The derivation of a decision framework from which to derive and appraise risk management strategy requires a clear statement of corporate objectives. This article follows the mainstream of financial management in assuming that a firm wishes to maximize the value of the existing owners’ equity, which means the maximization of share price. This objective is referred to, somewhat loosely, as value maximization. From the value-maximization objective, a risk management decision structure was derived. The three processes in a risk management decision relate to the identification of risk management exposures, the measurement of their impact on the firm, and the actual decision. Once risk exposures are identified, their potential for destroying share value must be measured. The decision process may be divided into those decisions concerning the use of fund, investment decisions and those concerning the source of funds, financing decisions.