tree length, diameter, average path length, and centrality measures. Moreover, the empirical results suggest that (1) the highest correlation among the world stock markets is observed during the first wave of the COVID-19 pandemic in the months of February–March 2020; (2) most of the MSTs appear lower in hierarchy, and many chain-like structures are formed due to the sheer impact of pandemic-related crises; (3) Germany remained a hub node in many of the MSTs; and (4) the tree severely contracted during the first wave of the COVID-19 outbreak (during the months of February and March 2020) and expanded slightly afterwards. Moreover, the results obtained from this study can be used for the development of financial stability policies and stock market regulations worldwide.

Financial Risks of the Bank: Assessment and Mechanism of Neutralization

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Stable Operation ◽  
Financial Risks ◽  
Negative Consequences ◽  
Conceptual Approach ◽  
Relevant Today ◽  
Banking Institution ◽  
The Impact

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.

scholarly journals 13.D. Workshop: SDGs in the focus of environmental and health issues

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
◽  
Keyword(s):  
Public Health ◽  
Climate Change ◽  
Sustainable Development ◽  
Community Engagement ◽  
Health Professionals ◽  
Health Issues ◽  
The Sustainable Development ◽  
The World ◽  
Environmental And Health Issues ◽  
The Impact

Abstract This workshop is dedicated on SDGs in the focus of environmental and health issues, as very important and actual topic. One of the characteristics of today's societies is the significant availability of modern technologies. Over 5 billion (about 67%) people have a cellphone today. More than 4.5 billion people worldwide use the Internet, close to 60% of the total population. At the same time, one third of the people in the world does not have access to safe drinking water and half of the population does not have access to safe sanitation. The WHO at UN warns of severe inequalities in access to water and hygiene. Air, essential to life, is a leading risk due to ubiquitous pollution and contributes to the global disease burden (7 million deaths per year). Air pollution is a consequence of traffic and industry, but also of demographic trends and other human activities. Food availability reflects global inequality, famine eradication being one of the SDGs. The WHO warns of the urgency. As technology progresses, social inequality grows, the gap widens, and the environment continues to suffer. Furthermore, the social environment in societies is “ruffled” and does not appear to be beneficial toward well-being. New inequalities are emerging in the availability of technology, climate change, education. The achievement reports on the Sustainable Development Goals (SDGs), also point out to the need of reviewing individual indicators. According to the Sustainable Development Agenda, one of the goals is to reduce inequalities, and environmental health is faced by several specific goals. The Global Burden of Disease is the most comprehensive effort to date to measure epidemiological levels and trends worldwide. It is the product of a global research collaborative and quantifies the impact of hundreds of diseases, injuries, and risk factors in countries around the world. This workshop will also discuss Urban Health as a Complex System in the light of SDGs. Climate Change, Public Health impacts and the role of the new digital technologies is also important topic which is contributing to SDG3, improving health, to SDG4, allowing to provide distance health education at relatively low cost and to SDG 13, by reducing the CO2 footprint. Community Engagement can both empower vulnerable populations (so reducing inequalities) and identify the prior environmental issues to be addressed. The aim was to search for public health programs using Community Engagement tools in healthy environment building towards achievement of SDGs. Key messages Health professionals are involved in the overall process of transformation necessary to achieve the SDGs. Health professionals should be proactive and contribute to the transformation leading to better health for the environment, and thus for the human population.

scholarly journals Climate Change, Weather, Housing Precarity, and Homelessness: A Systematic Review of Reviews

2021 ◽  
Vol 18 (11) ◽  
pp. 5812
Author(s):  
Mariya Bezgrebelna ◽  
Kwame McKenzie ◽  
Samantha Wells ◽  
Arun Ravindran ◽  
Michael Kral ◽  
...  
Keyword(s):  
Climate Change ◽  
Systematic Review ◽  
Natural Disasters ◽  
Green Infrastructure ◽  
Temperature Extremes ◽  
Weather Extremes ◽  
Positive Effects ◽  
Increased Risk ◽  
Review Of Reviews ◽  
The Impact

