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Abstract
Properly assessing time is fundamental to risk governance and risk management. However, two recent studies reveal systemic weaknesses in how accurately future events are discounted. The first reveals that distant cash flows are over discounted and the second suggests that self-defined time horizons are ineffective and ignored.
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Author's Biography
Jon Lukomnik serves as managing partner of Sinclair Capital, a strategic consultancy in asset management, corporate governance and risk management. He has advised a number of Fortune 100 companies, as well as top asset management firms on four continents. He is also the Executive Director of the Investor Responsibility Research Center (IRRC) Institute. He was recently named one of the 100 most influential people in corporate governance by the National Association of Corporate Directors. Jon serves as a trustee for the Van Eck family of mutual funds and on the investment committees for three not-for-profit organisations. He previously served on the official creditors’ committees in the restructurings of Worldcom and Adelphia, the Boards of Sears Canada, Auto Europe, and GovernanceMetrics International (which he co-founded) and the Council of Institutional Investors, and on the international advisory board of NYSE-Euronext. Jon is a co-founder of the International Corporate Governance Network.
Citation
Lukomnik, Jon (2012, March 1). Our inability to judge time frames. In the Journal of Risk Management in Financial Institutions, Volume 5, Issue 2. https://doi.org/10.69554/ZYQO5790.Publications LLP