Time horizon

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A time horizon, also known as a planning horizon, is a fixed point of time in the future at which point certain processes will be evaluated or assumed to end. It is necessary in an accounting, finance or risk management regime to assign such a fixed horizon time so that alternatives can be evaluated for performance over the same period of time. A time horizon is a physical impossibility in the real world.

Although short term horizons such as end of day, end of week, end of month matter in accounting, generally it is mere summing-up and the simplest mark to market processes that take place at these short term horizons. No scenario analysis or mark to future activities are usually undertaken for such short periods, except for very large portfolios.

The most common horizons used in planning are one "quarter" (a quarter year, or three months), a year, two years, three years, four years (especially in a representative democracy where this is a quite common term of office and election cycle) and five years (in corporate planning). More far-sighted companies and government agencies may also use between ten and one hundred years. Thirty years is often used in mortgage contracts and US Treasury bonds such as the "long bond". The Forestry Commission in the UK plans over a century into the future.

Agreeing on a common time horizon for action is particularly important in global policy, as each participant will have very different time horizon habits. Achieving simultaneous policy is quite difficult without an agreement, as those taking action early may be seriously disadvantaged in competition with those taking action late on a regulatory matter. One attempt to bring about a global simultaneous policy is being attempted by the International Simultaneous Policy Organization's SIMPOL campaign. [1]

Also, in terms of physics, the term "time horizon" is also synonymous with event horizon, first identified in Stephen Hawking's A Brief History of Time.[ citation needed ] Hawking stated that the time horizon is the boundary that separates a black hole from other celestial bodies. Even time and light cannot escape once trapped in the black hole.

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Black hole Astronomical object that has a very strong gravity such that nothing can escape

A black hole is a region of spacetime where gravity is so strong that nothing – no particles or even electromagnetic radiation such as light – can escape from it. The theory of general relativity predicts that a sufficiently compact mass can deform spacetime to form a black hole. The boundary of no escape is called the event horizon. Although it has a great effect on the fate and circumstances of an object crossing it, it has no locally detectable features according to general relativity. In many ways, a black hole acts like an ideal black body, as it reflects no light. Moreover, quantum field theory in curved spacetime predicts that event horizons emit Hawking radiation, with the same spectrum as a black body of a temperature inversely proportional to its mass. This temperature is of the order of billionths of a kelvin for stellar black holes, making it essentially impossible to observe directly.

The holographic principle is a tenet of string theories and a supposed property of quantum gravity that states that the description of a volume of space can be thought of as encoded on a lower-dimensional boundary to the region — such as a light-like boundary like a gravitational horizon. First proposed by Gerard 't Hooft, it was given a precise string-theory interpretation by Leonard Susskind, who combined his ideas with previous ones of 't Hooft and Charles Thorn. Leonard Susskind said, “The three-dimensional world of ordinary experience––the universe filled with galaxies, stars, planets, houses, boulders, and people––is a hologram, an image of reality coded on a distant two-dimensional (2D) surface." As pointed out by Raphael Bousso, Thorn observed in 1978 that string theory admits a lower-dimensional description in which gravity emerges from it in what would now be called a holographic way. The prime example of holography is the AdS/CFT correspondence.

<i>A Brief History of Time</i> 1988 book by Stephen Hawking

A Brief History of Time: From the Big Bang to Black Holes is a book on theoretical cosmology by English physicist Stephen Hawking. It was first published in 1988. Hawking wrote the book for readers who had no prior knowledge of physics.

Hawking radiation Thermal radiation emitted outside the event horizon of a black hole

Hawking radiation is black body radiation that is theorized to be released outside a black hole's event horizon because of relativistic quantum effects. It is named after the physicist Stephen Hawking, who developed a theoretical argument for its existence in 1974. Hawking radiation is a purely kinematic effect that is generic to Lorentzian geometries containing event horizons or local apparent horizons.

White hole Hypothetical region of spacetime

In general relativity, a white hole is a theoretical region of spacetime and singularity that cannot be entered from the outside, although energy-matter, light and information can escape from it. In this sense, it is the reverse of a black hole, which can be entered only from the outside and from which energy-matter, light and information cannot escape. White holes appear in the theory of eternal black holes. In addition to a black hole region in the future, such a solution of the Einstein field equations has a white hole region in its past. This region does not exist for black holes that have formed through gravitational collapse, however, nor are there any observed physical processes through which a white hole could be formed.

Penrose–Hawking singularity theorems Key results in general relativity on gravitational singularities

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Monetary policy Policy of interest rates or money supply

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International Simultaneous Policy Organization

The International Simultaneous Policy Organisation (ISPO) is a voluntary organization that promotes the Simultaneous Policy (Simpol) campaign. It was founded by British businessman, John Bunzl, in 2000.

The European Monetary System (EMS) was a multilateral adjustable exchange rate agreement in which most of the nations of the European Economic Community (EEC) linked their currencies to prevent large fluctuations in relative value. It was initiated in 1979 under then President of the European Commission Roy Jenkins as an agreement among the Member States of the EEC to foster monetary policy co-operation among their Central Banks for the purpose of managing inter-community exchange rates and financing exchange market interventions.

Black hole information paradox Mystery of disappearance of information in a black hole

The black hole information paradox is a puzzle that appears when the predictions of quantum mechanics and general relativity are combined. The theory of general relativity predicts the existence of black holes that are regions of spacetime from which nothing — not even light — can escape. In the 1970s Stephen Hawking applied the rules of quantum mechanics to such systems and found that an isolated black hole would emit a form of radiation called Hawking radiation. Hawking also argued that the detailed form of the radiation would be independent of the initial state of the black hole and would depend only on its mass, electric charge and angular momentum. The information paradox appears when one considers a process in which a black hole is formed through a physical process and then evaporates away entirely through Hawking radiation. Hawking's calculation suggests that the final state of radiation would retain information only about the total mass, electric charge and angular momentum of the initial state. Since many different states can have the same mass, charge and angular momentum this suggests that many initial physical states could evolve into the same final state. Therefore, information about the details of the initial state would be permanently lost. However, this violates a core precept of both classical and quantum physics—that, in principle, the state of a system at one point in time should determine its value at any other time. Specifically, in quantum mechanics the state of the system is encoded by its wave function. The evolution of the wave function is determined by a unitary operator, and unitarity implies that the wave function at any instant of time can be used to determine the wave function either in the past or the future.

In black hole physics and inflationary cosmology, the trans-Planckian problem is the problem of the appearance of quantities beyond the Planck scale, which raise doubts on the physical validity of some results in these two areas, since one expects the physical laws to suffer radical modifications beyond the Planck scale.

Impossible trinity Economic impossibility

The impossible trinity is a concept in international economics which states that it is impossible to have all three of the following at the same time:

Career management is the combination of structured planning and the active management choice of one's own professional career. Career Management is an umbrella term that covers Career Planning & Career Development on an individual level or at an organizational level. Career management also covers talent management, as part of a talent retention strategy. Career management was first defined in a social work doctoral thesis by Mary Valentich as the implementation of a career strategy through the application of career tactics in relation to chosen career orientation. Career orientation referred to the overall design or pattern of one's career, shaped by particular goals and interests and identifiable by particular positions that embody these goals and interests. Career strategy pertains to the individual's general approach to the realization of career goals, and to the specificity of the goals themselves. Two general strategy approaches are adaptive and planned. Career tactics are actions to maintain oneself in a satisfactory employment situation. Tactics may be more or less assertive, with assertiveness in the work situation referring to actions taken to advance one's career interests or to exercise one's legitimate rights while respecting the rights of others.

Integrated coastal zone management (ICZM), integrated coastal management (ICM), or integrated coastal planning is a coastal management process for the management of the coast using an integrated approach, regarding all aspects of the coastal zone, including geographical and political boundaries, in an attempt to achieve sustainability. This concept was born in 1992 during the Earth Summit of Rio de Janeiro. The specifics regarding ICZM is set out in the proceedings of the summit within Agenda 21, Chapter 17.

The following outline is provided as an overview of and topical guide to finance:

Mortgage loan Loan secured using real estate

A mortgage loan or simply mortgage, in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word mortgage is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form of a collateral for a benefit (loan)".

Asset and liability management is the practice of managing financial risks that arise due to mismatches between the assets and liabilities as part of an investment strategy in financial accounting.

Korea Investment Corporation (KIC) is a sovereign wealth fund established by the government of South Korea in 2005. Its mission is to preserve and enhance the long-term purchasing power of South Korea's sovereign wealth(foreign reserves) through efficient management of public funds in the international financial markets. KIC manages assets entrusted by the Government, the Bank of Korea, and other public funds as defined under the National Finance Act. KIC directly invests the entrusted assets or re-entrusts the assets to external managers. KIC's Total assets under management stood at US$131.6 billion at the end of the fourth quarter of 2018. KIC is frequently imitated by many bogus companies in the hope of receiving "investment" from overseas clients. Of course these funds are not used for the purposes stated and the clients money is lost. Prospective customers should ensure that the company they are dealing with is in fact who they say they are.

Asset Economic resource, from which future economic benefits are expected

In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything that can be used to produce positive economic value. Assets represent value of ownership that can be converted into cash . The balance sheet of a firm records the monetary value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business.

Event horizon Region in spacetime from which nothing can escape

In astrophysics, an event horizon is a boundary beyond which events cannot affect an observer. Wolfgang Rindler coined the term in the 1950s.


  1. Simpol.org - Campaign concept