This systematic review of reviews was conducted to examine housing precarity and homelessness in relation to climate change and weather extremes internationally. In a thematic analysis of 15 reviews (5 systematic and 10 non-systematic), the following themes emerged: risk factors for homelessness/housing precarity, temperature extremes, health concerns, structural factors, natural disasters, and housing. First, an increased risk of homelessness has been found for people who are vulnerably housed and populations in lower socio-economic positions due to energy insecurity and climate change-induced natural hazards. Second, homeless/vulnerably-housed populations are disproportionately exposed to climatic events (temperature extremes and natural disasters). Third, the physical and mental health of homeless/vulnerably-housed populations is projected to be impacted by weather extremes and climate change. Fourth, while green infrastructure may have positive effects for homeless/vulnerably-housed populations, housing remains a major concern in urban environments. Finally, structural changes must be implemented. Recommendations for addressing the impact of climate change on homelessness and housing precarity were generated, including interventions focusing on homelessness/housing precarity and reducing the effects of weather extremes, improved housing and urban planning, and further research on homelessness/housing precarity and climate change. To further enhance the impact of these initiatives, we suggest employing the Human Rights-Based Approach (HRBA).

scholarly journals EVALUATION OF FUNCTIONAL PERFORMANCE OF THE BANKING SYSTEM OF UKRAINE IN CONDITIONS FINANCIAL INSTABILITY

2021 ◽  
Author(s):  
Nataliia Danik ◽  
Kateryna Novak ◽  
Anastasiia Yakovenko
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Structural Changes ◽  
Banking Sector ◽  
Synergistic Effects ◽  
Banking System ◽  
Scientific Article ◽  
Financial Instability ◽  
Industrial Complex ◽  
The Impact

The article covers the problems of the functioning of the banking sector of Ukraine during 2018-2021, as one of the main sectors of the financial market and the national economy as a whole. When analyzing the state of the banking sector, regularities and general trends in the functioning of the banking sector of Ukraine have been established, and appropriate calculations have been made. The impact of global financial crises on the activities of banking structures, which must operate in conditions of constant financial instability, is described. Today, the whole world, including Ukraine, is on the verge of a global financial and economic crisis. This raises the question of whether Ukrainian banks have the necessary margin of resilience to vulnerabilities to the financial and economic crisis. In recent years, the functioning and development of the banking system has been characterized by increased financial stability, the level of bank capitalization, liquidity, some improvement in asset quality, reducing risks in banking, as well as the presence of positive structural changes. Today, Ukraine's banking system operates in a complex socio-economic and legal environment, most of which - macroeconomic instability, irrational structure of the industrial complex, the crisis of science and technology, imperfect fiscal and monetary policy, low level of effective demand - complicate sustainable development banking sector and increase competitiveness. In conditions of instability, intensification of turbulent processes, the development of the banking system requires new innovative approaches to determining the mechanisms of effective functioning and stable development based on a system-synergetic approach, which led to the choice and relevance of the chosen topic of this scientific article. Efficiency of banks is a multicomponent, multifaceted, multidimensional system characteristic that depends on many factors and is an effective indicator of performance of functions and achievement of goals and objectives of banks development provided financial stability based on financial stability and dynamic balance, achievement of multiplicative and synergistic effects.

scholarly journals Foreign Experience of State Management of Raw Materials Industries and the Possibility of its Implementation in the Russian Federation in the Post-Covid Period

2021 ◽  
Vol 93 ◽  
pp. 05004
Author(s):  
Dmitry Rodnyansky ◽  
Ivan Makarov ◽  
Evgeniya Korotayeva ◽  
Vadim Kovrigin ◽  
Vladislav Nazarenko
Keyword(s):  
Climate Change ◽  
Raw Materials ◽  
Oil Industry ◽  
State Regulation ◽  
World Economic Forum ◽  
State Management ◽  
The World ◽  
World Economic ◽  
The Russian Federation ◽  
The Impact

