Evaluating Corporate Strategic Plans Risk-Based Approach
Journal of Financial Management and Analysis, Vol. 29(1):2016
Posted: 26 Oct 2016
Date Written: October 24, 2016
Stemming from a systemic approach to corporate strategic planning and management which considers the firm as a viable system, the aim of our paper is to describe a conceptual and analytical model to assess corporate strategic plans exposure to risk. Analyzing the firm plan through the systemic framework, our approach, named Risk Compliant Valuation, focuses on qualifying the plan, and assessing the coherence of the plan, placing it in a matrix of development alternatives. Finally, it focuses on making assumptions about probability distributions for the relevant parameters in each period over the life of the plan and then uses these distributions to calculate the maximum possible present loss concerning the plan.
Keywords: Corporate Strategic Planning; Risk Compliant Evaluation Model
JEL Classification: C12; C82; D81; G31; O52
Suggested Citation: Suggested Citation