Risk Management: Bigger Trees Are Easier To Catch Up With.

No risk management Enterprises must not be able to live longer. The risk management of enterprises is only an important requirement for their longevity management. The source of "risk" is that fishermen who fish for fishing in ancient times often feel the danger that wind brings to them. In their eyes, "wind" means "danger".

Tan Xiaofang, a famous business management expert, said that the pursuit of risk management is efficiency Balance risks as far as possible. It may be broader and more comprehensive than those before. If an enterprise's development path can fundamentally balance its efficiency and risk, it will almost certainly achieve long-term development.

These theories, which are further revised by strategy, emphasize only better or smarter, or more timely, or more intelligent. The core assumption has been following our more agile reaction or smarter in carrying out management and management activities to achieve the desired goal. But it ignores that in 10 years or 20 years, we can be smarter, but after all, some huge risks can not be resisted. Just like the black swan event, it is unresistable. There must be some contingency events that disrupt us. If certainty or uncertainty occurs, we can actually fight through internal control, including cash reserves, but a revolutionary and dramatic change can hardly help us. This is higher than all previous knowledge, including all previous knowledge, including strategy, including BPR, including BPR.

Tan Xiaofang, a well-known business management expert, said that the risk in modern sense has gone beyond the narrow meaning of "danger". After the deduction of time, the word "risk" has been conceptualized and deepened gradually with the complexity and profundity of human activities. It has been given a broader and deeper meaning in various disciplines, and has become more and more closely related to human's decision-making and behavioral consequences. The word risk has also become a highly frequent word in people's lives.

　　 First, the uncertainty of the enterprise's living space has led some enterprises to not live long.

enterprise living space Uncertainty refers to the existence of certain enterprises in a certain period of existence in a certain period of time. If some enterprises can only sell products nearby, some enterprises can enter the international market even in the whole country. Some enterprises produce only a few products. Once there is an industrial survival crisis, enterprises will have no choice. Some enterprises can effectively diversify production across the industry, so they have larger living space.

Some enterprises are in the leading position in the industry, while some enterprises can only survive in the gap of the market. The living space of enterprises has continuity and expansion in space, and the survival space of enterprises may become narrower, but it may also expand continuously. The competition of enterprises is the existence of living space, so they have to face different living environment. In this process, enterprises may have symptoms of "acclimatized" and "environmental discomfort". So many enterprises once entered the new market and set foot in the new industry. It is difficult and blocked everywhere. The uncertainty of living space in the global brand network has caused the survival risk of enterprises to a certain extent.

　 Two, enterprises with multiple roles and missions, but also have many short boards of enterprises.

An enterprise is a self-organizing and self regulating open system. It constantly exchanges capabilities, information and resources with the outside world. It is an organic whole formed by enterprises, society and nature. First of all, with the development of the division of labor in social production, the chain of product production and marketing continues to lengthen, and the organization and coordination in production and operation activities become more and more complex. Secondly, technological progress accelerates and the product life cycle shortens, which increases the complexity of new product development and the difficulty of forecasting the market and products. Besides, the expansion of enterprise scale is accompanied by the greater input of resources, and the demand for the quality of talents is higher and higher. Besides, the management of modern enterprises involves the management of many functional systems such as enterprise strategy, marketing, technology, supply chain, production, human resources, finance and so on.

As a social organization, enterprises exist in the society, and they have multiple missions and tasks. These multiple missions and tasks make the business activities more complex, which aggravates the possibility of enterprises' failure in production and operation, and thus leads to the survival risks of enterprises.

　　 Three, when the change of enterprises can not keep up with the changes of the external environment, enterprises will be very passive, and long life business will be impossible to talk about.

With the economic globalization and the division of labor becoming more and more detailed, the speed of product upgrading is aggravating, the degree of product differentiation is decreasing, and the demand for diversification and individuation of small products is getting more and more frequent. Even transnational and super large enterprises can not complete the research and development of all new technologies and products solely by their own strength, because enterprises will inevitably be constrained by quantity, quality and structure of all kinds of competitive production factors of enterprises in production and operation activities, and different enterprises will encounter different setbacks because of their different abilities. Of course, when the external environment changes, the complexity and difficulty of production and operation activities exceed the strength and capability of enterprises, the risk of enterprise survival may occur.