Podcast
Questions and Answers
What is identified as a defining characteristic of an entrepreneurial decision-maker?
What is identified as a defining characteristic of an entrepreneurial decision-maker?
- Focusing solely on maximizing short-term gains.
- Willingness and readiness to take personal and financial risks. (correct)
- Reliance on established market trends.
- Aversion to taking any risks.
According to the information, European companies typically view risk as an opportunity, similar to Anglo-American companies.
According to the information, European companies typically view risk as an opportunity, similar to Anglo-American companies.
False (B)
Besides direct financial aspects, what else should successful decision-makers consider when evaluating risks?
Besides direct financial aspects, what else should successful decision-makers consider when evaluating risks?
The impact on the whole organization.
Creating the right climate for risk management requires the acceptance that risks ______.
Creating the right climate for risk management requires the acceptance that risks ______.
What is emphasized as crucial for effective risk management, enabling control systems and setting expectations?
What is emphasized as crucial for effective risk management, enabling control systems and setting expectations?
Match the examples with the types of significant risks an organization might face:
Match the examples with the types of significant risks an organization might face:
What is mentioned as a key benefit of identifying significant risks within and outside an organization?
What is mentioned as a key benefit of identifying significant risks within and outside an organization?
Attitudes toward risk between European and US companies converged significantly after 2017.
Attitudes toward risk between European and US companies converged significantly after 2017.
What is the first step needed to take other actions for risk management?
What is the first step needed to take other actions for risk management?
Practical guidelines in managing and reducing business activity is best achieved by applying the ______ relevant to the situation.
Practical guidelines in managing and reducing business activity is best achieved by applying the ______ relevant to the situation.
Flashcards
Practical Guidelines in Risk Management
Practical Guidelines in Risk Management
Involves applying suitable principles and techniques to manage and reduce business risks effectively.
Nature of Risk
Nature of Risk
A willingness to take risks is a characteristic of entrepreneurial decision-makers; risk can be seen as an opportunity.
Managing Risks
Managing Risks
Risks should be measured, understood, and actively managed with an organization-wide perspective.
Right Climate for Risk Management
Right Climate for Risk Management
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Identifying Risks
Identifying Risks
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Examples of Significant Risks
Examples of Significant Risks
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Study Notes
- Practical guidelines in managing and reducing enterprise-wide risk inherent in business activity is best achieved by applying the principles and techniques appropriate to the situation.
Understand the Nature of Risk
- The willingness to take personal and financial risks is a defining characteristic of the entrepreneurial decision-maker.
- A study in the late 90's found that continental European strategies focus on avoiding and hedging risk.
- Anglo-American companies view risk as an opportunity and embrace risk management to achieve their goals.
- In 2017, the relative attitude to risk among European and US companies remains broadly the same due to cultural experiences, history, and recent events.
- Risks resulting from decisions should be measured, understood, and eliminated as much as possible.
- Risk should be actively managed beyond its financial perspective, considering its impact on the entire organization.
- Creating the right climate for risk management is crucial, starting with accepting that risks exist.
- Understanding why control systems are needed requires communication and leadership skills to set standards and expectations.
Identify and Prioritize Risks
- Identifying significant risks inside and outside the organization is critical for making informed decisions and avoiding surprises.
- Significant risks include loss of a major customer, failure of a supplier, or the emergence of a major competitor.
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