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Exposure-Based Cash-Flow-at Risk for Value Creating Risk Management under Macroeconomic Uncertainty

Andrén, Niclas LU ; Jankensgård, Håkan LU and Oxelheim, Lars LU (2012) In The Strategic CFO - Creating Value in a Dynamic Market Environment
Abstract
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 performance on the other. Properly designed, a risk measure should provide information on to what extend the firm's performance is at risk, what is causing that risk, the relative importance of non-value-adding and value-adding risk, and the possibilities to use risk management to reduce total risk. In this chapter, we present an approach - exposure-based cash-flow-at-risk - to calculating a firm's downside risk conditional on the firm's exposure to... (More)
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 performance on the other. Properly designed, a risk measure should provide information on to what extend the firm's performance is at risk, what is causing that risk, the relative importance of non-value-adding and value-adding risk, and the possibilities to use risk management to reduce total risk. In this chapter, we present an approach - exposure-based cash-flow-at-risk - to calculating a firm's downside risk conditional on the firm's exposure to non-value-adding macroeconomic and market risk and to analyzing corporate performance adjusted for the impact of non-value-adding risk. (Less)
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author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
cash flow at risk, risk assessment, macroeconomic risk, market risk
in
The Strategic CFO - Creating Value in a Dynamic Market Environment
editor
Hommel, Ulrich; Fabich, Michael and Schellenberg, Ervin
publisher
Springer
external identifiers
  • Scopus:84949176452
language
English
LU publication?
yes
id
40b00526-c0fb-4a70-a2e9-e359fb649c09 (old id 1670352)
date added to LUP
2010-09-24 15:46:51
date last changed
2016-10-13 04:41:32
@misc{40b00526-c0fb-4a70-a2e9-e359fb649c09,
  abstract     = {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 performance on the other. Properly designed, a risk measure should provide information on to what extend the firm's performance is at risk, what is causing that risk, the relative importance of non-value-adding and value-adding risk, and the possibilities to use risk management to reduce total risk. In this chapter, we present an approach - exposure-based cash-flow-at-risk - to calculating a firm's downside risk conditional on the firm's exposure to non-value-adding macroeconomic and market risk and to analyzing corporate performance adjusted for the impact of non-value-adding risk.},
  author       = {Andrén, Niclas and Jankensgård, Håkan and Oxelheim, Lars},
  editor       = {Hommel, Ulrich and Fabich, Michael and Schellenberg, Ervin},
  keyword      = {cash flow at risk,risk assessment,macroeconomic risk,market risk},
  language     = {eng},
  publisher    = {ARRAY(0xae2e220)},
  series       = {The Strategic CFO - Creating Value in a Dynamic Market Environment},
  title        = {Exposure-Based Cash-Flow-at Risk for Value Creating Risk Management under Macroeconomic Uncertainty},
  year         = {2012},
}