Prof. Morellec writes as “L'Invité” at Le Temps
© 2011 EPFL
Erwan Morellec, Professor at the Swiss Finance Institute @ EPFL and Head of the Swiss Finance Institute PhD program, has been “L’Invité” at Le Temps of 20. April 2011.
In his article, Prof. Morellec writes about the changes in the role of finance in today’s societies and in financial education brought about by the 2008 / 2009 financial crisis. Recent events have given rise to a number of new topics for research in finance, putting in question elements of classical financial theory as well as certain “dangerous behaviors” that have been observed in society and have for example led to the “subprime” crisis.
These new topics have important repercussions on some traditional financial domains, such as the asset allocation, as well as on the way financial institutions, society and the government address financial questions today. “Responsible investments”, “sustainable investments” or “green investments” are just a few key words that have emerged from the discussions, as have fundamental questions such as the role of finance in society, its role in risk management and in the creation of employment.
Taken up by academics, these topics are also taking effect in the education of students, where “ethical” themes are making their way into curriculums. New courses such as “Corporate Governance” or “Risk Management” have been incorporated in the Bachelor and Master programs at the University of Lausanne and EPFL. A number of private and public institutions are also participating in this change, such as the Swiss Finance Institute and the NCCR FINRISK who are supporting a research program named “Finance and Society”.
Without a doubt, a paradigm shift is underway with important repercussions on our society. Prof. Morellec concludes that to make this shift a success and to avoid repeating the mistakes of the past, a lot of work is still necessary involving all stakeholders of this revolution (financial industry, universities, governments) and avoiding dogmatic opinions. And despite all efforts and goodwill, he concedes that – where money is concerned - certain behaviors are probably very difficult to eliminate.
To read the full article, visit: www.letemps.ch of 20 April 2011.