Theoretical approach to risk management

Abstract

“Risks are present in almost all economic and financial activities of companies”, Dionne G. 2013 and risk management aims to create for them a framework that allows them to deal effectively with risk threats and uncertainty. According to Dodier (1994) risk management and security production are intimately linked. However several authors / researchers (Lander et al 2009, Bozek and Tworek 2011, Kimball 2000, Stulz 2008, Hubbard and Jorion 2009) claim that even the best Risk management framework does not protect firms from the consequences of risk, and an even perfectly executed risk management does not guarantee the non-occurrence of large losses.

The main purpose of this article is to limit risk management, through a fairly global presentation of the term, all the while paying close attention to its scope and limits.

Through a review of conceptual literature, we were able to study the different theories of risk management, and were able to see the extent of its field and its different benefits, as well as its limits and the shocks that can result.

Key words: Risk, risk management, ERM, limits, uncertainties, firms, losses, success, failure.

Classification JEL : G32

Paper type : Theoretical Research