Coping with Credit Risk

We consider a pool of bank loans subject to a credit risk and develop a method for decomposing the credit risk into idiosyncratic and systemic components. The systemic component accounts for the aggregate statistical difference between credit defaults in a given period and the long-run average of these defaults. We show how financial contracts might be redesigned to allow for banks to manage the idiosyncratic component for their own accounts, while allowing the systemic component to be handled separately. The systemic component can be retained, passed off to the capital markets, or shared with the borrower. In the latter case, we introduce a type of floating rate interest, in which the rate is set in arrears, based on a composite index for the systemic risk. This is shown to increase the efficiency of risk sharing between borrowers, lenders and the capital market.

"Consumption Insurance and Risk-Coping Strategies under Non-Separable Utility: Evidence from the Kobe Earthquake"

Using a unique household-level dataset on the situation after the Kobe earthquake in 1995, we test the full consumption risk sharing hypothesis, relaxing the separability assumption, and examine households' simultaneous choice of risk coping measures. Using multivariate probit estimations, we find that the full consumption insurance hypothesis is strongly rejected and our results indicate that households' utility across different expenditure items is not separable. As for households' choice of risk-coping measures, households borrowed extensively against housing damage, but relied on dissaving to cope with smaller asset damage, implying a hierarchy of risk-coping measures from dissaving to borrowing.

Consumption Insurance and Risk-Coping Strategies under Non-Separable Utility: Evidence from the Kobe Earthquake

Using a unique household-level dataset on the situation after the Kobe earthquake in 1995, we test the full consumption risk sharing hypothesis, relaxing the separability assumption, and examine households' simultaneous choice of risk coping measures. Using multivariate probit estimations, we find that the full consumption insurance hypothesis is strongly rejected and our results indicate that households' utility across different expenditure items is not separable. As for households' choice of risk-coping measures, households borrowed extensively against housing damage, but relied on dissaving to cope with smaller asset damage, implying a hierarchy of risk-coping measures from dissaving to borrowing.

Healthcare professionals should be mindful that victims and victim-bullies may have additional health needs associated with risk-taking behaviour

Commentary on: Kritsotakis G, Papanikolaou M, Androulakis E, et al. Associations of bullying and cyberbullying with substance use and sexual risk taking in young adults. J Nurs Scholarsh 2017;49:360–70. • The effects of bullying and cyberbullying can be linked to a number of health risk behaviours, education and healthcare professionals need to include prevention and intervention strategies within educational curricula, building on replacing maladaptive coping strategies with adaptive responses. • Future research should explore the adaptive and maladaptive coping mechanisms employed by victims and victim-bullies during the transition to adulthood and how this impacts on their relationships

Drought Risk and Drought Response in Morocco: Vulnerability, Risk Perceptions and Drought Coping Among Rainfed Cereal Farmers

drought, coping, vulnerability, risk, Community/Rural/Urban Development, Food Security and Poverty, Risk and Uncertainty,

Influence of psychological coping on survival and recurrence in people with cancer: systematic review

OBJECTIVE: To summarise the evidence on the effect of psychological coping styles (including fighting spirit, helplessness/hopelessness, denial, and avoidance) on survival and recurrence in patients with cancer. DESIGN: Systematic review of published and unpublished prospective observational studies. MAIN OUTCOMES MEASURES: Survival from or recurrence of cancer. RESULTS: 26 studies investigated the association between psychological coping styles and survival from cancer, and 11 studies investigated recurrence. Most of the studies that investigated fighting spirit (10 studies) or helplessness/hopelessness (12 studies) found no significant associations with survival or recurrence. The evidence that other coping styles play an important part was also weak. Positive findings tended to be confined to small or methodologically flawed studies; lack of adjustment for potential confounding variables was common. Positive conclusions seemed to be more commonly reported by smaller studies, indicating potential publication bias. CONCLUSION: There is little consistent evidence that psychological coping styles play an important part in survival from or recurrence of cancer. People with cancer should not feel pressured into adopting particular coping styles to improve survival or reduce the risk of recurrence. [References: 42

