Training the next generation of disaster risk managers through sustainability research and teaching
Main Article Content
Keywords
business education, disaster risk management, sustainable financial system, knowledge co-production
Abstract
Disaster risk management is an integral part of sustainability, and curricula that are focused on sustainability can be broadened to include disaster risk management. The David O’Brien Centre for Sustainable Enterprise at Concordia University researches and teaches disaster risk management through involvement in a collaborative project with the United Nations’ Future Earth network to develop a Sustainable Financial and Economic System Knowledge-to-Action Network (SFES-KAN). The definition of ‘sustainable’ in this context includes disaster risk management. The SFES-KAN aims to align the current financial system with the UN’s sustainable development goals by identifying research gaps and facilitating interdisciplinary research between academics, practitioners, and policymakers to fill those gaps. Our research on such topics as risk management and sustainable investing for the SFES-KAN project has translated into research on disaster risk management and has led to curriculum development on these topics. The goal of our paper is to provide other institutions with examples and strategic information on how to translate such interdisciplinary and solution-oriented sustainability research into research and curricula on disaster risk management.
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References
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Sharfman, M., & Fernando, C. (2008). Environmental risk management and the cost of capital. Strategic Management Journal, 29(6), 569-592.
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Weber, O. (2012). Environmental credit risk management in banks and financial service institutions. Business Strategy and the Environment, 21(4), 248-263. DOI: 10.1002/bse.737
Weber, O., Fenchel, M., & Scholz, R. W. (2008). Empirical analysis of the integration of environmental risks into the credit risk management process of European banks. Business Strategy and the Environment, 17(3), 149-159. DOI: 10.1002/bse.507
Weber, O., Hoque, A., & Ayub Islam, M. (2015). Incorporating environmental criteria into credit risk management in Bangladeshi banks. Journal of Sustainable Finance & Investment, 5(1-2), 1-15. DOI:10.1080/20430795.2015.1008736
Weber, O., Scholz, R., & Michalik, G. (2010). Incorporating sustainability criteria into credit risk management. Business Strategy and the Environment, 19(1), 39-50. DOI: 10.1002/bse.636
World Economic Forum. (2011). Accelerating the Transition towards Sustainable Investing Strategic Options for Investors, Corporations, and Other Key Stakeholders. Retrieved from http://dx.doi.org/10.2139/ssrn.1891834
Bank of England (2015, September 29). Breaking the tragedy of the horizon climate change and financial stability speech by Mark Carney. Retrieved from http://www.bankofengland.co.uk/publications/Pages/speeches/2015/844.aspx
Barrett, S. (2013). Local level climate justice? Adaptation finance and vulnerability reduction. Global Environmental Change, 23(6), 1819-1829. DOI: doi:10.1016/j.gloenvcha.2013.07.015
Basah, M., & Yusuf, M. (2013). Natural environmental risk management: Credit evaluation perspective of the Malaysian banking industry. In: Proceeding of the International Conference on Social Science Research, ICSSR, 4-5 June (pp. 1248-1258). Penang, Malaysia.
Bauer, R., & Hann, D. (2010). Corporate environmental management and credit risk. Retrieved from http://dx.doi.org/10.2139/ssrn.1660470
Bookstaber, R., Cetina, J., Feldberg, G., Flood, M., & Glasserman, P. (2013). Stress Tests to Promote Financial Stability: Assessing Progress and Looking to the Future. Office of Financial Research Working Paper, 10.
Borio, C., Drehmann, M., & Tsatsaronis, K. (2014). Stress-testing macro stress testing: does it live up to expectations? Journal of Financial Stability, 12(c), 3-15.
Botzen, W., & van den Bergh, J. (2008). Insurance against climate change and flooding in the Netherlands: Present, future, and comparison with other countries. Risk Analysis, 28(2), 413-426. DOI: 10.1111/j.1539-6924.2008.01035.x
Botzen, W., & van den Bergh, J. (2009). Bounded rationality, climate risks, and insurance: Is there a market for natural disasters? Land Economics, 85(2), 265-278.
Buchner, B., Falconer, A., Hervé-Mignucci, M., Trabacchi, C., & Brinkman, M. (2011). The landscape of climate finance. Climate Policy Initiative: Venice, 27.
Campbell, D., & Slack, R. (2011). Environmental disclosure and environmental risk: Skeptical attitudes of UK sellside bank analysts. The British Accounting Review, 43(1), 54-64. DOI:10.1016/j.bar.2010.11.002
Ciplet, D., Fields, S., Madden, K., Khan, M., & Roberts, J. T. (2012). The eight unmet promises of fast-start climate finance. IIED Briefing. November. Retrieved from http://pubs.iied.org/pdfs/17141IIED.pdf.
