Sustainable Risk Management in Businesses
Chapter from the book:
Akay,
E.
&
Palabıyık,
N.
(eds.)
2024.
Sustainable Management.
Synopsis
The concept of sustainability is an undeniable phenomenon of global importance today. In order to ensure the continuity of life on earth, the areas of economic, environmental and social sustainability constitute three critical areas that need to be meticulously considered and taken into action. Even when considered solely from a business perspective, serving sustainability creates significant gains for the future. While businesses produce value-added goods and services to meet the needs of individuals and institutions as a result of their activities, they also consume resources. Depleting resources are an important risk factor for the future of the world. For this reason, it is necessary to address sustainability and risk management in an integrated manner and conduct studies on this subject. Businesses should address and evaluate the risks they create in economic, social and environmental terms due to their activities. They should implement the risk management process from a sustainability perspective and take the necessary precautions.
Regardless of the type, size and sector of a business, it is inevitable that it will face various risks as long as it operates. If these risks are not taken seriously, they will cause the business to face crises. Addressing, managing and controlling crises while they are small or still at risk will ensure that the business does not use its resources unnecessarily.
Successful risk management plays an important role in directing businesses' limited resources to the right areas, ensuring their survival in future generations and evaluating the possible opportunities that risk will create. In this book section, the concept of risk is defined and basic concepts related to risk are explained, risk research is mentioned and current global risks are listed according to the results obtained from various researches. After explaining risk management, corporate risk management and the steps of the risk management process, the concept of sustainability is touched upon under the title of sustainability and risk management and the importance of sustainable risk management is mentioned.