ERM

Two letters

Two letters

Dear S@R, I am not interested in the use of stochastic models, and particularly Monte Carlo simulations. I believe that these approaches too often lead to underestimating risks of extreme events …

Read More →

Read More →

Top Ten Concerns of CFO’s – May 2009

Top Ten Concerns of CFO’s – May 2009

A poll of more than 1200 senior finance executives by CFO Europe together with Tilburg and Duke University ranks the ten top external and internal concerns. High in all regions we find as external concerns; consumer demand, interest rates, currency volatility and competition.

Read More →

Read More →

The fallacies of Scenario analysis

The fallacies of Scenario analysis

This entry is part 1 of 4 in the series The fallacies of scenario analysis

Scenario analysis is often used in company valuation – with high, low and most likely scenarios to estimate the value range and expected value – but do they give correct answers?

Read More →

Read More →

Valuation as a strategic tool

Valuation as a strategic tool

This entry is part 1 of 2 in the series Valuation

Valuation is something usually done only when selling or buying a company. However it is a versatile tool in assessing issues as risk and strategies both in operations and finance …

Read More →

Read More →

The Probability of Bankruptcy

The Probability of Bankruptcy

This entry is part 3 of 4 in the series Risk of Bankruptcy

A good metric should have a low probability of rejecting a true hypothesis of bankruptcy (false positive) and a high probability of rejecting a false hypothesis of bankruptcy (false negative).

Read More →

Read More →

Predicting Bankruptcy

Predicting Bankruptcy

This entry is part 2 of 4 in the series Risk of Bankruptcy

The Z-score formula for predicting bankruptcy was developed by E. Altman. The score is not intended to predict when a firm will file for bankruptcy, It is a measure of how closely a firm resembles other firms that have filed for bankruptcy.

Read More →

Read More →

Top