THE RISK MANAGEMENT ORGANIZATIONAL ENTITIES

Mariana Man (), Sorin Mihai Radu and Joanna Tabor
Additional contact information
Mariana Man: University of Petroºani
Sorin Mihai Radu: University of Petroºani
Joanna Tabor: Czestochowa University of Technology

Polish Journal of Management Studies, 2015, vol. 11, issue 2, 115-126

Abstract: The place and role of risk in managerial activity must be analysed by taking into account the relation where the two concepts about risk are, namely: The concept suggested by the decision theory and concept suggested by managers. It is necessary to take into account managers’ behaviour towards the risk defined by the theory of choice, which leads to the following conclusion: managers actually assume risks and express preferences in terms of risk, using techniques and procedures – other than the traditional ones – such as media, variation of probabilistic distributions of possible outcomes, etc. Understanding the concept of "risk" by managers leads to a certain attitude they have towards risk characterised by three essential features and namely: managers' low sensitivity to probabilistic assessments of the possible results; managers' wilful mobilisation on some key objectives and decisive influence of this mobilisation on managerial decisions; clear distinction between managers assuming the rick and game of hazard. These features combined with the individual and organisational decisions highlight the impossibility of the classical conception of "risk" to enable a thorough and meaningful of the behavioural phenomenon of assuming the risk.

Keywords: risk; uncertainty; risk assessment; failure; unpredictability (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://pjms.zim.pcz.pl/PDF/PJMS112/The%20Risk%20Ma ... ional%20Entities.pdf (application/pdf)
http://www.pjms.zim.pcz.pl/-articles.php (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pcz:journl:v:11:y:2015:i:2:p:115-126

Access Statistics for this article

More articles in Polish Journal of Management Studies from Czestochowa Technical University, Department of Management Contact information at EDIRC.
Bibliographic data for series maintained by Paula Bajdor ().