Evaluation of a Coping Kit of Items to Support Children with Developmental Disorders in the Hospital Setting

This study attempted to answer the question, Do nurses perceive coping kits to be effective at meeting the needs of hospitalized children with developmental disabilities who are at increased risk for challenging behaviors? A cross-sectional post-test survey study design was used, with a convenience sample of 24 registered nurses at a Midwestern free-standing children\u27s hospital. A coping kit with simple communication cards, social script book, and distraction items (toys) was developed to enhance communication and distract children with developmental disabilities (including autism spectrum disorder) undergoing procedures in the hospital. A modified version of Hudson\u27s (2006) intervention effectiveness survey was used to measure the nurse\u27s perception of the effectiveness of the coping kit. Nurses perceived the coping kits to be effective for decreasing their patient\u27s anxiety, calming the child\u27s behavior, and increasing cooperation during procedures. The nurse can develop a plan of care that includes a coping kit to help gain cooperation with the hospitalized child with challenging behaviors

Helping the poor manage risk better : the role of social funds

Recent trends in trade, technology, and politics have created new opportunities for global welfare improvement, but have also increased risks. This challenge requires rethinking social protection, and its instruments, particularly social funds. This paper reviews social funds, and suggests future directions by using a"social risk management"framework, to examine how social funds can help the poor manage risk better. Risk management covers risk reduction, risk mitigation, and risk coping. Analyzing social funds within the social risk management framework, suggests that: they should be assessed as one of many components in countries'social risk management strategies; they should move from coping and mitigation, to risk reduction; they should focus more on the medium term impact of projects; their targeting should focus on vulnerability, and vulnerable groups; their"investment menus"should be expanded to include more risk reduction projects; and, more emphasis should be given to participation, and capacity building.Banks&Banking Reform,Social Risk Management,Environmental Economics&Policies,Rural Poverty Reduction,Safety Nets and Transfers

Getting through : children and youth post-disaster effective coping and adaptation in the context of the Canterbury earthquakes of 2010-1012 : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Psychology at Massey University, Wellington, Aotearoa/New Zealand

The study aims to understand how children cope effectively with a disaster, and to identify resources and processes that promote effective coping and adaptation. The context is the 2010–2012 Canterbury earthquake disaster in New Zealand. This qualitative study explores coping strategies in forty-two children from three age groups: five, nine and fifteen year-olds (Time 1). It draws on data from semi-structured interviews with the children, their parents, teachers and principals of five schools in Canterbury. Two schools in Wellington, a region with similar seismic risk, served as a useful comparison group. All children were interviewed twenty months after the first earthquake (T1) during an ongoing aftershock sequence, and six selected children from Christchurch were interviewed again (Time Two), three years after the initial earthquake. Findings have identified multiple inter-connected coping strategies and multi-level resources in the children and in their immediate contexts; these were fundamental to their post-disaster adaptation. Children who coped effectively used a repertoire of diverse coping strategies adapted to challenges, and in a culturally appropriate and flexible manner. Coping strategies included: emotional regulation, problem-solving, positive reframing, helping others, seeking support, and ―getting on‖. Although emotional regulation was important in the immediate aftermath of an earthquake, children adapting positively used heterogeneous combinations of coping strategies and resources. Proximal others provided coping assistance through modelling and coaching. Intra and interpersonal resources, such as self-efficacy and supportive parental and teacher relationships that promoted children‘s effective coping are identified and discussed. Children who coped effectively with the disaster appeared to have a larger coping repertoire and more practise in use than children in the Wellington comparison group, who were coping essentially with age appropriate challenges. By Time Two, all children in the cohort reported coping effectively, that they were stronger from their experience and had shifted their focus so that their coping skills were now employed for everyday challenges and for moving on with their lives, rather than focused on managing disaster events. Findings suggest that children can be coached to learn effective coping. Key recommendations are made for effective interventions for children and caregivers around children‘s effective coping and adaptation, and avenues for future research are detailed