ЈАЧАЊЕ ОТПОРНОСТИ ПРЕДУЗЕЋА УПРАВЉАЊЕМ РИЗИЦИМА
STRENGTHENING THE RESILIENCE OF COMPANIES THROUGH RISK MANAGEMENT

Author(s): Dejan Mikerević, Silvije Orsag
Subject(s): Business Economy / Management, Management and complex organizations, Accounting - Business Administration
Published by: Savez računovođa i revizora Republike Srpske
Keywords: risk; risk-reward trade-off; portfolio; enterprise risk management;
Summary/Abstract: Business uncertainty and risk measurability in modern business have become key elements for top management and financial managers, both of financial institutions and other large companies, especially those that have public responsibility in society. The quantification of uncertainty in the sense of translating uncertainty into risk is a key change that famous economist Harry Markowitz launched in his 1952 paper entitled “Portfolio Selection” and became the foundation of modern portfolio theory. The basic and key difference of the modern portfolio theory compared to the traditional one is the measurability of portfolio and investment risks with the focus of financial and portfolio managers on achieving the key business goal, which is reflected in active “risk management” of the company’s or portfolio’s business instead of achieving the highest possible return. The paper analyzes the terms related to risk, the establishment of interdependence of risk and return, resistance to stressful events in terms of external and internal shocks, and highlights the importance and possibilities of corporate risk management with the aim of achieving the best possible business results with minimal risk taken.

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