Management Decisions as a Factor of Prevention and Mitigation of Internal Risks

Abstract

In the current trends of uncertainty in the operating environment, companies should not only promptly respond to changes in external and internal factors affecting its competitive position, but also be able to assess their own reserves and potential for solving possible problematic issues objectively. Internal risks of the organization can become a significant obstacle to effective and profitable business. Regulation and prevention of internal risks is an integral part of effective management. Entrepreneurship is always associated with risks due to a number of factors. Their impact on performance cannot be accurately determined in advance. Modern project and program management methodology offers different approaches to risk management as a separate field of knowledge. Change management issues are mostly solved in the process of making effective management decisions to overcome them. Crisis management in all fields of knowledge is considered as an important component of the company management process. The aim of the article is to assess the role of managerial decisions and to clarify the peculiarities of their adoption and implementation as factors in preventing internal risks. Methodology. In the course of writing the paper, a number of analytical methods were applied in processing the content of scientific sources on the prevention and mitigation of internal risks. In addition, an online survey was conducted for a practical study of certain aspects of management decision-making in terms of preventing internal risks of the organization. Results. The performed analysis enabled us to find out the peculiarities of the impact of management decisions on the quality of internal risk prevention process.