This is the eBook version of the printed book.
In recent years, risk management has been defined as merely eliminating or reducing risk exposure. But as companies from GM to Google have learned over the past century, that's far too narrow a definition. Risk, used judiciously, is absolutely central to business success. In Strategic Risk Taking, renowned financial expert Aswath Damodaran covers both sides of the risk equation, offering a complete framework for maximizing profit by limiting some risks and exploiting others. Damodaran presents a thorough and insightful review of the state-of-the-art in risk measurement, hedging, and mitigation. He covers a broad spectrum of financial and non-financial techniques, including risk adjusted value, scenario analysis, decision trees, VAR, and real options. But he goes far beyond other treatments of the subject, showing how to integrate risk management with strategy, decide when to deliberately increase exposure to certain risks, and clearly assess the potential dangers and payoffs of doing so.