Optimization of Investments in Corporate Risk-Management

Corporate risk management is an integral part of a company's corporate governance. The risk management methodology allows to identify the risks to which the company is exposed, and to deal with them. In this paper, I consider the problem of the volume of optimal investments in corporate risk management in the context of the theory of the firm and the principal-agent problem. The study was conducted on the example of the metallurgical industry, which is strategically important for the Russian Federation. The purpose of this paper is the formulation of the optimal investment equation and the proof of its viability theoretically and statistically. To achieve the goal of the study, the principal-agent problem was studied within the framework of the theory of the firm. Results were interpreted in relation to companies in the metallurgical industry of the Russian Federation. The validity of the formulated optimal investment equation was proved by an empirical study using regression analysis. The study revealed that the indicator of the variance of economic value added (EVA), taking into account its relationship with the main indicators of the company's financial performance, has a statistically significant effect on the amount of the company's management expenses, which in turn reflect the volume of investment in corporate risk management. Key words: corporate risk management; investment optimization; firm theory; principal-agent problem; metallurgy.