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Risk management practices of German firms

Ali Fatemi (DePaul University, Department of Finance, Chicago, Illinois)
Martin Glaum (Justus‐Liebig‐Universität Giessen, Lehrstuhl für Internationales Management and Kommunikation, Licher Strasse 62, 35394 Giessen, Germany)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 March 2000

Abstract

Identifies some gaps in corporate risk management research and presents a study of risk management practices in large, non‐financial German firms. Compares the perceived relevance of different types of risk with the intensity of their management and reports that no respondents admitted major difficulty in developing a risk management system. Finds that firm survival is rated as the top goal of risk management, that respondents are closer to risk‐neutral than risk‐averse for financial risks, that around half centralize treasury management and 88 per cent use derivatives. Ranks the types of derivatives used and the importance of associated problems; shows how foreign exchange risk, US $ exposure and interest rate risk are managed; and assesses attitudes towards foreign exchange and interest rate risk management. Considers consistency with other research and calls for more.

Keywords

Citation

Fatemi, A. and Glaum, M. (2000), "Risk management practices of German firms", Managerial Finance, Vol. 26 No. 3, pp. 1-17. https://doi.org/10.1108/03074350010766549

Publisher

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MCB UP Ltd

Copyright © 2000, MCB UP Limited