The present downturn has highlighted flaws in traditional accounting-based performance metrics. In response, leading organizations are implementing corporate risk-adjusted return on capital (RAROC) frameworks. Corporate RAROC is a measure that reflects both profits, and the costs imposed by the risks undertaken to achieve them. It allows firms to accurately compare the performance of very different business lines or units on a consistent basis. As a result, using corporate RAROC helps organizations, improve capital allocation, align expectations regarding the risk/return trade-offs, and create consistent incentives at all levels
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Insights Making The Invisible Visible Women are still passed over for the most senior leadership roles with only one in four executives female. What's preventing progress on women in leadership? -
Insights Navigating the Present and Transforming for the Future Interview with Rui Barbas, Chief Strategy Officer at Nestlé USA -
Insights Social Justice, Financial Regulation, and The Biden Administration Social justice was a key campaign theme for President Joe Biden. There is every reason to believe this theme will be applied to financial regulation. -
Insights Turning A Crisis Into A Catalyst For Change Ferran Reverter Planet is Chief Executive Officer of the MediaMarktSaturn Retail Group, Europe’s leading consumer electronics retailer.