How has the adoption of new approaches to risk management changed Essay

How has the adoption of new approaches to risk management changed organisations and the way that managers enact international business strategy - Essay Example This includes the management of both the internal and external risks that are or that may be faced by the organization. Risk management is an important part of strategic management because the process involves the management of existing and potential adverse impacts as well as the realization of opportunities present in the broad business environment. This report deals with an analysis of how the adoption of the new age risk management processes have led to changes in the organizations and the ways the managers of these organizations formulate business and corporate strategies by focusing on the management of risk as a significant part of their strategic management initiatives. Risk management is a process used in domestic and international businesses for the purpose of the identification and assessment of the risks that are currently being faced by the respective businesses and that may be faced in the future by the same followed by developing suitable strategic plans to protect the businesses against the existing and potential risks. Risk in business is generally a term which is used to define the possibilities that in future different internal and external occurrences may lead to losses and harm for the company while at the same time also identifying the fact that the emergence and mitigation of risks may pave the way for new opportunities for these business organizations. Risks are important components to be considered by the managers and planners because, by taking risks, businesses are likely to achieve necessary gains and benefits and also at the same time, the identification and subsequent mitigation of the risks are necessary to ensure sustainabil ity and competiveness of the business in a highly dynamic, competitive and complex global corporate environment. There are many benefits of risk management that have been identified over time. The benefits of integrating risk management processes at all