Enterprise Risk Management: Theory and Practice
Brian W. Nocco
Nationwide Insurance
Rene M. Stulz
Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)
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.
Number of Pages in PDF File: 33
JEL Classification: G20, G21, G22, G30, G32, G34
working papers series
Suggested Citation
Nocco, Brian W. and Stulz, Rene M., Enterprise Risk Management: Theory and Practice (July 2006). Available at SSRN: http://ssrn.com/abstract=921402 or http://dx.doi.org/10.2139/ssrn.921402
