Research Summary
Research Summary
Corporate Risk Management
Description
Traditionally companies have managed different kinds of risk individually: the corporate treasurer or finance director handles credit risk and foreign exchange risk, the human resources manager handles employment risk, and so on. Integrated risk management calls for companies to draw together and rationalise the entire range of risks a company faces. Broadly, there are three ways of doing this: altering the companys operations, adjusting its capital structure and employing financial instruments to reduce risk. Selective and co-ordinated use of these techniques permits senior managers to manage risks not only on a focused and tactical basis, but to conceive and implement a longer-term, company-wide risk strategy. Professor Meulbroek implements this integrated risk management approach in her research and case studies, studying both how firms should manage risk, and whether firms do manage risk.