Use of Risk Management to Support Business Sustainability in the Automotive Industry

Štefan Markulik (), Marek Šolc and Peter Blaško
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Štefan Markulik: Department of Safety and Quality, Faculty of Mechanical Engineering, Technical University of Kosice, Letna 1/9, Sever, 04200 Kosice, Slovakia
Marek Šolc: Institute of Materials and Quality Engineering, Faculty of Materials, Metallurgy and Recycling, Technical University of Kosice, Letna 1/9, Sever, 04200 Kosice, Slovakia
Peter Blaško: Institute of Materials and Quality Engineering, Faculty of Materials, Metallurgy and Recycling, Technical University of Kosice, Letna 1/9, Sever, 04200 Kosice, Slovakia

Sustainability, 2024, vol. 16, issue 10, 1-24

Abstract: Today’s companies operate in a dynamic, constantly evolving, and highly competitive environment. The globalization of markets has significantly changed the economy, where companies operate within increasingly complex supply chains. The ever-increasing expectations of customers and company stakeholders, as well as the need to incorporate a comprehensive approach to the life cycle of manufactured products in corporate strategies, expose companies to a whole range of risks. The research was based on the need of organizations operating in the (automotive) industry to manage the dynamics of the business environment. This was accomplished using an appropriate model that, through its universality, would help to ensure the effective risk management in a holistic approach, protecting their performance and meeting the needs of the relevant stakeholders. The main idea of the research was to create and implement a dynamic model of risk management in the environment of a production organization based on the use of available methods such as SWOT, PESTLE, brainstorming, affinity diagrams, risk matrix, SIPOC diagram, risk, and the results of questionnaire surveys. The research was conducted in two directions: (1) designing the structure of the dynamic risk management model for the strategic management process; and (2) verifying the effectiveness of the proposed model in specific cases and evaluating the technical and economic benefits. To support the dynamics of the model, three basic management tools have been proposed: process review, internal audit, and management review, enriched with features that support the concept of risk-based thinking.

Keywords: management; risk; model; tools; assessment; industry; business sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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