Geographical Specifics of Global Risk Factor Exposure

The geographical specifics of global risk factor exposure are related to the distance of the region where the main business process or asset (if appropriate) is located from the magnetic poles, constantly drifting relative to fixed geographic coordinates. For example, the horizontal component of geomagnetic field H, which variation determines the index of geomagnetic activity, is proportional to the sine of magnetic declination. The lines of equal magnetic declination (isogones, agonic lines) are shifting with the secular movement of the Earth’s magnetic field.

image323

Fig. 3 Roman legal maxima interest rate vs. paleomagnetic declination, Roma (400 BC-300 AD)

Interest rates are known to include the risk premium. Figure 3 shows a similar behavior of secular magnetic declinations in the city of Rome, as found by the author from paleomagnetic maps, and that of maximum interest rate levels established by law in ancient Rome (Roman Legal Maxima Interest Rate) (400 bc-300 ad) (Homer and Sylla 1996).

Leave a reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>