Effective risk management and company’s performance: Investment in innovations and intellectual capital using behavioral and practical approach

Jafari, M. , Aghaei Chadegani, A. and Biglari, V. (2011) Effective risk management and company’s performance: Investment in innovations and intellectual capital using behavioral and practical approach. Journal of Economics and International Finance, 3 (15). ISSN 2006-9812

Abstract/Summary

Risk management is used to decrease the undesirable effects of market conditions and behavior on company’s activities and performance. This research focuses on ability of risk management response to out of control market factors to facilitate consistent profitability that leads to improvement in company’s performance. This is an empirical research that investigates the association of total risk management and company’s performance. The results indicate positive and significant relationship between total risk management and company’s performance in companies that have invested in research, development and innovations along with companies that have greater level of intellectual capital and industries that have rapid knowledge growth. The results confirm the findings of previous researches in terms of functional and practical behaviors approaches.