Abstract
The modern mantra of corporate risk management is fast becoming “A risk is risk is a risk.” Large, multinational companies are no longer prepared to approach risk management on a single risk-by-risk basis. It makes no sense for a manager to accept a potential $30m loss in the organization’s currency-trading activities and simultaneously hedge against a $10m loss on a suburban office property. Risk managers now realize that any particular risk can have consequences for many seemingly unconnected parts of the business-losses in one part of the business might be offset by gains else where in the organization ...