Summary of Strategic Risk Taking

A Framework for Risk Management

Wharton School Publishing, more...

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Strategic Risk Taking book summary
How to manage risk and benefit from it strategically.

Rating

8 Overall

8 Applicability

7 Innovation

7 Style

Recommendation

Many businesses could do a better job of exploiting risks. Unfortunately, not every business manager knows how. In his perceptive book, Aswath Damodaran details the principles and tools that most good risk managers use. Some of his work resembles a textbook. Appendixes with mathematical proofs of risk assessment models follow several chapters. But the book is mostly a readable blend of qualitative and quantitative insight. The author uses math more to illustrate concepts than to reduce them to equations. For students of risk management, this is great supplementary reading. getAbstract also believes this book would be an especially useful reference for specialists in corporate finance and investment management.

In this summary, you will learn

  • What risk is and why it matters
  • Which techniques business managers commonly use to measure risk
  • How risk hedging and risk management differ
 

Summary

What Is Risk?
Risk is definable in many different ways. Some people define it in terms of the possibility of bad events. Others try to see it in terms of the probability of good and bad outcomes, an approach that is more useful in decision making. Because few opportunities are a guaranteed...
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About the Author

Aswath Damodaran is a professor of finance at New York University’s Stern School of Business. He has published books and articles on valuation, portfolio theory and corporate finance.


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