Risk, Reward, and Resilience: A Modern Approach to Risk Management

Overview

Economic Value Added, EVA, is a powerful yet often overlooked tool for risk management. Many accountants focus on EVA for performance measurement but miss its potential for identifying and mitigating risks. Alan Gorlick, CEO of Gorlick Financial Strategies, explains how EVA can optimize resource allocation, align investments with value creation, and reduce operational risks. With practical insights on dynamic metrics, bonus plans, and tools like Monte Carlo simulations, this segment equips financial leaders to turn uncertainty into opportunity and drive long-term profitability. Please note that this product will expire either on 03/31/2027 or one year from the date of purchase (whichever occurs first). Educator discounts do not apply to this product.

Highlights

• Economic Value Added (EVA)
• risk-adjusted decision-making
• Economic profit
• Investment decisions with value creation
• Address risk challenges

Prerequisites

Work experience in a corporate staff environment, or an introductory course in finance.

Objectives

• Indicate how Economic Value Added (EVA) integrates with cost of capital analyses and advanced valuation models for risk-adjusted decision-making
• Explain how EVA serves as a measure of true economic profit and improves resource allocation decisions
• Recognize how EVA can identify and mitigate risks by aligning investment decisions with value creation
• Identify how to address risk challenges, such as suboptimal outcomes and agency problems, through objective and measurable EVA-based metrics