The right charge

Savvy firms now accept risk is inevitable. Those that use their risk capitalefficiently outperform those that don’t. Brett Humphreys looks at alternativeinvestments to find out what the right risk-adjusted return on capital chargesmight be

As companies mature, their view of risk and risk management changes. During the early stages, risk is viewed as something to be controlled and limited. The risk manager measures risk carefully and helps a company mitigate exposures. Eventually, companies become more sophisticated in their views, and risk is no longer something that is inherently bad. Instead, it is merely a cost of doing