The Global Financial Crisis and the Efficient Market Hypothesis: What Have We Learned?
Ray Ball

The efficient market hypothesis has received blame for the financial crisis. While the theory has limitations, the author argues that the crisis reflects a failure to heed the lessons of efficient markets, that any institution can lose big. 

Contingent Capital vs. Contingent Reverse Convertibles for Banks and Insurance Companies
Christopher Culp

In the crisis aftermath, some banks have begun to consider contingent capital as a means of prearranging recapitalizations. This article compares the economic merits of a contingent reverse convertible against traditional forms of contingent capital.

International Insurance Society Roundtable on Risk Management After the Crisis
Geoffrey Bell, Nikolaus von Bomhard, Prem Watsa and Bijan Khosrowshahi; Moderated by Brian Duperreault

The roundtable participants discuss why insurance companies have proven less vulnerable to the crisis than banks. Partly due to financial conservatism, there is also a growing willingness to accept and make use of risk-based capital requirements.

Lessons from the Financial Crisis on Risk and Capital Management: The Case of Insurance Companies Lessons
Neil Doherty and Joan Lamm-Tennant

This article proposes that risk management be viewed as an integral part of the corporate value-creation process-one in which the concept of economic capital can provide companies with the financial cushion and confidence to carry out their strategic plans.

The Theory and Practice of Corporate Risk Management Policy
Henri Servaes, Ane Tamayo and Peter Tufano

Drawing on a survey of over 300 CFOs, the authors compare risk management theory with practice and identifying areas of opportunity for companies, including instilling a risk management culture and incorporating it into the strategic planning process.

Measuring the Contributions of Brand to Shareholder Value
John Gerzema, Ed Lebar and Anne Rivers

Young & Rubicam's BrandAsset® Valuator model converts global consumer perceptions and behavior patterns into assessments of brand strength and value. BAV's assessments quantify the contribution of brands to corporate earnings and market values.

Creating Value Through Best-In-Class Capital Allocation
Marc Zenner, Tomer Berkowitz and John Clark

This article provides a comprehensive framework to examine shareholder value creation through capital allocation, examining the value of growth, limits of diversification, need to be conservative in projections and the strategic uses of assets.

Using Corporate Inflation Protected Securities to Hedge Interest Rate Risk
Dwayne Barney and Keith Harvey

Inflation is a significant risk for some companies. This article argues that such companies can use corporate inflation-protected securities to hedge their real interest rate risk as well as inflation risk, and they may also reduce borrowing costs. 

The Gain-Loss Spread: A New and Intuitive Measure of Risk
Javier Estrada

This article introduces a new measure of risk, the gain-loss spread, which takes into account the probability of a loss, the average size of the loss and the average gain-all variables that investors consider relevant when assessing risk.

Assessing the Value of Growth Option Synergies from Business Combinations and Testing for Goodwill Impairment: A Real Options Perspective
Francesco Baldi and Lenos Trigeorgis

This article argues that the two-stage impairment test for acquired goodwill under SFAS 142 has several limitations and proposes a real options approach to managing a business unit portfolio as a better framework for testing goodwill impairment.