in Faculty

UDLAP Faculty Participates in Financial Risk Congress in Colombia

  • The International Congress on Financial Risk in Medellín, Colombia, gathers researchers, academics, professionals, and businesspeople from all over the world.
  • The research paper presented by UDLAP faculty was on financial risk of weather disasters.

Dr. Nora Gavira Durón, professor of the Licenciatura in Bank and Investments and Dr. Einar G. Moreno Quezada, academic director of the Department of Finance and Accounting at Universidad de las Américas Puebla, participated in the 2018 International Congress of Financial Risk in Medellín, Colombia.

The UDLAP professors presented in this congress – which is a platform for researchers, academics, professionals, and businesspeople for the exchange of ideas, research results, and new developments in the field of financial risk – the paper Economic Hedge Against Weather Disasters Through Archimedean Copulas in Veracruz, México. “This research focuses on the extent and seriousness of natural disasters, especially flooding, in that specific Mexican location,” said Dr. Gavira.

“An important feature of this congress is the ample use of mathematical tools; everything must be based on robust mathematical models, not descriptive statistics.  In that sense we worked with new distribution proposals, model validity, and a lot of technical issues to get on that stage”, expressed Dr. Moreno.

Due to the quality of work required in the International Congress of Financial Risk, Dr. Moreno and Dr. Gavira shared the stage with speakers like Dr. Vasicek, one of the most recognized gurus in the financial world regarding rate models. “Sharing the forum with such speakers is very satisfying”, said Dr. Moreno.

The research presented in the congress, held in May, is a working paper that represents the hard work carried out by faculty and researchers, and the start of a great project.  Regarding this, Dr. Moreno said: “This will allow us to forecast with a minimum margin of error and help in budgeting enough funds to face disasters. Every place is identifying the weather conditions that will cause either drought or flooding”.

Regarding the importance of this research at a national level, Dr. Gavira expressed: “The water problem is big in Mexico and the world, and natural disasters due to excess or lack of water cost money. Our country has to finance the repair of natural disaster damages through FONDEN, which allocates a certain amount of money for each entity.  Thus, we want to determine if the money that FONDEN has for certain areas is enough, or how much must have accumulated in the event of a natural disaster, so people can benefit from these funds to rebuild and restore economic activity, minimizing future losses.”

UDLAP professors, through these participations, have a presence at international events, making Mexico, represented by the university, a reference point in financial cutting-edge technology in Latin America, “Not regarding the past, but regarding the evolution of new stochastic models for current financial modeling” specified Dr. Moreno Quezada.

Finally, Dr. Moreno added that “An important challenge is continuity; like Dr. Gavira said, we are working on this, but every day the public demands more, and a new university policy regarding publications asks that we work on submitting quality papers that can be published in world-class indexed journals.”