ABSTRACT
Risk is the primary driver of value for any business. In order for a business to be profitable and create value, it must generate returns; and returns are compensation for the risks a business takes. Successful businesses are masters at carefully and consistently balancing risk and reward; extracting the most return for risks taken while avoiding risks for which the return is insufficient. As a result, sound risk management is an essential component to business success (i.e. in their risk management activities).
