THE APPLICATION OF PROCESS-ORIENTED APPROACH AND BALANCED SCORE CARD (BSC) SYSTEM FOR DESIGN AND IMPLEMENTATION OF INTEGRATED RISK MANADGEMENT STRATEGY IN AN ENTERPRISE

Abstract

Risk-management is an important factor of stability and productive enterprise activities on today’s global market. Providing balance between profit-making and reduction of effects of risk-bearing events, risk management is an integral means/part of an overall business strategy.

At the same time to develop and implement an integrated risk-management system in an enterprise is a complex business project which requires a modern up-to-date technique. Process-oriented approach, already famous as an effective method of management systems modelling, may be used to create a balanced score card (BSC) strategic map for riskmanagement. Synthesis of 2 modern techniques lets produce a new strategy but also makes unique practical outcomes possible.

Process-oriented approach is an effective means to build up a management system. Today’s business management demonstrates its significant advantages which make possible to improve product quality and, consequently, streghten competitiveness. This is what forms the basis of the popularity of many quality management systems, economical and continuous development systems, all of which derive from process-oriented approach. At the same time this approach is not yet spread enough, particularly, in practice of development of risk-management systems.