czwartek, 31 sierpnia 2023

Management in the risky environment - continued

Risk management gets increasing importance in the world of global randomness and volatility. Risk materialization that is often triggered by global processes or local events, may result in many companies going out of business. However, the occurrence of risk may become an opportunity for a company that is properly prepared to develop and expand the business. Management control should support managers to develop the potential to use the opportunities by providing a sustainable improvement of economic results under conditions of risk materialization. Relevant managerial information becomes the foundation to create shock-proof companies, which are not only adapted to operate effectively in the era of global revolution on the economy characterized by high risk, but also prepared to take advantage of the opportunities. Proper control of the operating activities, based on reliable and complete data becomes important for efficient decision-making at risk. Management control supports managers to monitor the effectiveness of business strategies, the correctness of decisions and the productivity of invested capital. Effective control of managers' decisions ensures relation of activity with the company goals and the action automation thanks to the implementation of a feedback system based on reliable reporting of results.

-> As shown by K. Jajuga risk management is the process of making decisions and implementing actions leading to an acceptable value of risk in the company, with the exposure structure supporting the plans execution. More: K. Jajuga: Zarządzanie ryzykiem, Wydawnictwo Naukowe PWN, Warsaw 2009, p. 15,18.

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