Critical Analysis of Risk Management: A Narrative Literature Review

Abstract

The objective of this study is to analyze available literature on the subject of risk management in business. Risk happens in all business functions and in every kind of activity. Risk management study commenced after World War II. The study has long been connected with the use of market insurance to guard entities and businesses from numerous losses linked with coincidences. Other methods of risk management, alternatives to market insurance, surfaced during the 1950s when market insurance was alleged as expensive and imperfect for defense contrary to clean risk. Knowing how to identify risks, attribute a value and a priority scale, design actions and mechanisms to minimize risks, and continuously monitor them, are essential to guarantee companies’ survival and create sustainable value. Risk management is the process of minimizing or mitigating the risk. It starts with the identification and evaluation of risk followed by optimal use of resources to monitor and minimize the same.

Keywords: risk management, risks

DOI: 10.7176/PPAR/12-5-04

Publication date:July 31^st 2022