Center for the Economic Analysis of Risk Mission, Vision and Goals Statement

1. GeorgiaStateUniversityJ. Mack Robinson COLLEGE OF BUSINESS Center for the Economic Analysis of RiskMission, Vision and Goals Statement

2. CEAR • The Center for the Economic Analysis of Risk (CEAR) was formed under the Area of Focus Program sponsored by university provost • Cooperative effort of • Robinson College of Business • Department of Risk Management and Insurance (lead unit) • Department of Finance • School of Accountancy • Andrew Young School of Policy Studies • Department of Economics • Federal Reserve Bank of Atlanta • Initial funding • $400k in year 1 • $400k million in year 2 • $1.4 million each year thereafter

3. CEAR Mission and Vision The missionof the Center for the Economic Analysis of Risk (CEAR) is to conduct and promote economic research on the measurement and management of risks faced by individual, institutions and societies. Our vision is that CEAR will establish ‘risk’ as a new academic discipline and become the world’s intellectual leader in the conduct and dissemination of this scholarship.

4. CEAR Goals Our vision will be realized when we have achieved the following goals: • Conduct research that informs scholarly and policy debate on the most important and compelling economic and social questions related to risk. • Be recognized as the leading collaborative research center that enables scholars from around the world to meaningfully interact to address these important topics. • Foster a critical mass of academics/researchers from multiple disciplines including economics, accounting, finance, law and mathematics who identify themselves as risk scholars. • Propagate the next generation of risk scholars. • Become a leading resource for policymakers and business professionals seeking to address challenging risk problems.

5. Envisioned Organizational Structure Steering Comm./Board of Advisors CEAR Program Mgmt. - Executive Director - Business Manager - Web and IT Support Individual Institutional Society Quantitative and Experimental Methods

6. CEAR Scope of Activities CEAR areas of inquiry will be identified, prioritized and then defined around each decision making unit facing the risky decision. The CEAR governance structure will establish and regularly review these areas of inquiry and also facilitate research synergies across the topics. Sample areas of research focus are shown below.

7. Strategic Goal 1: Conduct research that informs scholarly and policy debate on the most important and compelling economic and social questions related to risk. This goal will be realized when we achieve the following objectives: • CEAR leadership identifies the most compelling research themes and then attracts the world’s premier scholars to conduct research in the chosen areas. • The CEAR Scientific Advisory Committee regularly meets with CEAR leadership to review accomplishments of the current areas of inquiry and assists identifying future topics. • The representatives will have research interests in the measurement and management of risk coming from leading U.S. and international universities or from major commercial and governmental organizations whose missions are to promote the economic security of individuals, institutions and societies. • Create a culture that fosters debate and inquiry across the individual research topics in addition to enabling deep investigation within each defined project. • Efficiently inform public, private and academic communities regarding the outcomes of CEAR research that recognizes the specific strategies these groups use to become informed.

8. Strategic Goal 2: Be recognized as the leading collaborative research center that enables scholars from around the world to meaningfully interact to address these important topics. This goal will be realized when we achieve the following objectives: • CEAR will have an infrastructure that allows the world’s leading risk scholars to actively and meaningfully participate in CEAR activities. The majority of researchers will not be physically housed in Atlanta. • A physical location for CEAR will designed that becomes the focal point for risk related scholarship worldwide. • Leverage technology that allows CEAR affiliates to seamlessly interact and collaborate virtually. • Provide computational and quantitative support to CEAR associates that maximizes the research outcomes in each area of focus. • Foster meaningful interaction among CEAR associates by • Attracting associates that seek opportunities to conduct risk-related research influenced by colleagues from other universities and/or from domains of expertise independent of their own. • Providing opportunities for associates to develop and maintain collaborative relationships through • Workshops, seminars and conferences • Summer school programs • Hosting risk-related research blogs • Mentorship of junior associates and Ph.D. fellows by senior researchers in the field

