Risk Conference 2021
Financial stability: how to flatten the curve?
A healthy economy is a stable economy, it enables companies as well as consumers to make investment and spending decisions with certainty. The level of stability is determined at various levels. Policymakers and investors are reluctant to make large investment decisions when the gap in performance between the market and the real economy is too big. Moreover, to achieve financial stability in Europe various countries have advocated for more financial integration among European countries. Not to mention, companies themselves often play a significant role in disrupting the economy. Platform companies, such as Thuisbezorgd or Felyx, disrupt their respective industries. A lack of stability in the economy often implies incomplete information on business practices. To handle this, accountants provide sustainability reports besides traditional financial reports.
The Gap between the Market and the Real EconomyAs of March 2020, large gaps between the stock market and the real economy have been observed. Thousands of people continue to lose their jobs, while stocks outperform their pre-crisis levels. What kind of factors explain this observation? Do high stock prices signal that the economy will recover in no-time? How do high-frequency traders achieve incredible returns by turning high market volatility into their advantage?
The Danger of an Unbalanced EurozoneOne pillar of economic integration among EU countries is strong financial stability between European countries. To finance the government's high spending during the crisis, countries have proposed various instruments, such as Eurobonds. Eurobonds are heavily supported by Southern European countries, while the Netherlands and other countries are sceptical about issuing ‘collective debt’. What exactly are the pros and cons of Eurobonds?
Disruptors of the Status QuoThe current pandemic has impacted people’s lives in ways previously thought impossible. Economists estimate that 42% of jobs lost during the pandemic will not return. How to deal with this? What skills will be valued in a post-pandemic economy and how can employers adapt to this? Which jobs are likely to never return? How can students ready to enter the workforce brace themselves for entering a weakened economy? Will remote working last forever?
Embracing Transparency through Integrated ReportingIn recent years, it has become impossible for companies to deny their corporate social responsibility implement integrated reporting. Not only do accountants help to provide integrated reports, they also give the reports value and creditworthiness. What does the increasing interest in integrated reporting mean for the accountancy practice in the future? What kind of standards need to be developed? To what extent are companies obliged to provide integrated reports?