Skip to main content
SpringerLink
Log in

A Practical Perspective on Corporate Risk Management

  • Chapter
  • First Online:
The Palgrave Handbook of Unconventional Risk Transfer

  • 1001 Accesses

Abstract

The essay draws on ideas from across knowledge silos in order to provide a pragmatic examination of the risk management concept in a corporate setting. The essay explores: the need to allow into our thinking the notion that risk and uncertainty are distinct; the practical challenges of implementing the idea that the price of any single risk facing the corporate risk manager also depends on how it associates with all the other risks facing the firm; a tractable strategy for the risk manager given that there is not a consensus on why corporations manage risk. A possible way forward is a management strategy that conceptualizes risk as tactical and as strategic.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aretz, K., and S. Bartram. 2010. Corporate Hedging and Shareholder Value. Journal of Financial Research 33 (4): 317–371.

    Article  Google Scholar 

  • Artzner, P., F. Delbaen, J.-M. Eber, and D. Heath. 1999. Coherent Measures of Risk. Mathematical Finance 9 (3): 203–228.

    Article  Google Scholar 

  • Csoka, P., J.-J. Herings, and L. Koczy. 2007. Coherent Measures of Risk from a General Equilibrium Perspective. Journal of Banking and Finance 31 (8): 2517–2534.

    Article  Google Scholar 

  • Douglas, M., and A. Wildavsky. 1982. Risk and Culture. Berkeley: University of California Press.

    Google Scholar 

  • Eeckhoudt, L., and C. Gollier. 2005. The Impact of Prudence on Optimal Prevention. Economic Theory 26 (4): 989–994.

    Article  Google Scholar 

  • Elahi, S. 2011. Here be Dragons … Exploring the ‘Unknown Unknowns’. Futures 43 (2): 196–201.

    Article  Google Scholar 

  • Ericson, R., and A. Doyle, eds. 2003. Risk and Morality. Toronto: University of Toronto Press.

    Google Scholar 

  • Franke, G., H. Schlesinger, and R. Stapleton. 2011. Risk Taking with Additive and Multiplicative Background Risk. Journal of Economic Theory 146 (4): 1547–1568.

    Article  Google Scholar 

  • Jensen, M., and W. Meckling. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics 3 (4): 305–360.

    Article  Google Scholar 

  • Kahneman, D., and A. Tversky. 1979. Prospect Theory: An Analysis of Decision under Risk. Econometrica 47 (2): 263–291.

    Article  Google Scholar 

  • Klein, G. 1998. Sources of Power: How People Make Decisions. Cambridge, MA: MIT Press.

    Google Scholar 

  • Merton, R. 1973. An Intertemporal Capital Asset pricing Model. Econometrica 41 (5): 867–887.

    Article  Google Scholar 

  • Power, M. 2009. The Risk Management of Nothing. Accounting, Organizations and Society 34 (6/7): 849–855.

    Article  Google Scholar 

  • Samson, S., J. Reneke, and M. Wiecek. 2009. A Review of Different Perspectives on Uncertainty and Risk and an Alternative Modeling Paradigm. Reliability Engineering and System Safety 94 (2): 558–567.

    Article  Google Scholar 

  • Schrand, C., and H. Unal. 1998. Hedging and Coordinated Risk Management: Evidence from Thrift Conversions. Journal of Finance 53 (3): 979–1013.

    Article  Google Scholar 

  • Scordis, N., J. Barrese, and P. Wang. 2008. The Impact of Cash Flow Volatility on Systematic Risk. Journal of Insurance Issues 31 (1): 43–71.

    Google Scholar 

  • Slote, M. 2001. Morals from Motives. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Spicker, P. 2010. Generalisation and Phronesis: Rethinking the Methodology of Social Policy. Journal of Social Policy 40 (1): 1–19.

    Article  Google Scholar 

  • Todd, P., and G. Gigerenzer. 2012. Ecological Rationality: Intelligence in the World. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Wong, K.P. 2014. Hedging and the Competitive Firm Under Correlated Price and Background Risk. Decisions in Economics and Finance 37 (2): 329–340.

    Article  Google Scholar 

  • Zingales, L. 2000. In Search of New Foundations. Journal of Finance 55 (4): 1623–1653.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. St. John’s University, New York, NY, USA

    Nicos A. Scordis & Annette Hofmann

Authors
  1. Nicos A. Scordis
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Annette Hofmann
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Nicos A. Scordis .

Editor information

Editors and Affiliations

  1. School of Economics and Management, University of Siena, Siena, Italy

    Maurizio Pompella

  2. Tobin College of Business, St. John’s University, New York, New York, USA

    Nicos A Scordis

Rights and permissions

Reprints and permissions

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Scordis, N.A., Hofmann, A. (2017). A Practical Perspective on Corporate Risk Management. In: Pompella, M., Scordis, N. (eds) The Palgrave Handbook of Unconventional Risk Transfer. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-59297-8_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-59297-8_3

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-59296-1

  • Online ISBN: 978-3-319-59297-8

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation