Establishing a Shared Service Center in China (Mini-Case Study: 4.2)
Q. Identify which risk response strategies the company applied.
In this case study, many risk management strategies can be developed and applied by the organization, especially if these strategies will respond, assess, and monitor risk perceptions that are routinely used in making operational decisions. The importance of adopting a risk-based approach is to execute strategies for better and extended organization survival. This approach will enable managers to focus on more opportunities in strategic plans and to minimize the potential impact of threats. Here, risk acceptance strategies were actively applied by establishing a contingency plan for handling the mentioned threats or opportunities. Also, they took an appropriate step in reducing the occurred risks to an acceptable level by mitigating and understanding those risks which might affect the organizational objective.