Journal article
The Value of Investing in Enterprise Risk Management
The Journal of risk and insurance, Vol.82(2), pp.289-316
06/2015
DOI: 10.1111/jori.12022
Abstract
Prior studies show that enterprise risk management improves firm performance. This article investigates which aspects of enterprise risk management add value. We find that the use of economic capital models and dedicated risk managers improve operating performance. Requiring the dedicated risk manager report to the board of directors or to the chief executive officer (CEO) also increases value. The following combination of enterprise risk management initiatives yields the greatest increase in firm value: a simple economic capital model, a dedicated risk manager that is a cross-functional committee, and requiring the risk manager report to the board or CEO.
Details
- Title: Subtitle
- The Value of Investing in Enterprise Risk Management
- Creators
- Martin F. Grace - Georgia State UniversityJ. Tyler Leverty - University of IowaRichard D. Phillips - Georgia State UniversityPrakash Shimpi
- Resource Type
- Journal article
- Publication Details
- The Journal of risk and insurance, Vol.82(2), pp.289-316
- DOI
- 10.1111/jori.12022
- ISSN
- 0022-4367
- eISSN
- 1539-6975
- Publisher
- Wiley
- Number of pages
- 28
- Grant note
- Risk Foundation
- Language
- English
- Date published
- 06/2015
- Academic Unit
- Finance
- Record Identifier
- 9984701254202771
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