Effective risk management not only provides important information for the evaluation of the expected benefits of management decisions, it can also limit the negative impact of economic developments or adverse events on the P&L and value of a company. Furthermore, the relevant guidelines for individual industries – such as IFRS, Basel-II/III, SST, Solvency-II, etc. – are after all, motivated by and imbued with risk management concepts. Altogether, this makes effective risk management a critical and central piece in successful business strategies.
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