"Returns on property are relatively uncorrelated with the market, so they can provide a good spread of risk".
If a firm gets into trouble, as with Drexel and Barings, the clearinghouse prevents spread of risk.
And whereas the Chinese ports will be linked almost solely to the fortunes of the Chinese economy, Singapore will, of course, have a much better spread of risk.
Foreign banks have a far wider spread of risk, and can call on head office to help if need be.For every advantage that banking FDI offers the emerging-market economy, state ownership brings with it a corresponding disadvantage.
Genpact, the former offshore BPO arm of General Electric, also based in India, intends to triple its staff in Dalian from 1,800 to more than 5,000.This expansion is being driven by burgeoning demand from overseas clients who want lower costs, a better spread of risk and local support for their growing Chinese operations.
The spread of risk is reputational as well as financial and technical.
It can also be seen that, when segments are far apart in terms of network distance, there is negligible spread of risk from one to the other, even if they are close in purely spatial terms; this is contrary to what is predicted by models which do not incorporate the street network, and arises simply because risk is constrained to spread only along links.
This includes constraints on policies that limit the size of financial institutions, ban especially risky financial products or require firewalls to limit the spread of risk across financial products.
The rise in temperature also accounts for the change in risk from overwintering larvae with the increased temperature in the winter months permitting their survival and development, resulting in a spread of risk heading north along the West Coast.
