Chapter 18

Managing Corporate Risk*

Clifford W. Smith, Jr.    William E. Simon Graduate School of Business Administration University of Rochester


Recent developments in corporate risk management include an expansion of the available instruments, a material reduction in the costs of risk management products, and a more sophisticated understanding of their benefits. The chapter examines the underlying theory of how risk management increases firm value, and it summarizes the evidence on the use of risk management instruments.


risk management




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