Clapp, C., Ellis, J., Benn, J., & Corfee-Morlot, J. (2012). Tracking Climate Finance. What and How? OECD Paper No. 2012(1). Paris: OECD.
Clarkson, P., Fang, X., Li, Y., & Richardson, G. (2013). The relevance of environmental disclosures: Are such disclosures incrementally informative? Journal of Accounting and Public Policy, 32(5), 410-431. DOI: 10.1016/j.jaccpubpol.2013.06.008
Climate Policy Initiative (2014). The Global Landscape of Climate Finance 2014. Venice: Climate Policy Initiative.
Doumpos, M., Zopounidis, C., & Fragiadakis, P. (2015). Assessing the financial performance of European banks under stress testing scenarios: a multicriteria approach. Operational Research, 1-13. DOI: 10.1007 s12351-015-0192-y
Falconer, A., & Stadelmann, M. (2014). What is Climate Finance? Definitions to improve tracking and scale up climate finance. San Francisco: Climate Policy Initiative.
Flannery, M., Hirtle, B., & Kovner, A. (2015). Evaluating the Information in the Federal Reserve Stress Tests (No. 744).
Goldman Sachs (2009). Change is coming: A framework for climate change – a defining issue of the 21st century. Retrieved from http://www.goldmansachs.com/our-thinking/archive/crossing-the-rubicon-immersive/change-is-coming-a-framework-for-climate-change.pdf
Gollier, C. (2005). Some aspects of the economics of catastrophe risk insurance. CESifo Working Paper Series No. 1409. Munich, Germany: Center for Economic Studies Ifo Institute. Retrieved from: http://ssrn.com/abstract=668384.
Hill Clarvis, M., Halle, M., Mulder, I., & Yarime, M. (2014). Towards a new framework to account for environmental risk in sovereign credit risk analysis. Journal of Sustainable Finance & Investment, 4(2), 147-160. DOI:10.1080/20430795.2013.837810
Hu, M., & Li, W. (2015). A comparative study on environment credit risk management of commercial banks in the Asia-Pacific region. Business Strategy and the Environment, 24(3), 159-174. DOI: 10.1002/bse.1810
IMF. (2008). World Economic Outlook: Housing and the Business Cycle, Chapter 4: Climate Change and the Global Economy. International Monetary Fund (IMF), April 2008.
Katzman, M. (1988). Pollution liability insurance and catastrophic environmental risk. Journal of Risk and Insurance, 55(1), 75-100. DOI: 10.2307/253282
KPMG International (2012). Expect the Unexpected: Building business value in a changing world. Retrieved from http://www.kpmg.com/dutchcaribbean/en/Documents/FINAL_WebAccessible.pdf.
Lajili, K., & Zéghal, D. (2005). A content analysis of risk management disclosures in Canadian annual reports. Canadian Journal of Administrative Sciences, 22(2), 125-142. DOI: 10.1111/j.1936-4490.2005.tb00714.x
Liedtke, P. M., Schanz, K. U., & Stahel, W. R. (2014). Climate change as a major risk management challenge: How to engage the global insurance industry. The Geneva Reports, 2(1), 153-188.
Liu, Y., & Lin, Z. (2014). Understanding the external pressure and behavior of commercial banks' environmental risk management: An empirical study undertaken in the Yangtze River Delta of China. Ambio, 43(3), 395-405. DOI: 10.1007/s13280-013-0414-6
Lloyds of London (2014). Catastrophe modelling and climate change. Lloyds of London Report 2014. Retrieved from https://www.lloyds.com/~/media/lloyds/reports/emerging%20risk%20reports/cc%20and%20modelling%20template%20v6.pdf
Mercer (2011). Climate Change Scenarios – Implications for Strategic Asset Allocation. Retrieved from http:// www.mercer.com/content/dam/mercer/attachments/global/investments/responsible-investment/Climate-change-scenarios-Implications-for-strategic-asset-allocation.pdf
Mol, A. P., He, G., & Zhang, L. (2011). Information disclosure in environmental risk management: Developments in China. Journal of Current Chinese Affairs, 40(3), 163-192.
Ong, L. L., & Pazarbasioglu, C. (2014). Credibility and crisis stress testing. International Journal of Financial Studies, 2(1), 15-81.
