Risk management as instrument of strategic management

Vladena Stepankova, Lenka Smolikova

Abstract


Purpose.Strategic management is very important for the proper functioning of enterprise, an integral part should be the risk management. Because the most threatening to society are strategic risks, which could bring up the bankrupt of the enterprise, the role of risk management is evident. With integrating the risk management into the strategic management deals the following paper. That the enterprise could compete in the market to other entities, it is necessary to constantly adapt and innovate. One such innovation is precisely the integration of risk management into strategic management. These steps must be performed using a predetermined schedule, a project, which is also closely related to the role of risk management.

Methodology. In this paper there are described the basic methods of risk identification (addictions diagram, brainstorming, brainwriting, analysis of the causes and effects, analysis of assumptions and limitations) based on the extent of the problem, and methods necessary to integrate risk management as an operational analysis methods - for example, CPM and WBS method .

Results. The result of this paper is a list of activities and procedures necessary for the implementation of risk management in the context of strategic management and potential risks that may occur during this implementation. The benefit is more interconnected fields of science for the development of methodology.

The theoretical contribution. In the paper are interconnected the risk management methods with methods of operational analysis. It highlights the advantages of using the risk management, for example, in relation to the value of the enterprise and also describes the role of risk management in the normal life cycle of the entire enterprise.

Practical implications. The paper should be used as a methodology for enterprises that are considering of integrating ERM into strategic management and functioning of the whole enterprise. There are described benefits to enterprise by implementing risk management, but also potential risks that might befall it.


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