In modern conditions, issues related to the effectiveness of the regulation of the oil industry by the state are becoming increasingly important. In January 2018, the World Economic Forum was held in Davos, which, in particular, noted the impact of the growth of protectionist trends in the global trade in hydrocarbons, and the impact of climate change on the planet on the export of hydrocarbons. As a result of the forum, the key ways of adjusting the policy of states in the relevant area were identified. At the same time, a significant number of states are already seeing the process of changing state regulation of the industry. In this article, the authors analyzed the systems of state regulation of the oil industry in different countries, and also gave assessments of the possibility of integrating new mechanisms into the system of sectoral management in Russia in the conditions of post-covid reality

scholarly journals Financial Stability and Climate Change

2020 ◽  
Vol 9 (3) ◽  
pp. 27-43
Author(s):  
Nikola Fabris
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Risk ◽  
Negative Impact ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Financial Risks ◽  
Balance Sheets ◽  
Sea Levels

AbstractFighting climate change is one of the biggest challenges in the 21st century. Climate change that leads to global warming has been increasingly visible in our environment. Extreme weather conditions such as hurricanes, floods, and droughts have been escalating and their acceleration can be expected in the future. They cause changes in sea levels, epidemics, large fires, etc. Increasingly, we are witnessing minor or major damage caused by these extreme weather conditions. Numerous studies have proven that climate change has negative impact on economic growth and prosperity. However, this paper starts from the premise that in addition to unequivocally identified threats, climate change also creates opportunities.The paper reaches a conclusion that climate change can adversely affect balance sheets of financial institutions. Therefore, climate change is a source of financial risk and thus a part of the mandate of central banks and supervisors in preserving financial stability. This type of risk has not been given enough attention by either supervisors or financial institutions over the past period. This paper develops a model for managing financial risks as a result of climate change.

scholarly journals Understanding the Incremental Impact of Built Environment on Climate Change of Metropolitan City Karachi

2020 ◽  
Vol 39 (4) ◽  
pp. 678-685
Author(s):  
Nimra Kanwal ◽  
Nuhzat Khan
Keyword(s):  
Climate Change ◽  
Energy Consumption ◽  
Residential Buildings ◽  
Building Design ◽  
High Energy ◽  
Metropolitan City ◽  
Green Area ◽  
The World ◽  
The Impact ◽  
The City

Buildings are the most important part of development activities, consumed over one-thirds of the global energy. Household used the maximum energy around the world, likewise in Pakistan residential buildings consumed about half of total energy (45.9% per year). The study aims to analyze the impact of building design on climate of Metropolitan City Karachi, Pakistan and to evaluate the change in urbanization patterns and energy consumption in the buildings. To have better understanding of the issues correlations was established amongst population, urbanization patterns, green area, number of buildings (residential and commercial), building design, energy consumption and metrological records (climate change parameters) by collecting the data from the respective departments. With the help of the collected data amount of carbon dioxide was estimated. The results reveled that during last 36 years the urban population of Karachi increased exponentially from 5,208,000 (1981) to 14,737,257 (2017) with increase in urbanized area from 8.35 km2 (1946) to 3,640 km2 (2017) that may led to reduce the green area of the city from 495,000 hectors (1971) to 100,000 hectors (2015). Moreover, the building’s design and numbers are being changed from 21 high-rise buildings (2009) to 344 (2017). It may be concluded that change in temperature pattern and climatic variability of the city may be due to increase in population and change in lifestyle that lead to high energy consumption that is prime source of increased in CO2 emission in the environment of Karachi city, However, Greenhouse Gases (GHG) releases are much lower than the levels reported from metropolitan cities around the world.

Sign in / Sign up

Export Citation Format

Share Document