Oliver Wyman. (n.d.). Emerging Risks. Retrieved from http://www.oliverwyman.com/what-we-do/risk-management/emerging-risks.html
Pickering, J., Wood, P. J., & Jotzo, F. (2015). Sharing the Global Climate Finance Effort Fairly with Limited Coordination. Global Environmental Politics, 15(4), 39-62. DOI: :10.1162/GLEP_a_00325
Pittel, K., & Rübbelke, D. (2013). International climate finance and its influence on fairness and policy. The World Economy, 36(4), 419-436. DOI: 10.1111/twec.12029
Risky Business. (2014). A Climate Risk Assessment for the United States. Retrieved from http://riskybusiness.org/site/assets/uploads/2015/09/RiskyBusiness_Report_WEB_09_08_14.pdf
Robins, N. (2014). Integrating Environmental Risks into Asset Valuations: The potential for stranded assets and the implications for long-term investors. International Institute for Sustainable Development. Retrieved from: http:// www.iisd.org/publications/integrating-environmental-risks-assetvaluations-potential-stranded-assets.
S&P (2014). Climate Change Is a Global Mega-trend for Sovereign Risk. Standard & Poor's, Ratings Direct, May 15, 2014. Retrieved from http://maalot.co.il/publications/GMR20140518110900.pdf
Schoenmaker, D., Van Tilburg, R., & Wijffels, H. (2015). What role for financial supervisors in addressing systemic environmental risks? Duisenberg School of Finance Policy Paper, (50).
Schroeder, M. (2013). Environmental insurance: A risk management tool for real estate. Environmental Claims Journal, 25(2), 99-110. DOI :10.1080/10406026.2013.781471
Sharfman, M., & Fernando, C. (2008). Environmental risk management and the cost of capital. Strategic Management Journal, 29(6), 569-592.
Spencer, T., Zou, S., Ribera, T., Colombier, M. (2015). Mapping issues and options on climate finance in 2015, Working Papers N°08/15. Paris: IDDRI.
Stadelmann, M., Michaelowa, A., & Roberts, J. T. (2013). Difficulties in accounting for private finance in international climate policy. Climate Policy, 13(6), 718-737. DOI: 10.1080/14693062.2013.791146
Thompson, P., & Cowton, C. (2004). Bringing the environment into bank lending: Implications for environmental reporting. The British Accounting Review, 36(2), 197-218. DOI: 10.1016/j.bar.2003.11.005
Tol, R. (1998). Climate change and insurance: A critical appraisal. Energy Policy, 26(3), 257-262. DOI: 10.1016/ S0301-4215(97)00143-2
UNEP Inquiry (2015). Design of a Sustainable Financial System: The Financial System We Need: Aligning the Financial System with Sustainable Development. Retrieved December 1, 2015 from http://apps.unep.org/publications/index.php?option=com_pub&task=download&file=011830_en
U.S. Bancorp (2013). Comprehensive Capital Analysis and Review 2014 Summary Instructions and Guidance. Retrieved from http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20131101a2.pdf
Weber, O. (2012). Environmental credit risk management in banks and financial service institutions. Business Strategy and the Environment, 21(4), 248-263. DOI: 10.1002/bse.737
Weber, O., Fenchel, M., & Scholz, R. W. (2008). Empirical analysis of the integration of environmental risks into the credit risk management process of European banks. Business Strategy and the Environment, 17(3), 149-159. DOI: 10.1002/bse.507
Weber, O., Hoque, A., & Ayub Islam, M. (2015). Incorporating environmental criteria into credit risk management in Bangladeshi banks. Journal of Sustainable Finance & Investment, 5(1-2), 1-15. DOI:10.1080/20430795.2015.1008736
Weber, O., Scholz, R., & Michalik, G. (2010). Incorporating sustainability criteria into credit risk management. Business Strategy and the Environment, 19(1), 39-50. DOI: 10.1002/bse.636
World Economic Forum. (2011). Accelerating the Transition towards Sustainable Investing Strategic Options for Investors, Corporations, and Other Key Stakeholders. Retrieved from http://dx.doi.org/10.2139/ssrn.1891834
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Jul 19, 2016
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How to Cite
Addas, A., Kibsey, S. D., Ng, G., & Walker, T. (2016). Training the next generation of disaster risk managers through sustainability research and teaching. AD-Minister, (28), 157–176. https://doi.org/10.17230/ad-minister.28.8
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Author Biography
Amr Addas, John Molson School of Business, Concordia University, Montreal
Lecturer at the Finance Department and the Goodman Institute of Investment Management at John Molson School of Business, Concordia University. He is also the principal at Addas Financial Consulting, offering financial consulting services and newsletters to financial advisors and portfolio managers. Amr is also a Research Associate with the David O’Brien Centre for Sustainable Enterprise(DOCSE) and a member of the Core Faculty for the Sustainable Investment Professional Certificate (SIPC) program. He obtained his MBA from the University of Michigan at Ann Arbor in 1995 and his B.Sc. in Mechanical Engineering from the American University in Cairo in 1991. Amr is an active member of the CFA Institute.Authors who publish with this journal agree to the following terms:
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