In this chapter we examine the role of the CFO in setting risk management strategy with respect to macroeconomic risk, in particular, and we consider the information requirements for setting a strategy that is consistent with corporate objectives. We argue that macroeconomic risk management...

In this paper we examine the role of the CFO in setting risk management strategy with respect to macroeconomic risk, in particular, and we consider the information requirements for setting a strategy that is consistent with corporate objectives. We argue that macroeconomic risk management...

A strategically minded CFO will realize that strategic corporate risk management is about finding the right balance between risk prevention and proactive value generation. Efficient risk and performance management requires adequate assessment of risk and risk exposures on the one hand and...

We analyze theoretically how financial synergies among bank affiliates affect banks' choice of organizational structure in branches or subsidiaries characterized by different arrangements for internal insurance against affiliates' default. Financial synergies may be generated by reduced default...

Using data on a broad international sample of listed, private, and non-profit entities, we explore the influence of risk management value creation objectives on the incorporation of risk considerations in planning and control systems. The combination of detailed survey responses and archival...

Purpose: The liquefied natural gas (LNG) business comprises a number of economic activities with inherent risks. This paper proposes an integrated modelling approach, as part of the investment decision making process, for optimising economic returns from LNG whilst taking into account...

We prove that the use of the risk-adjusted rate (RAR) for compounding and discounting outflows conflicts irremediably with risk aversion. It is correct for inflows. Our correction respects the impact of risk on outflows; it conforms to risk aversion. It solves many unsolved issues. Our examples...