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Why Manage Risk?

By: Peter Tufano
  • Format:Print
  • | Language:Japanese
  • | Pages:6
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Abstract

Conventional finance theory demonstrates that, under simplistic assumptions, firms cannot add to shareholder value through the use of risk management activities. Modern finance theory has begun to carefully consider and examine those circumstances under which firms can add to shareholder value. This note briefly reviews the major ideas prevalent in both conventional and modern finance literature regarding the potential benefits of risk management.

Keywords

Risk Management

Citation

Tufano, Peter, and Jon Headley. "Why Manage Risk?" Harvard Business School Background Note 294-107, March 1994. (Revised February 2001.)

About The Author

Peter Tufano

Finance
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