9. Strategic Goal 3: Foster a critical mass of academics and researchers from multiple disciplines including economics, accounting, finance, law and mathematics who identify themselves as risk scholars. This goal will be realized when we achieve the following objectives: • Scholars coming the core disciplines of economics, finance, statistics, etc., will conduct risk-related research at CEAR that, in part, requires their expertise. • Over time and through opportunities to engage experts from related fields, CEAR associates will gain the knowledge and skills necessary to conduct important multi-disciplinary research in this emerging field. • A significant number of present and former associates will be motivated to take advantage of the multi-disciplinary resources of CEAR to suggest and engage in future projects under the auspices of CEAR.

10. Strategic Goal 4: Propagate the next generation of risk scholars. This goal will be realized when we achieve the following objectives: • Garner the financial resources necessary to attract a continuing flow of the world’s best and brightest Ph.D. students to study risk-related problems coming from economics, finance and other relevant disciplines. • Create an intellectual environment for learning characterized by its quantitative and qualitative rigor through participation in coursework and an atmosphere that provides opportunities for CEAR Ph.D. Fellows to meaningfully interact with an interdisciplinary community of risk scholars. • A majority of CEAR Ph.D. Fellows will be placed in aspirational universities and research centers emphasizing both the general interest fields of economics, finance and accounting as well in specialized risk management programs. • Upon graduation, CEAR Ph.D. Fellows will continue to engage in multi-disciplinary risk-related research.

11. Strategic Goal 5: Become a leading resource for policymakers and business professionals seeking to address challenging risk problems. This goal will be realized when we achieve the following objectives: • CEAR will provide an infrastructure and a set of common services that make it attractive for associates to secure external funding for their risk-related research through CEAR. • CEAR will develop and maintain relationships with potential funders of risk-related research including governmental agencies, professional societies, and non-profitable charitable organizations to facilitate the identification and solicitation of funding. • CEAR will be recognized as the first organization that governments and private organizations approach to conduct research on challenging risk problems.

12. High Level Implementation Plan

13. CEAR Steering Committee The following individuals are dedicated to the development and successful launch of CEAR. Richard D. Phillips (Committee Chair) Chair, Department of Risk Management and Insurance, Robinson College of Business Gerald D. Gay Chair, Department of Finance, Robinson College of Business Susan K. Laury Chair, Department of Economics, Andrew Young School of Policy Studies Galen R. Sevcik Director, School of Accountancy, Robinson College of Business Larry D. Wall Financial Economist and Policy Advisor, Federal Reserve Bank of Atlanta

14. Georgia State University, founded in 1913 and located in the heart of downtown Atlanta, is a major research university with an enrollment of more than 27,000 undergraduate and graduate students in six colleges. Georgia State is the second largest university in the state, with students coming from every county in Georgia, every state in the nation and from over 145 countries. The J. Mack Robinson College of Business is a recognized leader in business education and research with a world-class, critical mass of nearly 200 outstanding faculty and 7,000 students. The College’s premier programs - Flex MBA, Executive MBA, and undergraduate program - are all ranked among the best in the nation. The Flex MBA program has been listed in the U.S. News and World Report top ten for the past twelve consecutive years. Three academic units within the college will directly participate in CEAR including the Department of Finance, the School of Accountancy, as well as the Department of Risk Management and Insurance. The international reputation of the Andrew Young School of Policy Studies is well established with more than 2600 books and papers published in the past ten years and nearly $140 million in external funding over the same period. Its public finance program is ranked 5th nationally by U.S. News & World Report. The Andrew Young School is also home to EXCEN – the largest experimental economics lab in the southeast region of the United States. As one of the twelve banks in the Federal Reserve System, the Federal Reserve Bank of Atlanta has ongoing research interests in the measurement and management of risk. Housing economists with expertise in labor, macro, and financial economics, the bank’s research department is committed to providing intellectual support to CEAR and strengthening already existing ties with Georgia State University. The Environment to Launch CEAR