ENTERPRISE RISK MANAGEMENT AS A KEY COMPONENT OF MANAGEMENT

Abstract

In modern business environment, companies are faced with an increasing number of challenges and uncertainties that can significantly affect their business, profitability, reputation, even their survival. Changing market conditions, technological innovations, regulatory changes, geopolitical instability and many other factors contribute to complex scenarios in which a modern company operates. In the context mentioned, risk management becomes a crucial element of a successful management strategy. Risk management, as concept and practice, includes a systematic approach to recognition, analysis, evaluation and management of potentially negative events or situations that can affect achieving goals. Understanding the concept of risk management involves exploring how organizations can effectively identify, assess, analyze, and mitigate risks in order to achieve sustainable and successful outcomes. It emphasizes the importance of a proactive approach in managing uncertainties to ensure long-term success and stability. The research methodology will combine qualitative and quantitative approach. Qualitative research will include the analysis of various theoretical frame. A quantitative approach involves the analysis of relevant data about company’s performance, with the application of statistical methods, in order to establish a link between organizations’ success and their risk management and the attitude of management in implementation of conceptual frameworks in the analysis.