Risk Management And Regulation Challenges Faced By Businesses

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Introduction Several literatures have derived theories to explain and measure the risk management and regulation challenges faced by businesses in their operations. According to Cox (2007), businesses are affected by diverse risks both in their internal and external environment. Among them include financial and marketing risks, violence crises, and natural disasters. Due to uncertainty of the consequences, several authors have described risk management as the counter measure to reduce impact. Risk is defined as events whose unfavorable consequences have a far reaching effect or are unacceptable. In recent studies, risk assessment is a critical topic for research, since risk occurrence is present in every business environment. Szylar…show more content…
It describes behaviours that self-control can be exerted to. Among its main component is the behavioural intent, which is predisposed by the altitude on the probability that there will be expected results and risk evaluation, and benefits. In health sciences, the theory has been applied successfully in areas such as substance abuse, breastfeeding, drinking, utilization of health services, smoking among others to predict and clarify different behaviors and objectives (Graham & In Rothstein, 2006). According to the theory, certain behaviour depends on the ability and motivation. Ability refers to behavioural controls, while motivation brings up the intended results. Theory of planned behaviour can also be applied to describe various business risk management and regulations challenges. Through the analysis of the past and current status of the business, the theory can offer solid information on the specific times in future. In risk management, almost certain predictions can be made on future occurrences using the information on the past challenges and the current capacity of the business (Szylar, 2013). Challenges posed by regulatory authorities can also be predicted, and where possible, be controlled through the prediction of planned behaviour theory. Although there can be cases where new regulations can be legislated without the involvement of the business organization and thus unexpected, most
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