Enterprise Risk Management: Theory and Practice
33 Pages Posted: 4 Aug 2006
Date Written: July 2006
Abstract
In this paper, we explain how enterprise risk management creates value for shareholders. In contrast to the existing finance literature, we emphasize the organizational benefits of risk management. We show how a firm should choose its risk appetite and measure risk when implementing enterprise risk management. We also provide an extensive guide to the implementation issues faced by firms that implement enterprise risk management.
JEL Classification: G20, G21, G22, G30, G32, G34
Suggested Citation: Suggested Citation
Nocco, Brian W. and Stulz, Rene M., Enterprise Risk Management: Theory and Practice (July 2006). Available at SSRN: https://ssrn.com/abstract=921402 or http://dx.doi.org/10.2139/ssrn.921402
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