Naslov
INVOLVING EMPLOYEES IN THE ESTABLISHMENT OF EARLY WARNING METHODS BY USING THE ISO 9001 STANDARD IN LARGE CROATIAN ENTERPRISES

Autori
Merkaš, Zvonko

Izvornik
Economic and social development (1849-7535) 91 (2023); 47-56

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
business risks, strategic management, methods of early warning, ISO 9001

Sažetak
Risk management is the entire process of identifying, assessing, and monitoring risks and taking necessary actions in order to prevent the occurrence or mitigate the consequences of adverse events that are liable to jeopardize the output of corporate objectives. Risk is the possibility of occurrence of such events that might adversely affect the realization of corporate objectives, sales activities, and customer service. In addition, missed or unutilized opportunities and possibilities for business improvement are also considered as risks. The risk management process is a central part of strategic management and is an integral part of the process of planning and managing business processes. It serves management as a tool for responsible, transparent, and successful management. Risk management represents the management's process and approaches aimed at preserving assets and financial stability as well as the prevention of losses. Most risks cannot be completely eliminated, but they can and must be managed. The task of the management is to timely recognize warning signals referring to risks that might threaten an enterprise internally and externally and use them properly to prevent crises and adverse events. By implementing an early warning system, management can act promptly and take certain corrective measures in business. The process of establishing early warning methods should be carried out during the development of a strategic plan for the purpose of quality and timely decision-making, better anticipation and optimization of available funds, strengthening confidence in the management system, and the development of a positive organizational culture. All of the employees within an enterprise must actively participate in all early warning processes and indicate opportunities and threats arising from frequent changes in the market, such as the emergence and development of competition, the creation of new products or substitute goods, technological advances, product extensions, development of industry, the advancement of consumer behavior, the protection of rights, and the changes taking place in the political, environmental, and social environment of the organization. Employees should have the main role in generating qualitative indicators and with their risk identification activities prolong the time that management has to make the right decisions. This can be achieved with the adequate implementation of guidelines of the ISO 9001:2015 standard by which the organization realizes many benefits arising from a wellorganized business risk management system. The advantages are reduction of business risk, better and timely decision-making, better forecasting and optimization of costs, and reinforcing trust in the management system. Keywords: business risks, strategi

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA