 Risk and risk management: a historical review and research agendaSankalp Naik and Ch. V.V.S.N.V. Prasad International Journal of Business Continuity and Risk Management, 2022, vol. 12, issue 3, 244-262 Abstract: This paper aims to compile and improve the current understanding of risk, risk management, risk lexicon, and enterprise risk management (ERM) and summarise theoretical and empirical research regarding the relationship between risk management and firm value by summarising over a hundred publications from the domain of risk understanding, typology of risk, the evolution of risk management and firm performance, and enterprise risk management. This literature review suggests that better risk management should lead to better risk-taking and not just risk reduction and finds strong theoretical and empirical evidence that risk management leads to improved firm valuations and performance while reducing cash flow uncertainty and return volatility. The literature review validates the positive relationship between risk management and firm value. Firms with sound risk management practices experience higher valuations and lower costs of financial distress. Evidence suggests that ERM has significant potential for wealth creation and cost mitigation. Keywords: risk; risk management; risk lexicon; enterprise risk management; ERM; firm value; COVID-19. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbcrm:v:12:y:2022:i:3:p:244-262 Access Statistics for this article More articles in International Journal of Business Continuity and Risk Management from Inderscience Enterprises Ltd |
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