Shareowners need to get back in control over the corporations they own. Check out here for the organization I am supporting. The question is: how to shape a future in which excellent corporate governance is a prerequisite for any company to get funding and succeed?
I have just submitted a short research paper for this award. This was one of the opportunities to shape the future which James McRitchie suggested in his post. You can find the paper here. It is such a pity I was not able to invest more then a few hours in compiling it.
The aim of the paper is to create a bridge between the field of statistical modeling of extreme events (which is purely based on mathematics & probability theory) and the field of sustainable (or responsible) investments (which is largely considering business & economic reasoning as of now). A new quantitative measure for portfolio management in the framework of the classical modern portfolio theory (MPT) is explained and illustrated by a simple example. The aim of the measure is to enable easier integration of integrate environmental, social and governance (ESG) factors into the investment decision process. The measure is based on credit risk mathematics and enables quantification of the impact of global shocks affecting multiple asset classes (e.g. water shortages, strict environmental legislation, etc.).