The Forces of Change
- Topics:
- Enterprise Risk Management
- Tags:
- Capital Efficiency,
- Pricing Strategy,
- Pricing,
- Marketing,
- Financial Services,
- Financial Service,
- Financial Planning,
- Financial Accounting,
- Finance,
- Capital Management,
- ...
- Source:
- Incisive Media
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Overview: Article deduces that organizations need to rethink the roles of key financial instruments such as equity, debt and insurance as capital management tools, in order to maximize shareholder value. Competition has transformed the financial services industry, forcing financial service companies to invent a stream of new products and supply their goods more cheaply. At the same time, their clients constantly raise the bar for services that will enable them to manage their capital base in ever more efficient and sophisticated ways, while shareholders’ expectations are also rising. While current efficiency improvements in the market are focusing on quantification and pricing of risk, the next significant challenge will be the refinement of capital efficiency concepts. Capital efficiency is already improving through consolidation. A consolidated capital base compensates for the time horizon normally required to spread risks, potentially reducing pricing. Read article for complete discussion.
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Format: HTML | Date: Jan 2003 | Pages: 1
