BNET Business Dictionary

Business Definition for: Risk-bearing Economy Of Scale

  • conducting business on such a large scale that the risk of loss is reduced because it is spread over so many independent events, as in the issuance of insurance policies

Additional Resources

An Introduction to CFDs | BTalk Australia
(16min 40) CFDs Contracts for Difference are a way to trade in global commodities, including shares, in a highly geared way. If you’re used to trading in shares this could be a useful next step so long as you’re aware of the risks. On today’s BTalk Australia...
Tags: Risk, Loss, Stock, Australia, Product, Client, Currency, Money, CFD, Investment, Finance, Phil Dobbie
Blog posts 2009-02-26
From Equity Premium Puzzle to Expectations Puzzle: A General Equilibrium Production Economy With Stochastic Habit Formation
This paper develops a general equilibrium model for a representative agent, production economy with stochastic internal habit formation. The model describes a scale-independent economy, with a unique stochastic investment opportunity set. Local correlation between the stochastic interest rate and time-varying market price of risk can be determined endogenously and leads...
Tags: Bond, Equity, New York University, Investment, Financial Services, Finance
White papers 2000-05-22
Australia to enjoy robust recovery, OECD says: Economy Roundup
The organisation's semi-annual economic outlook has said the country's recovery will proceed as expected, and that other countries will fall behind in terms of economic performance. "Australia is likely to experience a relatively more robust recovery," the report stated. "Current economic trends and the reduction in negative macroeconomic risks argue...
Tags: economy, J.P. Morgan Chase & Co., business, Recovery, Australia
News items 2009-11-19
The Forgotten Strategy
The Idea in Brief Multinationals' global operations consistently underperform their domestic operations. Why? These companies' strategies focus mostly on similarities across their markets: whenever possible, global companies standardize their business models to achieve economies of scale. They...
Tags: Arbitrage, Strategy, Multinational, Pankaj Ghemawat, Transportation, Financial Services, Molson, Difference, U.S., Harvard Business Review, In Brief
Articles 2007-11-02
Investment Risk in Africa Now on Par with Asia
The Find: More than half of M&A deal-makers expressed significant interest in China, India and Southeast Asia despite their belief that risks in the region nearly equal those in Africa. The Source: "M&A Beyond Borders: Opportunities and Risks," commissioned...
Tags: Jessica Stillman, Finance, Investment, M&A, Asia, Mergers & Acquisitions, China, Africa
Blog posts 2008-04-22
Is the end of the credit crunch finally in sight?
This week marks the second anniversary of the beginning of the most traumatic global financial crisis in living memory, a crash that has brought banks to their knees, triggered the deepest recession since the 1930s and stretched the finances of some families to breaking point. August 9, 2007, will go...
Tags: Bank, mortgage
News items 2009-08-14
A Federal Role for Terrorism Risk
The September 11 terrorist attack on the U.S. has changed this country forever, affecting all areas of the economy. Although the insurance industry is being severely tested, it will survive and, in large measure, perform well, paying policy benefits quickly for most coverage. The ability of the industry to survive...
Tags: Towers Perrin, Terrorism, Homeland Security, Corporate Insurance, Business Security, Government, Business Operations
White papers 2001-03-01
ADVISORY/Experts Available To Talk About The Global Economy, APEC
Business Editors ADVISORY... --BUSINESS WIRE--Oct. 17, 2001TOPIC: Experts are calling this week's forum of Asian Pacific Economic Cooperation nations in Shanghai a significant event on the world economic front, since much of the world is currently at risk or in a recession. According to a story by CNN,...
Tags: analyst, Business Wire, economist, equity, FINANCE, Investment, Research In Motion Ltd.
Research articles 2001-10-17
Cutting Sales Costs, Not Revenues
Courageous companies can use the downturn to make their sales operations not only less expensive but also more effective. There's a reason companies fear experimenting with the sales force: it is the engine that drives revenue. No matter how patched up or spluttering that engine...
Tags: Sales Force, Back-office, Sales Strategy, Sales Force Management, sales, revenue, downturn, Anupam Agarwal, Eric Harmon, and Michael Viertler, Anupam Agarwal, Eric Harmon, and Michael Viertler
Articles 2009-05-15
A Car Guy's Electric Moment
As a third-generation GMer, Jon Lauckner is fiercely committed to restoring greatness to America?s biggest car company. The VP of global product planning and the man behind the Chevy Volt, is determined to go big or go home. ...
