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Risk Management in the Age of Turbulence:Failures and Challenges

Author

Listed:
  • Daniela MATEI

    (Dunarea de Jos University of Galati, Romania)

  • Dragos CRISTEA

    (Dunarea de Jos University of Galati, Romania)

  • Alexandru CAPATINA

    (Dunarea de Jos University of Galati, Romania)

Abstract

Today’s business, being affected by the continuous changes in economic environment, must reinvent “prudent risk taking” concept to strike an appropriate balance between risk, return and growth, in order to create lasting value. This paper is focused on describing the nature of risk and the objectives of risk management. In the context of more attractive risk conceptual simplifications which often lead to significant errors, the paper explains the failures in risk management, the way of their occurrence and the methods of reducing their occurrence.

Suggested Citation

  • Daniela MATEI & Dragos CRISTEA & Alexandru CAPATINA, 2011. "Risk Management in the Age of Turbulence:Failures and Challenges," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 289-293.
    • Handle: RePEc:ddj:fserec:y:2011:p:289-293
    as

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    File URL: http://www.rce.feaa.ugal.ro/images/stories/RCE2011/management-marketing/DMatei_DCristea_ACapatina.pdf
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    References listed on IDEAS

    as
    1. Yamai, Yasuhiro & Yoshiba, Toshinao, 2002. "Comparative Analyses of Expected Shortfall and Value-at-Risk: Their Estimation Error, Decomposition, and Optimization," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 20(1), pages 87-121, January.
    2. Katerina Simons, 1997. "Model error," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 17-28.
    3. Christine M. Cumming & Beverly Hirtle, 2001. "The challenges of risk management in diversified financial companies," Economic Policy Review, Federal Reserve Bank of New York, issue Mar, pages 1-17.
    4. Tufano, Peter, 1996. "Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry," Journal of Finance, American Finance Association, vol. 51(4), pages 1097-1137, September.
    5. Ralph C. Kimball, 2000. "Failures in risk management," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-12.
    6. René M. Stulz, 1996. "Rethinking Risk Management," Journal of Applied Corporate Finance, Morgan Stanley, vol. 9(3), pages 8-25, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nicoleta CRISTACHE & Adrian MICU & Irina SUSANU, 2014. "Study On Promoting Wine Brands Online," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 189-198.

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    More about this item

    Keywords

    risk management; distribution of returns; failures; globalization; risk measurement models;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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