The Risk Self-Adaptive Mechanism of an Enterprise in the Uncertain Environment

Abstract

As the business environment changes faster and more unpredicted than before, the uncertainties that enterprises have to encounter keep increasing. Uncertainties are always accompanied with risks. Risks can arise from not only strategic aspects but also operational aspects of business. Enterprises need pay attention to the aspects those significant risks may occur from, such as demand and supply, the development and utilization of techniques, innovation processes, financial activities, and competitions. The method of self-adaptive controlling is usually used to settling the problems of uncertainty. In this paper a self-adaptive mechanism has been proposed to resist the business risks. Detecting, modifying and learning are the major components of this mechanism. In order to construct the risk self-adaptive mechanism, enterprises need focus on forecasting risks, enhancing strategic flexibility, forming flexible organizational structure, improving decision-makers' risk-bearing capabilities, cultivating the risk management culture, and also need to with the help of some external systems to reduce or transfer risks. An appropriate risk mechanism can make an enterprise act as a self-adaptive system. Just as the natural creatures can adjust their behaviors or characteristics to adapt the environment, enterprises with self-adaptive mechanism also can modify their features to adapt the dynamic changes of the internal and external environments. Enterprises make up a set of adaptable strategies and tactics for handling risks according to various uncertain factors also means they can earn optimized profits at an acceptable higher risk level.