wtorek, 22 sierpnia 2023

Management in the risky environment

Companies operate in a global economy that exposes all of them to continuous changing risks that not only concerns the company, but also affects the activity of other entities, hence each company is exposed to the risk of decisions of others. The impact of risk in an increasingly global economy becomes critical to the structure of management control. Companies operate in a progressing complexity and instability. The fundamental management challenge is the adoption of the organization to the new conditions of operational activity characterized by increasing risks that will support companies to adapt to the new circumstances in the business environment. The operational activity of companies is exposed to constant changes resulting from the requirement of continuous development in the conditions of the emergence of new risks, which forces them to react flexibly in new situations. New instruments supporting economic results management must be provided in such a situation of word characterized by increasing discontinuity and absolute uncertainty. Following T. Pszczołowski management should be defined as the activity of managers aiming to execute enterprise plans using resources in order to achieve the organization's goals by making wise decision. The primary goal is the creation of the economic profit being a synergistic effect developed in a company. Related decisions are always at risk, in some cases affecting the far future. The goal becomes the anticipated, future values of economic results linked to related actions of managers. Hence, the management control instruments shall be developed by risk starting with building tools for the strategy operationalization, through cost settlement, to the final measurement of managers' performance.


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