At least that’s according to the findings detailed in ‘Improving Risk Quality to Drive Value,’ a study conducted by Oxford Metrica, an independent, internationally-recognised, strategic advisory firm.
The findings reveal that companies with high risk quality have low cash flow volatility, a core value driver. Additionally, the study concludes that risk quality is a strategic issue and a key characteristic of a value-creating firm, as well as an essential aspect of effective corporate governance procedures.
“These findings provide evidence for what is intuitively understood by corporate executives but, to-date, has not been demonstrated quantitatively – that improving risk quality is a key driver of sustained shareholder value,” says Dr.
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