IMPACT OF RISK MANAGEMENT ON ORGANIZATIONAL EFFICIENCY
ABSTRACT
Treatments of risk in the international management literature largely focus on particular uncertainties to the exclusion of other interrelated uncertainties. This paper develops a frame work for categorizing the uncertainties faced by firms operating internationally and outlines both financial and strategic corporate risk management responses.
Managing risk is one of the primary objectives of firms operating internationally and locally [Ghoshal 1987]. Nevertheless, current treatments of risk and uncertainty in the international management literature vary in their use of these terms and tend to look at particular categories of risks to the exclusion of the risks mentioned elsewhere in management literature.
The strategic management field lacks a generally accepted definition of risk. The major uses of the term are in reference to unanticipated variation or negative variation (i.e., “downside risk”) in business outcome variables such as revenues, costs, profit, market share, and so forth. Managers generally associate risk with negative outcomes [March & Shapira 1987]. The concept of risk as performance variance is widely used in finance, economics, and strategic management. With either the variance or negative variation under- standings, “risk” refers to variation in corporate outcomes or performance that cannot be forecast ex ante.
The label “risk” has also commonly been assigned to factors either external or internal to the firm that impact on the risk experienced by the firm. In this sense, “risk” actually refers to a source of risk. Some common examples of risk referring to risk sources are terms such as “political risk” and “competitive risk.” Such terms link unpredictability in firm performance to specific uncertain environmental components.
This research was purposely carried out to appraise the impact of risk management on organization efficiency as its being operated in Nigerian breweries plc, and how risk are identified, measured or evaluated and how they are being handled. The first chapter of the study dealt with the introduction, of research work where emphasis were placed on general introduction of the area of enquiry and statement of problems, objectives of the study, and hypothesis where dealt with within one chapter. In chapter two, review of related literature is dealt with while chapter three was designed to research methodology, research design, population and sample instrumental, data collected and statistical analysis was not left out. The chapter four, data collection through questionnaires were thoroughly analysed and findings were properly presented and for working earlier formulated hypothesis in chapter one was tested. Chapter five was conclusion with major research findings.
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