Abstract
Abstract The study aims at clarifying the role of risk management in improving business performance. In this study a literature review has been employed in order to understand the subject matters in managing business risks to increase company performance. The literature reviewed shows that risk management does contribute to the improvement of the business performance, measured as increase of company profits, decrease of business costs and, in turns, increase in economic proficiency. Therefore, the risk management impacts, in a positive way, the quality of a business that is embodied in improving the financial status of the company, increasing the profits, as well as decreasing the costs. Some recommendations are made for decision makers in the insurance business sector, who are required to be fully aware of the influence that risk management has on helping their business flourish. This is advisable through decreasing the cost of production, increasing profits, and improving financial business situation in their companies. Also, company decision makers are required to work continuously to develop risk management to increase profits, reduce costs, and improve the financial situation, and thus improve business performance.
Highlights
Nowadays, risk management is considered highly important in improving the economy on a local as well as an international level
This study explores risk management in a scientific way where the researcher suggests a few questions regarding the role risk management plays in improving business performance
In order to find answers to this major question, the researcher has introduced the following questions: (1) Does risk management play a role in increasing business profits? (2) Does risk management play a role in decreasing business cost? (3) Does risk management play a role in improving the business financial situation?
Summary
Risk management is considered highly important in improving the economy on a local as well as an international level. Throughout the quick change of variables in the business field, risk management has proved to be one of the most demanded variables companies invest in to ensure their presence among the other competitors on the floor. Decision makers in the insurance business domain are required to be fully aware of the influence risk management has on helping their business flourish through decreasing the cost of production, increasing profits, and remaining as a competitor, no matter what challenges and unexpected problems they might face. In order to find answers to this major question, the researcher has introduced the following questions: (1) Does risk management play a role in increasing business profits? (2) Does risk management play a role in decreasing business cost? (3) Does risk management play a role in improving the business financial situation? In order to find answers to this major question, the researcher has introduced the following questions: (1) Does risk management play a role in increasing business profits? (2) Does risk management play a role in decreasing business cost? (3) Does risk management play a role in improving the business financial situation?
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