
The benefits of operational risk management
The influence of shareholders on board rooms has grown sub-
stantially over the last two decades. Business perf o rmance is
i n c reasingly measured by re f e rence to shareholder value. The
rise in importance of financial perf o rmance benchmarks such as
e a rnings per share growth, or economic value added (EVA), are
indicative of this shift in emphasis. Boards are more inclined to
invest capital in those projects where the re t u rn is gre a t e s t .
It is in this context that risk management can make a contri-
bution towards increasing the value of a business. The main
concern or risk that shareholders face ...