Why might risk management increase the value of a firm?



Answers:
Think about it...if you have someone (or a whole department, etc) dedicated to "managing risk" you have someone that evaluates the feasibility of certain projects or clients which will hopefully help you avoid the riskiest projects with the greatest chance of failure...hence affecting you bottom line by not subtracting from it.
well if you have a risk management department they can/ will tell you what your biggest risk's are! And most companies have some sort of risk management! its called insurance! But normally that department would help you decifer between good risks and bad risks. Most choices involve some sort of risk either time or monatary.. and having a risk manangment dept will help you choose the good ones!

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