Since the last decade, the need for more inter-relationships amongst the diverse sectors of the risk business has become clear and indispensable. There is a huge want for reflection between all the actors, both professionals and academics, of the financial and actuarial activities. The CEnter for Financial Risks Analysis (CEFRA), a new research center at EM Lyon Business School, attempts to stimulate exchanges in this direction with the ambition to fill in the gap between the different fields of the risk industry and thus to favour the development of convergences and new research subdomains in the finance, risk management and insurance domains.
The seeds of convergence appear to be multiple and have arisen in practical and theoretical domains ranging from actuarial mathematics to prudential (Solvency II, Basle 3) standards. In particular, many financial contracts are nothing but insurance policies and similarly insurance liabilities should be valued using the classical toolbox of financial theory. Life insurance guarantees are indeed complex exotic options and to price these contributions to the liabilities part of the balance sheet, following the fair value constraints imposed by the IASB, the material allowing to price equity and interest rate derivatives should be used. Reinsurance treaties can be mimicked by the market which has started offering various hedging tools such as weather or energetic derivatives. Risk management is also a main topic for both domains. Credit risk is, for instance, a major concern for both financial institutions and insurance companies, as well as risk theory, which underlies the most recent developments on economic capital assessment. Measuring value and assigning premia are in fact nothing but the common aims of financial and actuarial activities.
Organized by Academics from EM Lyon, internal and external seminars are scheduled regularly at EM Lyon. Each workshop focuses on a particularly up-to-date topic. The external workshop presents four talks and a special address, all given by leading academics and/or practitioners.