bc0e6d7f_ue_Investing__Timeless_Reading__Description
[Title] Value and Risk [Download] Download paper (pdf)Effects of risk on DCF value (spreadsheet)Risk hedging as a put option (spreadsheet) [Description] 
We take far too narrow a view of risk in finance. When we talk about risk management, we often only talk about risk hedging and when we estimate value, the discount rate is the only place where we reflect risk. In reality, risk is both a threat and an opportunity and successful firms not only protect themselves against some types of risk but actively exploit other types of risk to establish competitive advantages. In this paper, we present a way of considering risk management in this broader sense and consider ways in which we can bring risk into the other components of value. We also consider what types of firms are most likely to benefit from risk hedging and from risk management.
Value Investing: Timeless Reading
Description