Composition 137


The definition of risk is an uncertainty that affects a company's profit and loss.

Risk management has increased its importance because of two reasons. First, risks have become more diversified than in the past because of globalization. Second, no company cannot exist unless it fulfills its accountability nowadays.

Risk is classed as 'risk to take' and 'risk to control.' The former inevitably occurs due to decision-making. Sometimes a company has to take this type of risk to find a business opportunity. The latter occurs in association with carrying on everyday business. A company doesn't have to take it and should control it.
→私が読んだ文献では「テイクリスク」「コントロールリスク」という言い方になっていたのだが、元の英語表現が分からない。とりあえず to 不定詞を使って書いた。

Managers need to visualize a company's risks for two reasons. First, it is hard for employees to grasp a risk that hasn't been tangible yet. Second, it is hard for employees to understand the significance of keeping a risk from being tangible.

Managers need to set two targets of risk management. The two are a target of result and a target of activity.

When you fulfill the two conditions as following, you succeed in your risk management. First, you make a system that keeps all risks intangible. Second, you discover a business challenge that you cannot see from a manager's viewpoint.