This paper examines how governance and risk management affect risk-taking in banks. It distinguishes between good risks … such a reward. A well-governed bank takes the amount of risk that maximizes shareholder wealth subject to constraints … cost effective to do so. The role of risk management in such a bank is not to reduce the bank's total risk per se. It is to …

We develop a model where a firm has an optimal exposure to cyber risk. With rational, fully informed agents and with no … decreases sales growth more and lower when the board pays more attention to risk management before the attack. Further, an … attack decreases a firm's risk appetite as it beefs up its risk management and information technology and decreases the risk …