Peculiarities of Integrated Risk Management

Abstract

In the conditions of the modern world economic crisis, the integrated approach to risk management in business structures is of great importance. The main elements and advantages of an integrated risk management system are defined. The importance of transition to integrated risk management in Georgian companies as a necessary condition for their stable and effective development, as well as the proposed approach facilitates the implementation of risk-oriented management principles and allows assessing the impact of risk on achieving the company's strategic goals. In the conditions of globalization of the world economy and intensification of competitive struggle, the process of risk management has become an integral part of the activities of any company, which ensures the existence of this or that business. The classic model of business management, which is part of corporate governance, is losing relevance day by day. Risks arise at every stage of the value chain and in every business process of the company. In order for the system to be consistent with achieving the goals set for the company, it must be integrated into its business processes and taken into account at all levels of decision making. Overcoming the emerging negative trends in recent years makes the problem of developing an integrated approach to risk management urgent and requires further scientific research to substantiate its implementation models. Despite the importance of the risk management problem, Georgian entrepreneurs have not yet fully grasped and assessed the inevitability of risks and the importance of recording them in the process of concluding contracts, making plans and forecasts. We conducted a small-scale survey to find out to what extent Georgian companies use risk assessment and analysis. The analysis of our research showed that only 52% of small and medium-sized companies surveyed in Georgia believe that risk management is necessary for effective business management, 79% of risk analysis is not performed at all, only 21% of surveyed companies (including all medium-sized companies) in some cases perform some risk analysis episodically, so in small and medium-sized companies in Georgia there is a clear lack of risk management, which is most important, lack of qualified staff in this specialty. The practice of recent years has shown the low efficiency of both the management system as a whole and risk management, the main reason for which lies in the rather weak integration of the latter in the overall management system. Insufficient attention to risk analysis leads to a reduction in the quality of strategic and operational management, losses of the company's potential, deterioration of the results of its activities. Integrated risk management development is a lengthy process that involves continuous staff training and development, as well as a thoughtful policy of disclosing information about risks to the company and the measures taken to reduce and control them. Thus, the uncertainty of the surrounding world, the unstable economic situation in Georgia and in the world leads to an increase in the level of risks in all areas of human activity. Integrated risk management - this is a real necessity of the business and an indispensable factor of success. Such an approach makes risk management more effective and allows the required level of safety to be achieved, risk control to be more fully managed and a complex picture of the real situation to be obtained. Key Words: Risk, Risk Management, Integrated Risk Management, Integrated Approach.