A cash flow's value depends on its (1) expected amount, (2) risk and (3) time of occurrence. This applies especially to uncertain payments that are generated by a company for its stake-holders. However, a cash flow's risk is not adequately considered when it comes to valuation by the traditional...

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 existing probability of a company to be insolvent (bankrupt), is known as insolvency risk or distress risk. This should be considered during every corporate valuation, even though it does not appear in every valuation report.Only under the rather unrealistic assumption of an unflawed capital...