What is the value added by risk management strategies such as the use of derivatives to hedge commodity-price exposures, or the purchase of insurance policies?

The Cash Flow or (EBITDA) volatility discount or premium applied by market participants to securities traded on the stock market

What is the value added by risk management strategies such as the use of derivatives to hedge commodity-price exposures, or the purchase of insurance policies?

Do the costs of such risk manage-ment exceed the benefits? Recent research in corpo-rate finance has shown that risk management can