Tags: Concept, Car, Vehicle, Concept Car, Battery, General Motors Corp., Car Guy, Chevy Volt, Gasoline Engine, Volt, Innovation, Car Industry, Prius, Lithium-Ion, Battery Cells, Hybrids, Fuel Economy, Bob Lutz, Virtual Technology, Detroit Auto Show, Jon Lauckner, as told to Cait Murphy, Jon Lauckner, as told to Cait Murphy
Articles 2009-11-11
Creative Destruction and the Financial Crisis: An Interview with Richard Foster
A coauthor of Creative Destruction explains how the business world—and the capitalist system—will change in the aftermath of the financial crisis. Richard Foster, a McKinsey director from 1982 to 2004, is a coauthor of Creative Destruction: Why Companies That Are Built to Last Underperform the...
Tags: McKinsey & Co., Financial, Mutual Fund, Equity, Financial Crisis, Quarterly, Mutual Funds, Retirement Plans, Investment, Financial Services, Financial Accounting, Human Resources, Benefits, Finance, Functions, Strategy, Growth, McKinsey
Articles 2009-01-12
What Are Analysts Saying About eBay's Analyst Day?
Scot Wingo submits: Wednesday eBay EBAY had their first Analyst day in three years. We had lots of coverage here at eBay Strategies and are continuing with the Wall St. reaction followed by one last summary piece later today. Here's a guide to the coverage: Part I -...
Tags: Internet, Scot Wingo, eBay Inc.
External links 2009-03-12
Three-way MPC Split "not Surprising"
By Sumeet Desai and David MillikenLONDON (Reuters UK) - The three-way split among monetary policymakers' last meeting should be no surprise given the economy is at a turning point, Bank of England Governor Mervyn King said on Tuesday.The central bank's Monetary Policy Committee voted to increase its asset-buying or quantitative...
Tags: Asset, Bank, Imbalance, Asset Management, Financial Services, Operational Planning, Finance, Level
News items 2009-11-24
Webster Financial Corporation Q3 2007 Earnings Call Transcript
Question-and-Answer SessionOperator Thank you. [Operator instructions]. Okay, our first question comes from the line of Mark Fitzgibbon with Sandler O'Neill. Please proceed with your question. Mark Fitzgibbon - Sandler O'Neill & Partners Hi, good morning. Gentlemen, you guys have had a... some pretty bad luck with...
Tags: Webster Financial Corp.
Earnings calls 2007-10-24
The Downturn's New Rules for Marketers
The old recession playbook won't work this time around. Around the world, marketing and sales executives are being asked to do more with less. It's a demand many have heard in previous hard times, and most managers muddled through then. But the nature of the...
Tags: Vehicle, Advertisement, Customer, Manufacturing, Sales Strategy, Sales Force Management, Marketing Research, Sales, Marketing, Functions, Sectors & Regions, McKinsey
Articles 2009-01-12
BlackRock, Inc. Q3 2007 Earnings Call Transcript
Question-and-Answer Session Operator [Operator Instructions]. Your first question comes from Craig Siegenthaler with Credit Suisse. Craig Siegenthaler - Credit Suisse Thanks. The performance fee number, you mentioned international equity hedge funds, can you give us some more detail what's in this number in terms of...
Tags: BlackRock Inc.
Earnings calls 2007-10-17
Niall Ferguson: Forget Gloom -- Think Doom!
Niall Ferguson: Forget Gloom -- Think Doom!RE: Niall Ferguson: Forget Gloom -- Think Doom!Mr. Ferguson is correct in that things will get worse before they get better. In addition to manipulation of oil prices that will further strain the economy and perhaps create shortages, you'll see the Russians mounting more...
Tags: Vertical industries, Mortgages, government, Niall Ferguson, Gloom, mortgage
Discussion threads 2008-09-23
Strategy in a ‘Structural Break'
During hard times, a structural break in the economy is an opportunity in disguise. To survive—and, eventually, to flourish—companies must learn to exploit it. There is nothing like a crisis to clarify the mind. In suddenly volatile and different times, you must have...
Tags: Break, Capital Structures, Economy, Finance, Financial-services Industry, Functions, Management, McKinsey, Mortgages, Strategic Thinking, Strategy
Articles 2009-01-12
Hawaiian Electric Industries, Inc. Q2 2008 Earnings Call Transcript
Question-and-Answer SessionOperator Operator instructions Your first question comes from the line of Paul Patterson with Glenrock Associates. Please proceed. Paul Patterson – Glenrock Associates Good morning guys. Connie Lau Hi Paul. Paul Patterson – Glenrock Associates I wanted to touch base with you guys on...
Tags: Hawaiian Electric Industries Inc.
Earnings calls 2008-08-05
The rough road to recovery
FT.com A year ago, the world economy fell into a deep recession. Now, happily, we see financial stabilisation and economic recovery. But we must not declare victory. The world could still make two mistakes: first, we might withdraw stimulus too soon; second, we might lose the opportunity for reform. We...
Tags: Recovery, Financial, IMF
News items 2009-10-06