Cass academic wins Lloyd’s Science of Risk Prize
Andreas Tsanakas awarded at Science of Risk conference.
Cass Business School's Dr Andreas Tsanakas and co-authors Jan Dhaene, Emiliano Valdez, and Steven Vanduffel have been awarded the Lloyd's Science Prize for Insurance Operations and Markets. Their paper 'Optimal capital allocation principles' examined the relationship between the level of capital held by a bank or an insurance company and how to allocate it against risk in the most effective way. The paper offers a unifying framework and interpretation for capital allocation, linking risk appetite and decision making. The judges recognised the paper's relevance for offering insights into how managers of organisations can highlight what elements of capital allocation calculations are important to them and their companies' needs.
The annual Lloyd's Science of Risk Prizes are split into five categories - climate change, biological/technological, natural hazards, insurance operations & markets and behavioural risk. The Science of Risk Prize was launched in 2010 to stimulate cutting edge research into the latest emerging risks facing business. Winning entries are presented at a half-day conference organised by Lloyd's.
Commenting on the prize, Dr Tsanakas said: "My co-authors and I are extremely pleased to be awarded this prize and to be given the opportunity to present our work at the Lloyd's Science of Risk Conference. The conference brought together practitioners and academics from diverse risk-related scientific areas and I found discussions with participants hugely informative and enriching."
A non-technical summary and a full version of the award-winning paper can be found on Cass Knowledge - research for business.