center for the economic analysis of risk mission, vision and goals statement georgia state...

Center for the Economic Analysis of Risk

Mission, Vision and Goals Statement

Georgia State University J. Mack Robinson

COLLEGE OF BUSINESS


CEAR

o The Center for the Economic Analysis of Risk (CEAR) was formed under the Area of Focus Program sponsored by university provost

o Cooperative effort ofo Robinson College of Business

o Department of Risk Management and Insurance (lead unit)o Department of Financeo School of Accountancy

o Andrew Young School of Policy Studieso Department of Economics

o Federal Reserve Bank of Atlanta

o Initial fundingo $400k in year 1o $400k million in year 2 o $1.4 million each year thereafter


CEAR Mission and Vision

The mission of the Center for the Economic Analysis of Risk (CEAR) is to conduct and promote economic research on the measurement and management of risks faced by individual, institutions and societies.

Our vision is that CEAR will establish ‘risk’ as a new academic discipline and become the world’s intellectual leader in the conduct and dissemination of this scholarship.


CEAR GoalsOur vision will be realized when we have achieved the following goals:

o Conduct research that informs scholarly and policy debate on the most important and compelling economic and social questions related to risk.

o Be recognized as the leading collaborative research center that enables scholars from around the world to meaningfully interact to address these important topics.

o Foster a critical mass of academics/researchers from multiple disciplines including economics, accounting, finance, law and mathematics who identify themselves as risk scholars.

o Propagate the next generation of risk scholars.

o Become a leading resource for policymakers and business professionals seeking to address challenging risk problems.


Envisioned Organizational Structure

CEAR Program Mgmt. - Executive Director - Business Manager

- Web and IT Support

Steering Comm./Board of Advisors

Individual SocietyInstitutional

Quantitative and Experimental Methods


CEAR Scope of ActivitiesCEAR areas of inquiry will be identified, prioritized and then defined around each decision making unit facing the risky decision. The CEAR governance structure will establish and regularly review these areas of inquiry and also facilitate research synergies across the topics. Sample areas of research focus are shown below.

CEAR Areaof Inquiry

Individual Institution Society

Insurance Markets

Demand for annuitization in retirement

Pricinginsurance risks

Optimal social insurance programs

Credit RiskHousehold financial

decisions

Optimal credit risk management in

financial institutions

Optimal regulation to mitigate and monitor systemic risk in credit

markets

Political RiskCorporate risk

management in emerging markets

Legal frameworks

Decision making under uncertainty

Variations in risk attitudes across gains

and losses

Enterprise risk management and

corporate governance

Optimal regulatory structure on risky

decisions by individuals


Strategic Goal 1: Conduct research that informs scholarly and policy debate on the most important and compelling economic and social questions related to risk.

This goal will be realized when we achieve the following objectives:

o CEAR leadership identifies the most compelling research themes and then attracts the world’s premier scholars to conduct research in the chosen areas.

o The CEAR Scientific Advisory Committee regularly meets with CEAR leadership to review accomplishments of the current areas of inquiry and assists identifying future topics.

o The representatives will have research interests in the measurement and management of risk coming from leading U.S. and international universities or from major commercial and governmental organizations whose missions are to promote the economic security of individuals, institutions and societies.

o Create a culture that fosters debate and inquiry across the individual research topics in addition to enabling deep investigation within each defined project.

o Efficiently inform public, private and academic communities regarding the outcomes of CEAR research that recognizes the specific strategies these groups use to become informed.


Strategic Goal 2: Be recognized as the leading collaborative research center that enables scholars from around the world to meaningfully interact to address these important topics.


o CEAR will have an infrastructure that allows the world’s leading risk scholars to actively and meaningfully participate in CEAR activities. The majority of researchers will not be physically housed in Atlanta.

o A physical location for CEAR will designed that becomes the focal point for risk related scholarship worldwide.

o Leverage technology that allows CEAR affiliates to seamlessly interact and collaborate virtually.

o Provide computational and quantitative support to CEAR associates that maximizes the research outcomes in each area of focus.

o Foster meaningful interaction among CEAR associates byo Attracting associates that seek opportunities to conduct risk-related research

influenced by colleagues from other universities and/or from domains of expertise independent of their own.

o Providing opportunities for associates to develop and maintain collaborative relationships through

o Workshops, seminars and conferenceso Summer school programso Hosting risk-related research blogso Mentorship of junior associates and Ph.D. fellows by senior researchers in the field


Strategic Goal 3: Foster a critical mass of academics and researchers from multiple disciplines including economics, accounting, finance, law and mathematics who identify themselves as risk scholars.


o Scholars coming the core disciplines of economics, finance, statistics, etc., will conduct risk-related research at CEAR that, in part, requires their expertise.

o Over time and through opportunities to engage experts from related fields, CEAR associates will gain the knowledge and skills necessary to conduct important multi-disciplinary research in this emerging field.

o A significant number of present and former associates will be motivated to take advantage of the multi-disciplinary resources of CEAR to suggest and engage in future projects under the auspices of CEAR.


