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...

An analysis of the subprime crisis highlights that numerous factors and hazards were not exactly unforeseeable. So, why did financial institutions not act or react much earlier? Why have outdated valuation and portfolio optimization models not been abandoned? Have regulatory frameworks such as...