Purpose The goal of this paper is to develop a model which may be used to demonstrate costs and benefits of risk management investments in the context of value-based management. Approach This paper answers the question of how to quantify changes in company value caused by risk management...

Value-based management and the balanced scorecard are two of the most distinguished management concepts of the past decades. The main criticism levelled at value-based management is that it is rarely applied in business practice. By contrast, the balanced scorecard is mainly criticized for its...