Summary Grade 11 Business studies notes on risk management

Risk management
Analyzing the probability of an event taking place and
proactively planning to minimize negative effect.

Introduction

World of business has no guarantees to outcomes achieved as high
degree of uncertainty linked to:
 Economy of country: growth or recession
 Economy on global level
 Political developments: like corrupt government officials
 Technological advancements
 Changes in legislation
 Changes in consumer demands
Risk can be an uncertainty, threat, or opportunity

Risk and strategic management

 Risk management need to ensure a balance between opportunities
and threats
 Risk management should therefore be integrated into strategic
planning




Stratagy: vision, mission, value
statment, organisational struture,
goald and objectives



Risk managment: the alignment
between the business stratagy and
business opperation



Business opperations: implimanting
polocies, managing processes and
monotoring and contoling daily
activities




Risk management in practice