A Conceptual Analysis of Current Trends in the Evolution of Risk Management Process

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Date
2011-06
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Mark
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Vysoké učení technické v Brně, Fakulta podnikatelská
Abstract
Purpose of the article The traditional idea of risk management is continually evolving as it enjoys growing popularity in corporations. The paper reviews the risk management procedure within the traditional concept and then identifies and discusses the main trends currently observed within the organisation and implementation of this procedure. Scientific aim The paper aims at identyfing and describing the currently observed trends in the evolution of risk management process. To achieve this, it aims at comparative analysis of solutions within traditional risk management concept and the ideas underpinning the current process of risk management standardisation. It also aims at reviewing the validity of clasiffication of risk treatment techniques. Methodology/methods The paper represents a conceptual analysis of the current state of affairs and uses the method of comparative analysis and deduction based on the literature review and the lecture of standardisation documents. As a viewpoint paper, it represents au-thor’s own ideas and findings. Findings The two main trends of risk management evolution should be idetified. The first one is related with strategic dimension of risk management as this procedure is often promoted as an integrated concept. It springs from the regulations of standardisation procedures which aim at unifying the terminology and set of activities from practitioners’ perspective. The second direction of risk management concept evolution is observed within the development of risk financing techniques due to the innovations observed within traditional risk retention and trasfer solutions, as a result of continuous convergence of insurance and capital markets. Conclusions (limits, implications etc) The risk management process is constantly evolving toward the strategic dimension as the risk perception changes, concerning both the downside and upside of risk. However, the standards follow similar sequence of activities as compared to the traditional concept and just redefine the tasks perfomed in each step. The evident evolution is observed within risk financing tools due to the implementation of innovative solutions.
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Trendy ekonomiky a managementu. 2011, V, č. 8, s. 156-168. ISSN 1802-8527.
http://www.fbm.vutbr.cz/cs/fakulta/vedecky-casopis/aktualni-cislo/1114-cislo8
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Peer-reviewed
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en
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© Vysoké učení technické v Brně, Fakulta podnikatelská
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