International Risk Conference on Banking and Finance, Italy
Does Corporate Water Risk Management Confer a Premium on Share Price Behavior?Tian, M., C. Liao, I. Mogosanu, and P. Adriaens
Water Risk Pricing in Equities & Indexes
About the Project
Water is an economic production factor for corporations in all sectors. We develop operational CRM and capital markets indicators to price water risk in share price behavior and corporate financial accounting.
In collaboration with Equarius Risk Analytics, a fintech company in the risk management space, and Kurita, a Japanese water solutions provider, we are building a software platform to quantify water risk in corporate operations and capital markets pricing.
The core of this project is to develop machine learning models that underpin the link between operational risk with financial risk to the company and its investors.
We seek to solve three questions: (1) how can water risk pricing be used to rank facilities risks; (2) how can simulations be built to explore the corporate investment risk and return to mitigate water risks; and (3) can the cost of capital be used to engage investors and build indexes to advance sustainable corporate growth.
With climate-related risks such as water increasingly being the subject of government and securities oversight, actionable financial insights are a new trend in data science.
Related
Water: Its Value And Risks