Strategic Goal 4: Propagate the next generation of risk scholars.


o Garner the financial resources necessary to attract a continuing flow of the world’s best and brightest Ph.D. students to study risk-related problems coming from economics, finance and other relevant disciplines.

o Create an intellectual environment for learning characterized by its quantitative and qualitative rigor through participation in coursework and an atmosphere that provides opportunities for CEAR Ph.D. Fellows to meaningfully interact with an interdisciplinary community of risk scholars.

o A majority of CEAR Ph.D. Fellows will be placed in aspirational universities and research centers emphasizing both the general interest fields of economics, finance and accounting as well in specialized risk management programs.

o Upon graduation, CEAR Ph.D. Fellows will continue to engage in multi-disciplinary risk-related research.


Strategic Goal 5: Become a leading resource for policymakers and business professionals seeking to address challenging risk problems.


o CEAR will provide an infrastructure and a set of common services that make it attractive for associates to secure external funding for their risk-related research through CEAR.

o CEAR will develop and maintain relationships with potential funders of risk-related research including governmental agencies, professional societies, and non-profitable charitable organizations to facilitate the identification and solicitation of funding.

o CEAR will be recognized as the first organization that governments and private organizations approach to conduct research on challenging risk problems.


High Level Implementation Plan

J ul-08

J an-09

J ul-09

J an-10

J ul-10

J an-11

J ul-11

J an-12

J ul-12

J an-13

BuildCEAR Strategy Development

Recruit CEAR EDConstruct Physical Location

Recruit Scientific Advisory CommitteeHire CEAR Staff

LaunchDevelop CEAR Website & Marketing Plan

Recruit CEAR Faculty for Acctm Econ & FnceSecure CEAR Program HeadsRecruit CEAR Ph.D. Fellows

Identify Initial Areas of InquiryRecruit CEAR Research Associates

ExcelLaunch Area of Inquiry 1

CEAR Ph.D. ProgramLaunch Area of Inquiry 2

Summer SchoolLaunch Area of Inquiry 3

Build CEAR Strategy Development Recruit CEAR ED Construct Physical Location Recruit Scientific Advisory Committee Hire CEAR Staff

Launch Develop CEAR Website & Marketing Plan Recruit CEAR Faculty for Acct, Econ & Fnce Secure CEAR Program Heads Recruit CEAR Ph.D. Fellows Identify Initial Areas of Inquiry Recruit CEAR Research Associates

Excel Launch Area of Inquiry 1 CEAR Ph.D. Program Launch Area of Inquiry 2 Summer School Launch Area of Inquiry 3


CEAR Steering Committee

The following individuals are dedicated to the development and successful launch of CEAR.

Richard D. Phillips (Committee Chair)Chair, Department of Risk Management and Insurance, Robinson College of Business

Gerald D. GayChair, Department of Finance, Robinson College of Business

Susan K. Laury Chair, Department of Economics, Andrew Young School of Policy Studies

Galen R. SevcikDirector, School of Accountancy, Robinson College of Business

Larry D. WallFinancial Economist and Policy Advisor, Federal Reserve Bank of Atlanta


The Environment to Launch CEARGeorgia State University, founded in 1913 and located in the heart of downtown Atlanta, is a

major research university with an enrollment of more than 27,000 undergraduate and graduate students in six colleges. Georgia State is the second largest university in the state, with students coming from every county in Georgia, every state in the nation and from over 145 countries.

The J. Mack Robinson College of Business is a recognized leader in business education and research with a world-class, critical mass of nearly 200 outstanding faculty and 7,000 students. The College’s premier programs - Flex MBA, Executive MBA, and undergraduate program - are all ranked among the best in the nation. The Flex MBA program has been listed in the U.S. News and World Report top ten for the past twelve consecutive years. Three academic units within the college will directly participate in CEAR including the Department of Finance, the School of Accountancy, as well as the Department of Risk Management and Insurance.

The international reputation of the Andrew Young School of Policy Studies is well established with more than 2600 books and papers published in the past ten years and nearly $140 million in external funding over the same period. Its public finance program is ranked 5th nationally by U.S. News & World Report. The Andrew Young School is also home to EXCEN – the largest experimental economics lab in the southeast region of the United States.

As one of the twelve banks in the Federal Reserve System, the Federal Reserve Bank of Atlanta has ongoing research interests in the measurement and management of risk. Housing economists with expertise in labor, macro, and financial economics, the bank’s research department is committed to providing intellectual support to CEAR and strengthening already existing ties with Georgia State University.

center for the economic analysis of risk mission, vision and goals statement georgia state...

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