Koch takes intelligent risk to heart

Rather than fearing risk, Koch Industries views its risk management capabilities as a way of making money. Clive Davidson reports

Most major companies now take risk management seriously, with many appointing risk officers, defining risk policies and installing risk management systems. But few have embraced the idea as fully as Koch Industries, the Kansas-based privately held company active in a wide range of sectors, including energy, chemicals, textiles, pulp and paper, and the financial and commodity markets. After first testing risk concepts originally developed in the financial sector in its petroleum business – and