This paper presents an entrepreneurial optimal business plan in which optimal consumption and portfolio rules, and optimal exit strategy for an entrepreneur are jointly determined in the presence of undiversifiable idiosyncratic risk. We find that the entrepreneur is more likely to exit from her...

In the last twenty years, ERM has gained relevance in business management and was put to test in many “tail” situations, starting from the SARS outbreaks in 2003 up to recent financial crises (subprime and sovereign debt crises) and regional pandemic. Notwithstanding the lesson learnt, prima...