This paper introduces an alternate measure of idiosyncratic risk leveraged from the decomposition method to further eliminate the residual systematic risk inherent in the factor asset pricing model. Combining both complementary techniques contributes to a more comprehensive firm-level...

The objective of this paper is to illustrate the life cycle of enterprise risk management using jet fuel price risk management within Southwest Airlines, Inc. Managing market price risk within a corporation appears to follow distinct life cycle periods as a firm moves from creation through a...