RISK MANAGEMENT IN ORGANIZATIONS
As a result of mastering the material of Chapter 8, the student must:
• the essence of scientific risk management;
• The algorithm for managing risks in organizations;
be able to
• apply risk management techniques;
• skills in the formation and analysis of information arrays that provide monitoring of the environments of the organization to manage them;
• methods of managing organizations in a highly dynamic environment.
In the broadest sense, risk is a purposeful behavior of a social subject, carried out in the context of uncertainty of its outcomes. Behavior organizations form managerial decisions, therefore risk management of the organization is deliberate and purposeful actions to optimize decisions taken and implemented in conditions of uncertainty. These actions can be carried out both on the basis of common sense and life experience, and represent scientifically valid measures but to identify risks, analyze them, select and apply optimization methods, and evaluate the results obtained. Risk management of business organizations in market conditions is called risk management.
Risk management in an organization as a scientifically based activity includes:
• identification (identification) and risk assessment;
• developing and evaluating options for solutions at risk;
• adoption and implementation of risky decisions.
Thus, risk management involves three stages, the implementation of each of which requires the use of specific methods. In risky literature, risk management techniques are often referred to as general planning and decision-making methods, which makes risk management virtually identical to management in general. Of course, if the activity of the organization is dysfunctional in some way, then it risks its effectiveness and survival. However, the specific nature of risk management is primarily related to the preparation, adoption and implementation of decisions under conditions of high uncertainty, which does not allow us to act in accordance with the classical management logic.
There is no generally accepted system of methods and indicators for risk management. First, because any risk management strategy involves the use of intuition in decision-making, as well as determination and optimism when implementing them, which implies the existence of unique personal qualities and managerial abilities in each case. Secondly, because modern organizational structures and types of their activities are extremely diverse. Entrepreneurial activity in general has no direct analogues, including in many respects also in the managerial aspect. Thirdly, because the high dynamism of the external environment makes the administrative situation of each organization rather peculiar.
At the same time, the risk management process has general regularities, which makes it possible to distinguish and describe the content of its stages and their methodological support. The following algorithms and methods are chosen so that they correspond to common sense and the usual logic of decision-making, and would be simple enough for them to be used by non-specialists in the field of risk management.
The sources of the initial data for risk management can be:
• The results of monitoring the external environment by the organization itself, as well as specialized ones, incl. statistical organizations;
• external and internal consulting;
• organization documentation - plans, schemes of organizational structures, financial documents, workflow maps, etc.
• the results of the organization's social studies;
• the results of the functioning of the system of organizational control and accounting of incidents.
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