RISK MANAGEMENT ISSUES IN TRANSPORTATION AND LOGISTICS COMPANIES

Abstract

Transportation business as a specific kind of a service must take into account a lot of risks resulting from the variable nature of external as well as internal factors of changing business environment. Transportation business is one of the most problematic spheres in the Slovak business. It is important to work with risks and manage them not only during establishing the business but also during the whole run of business activities. Risk management in business is the assumption that business risks will be properly identified, assessed and managed and business opportunities will be fully exploited. The aim of this paper is to point out the possible forms of risk management use in the transportation business. The process of business risk management in transportation company is related to its transnational character or the nature of stakeholders. Standards and norms, used in this are, can be applied. Since the transport companies now operate in an environment with high degree of uncertainty and are exposed to various risks it is not possible to define some stable and exact process and exact solution that would guarantee risk elimination or successful crisis encompassment. Risk management as well as solving each crisis situation has individual and specific character.It is connected with various circumstances, performed in different conditions and accompanied by different events. Encompassment of each crisis situation requires great practical experience and professional knowledge in various fields. At present, risk elimination and solving crisis situations is understood as the top of managerial wisdom and the most demanding manager task.