2:09 pm - Thursday August 31, 5989

Risk Management: Why It Is So Important

An important factor in managing the business of the company is not only the complexities of the external environment and its potential impacts – favorable or harmful – on the profitability of the firm but also endogenous factors to the entity. Companies must constantly make an assessment of all scenic elements that are part of their quality chain that all supply chains, distribution channels and their market share.

Uncertainty remains at the heart of any business idea. The randomness factor is the highlight of any company that wants to profit. Policy makers are quick to seek not only the best ingredients of strategic success but also systemically finding modes of operation at the best value in a sustainable manner that will intensify the financial value and the overall competitiveness of the firm.

The uncertainty can be seen as a dichotomy inherent in daily decisions related to the usefulness and randomly, in other words, uncertainty is the sword of Damocles hanging over the heads of corporate executives they keep asking if they take the right decisions and whether those decisions will generate the best results.

Have good results is essential to the economic success of the firm in the short term, however, make good decisions is essential for successful long-term strategic for most companies because an ergonomic environment that stimulates the emergence of the best structurally ideas and the most effective procedures for these entities positions inevitably an advantage in the competitive balance.

These studies related to the risk out that it can be broken in two ways: random and epistemic. The random risk refers to a situation of pure chance, while the pure epistemic risk is a conflict whose resolution depends on the level of experience of the decision maker and his decision. The last risk is usually found in the relations between economic agents as the first result is more than likely

Experts Enterprise Risk must continuously develop a structured framework for systematically addressing the hazards of risk at all levels of the strategic continuum, both at the junior level. Uncertainty is an integral piece of the business, so the risk can never be fully deleted. This makes it considerably important the presence of a safe procedure that gives preeminence to the detection, analysis and reduction of all risks in the business.

New types of risks have been discovered in recent years, although at present they are strangely ignored or underestimated by risk specialists or academics. Although some of these threats have been detected with relative success recently, their stratospheric rise in the last decade and the resulting financial devastation has catapulted into the category high risk.

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