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Use of Risk Management to Support Business Sustainability in the Automotive Industry

Author

Listed:
  • Štefan Markulik

    (Department of Safety and Quality, Faculty of Mechanical Engineering, Technical University of Kosice, Letna 1/9, Sever, 04200 Kosice, Slovakia)

  • Marek Šolc

    (Institute of Materials and Quality Engineering, Faculty of Materials, Metallurgy and Recycling, Technical University of Kosice, Letna 1/9, Sever, 04200 Kosice, Slovakia)

  • Peter Blaško

    (Institute of Materials and Quality Engineering, Faculty of Materials, Metallurgy and Recycling, Technical University of Kosice, Letna 1/9, Sever, 04200 Kosice, Slovakia)

Abstract

Today’s companies operate in a dynamic, constantly evolving, and highly competitive environment. The globalization of markets has significantly changed the economy, where companies operate within increasingly complex supply chains. The ever-increasing expectations of customers and company stakeholders, as well as the need to incorporate a comprehensive approach to the life cycle of manufactured products in corporate strategies, expose companies to a whole range of risks. The research was based on the need of organizations operating in the (automotive) industry to manage the dynamics of the business environment. This was accomplished using an appropriate model that, through its universality, would help to ensure the effective risk management in a holistic approach, protecting their performance and meeting the needs of the relevant stakeholders. The main idea of the research was to create and implement a dynamic model of risk management in the environment of a production organization based on the use of available methods such as SWOT, PESTLE, brainstorming, affinity diagrams, risk matrix, SIPOC diagram, risk, and the results of questionnaire surveys. The research was conducted in two directions: (1) designing the structure of the dynamic risk management model for the strategic management process; and (2) verifying the effectiveness of the proposed model in specific cases and evaluating the technical and economic benefits. To support the dynamics of the model, three basic management tools have been proposed: process review, internal audit, and management review, enriched with features that support the concept of risk-based thinking.

Suggested Citation

  • Štefan Markulik & Marek Šolc & Peter Blaško, 2024. "Use of Risk Management to Support Business Sustainability in the Automotive Industry," Sustainability, MDPI, vol. 16(10), pages 1-24, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4308-:d:1398121
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    References listed on IDEAS

    as
    1. Marius Häntsch & Arnd Huchzermeier, 2013. "Identifying, analyzing, and assessing risk in the strategic planning of a production network: the practical view of a German car manufacturer," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 24(2), pages 125-158, July.
    2. Rajiv Nag & Donald C. Hambrick & Ming‐Jer Chen, 2007. "What is strategic management, really? Inductive derivation of a consensus definition of the field," Strategic Management Journal, Wiley Blackwell, vol. 28(9), pages 935-955, September.
    3. Aven, Terje, 2016. "Risk assessment and risk management: Review of recent advances on their foundation," European Journal of Operational Research, Elsevier, vol. 253(1), pages 1-13.
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