Risk management model for transportation company

Viktorija Stasytytė,Raminta Pilionienė

doi:10.3846/bm.2016.36

Abstract

There are different risk management models developed in scientific as well as in practical literature, but they are usually of general manner and should be adapted for particular company or field of activity. The paper aims at developing a risk management model for transportation company, based on the prevalent theoretical provisions of risk management activity. The separate attention is given to risk identification stage as it proves to be a critical step of risk management process. Different methods, such as SWOT, PEST, financial analysis and questionnaire are applied to identify risks in transportation sector company. The proposed model includes the basic steps of risk management process and ends with a detailed risk management plan preparation.

Highlights

The ever growing globalization of financial markets, the growth of the market itself, as well as separate country economic internationalization and the financial world has become more hazardous than ever (Akhmetov, Rysaeva 2015; Lee, Lin 2016)
Effective risk analysis creates the space to prepare for prospective negative events and minimize possible damage by choosing the right risk reduction tools
Due to the constant innovation of strategic management in recent decades, the SWOT model is exceptionally popular among researchers and practitioners (Shang, Pheng 2014; Comino, Ferretti 2016)

Summary

Introduction

The ever growing globalization of financial markets, the growth of the market itself, as well as separate country economic internationalization and the financial world has become more hazardous than ever (Akhmetov, Rysaeva 2015; Lee, Lin 2016). Risk management is a constantly developing business process It takes important place in companies performing various activities Alhough there is sufficient amount of risk management models developed in scientific as well as in practical literature, they are usually of general manner and should be adapted for particular company or field of activity (Hafezi, Akhavan 2014; Oliva 2016; Kim et al 2016). The research problem – the lack of enterprise risk management models for certain business sectors. The research objective – to prepare risk management model for transportation sector enterprise by analysing and identifying the company's risks. Research methods: scientific literature analysis, comparative analysis, SWOT analysis, PEST analysis, questionnaire, graphical visualization

Methodology

Risk identification using different methods

Risk related with infor- Rare mation technologies

Stronger competition

Noncompliance of customer liabilities

Findings

Conclusions