The property and casualty insurance industry has historically focused on the underwriting ratio as the primary measure of operating performance. Many dramatic changes have occurred in this industry and its operating environment over the past 30 years. These changes have dramatically decreased...

Purpose – The purpose of this paper is to introduce the concept of an Enterprise Risk Scorecard. Design/methodology/approach – With the accelerating growth in global risk levels leading to an intense current demand for risk management solutions, an analysis was conducted on whether a...

Purpose – Risk management has grown increasingly popular in recent years due to the recognition that risk should be as actively managed as performance. A key objective of risk management is to evaluate performance in the context of the relative volatility in which business operations are...

Purpose – The purpose of this paper is to introduce the relative profitability and growth matrix and to demonstrate its use as a competitive analysis tool. Design/methodology/approach – Two well‐known drivers of value are profitability and growth. After a study of 2 × 2 matrices we...

Purpose – This paper aims to illustrates the use of the modern Graham and Dodd valuation methodology as a corporate M&A tool by way of case study. Design/methodology/approach – The paper presents a case study of the 1995 Berkshire Hathaway acquisition of GEICO and draws on previously...

Purpose – The purpose of this article is to introduce the “Financial Strategy Framework”. Design/methodology/approach – During the course of the authors' ongoing financial management research, it was observed that leading academicians frequently integrate finance and strategy in...

Purpose: The books, The Innovator’s Dilemma and Fooled by Randomness were best-sellers, and both books’ authors rightly have legions of followers. Nevertheless, the dynamics each author analyzed so well continue to plague many executives. Why? Is there some way to close the analytical loop...

Purpose – Many insurance companies vigorously pursue top‐line growth, even though it has the potential to develop unprofitably over time. The time lag (or tail) between when insurance is sold and when claims are paid generates risks unique to insurance companies. Furthermore, the insurance...

Purpose – The purpose of this article is to provide commentary on the utility of Altman's Z ‐score as a strategic assessment and performance management tool. This possibility is suggested in the recently published book Measuring Organizational Performance – Metrics for Entrepreneurship and...