Corporate risk philosophy for improved risk management
Journal of Business Research | Published : 1987
The pure risk decisions made by a corporate risk manager often involve large sums of money and important consequences to the firm. The risk philosophy of a company can be formally established and represented as a utility function, enabling coordination of risk management decisions with the more general risk policies of the organization. This is viewed as the first step toward the complete integration of pure risk and speculative risk decision making. The corporate risk philosophy can be used to guide the risk manager in designing the firm's risk management and insurance program. © 1987.