Risk Management for the Purpose of Business Decision-Making in Crisis Situations

Abstract

Regardless of the ownership structure and the size of the company, there is inevitable confrontation with the specific risks and crises. Therefore, it is crucial for the fate of every enterprise to be familiar with methods of crisis management and risk management. The subject of this paper is to manage risk in order to make effective business decisions. The basic hypothesis is: conducting the wrong financial policy is a crucial factor of the causes of the enterprise crisis in Bosnia and Herzegovina. In accordance with the set hypotheses and the research object, the main aim of the research is to determine the factors that decisively influence the occurrence of crisis in the companies in Bosnia and Herzegovina. The first part of this paper explains in detail the concept and types of business risk, with emphasis on the importance of knowledge of crisis management. The second part of the paper is focused on the analysis of integrated risk management, defining strategies for its management, with calculation rate risk of investing in companies in Bosnia and Herzegovina. The third part of the paper refers to the research results, i.e. analysis of factors that influence the development of crisis situations in enterprises in Bosnia and Herzegovina.