Residual Value and the Value/Risk Trade-off in Lease-Versus-Buy Descisons Out of Stock Download Details Author(s) Reviews Related Product Details Entities with limited appetite for residual value risk may choose to lease assets because of the risk transfer benefit, even when value economics favor the buy option, provided the value impact of leasing is not too negative. This article provides a framework for measuring risk transfer and making the value/risk trade-off in this situation, including for leases with renewal options, by means of a value to risk ratio. Site Maintenance Our system is currently down for scheduled maintenance. Your member services will be available again shortly. Please check back soon.