In this article Strategic Risk Management will be dealt with. Change within and outside business operations have heighted uncertainty on how to deal with challenges and achieve desired results especially for risk strategic managers. In this volatile operating environment, risk management is a tool for maximising opportunities and minimising dangers to a business success. This requires decision-makers to think strategically all the time. Business Training in Kenya has more articles.
Strategic Risk Management
Strategic managers committed to social change have invested heavily in improving their professional competence. One innovation for these managers has been the use of strategic management principles. Once every three to five years, businesses agree and implement a multi-annual process focused on the organisation to achieve their mission and long-term goals. Strategic decision making requires proactive decision making
Therefore to be effective strategic planning must be accompanied by strategic thinking at all organisational levels. An organisation must constantly generate new strategies. Organisations success depends greatly on the strategic management.
As we all know risk is inherent to life. The future is in any situation is always uncertain and the outcomes of events unpredictable. Strategic risk management is of great importance.
Principles and Advantages of Strategic Risk Management
Functional and Graphical Representations is a mathematical relationship of dependent and independent variables. It is a mathematical rule that determines the values of dependent variables from the corresponding values of independent variables. Qualitative variables refers to those variables which are not directly measurable e.g. kindness, hunger etc. Read more in our earlier articles in Business Training in Kenya.
Types of Functional and Graphical Representations
Functions or equations can be expressed on the basis of:
- Role of the function
- Mathematical form
- Number of independent variables
a) Role of the Functional and Graphical Representations
There are 4 roles of the Functional and Graphical Representation:
- Definitional Equations
- Behavioral Equations
- Equilibrium Equations(Conditional Equations)
- Technical Functions
1) Definitional Equations
Entrepreneurial Practice of Ethics involves various qualities and virtues.
Virtues of Entrepreneurial Practice of Ethics
1. HonestyHonesty in Entrepreneurial Practice of Ethics is crucial for three reasons:
- It builds trust- Studies indicate that employees who believe that their employers are honest work harder.
- Establishes community-When people trust each other, relational networks are built. Trust in Entrepreneurial Practice of Ethics is a social good to be protected just as much as the air we breathe. Dishonesty makes business communication less efficient and more cumbersome. As English author, Samuel Johnson once observed, even demons do not lie to one another, because the society of hell could not exist without truthfulness.
- Protects the dignity of the audience- Honesty respects the dignity of those to whom communications are directed. Recipients are entitled to accurate information so that they are able to make free and intelligent choices. The concept of ‘’informed consent’’ also applies in business just like in medicine so that the dignity of decision makers (customers, employees, stockholders) must be protected by giving them sufficient information to preserve their autonomous choices. Adam Smith, the father of capitalist, prized the notion of informed consent. For transactions to be truly voluntary both parties must have access to accurate information; otherwise they cannot deal for mutual benefit in the Entrepreneurial Practice of Ethics. Smith taught that the market operates properly only if honest dealings are the norm.
For one to qualify as an effective leader, it is very vital that one posses Good Leadership Skills and qualities. Extremely fruitful companies achieve and maintain such distinction because of the way in which they are managed and led – by leaders who posses good leadership skills. Business Training in Kenya has more articles
Most exemplary leaders of the world were born with undeniably good leadership skills in their blood, however a few others developed their own characteristic leadership qualities over time and through life’s experiences.
Leadership is a virtue that every good leader must inevitably imbibe if the leader dreams of success and of certain goals that they’d wish to achieve.
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