Development of the Risk Management System in Croatian Companies

6th International Scientific Conference – EMAN 2022 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 24, 2022, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-57-8, ISSN 2683-4510

 Abstract:

Modern business conditions change significantly and the company and the management face the challenge of how to predict the future and make timely decisions to prepare the company for future business. Therefore, increas­ing attention is paid to the issue of risk management. This paper presents a the­oretical and practical contribution to understanding the importance of risk management systems in Croatian companies operating in international mar­kets. Modern business conditions are discussed in the introduction, and then the term “risk management system” is conceptually discussed. The research part of the paper presents the results of empirical research on the perception of respondents about the degree of development of risk management systems in their companies using the “Weight of Evidence” method. The “Weight of Evi­dence” method is a method used to calculate the value of the strength of the in­fluence of each represented variable from the observed samples on the defined target variable. A low level of system development has been established. Risk management systems, unfortunately, are only used by large companies. The application of a comprehensive risk management system can significantly in­crease the efficiency and effectiveness of the company’s business, and acceler­ate the economic development of the Republic of Croatia.

Keywords:

Risk; Risk management; Croatian companies; Competitiveness; “Weight of evidence” method;
International business

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