This article discusses the findings and practical import of the authors' study of the fuel hedging activity of 28 U.S. airlines during the period 1992-2003. The aim of the study was to answer the following question: Does fuel hedging add value to the airlines and, if so, how? The airline...

This article describes the five-year implementation of enterprise risk management at Hydro One, a Canadian electric utility in a newly deregulated market. Starting with the creation of the position of Chief Risk Officer and the implementation of a pilot risk study involving one of the firm's...

The fact that 92% of the world's 500 largest companies recently reported using derivatives suggests that corporate managers believe financial risk management can increase shareholder value. Surveys of finance academics indicate that they too believe that corporate risk management is, on the...

A well-designed and carefully executed ERM program can increase firm value by strengthening the confidence of investors in management's ability to carry out its business plan-and, perhaps equally important, the rating agencies' confidence in the company's ability to meet its debt service-under...