Performance and Risk Metrics

A mtmber of researchers have developed models of corporate performance which incorporate the risk measure. Bettis (1982), for example, developed a model linking performance to the three independent variables Industry Characteristics (IC), Strategic Decisions (S) and Risk (R)  

Risk in turn was viewed as being determined by the two variables Industry Characteristics and the Strategy developed. Bettis and Hall (1982) and Bowman (1980) supported this view that risk is essentially an endogenous variable, with risk exposure being largely determined by the strategic choices of the business. Similarly, Ritchie and Marshall (1993, p. 165) concluded that a well devised strategy could simultaneously reduce risks and increase returns . The performance metrics focus of these studies esserrtially employed a financial definition of 

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