Upside potential ratio

Risk Appetite and the Virtues of the Board

Risk Appetite and the Virtues of the Board

This entry is part 1 of 1 in the series Risk Appetite and the Virtues of the Board

Multiple sources of risk are a fact of life. Only rarely will decisions concerning various risks be neatly separable. Intuitively, even when risks are statistically independent, bearing one risk should make an agent less willing to bear another.

Read More →

Read More →

Budgeting Revisited

Budgeting Revisited

This entry is part 2 of 2 in the series Budgeting

Normally we would expect both the budget and the actual EBITDA to fall somewhere in the region of the expected value.

Read More →

Read More →

Selecting Strategy

Selecting Strategy

This entry is part 2 of 2 in the series Valuation

When there is no uncertainty the maximum return criterion can be used to rank strategies. With uncertainty we have to look for the strategy that maximizes the firms expected utility.

Read More →

Read More →

Top