Business: Theory and Practice 8(3): 176-181, doi: 10.3846/btp.2007.25
Business Risk Management and its Improvement
expand article infoLaura Kaleininkaitė, Ingrida Trumpaitė
Open Access
Abstract
Business risk management is a very important process in any company. It helps to gain advantage over competitors and to work more effectively. Still, in Lithuanian companies risk management is quite a big problem. In Lithuania we face many different kinds of risk in all sectors of economy, but these risks are not suitably managed. In this article we propose to practically use probability distributions for the business risk management, allowing to forecast the future financial results of a company, and for the improvement of business risk management we present integrated risk management model, which reflects nowadays changing economy and the need to ensure the management of different risks at the minimal cost.
Keywords
business risk; business risk management; uncertainty; forecasting; probability distribution; risk management model