ETHNOGRAPHYOFRISK

Interdisciplinary advances on behavioural theories of financial risk-taking: Innovative insights from a video-ethnography of live trading in global reinsurance markets

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 Obiettivo del progetto (Objective)

'This project will develop the applicant into a leader in the topic of social and material influences on financial risk-taking in the reinsurance industry. The reinsurance sector is dominated by European players that hold 64% of the industry’s global market share. Hence, in this sector, Europe must establish globalisation on its own terms, developing thought leaders to take their place on the world stage. The fellow has a unique dataset on this industry, of unparalleled scale and depth, comprising audio and video ethnography of live trading in 23 firms across the London, continental Europe and Bermuda markets. This dataset can be used to generate important interdisciplinary advances in behavioural theories of risk. However, there are few techniques for robust analysis of video data, requiring expanded skills and methodological innovation. She will therefore work with an interdisciplinary team of world-leading scholars in economic sociology, technology studies and ethnography at a top US university, Cornell, in order to generate the following results:

1. A book and academic papers built upon interdisciplinary frameworks at the intersection of economic sociology, technology studies and ethnography, which advance behavioural theories of risk-taking beyond current economics-based approaches. 2. Better understanding of how cultural variation in risk-trading practices shapes financial markets, which counteracts the Anglo-American assumptions that dominate existing theory. 3. Methodological innovation in ethnography, which requires a step change to meet the opportunities afforded by the increasing availability of portable digital video technology and home analysis software 4. Development of a rising European scholar into a thought leader on behavioural approaches to financial risk management, who comments knowledgably on the European reinsurance sector, and is internationally acknowledged for innovative methodological approaches to these important global issues.'

Introduzione (Teaser)

Most of the largest reinsurance companies are based in Europe, accounting for about one third of the world market share. An EU initiative set out to provide better insight into trading practices and risks in order to make Europe an authority in the sector.

Descrizione progetto (Article)

Europe is a major player in global reinsurance, but it is not necessarily recognised as the foremost authority whose expertise is sought after.

To help achieve this, the EU-funded ETHNOGRAPHYOFRISK project brought together an interdisciplinary team of researchers to investigate how people relate to tools and technologies in reinsurance trading, and the implications of such interactions for financial risk taking and assessment. The findings will lead to the development of an innovative model for understanding risk-trading and global markets.

During the first reporting period, several academic papers were published in industry and academic journals that drew heavily on the fields of economic sociology, technology and ethnography. The aim was to develop risk-taking theories that go beyond existing economics-based perspectives. Work has also begun on a book to complement the papers.

Additional papers were published on how different risk-trading procedures influence financial markets around the world. Six of the papers were recognised for their academic excellence and influence on the industry.

Research findings have been presented at various key industry events, and at European and North American universities.

Researchers are analysing video recording data of real-time trading in different companies. Results will advance behavioural theories of risk.

Thanks to its research outcomes, ETHNOGRAPHYOFRISK is already being widely acknowledged for its award-winning and novel behavioural approaches to financial risk management. The project is well on its way to producing European thought leaders amongst major global reinsurers.