Abstract: Managing risks does not necessarily mean reducing risks but weighing up these risks against the profits and considering the impacts on the equity capital needed to cover the risk (and on the cost of capital). Risk analysis and risk aggregation are necessary tasks of a value-based...

In recent years new reporting standards and laws have been issued. For German companies, the KonTraG (Corporate Sector Supervision and Transparency Act) was introduced in 1998 and the German Accounting Standard (GAS 5 Risk Reporting) is in place since 2001. This study analyses the disclosure of...

Purpose – This paper aims to present the combination of enterprise risk management (ERM) and value-based management as especially suitable methods for companies with a shareholder value imperative. Among its major benefits, these methods make the contribution of risk management for business...

The article clarifies the most essential methods for risk management.This includes especially the methods for identification, quantification and simulation based risk aggregation (e.g. monte carlo simulation). It is pointed up that an appropriate quantification of all relevant risks and a risk...

Taking the right approach to managing opportunities and threats (risks) is key to company success in an unpredictable future. Unfortunately in many companies, controlling and risk management do not do enough to help the board and management weigh up the expected returns and risks when it comes...