A Coherent Risk Management Strategy
Top-level managers and financial engineers must work in tandem to develop and execute a strong risk-management strategy. The three basic premises for this corporate strategy are:
- Creating corporate value by making good investments.
- Generating cash internally to fund the investments.
- Having a strong cash flow.
The single goal for this strategy is to have enough cash available to make value-boosting investments.
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- Why is this important?
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- What biases influence the situation?
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