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Author: Frank H. Knight Publisher: Cosimo, Inc. ISBN: 1602060053 Category : Business & Economics Languages : en Pages : 401
Book Description
A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.
Author: Frank H. Knight Publisher: Cosimo, Inc. ISBN: 1602060053 Category : Business & Economics Languages : en Pages : 401
Book Description
A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.
Author: Kenneth R. Maccrimmon Publisher: Simon and Schuster ISBN: 0029195632 Category : Business & Economics Languages : en Pages : 404
Book Description
Offers tests designed to measure one's willingness to take risks, describes characteristics associated with this quality, and discusses the importance of risk-taking in management and investment situations.
Author: Mahmoud Fatouh Publisher: ISBN: Category : Bank capital Languages : en Pages : 52
Book Description
We assess the impact of contingent convertible (CoCo) bonds and the wealth transfers they imply conditional on conversion on risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks by issuing CoCos try to maintain risk taking incentives when regulators reduce them by insisting on higher capitalization ratios? While we test for and reject sample selection bias, we show that CoCo bonds issuance has a strong positive effect on risk-taking behaviour, and so do conversion parameters that reduce dilution of existing shareholders upon conversion. Higher volatility amplifies the impact of CoCos on risk taking.
Author: Richard Friberg Publisher: MIT Press ISBN: 0262528193 Category : Business & Economics Languages : en Pages : 395
Book Description
A comprehensive framework for assessing strategies for managing risk and uncertainty, integrating theory and practice and synthesizing insights from many fields. This book offers a framework for making decisions under risk and uncertainty. Synthesizing research from economics, finance, decision theory, management, and other fields, the book provides a set of tools and a way of thinking that determines the relative merits of different strategies. It takes as its premise that we make better decisions if we use the whole toolkit of economics and related fields to inform our decision making. The text explores the distinction between risk and uncertainty and covers standard models of decision making under risk as well as more recent work on decision making under uncertainty, with a particular focus on strategic interaction. It also examines the implications of incomplete markets for managing under uncertainty. It presents four core strategies: a benchmark strategy (proceeding as if risk and uncertainty were low), a financial hedging strategy (valuable if there is much risk), an operational hedging strategy (valuable for conditions of much uncertainty), and a flexible strategy (valuable if there is much risk and/or uncertainty). The book then examines various aspects of these strategies in greater depth, building on empirical work in several different fields. Topics include price-setting, real options and Monte Carlo techniques, organizational structure, and behavioral biases. Many chapters include exercises and appendixes with additional material. The book can be used in graduate or advanced undergraduate courses in risk management, as a guide for researchers, or as a reference for management practitioners.
Author: Gary S. Lynch Publisher: Archway Publishing ISBN: 1480839388 Category : Business & Economics Languages : en Pages : 176
Book Description
Risk and uncertainty may sound scary, but todays best business leaders are navigating both to gain strategic advantage over competitorsand you can, too. This guide for business leaders examines risk and opportunity through the lens of some of the worlds most respected visionaries, including Howard Schultz, Andy Grove, Peter Huntsman, John Krafcik, Peter Leibinger, Doug Hepper, and many more. These visionaries looked beyond financial performance to see opportunitiesand they did so by understanding uncertainty. Then, they decisively acted to create measurable results that coincided with the future they envisioned. Find out how they did it, and learn how to: identify, define, and convert uncertainty into value; become more opportunistic when facing uncertainty; develop the skill to spot where advantages are likely to emerge; and create an environment where managers and leaders complement each other. Filled with case studies on companies such as Hyundai, Starbucks, Roche, and Intel, this guide delivers proven ways to create value and leverage uncertainty. It is the culmination of a decade of research and interaction with dozens of companies and growth leaders who prove that pursuing a market driven strategy to navigating uncertainty will gain measurable market advantage.
Author: Mahmoud Fatou Publisher: ISBN: Category : Bank capital Languages : en Pages : 60
Book Description
We assess the impact of contingent convertible (CoCo) bonds and the wealth transfers they imply conditional on conversion on the risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks by issuing CoCo bonds try to maintain risk-taking incentives when regulators reduce them through higher capitalization ratios? While we test for and reject sample selection bias, we show that CoCo bonds issuance has a strong positive effect on risk-taking behaviour, and so do conversion parameters that reduce dilution of existing shareholders upon conversion. Higher volatility amplifies the impact of CoCo bonds on risk-taking.
