Call for Papers
Numerous terms entered the risk taxonomy during the last decade. These terms identify risks that are both truly new and existing but newly prominent factors that impact volatility in financial markets. Within the context of financial services industry, these new or emerging risks have been referred to as non-financial risks. According to a global advisory firm this “is a broad term that is usually defined by exclusion, that is, any risks other than the traditional financial risks of market, credit, and liquidity”. In a declaration of non-financial performance section of its recent regulatory filing, a major global bank lists, among others, the following non-financial factors: climate risk, cybersecurity risk, and geopolitical risk. Although some novel risks may be labeled as non-financial, their impact needs to be measured financially. The recent global pandemic highlights the challenges in identifying emerging risks and measuring their impact on volatility. This special issue of the Journal of Portfolio Management will include impactful research focusing on the identification and measurement of novel risks with specific attention to their implication for portfolio management.
In a broader sense, portfolio managers have a particular interest in the risks that arise from ESG, healthcare, sustainability, technology related shortcomings and the uncertainty caused by potential domestic as well as global policy and regulatory responses. Measurement of these novel risks are more challenging than the ones historically managed by portfolio managers such as market risk, credit risk and, to a certain extent, operational risks. In addition to the measurement issue, identifying whether and how much these novel risks factor into portfolio performance contribute to volatility is of interest to practitioners, policy makers, and academics. Furthermore, measuring these novel risks likely necessitates both the development and use of contemporary techniques such as machine learning and artificial intelligence as well as alternative data sources such as those based on textual analysis and blockchains.
HOW CAN I SUBMIT MY RESEARCH?
To submit a paper for publication consideration, go to https://www.editorialmanager.com/iij-jpm/default.aspx. All papers are refereed. There is no submission fee. When submitting a paper for this special issue, indicate just above the title of the paper: FOR NOVELLUS PERICULA SPECIAL ISSUE.
The deadline for submission is February 1, 2021 and the issue will be published in July 2021.
