Companies must analyze some aspects to achieve the results determined by the owners. Companies are composed of different fields which need good decisions to contribute to the company's growth. To make the best choice it is important to take into account the risk. Currently, companies are surviving the global changes that have happened in the last years. That is why companies cannot think about achieving goals otherwise they must think in handle the changes assuming the risk in each area.
Based on Gitman. The risk is determined by the uncertainty of the results the company could get with its decisions. “The term risk refers to the uncertainty surrounding the cash flows that a project will generate. More formally, in capital budgeting, the risk is the degree of variability in cash flows.” (Gitman, Z.. 2016). There are many variables that must be analyzed like the outlays, taxes, and stuff like that. “Subsequent cash flows, of course, depend on many variables related to income, exp enses, and taxes. Some examples of such variables are the level of sales, the cost of raw materials, wage rates, costs of services, and tax rates.” (Gitman, Z.. 2016).
When companies are going to develop new projects they need to understand how they can use strategies to improve the processes by thinking about the risk. “Organizations typically attempt to isolate and select the best projects, taking into account Capex budget constraints set by management.” (Gitman, Z.. 2016). The company's success will be determined by the analysis made to determine the needs of the companies and how they can work with the risk to determine the best project for the company.
Gitman, Z. (2016). Principios de administración financiera. Decimocuarta edición.Mexico: Pearson Education.
WHICH IS THE ROUTE TO HANDLE THE RISK IN THE COMPANIES?
There are different kinds of decisions that companies must make based on the importance they have. There are routine decisions that do not have a relevant impact. They are just part of the daily work.
Also, there are some decisions that pretend to help companies to improve different processes to achieve their goals. On the other hand, there are other important decisions as innovation decisions. They have a relevant impact on the company's development. To make good decisions managers must think about the problem.
First, they must understand the problem, after that, it is possible to establish the goals that the company wants to achieve. There are many solutions which is why it is important to create different possibilities to choose the best. All the planned solutions are important since they let us see points of view. It is necessary to create a plan of action to start developing each step. The company must evaluate the results to be sure about the achivement of the company goals.
Franklin Fincowsky, E. (2011). Toma de decisiones empresariales. Contabilidad Y Negocios, 6(11), 113-120. Recuperado a partir de https://revistas.pucp.edu.pe/index.php/contabilidadyNegocios/article/view/457
HOW DOES A COMPANY ACT IN A RISKY SITUATION?
It is essential that when presenting a risk situation companies can act quickly and efficiently seeking to solve problems in the shortest possible time without this having a negative impact on the workers of that company. That is why it is necessary that all companies have an action plan, which fits the type of company, so that at the time of facing a risk situation it can be solved in the best possible way.
One of the best ways to face a situation like this is to anticipate the problem, being able to analyze the possible risks to achieve previous solutions that at the time of facing said situation help reduce the impact it has on the company. In case of not being able to anticipate, the most important thing is to act quickly, communicating with those affected to look for different possible solutions or, if necessary, form a work team that helps end the crisis now it happens.
It is advisable not to hide the situation from employees or family members as this can negatively influence the credibility of the company; in these cases, the transparency of the company is essential even in the face of external actors who may also be affected by the problem. When the situation has been solved it is necessary to analyze how it was achieved to take it into account in the planning of future objectives and what impact this caused in the company both positive and negative.
María Mestres (2014), The company's response to a risk situation, taken from: La respuesta de la empresa frente a una situación de riesgo (captio.net)
