Earnings-at-Risk (EAR) for Industry Applications

Know your Earnings at Risk

Risk management is not about risk aversion. If you want to take bigger chances than your competitors — and succeed — you need to be better prepared. Risk management should enable organizations to take the risks necessary to grow and create value.

For corporates, the earnings at risk (EaR) is a key element for the board and shareholders. The impact that market and operational risk can have on the financial volatility will impact shareholder value. Thus corporate senior management must know the amount of earnings the company is likely to lose compared to budget if the worst-case combined scenarios happen. More transparency into the risks across their portfolio can allow you to make more informed decisions about budget and resource allocation, create more accurate forecasting plans, and take concrete steps to reduce risk exposure when necessary.

We use our experience in risk management from different industry sectors to give you a different perspective and insight to your risk universe.