33 Pages Posted: 4 Aug 2006
Date Written: July 2006
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
By René Stulz
By Robert Rosen