Co-creating strategic risk-return management

Citation

(2010), "Co-creating strategic risk-return management", Strategic Direction, Vol. 26 No. 7. https://doi.org/10.1108/sd.2010.05626gad.011

Co-creating strategic risk-return management

Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 7

Frigo M.L. and , Ramaswamy V. Strategic Finance (USA), May 2009, Vol. 90 No. 11, Start page: 25, No. of pages: 9

Purpose – Explains the co-creation approach to strategic risk-return management. Design/methodology/approach – Suggests that current economic problems have led to the recognition that returns must be balanced with risk and illustrates a framework for the “Value Co-Creation” approach to the strategic management of risk-return, based on the belief that shareholder wealth creation derives from creating value for others, e.g. customers, suppliers, employees, etc. Identifies the interconnected risks which drive investor risk, points out that investors include stakeholders apart from those providing financial capital and stresses the importance of avoiding internal silos for risk management by co-creating across different functions. Illustrates this diagrammatically and with a brief case study of Harley-Davidson. Urges chief finance officers to lead with this approach, asks questions to help them get started and suggests some further reading. Article type: General review ISSN: 1524-833X Reference: 38AM976

Keywords: Return on investment, Risk management, Stakeholders, Strategic management