A Practical Perspective on Corporate Risk Management
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.
- Douglas, M., and A. Wildavsky. 1982. Risk and Culture. Berkeley: University of California Press.Google Scholar
- Ericson, R., and A. Doyle, eds. 2003. Risk and Morality. Toronto: University of Toronto Press.Google Scholar
- Klein, G. 1998. Sources of Power: How People Make Decisions. Cambridge, MA: MIT Press.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