Interview with Tomas Krabec: His Appointment to the IVSC Financial Instruments Board and Its Contribution to Both Students and the University as a Whole

We are delighted to announce a momentous achievement for Prague University of Economics and Business as Associate Professor Dr. Tomas Krabec has been appointed to the Financial Instruments Board of the International Valuation Standards Council (IVSC). IVSC is responsible for setting the International Valuation Standards (IVS), which are used in more than 100 countries to promote quality, consistency, and comparability in the valuation of all assets and liabilities. Dr. Krabec, who has been an integral part of our academic and research community since 2005, has been selected for this prestigious position through a rigorous worldwide selection process. What is the contribution of this appointment to both students and the University as a whole?

As the Prague University of Economics and Business (VŠE) is the only academic member organization of the IVSC from the Czech Republic, our University takes immense pride in this appointment. Dr. Krabec’s appointment is a testament to his exceptional academic prowess and extensive international experience. With a strong background in business valuation and valuation of financial instruments, he is recognized as one of the leading experts in the field, specializing in valuation review and reconciliation. His expertise has been honed through teaching engagements in various universities worldwide, spanning from China to Peru, Croatia to Finland, and beyond.

This appointment marks a significant milestone for the Prague University of Economics and Business. Dr. Krabec’s presence on the IVSC Financial Instruments Board will elevate the university’s relevance and impact on a global scale. Moreover, it offers our students, academic members, and alumni unparalleled access to cutting-edge knowledge disseminated through the activities and mission of the IVSC. We extend our heartfelt congratulations to Associate Professor Dr. Tomas Krabec on this remarkable achievement, and we look forward to the continued success and contributions he will bring to both the IVSC and our University.

Dr. Krabec, congratulations on your appointment to the Financial Instruments Board of the IVSC. Could you please elaborate on what this nomination means for the Prague University of Economics and Business?

Thank you. This nomination means a significant recognition of our University’s expertise in the field of valuation and financial instruments. A big gratitude belongs foremost to Ing. Barbora Rydlova, Ph.D., the Head of the Department of Corporate Finance and Valuation, whose leadership made it possible several years ago that our University joined the IVSC.

I prize Barbora Rydlova for being a respected expert in the area of business valuation, having vast experience as an expert witness herself. Her insight allows her to recognize the significance of our University’s involvement with the IVSC. As the only academic member of the IVSC from the Czech Republic, this appointment elevates VŠE’s standing on the global stage and underscores our commitment to excellence in research and education.

How do you anticipate this appointment will positively impact the University?

This appointment creates pathways for collaboration and knowledge exchange with prominent professionals and institutions in the global valuation field. Consequently, it can enrich the quality and pertinence of our academic programs and research endeavors, granting our students access to cutting-edge insights and practical opportunities.

Moreover, this appointment fosters closer ties between the University and organizations where our students will likely pursue their careers, many of which are actively engaged with IVSC. By staying abreast of the latest standards and discussions at the international level, students will be better equipped to navigate their professional journeys.

An example of successful collaboration is evident in the invitation extended to Prof. Stephani Mason from DePaul University in Chicago, who serves on the IVSC Financial Instruments Board. Prof. Mason’s participation as a keynote speaker at a scientific conference (Czech Valuation Forum) organized by the Department of Valuation and Corporate Finance of our University, in conjunction with the American Society of Appraisers, underscores the benefits of such partnerships.

Will this appointment influence students in any way, such as in the quality or content of their education?

Absolutely. Through my involvement with IVSC, I aim to integrate real-world perspectives and industry best practices into our curriculum. Students will benefit from exposure to international standards and practices, preparing them for successful careers in valuation and related fields.

How did you become involved in IVSC activities, and why do you perceive involvement in this organization as important?

My involvement with IVSC stems from a culmination of academic expertise and practical experience in the field of valuation. Through advisory roles within the Czech Republic’s Ministry of Justice and extensive research in business valuation, I recognized the importance of aligning our practices with international standards.

IVSC provides a platform to contribute to the development and implementation of these standards, ensuring consistency and transparency in valuation practices globally. Joining the Financial Instruments Board is an opportunity for me to give back to the valuation profession, driven by the profound impact IVS has had on my career.

From the outset, I have relied on IVSC as an invaluable risk management and quality enhancement tool in my valuation practice. The standards have been instrumental in shaping my professional journey, ensuring consistency and excellence in my work. As an advocate for global standards, I am eager to share my experiences and contribute to advancing the quality and transparency of valuation practices.

What will your appointment to the IVSC board entail in terms of responsibilities and duties? What experiences or challenges do you anticipate?

As a board member, my responsibilities will include shaping and overseeing the implementation of IVSC standards and initiatives. This involves engaging in discussions, providing insights, and collaborating with experts from diverse backgrounds to ensure the relevance and applicability of these standards.

It will also likely involve dialogue with key financial actors, including regulators such as the European Central Bank (ECB) and the European Banking Authority (EBA), as well as central banks and other standards bodies responsible for developing and setting international standards. Anticipated challenges include navigating complex valuation issues and balancing the diverse interests of stakeholders.

However, I see these challenges as opportunities for growth and collaboration. Leveraging my academic and practical experience, I aim to contribute meaningfully to the advancement of valuation practices globally. As an ambassador for global standards, I will advocate for the importance of transparency and consistency in valuations worldwide. This role presents an opportunity to champion these principles and ensure their integration into the fabric of international financial practices.

doc. Ing. Tomas Krabec, Ph.D., MBA

Assistant Professor, Department of Corporate Finance and Valuation, Faculty of Finance and Accouting 

Doc. Dr. Krabec’s influence extends beyond academia. As the Chairman of the Board of Forensic Economy by the Ministry of Justice, he plays a pivotal role in shaping the regulation and conduct of the valuation profession in the Czech Republic. His invaluable contributions, including advisory roles to the Ministry of Justice and a proven track record as an expert witness within the judicial process in the Czech Republic, garnered strong support for his candidacy to the IVSC’s Financial Instruments Board from the Prague University of Economics and Business, as well as both the Ministry of Justice and the Office of the Government of the Czech Republic.

International Valuation Standards Council (IVSC)

Sponsored by the likes of the World Bank, and with a formal consultative role within the United Nations Economic and Social Committee, the IVSC is headquartered in London but operates globally. The IVSC’s Financial Instruments Board brings together world leading experts to set IVS for these complex and pervasive assets, which play a hugely influential role in shaping global financial markets today.