Author: Frederick Funston Publisher: John Wiley & Sons ISBN: 0470247886 Category : Business & Economics Languages : en Pages : 368
Book Description
A new book to help senior executives and boards get smart about risk management The ability of businesses to survive and thrive often requires unconventional thinking and calculated risk taking. The key is to make the right decisions—even under the most risky, uncertain, and turbulent conditions. In the new book, Surviving and Thriving in Uncertainty: Creating the Risk Intelligent Enterprise, authors Rick Funston and Steve Wagner suggest that effective risk taking is needed in order to innovate, stay competitive, and drive value creation. Based on their combined decades of experience as practitioners, consultants, and advisors to numerous business professionals throughout the world, Funston and Wagner discuss the adoption of 10 essential and practical skills, which will improve agility, resilience, and realize benefits: Challenging basic business assumptions can help identify "Black Swans" and provide first-mover advantage Defining the corporate risk appetite and risk tolerances can help reduce the risk of ruin. Anticipating potential causes of failure can improve chances of survival and success through improved preparedness. Factoring in velocity and momentum can improve speed of response and recovery. Verifying sources and the reliability of information can improve insights for decision making and thus decision quality. Taking a longer-term perspective can aid in identifying the potential unintended consequences of short-term decisions.
Author: Paul C. Godfrey Publisher: Berrett-Koehler Publishers ISBN: 1523086971 Category : Business & Economics Languages : en Pages : 336
Book Description
This book presents a new approach to risk management that enables executives to think systematically and strategically about future risks and deal proactively with threats to their competitive advantages in an ever more volatile, uncertain, complex, and ambiguous world. Organizations typically manage risks through traditional tools such as insurance and risk mitigation; some employ enterprise risk management, which looks at risk holistically throughout the organization. But these tools tend to focus organizational attention on past actions and compliance. Executives need to tackle risk head-on as an integral part of their strategic planning process, not by looking in the rearview mirror. Strategic Risk Management (SRM) is a forward-looking approach that helps teams anticipate events or exposures that fundamentally threaten or enhance a firm's position. The authors, experts in both business strategy and risk management, define strategic risks and show how they differ from operational risks. They offer a road map that describes architectural elements of SRM (knowledge, principles, structures, and tools) to show how leaders can integrate them to effectively design and implement a future-facing SRM program. SRM gives organizations a competitive advantage over those stuck in outdated risk management practices. For the first time, it enables them to look squarely out the front windshield.
Author: James Owen Ostler Publisher: ISBN: Category : Languages : en Pages : 106
Book Description
This thesis explores how competition impacts risk taking in three essays. Chapter 2 explores the role competition plays in motivating risk-taking in en entrepreneurial setting. Traditional entrepreneurship research holds that a role of entrepreneurs is to bear risk and that entrepreneurs are risk seeking, or at least less risk averse than others. Using a tournament model we show that, due to competitive effects, even risk-neutral entrepreneurs appear to be risk seeking and will take on significant levels of risk. To explain this we introduce the concept of strategic risk, which we define as rational risk taking that arises due to competition. We show that the traditional view may have it backwards: we do not observe risky behavior because entrepreneurs have a taste for risk, but rather the structure of some markets induces rational strategic risk taking, and it is the presence of risk and uncertainty that allows entrepreneurship to exist. The model predicts that industries with higher uncertainty and riskier strategies available to entrepreneurs will have higher levels of entrepreneurial entry. Thus, we offer an alternative explanation to why radical innovations disproportionately come from small entrepreneurial firms, and why certain industries are more innovative than others. Chapter 3 tests the empirical predictions of Chapter 2 in the liver transplant market. Using a policy change to identify risky illegal behavior in the liver transplant market we find support for the model's predictions. The liver transplant market offers an ideal setting to look at how competition impacts risk taking and firm entry as it offers a setting with: substantial variation in levels of market competition, a change in policy that allows identification of risk taking in the form of illegal activity (Snyder, 2010), and a growing market with entry occurring over time. We find support for the predictions that: increased competition increases strategic risk taking, new entrants will take more strategic risk, and that the presence of risky strategies increases an entrepreneurial entrant's ability to compete leading to increased entry. Finally, in Chapter 4 the risk taking behavior predicted in Chapter 2 is tested in a laboratory experiment. We find that actual behavior deviates from the theoretical optimal for the majority of players even though players would universally be better off playing as the model prescribes. We also explore how the framing of the competitive situation influences behavior. We find that general quantitative ability and being less risk averse predicts play closer to the optimal predicted behavior.
Author: Frank H. Knight
Author: Frank H. Knight
Author: Frank Hyneman Knight
Author: Kenneth R. Maccrimmon
Author: Mahmoud Fatouh
Author: Richard Friberg
Author: Gary S. Lynch
Author: Mahmoud Fatou
Author: Frederick Funston
Author: Paul C. Godfrey
Author: James Owen Ostler