Balanced Chance and Risk Management (BCR Management)

Balanced Chance and Risk Management (BCR Management) - The opportunities and risks of corporate events are the central control object of strategic and operational management. For their identification, assessment, development of recommendations for action and decision-making, they require a set of instruments that enables them to be operationalized with the aim of influencing the company goals and strategy. The conception of Balanced Chance and Risk Management systematizes the connection between company goals, opportunities and risks in order to make them measurable and controllable with the help of key figures.

Dazu verbindet das BCR-Management strategisches und operatives Management sowie Risikomanagement, indem es den Ansatz der Balanced Scorecard durch eine Integration von Risikobetrachtungen erweitert. Die Kategorisierung chancen- und risikorelevanter Faktoren erfolgt anhand von Erfolgsfaktoren anstelle von Perspektiven. Im Unterschied zur Balanced Scorecard nimmt das BCR-Management eine zweigeteilte Betrachtung der Erfolgsfaktoren vor, die in der Definition entsprechender Kennzahlen für einerseits Chancen- und andererseits Risikoaspekte münden, die den Betrachtungsgegenstand der Risk-Card des BCR-Managements darstellen. Chancen gehen dabei immer von einem der Erfolgsfaktoren aus.

Risks can basically also be linked to the success factors and can also result from events and actions in the company's environment (risk types). With regard to the risk-oriented control of strategic success potential, a distinction is made at this point between risks according to the localization of the causal actions or events. Risks must therefore be divided into endogenous and exogenous risks.

In order to take this into account, the risk assessment of the BCR management has the additional success factor “company environment”, to which such risks can be assigned.

Due to its importance as a focus of corporate target systems, the consideration of the company value forms the starting point of balanced chance and risk management. With the aim of deriving additional control-relevant findings, the shareholder value (shareholder value concept) is measured using three different key figures, the discounted cash flow (DCF), economic value added (EVA) and market value added (MVA) and their relationship to one another . From the observation of these benchmarks and their relationship to one another, statements can be made about the appropriateness of the company's valuation on the stock exchange and any resulting takeover risks.

Die für den Unternehmenswert und seine Entwicklung ursächlichen Faktoren sind in den Strategischen Erfolgsfaktoren zu finden. Finanzen, Kunden/Sales market, Produkt, Leistungserstellung/Produktionslogistik und Personal stellen eine repräsentative Auswahl von Erfolgsfaktoren dar und ersetzen die Perspektiven des Grundmodells der Balanced Scorecard. Auswahl und Anzahl unternehmenswertbestimmender Erfolgsfaktoren sind branchen-, strategie- und unternehmensspezifisch und daher in der gewählten Darstellung beispielhaft.

Financial aspects of strategic and operational decisions are important for the management of opportunities and risks in two ways. On the one hand, financial measurement and target values show the effect of any measures to shape the other success factors with regard to the company value and therefore initially have a derivative character. On the other hand, finances represent an autonomous area of activity that in and of itself also harbors opportunities and risks that arise, for example, as a result of changes in interest rates and exchange rates or as exchange rate risks from commodity futures.

The success factor customer / sales market describes the opportunities and risks as they arise. in connection with individual business areas and from special characteristics of individual customer segments. Involvement in a region that has not yet been developed could offer special opportunities in the form of a profitable contract or the development of an additional market, but also special risks, which could appear as disproportionately high claims for damages, for example from US product liability. Further possible key figures for measuring the target achievement in the area of customers / sales market are "Sales with new customers" and "Sales with key account customers" "Sales with products <1 year ", and" R&D quota ".

Chances of a product arise from the characteristics that distinguish it from those of its competitors. The success of a product or service is usually due to the fact that it meets the properties desired by the customer. With the help of an analysis that evaluates the expected market share and market growth of a product, the company's chances can be assessed. Risks arise from product features that lead, for example, to a ban due to environmental regulations, as could be the case for the generation of energy by nuclear power plants or the importation of beef from certain countries of origin.

The success factor service creation / production logistics describes the opportunities and risks as they arise from the service creation or production potential and processes of the company. On the one hand, the objects of consideration are operating resources, the opportunities and risks of which are based on their quality, technological up-to-dateness, reliability and economic efficiency. On the other hand, opportunities and risks result from the design of service creation processes in, for example, procurement, production or logistics, which also contain potential for cost reduction or can contribute to increased reliability.

Risks in the service creation process typically result in an interruption or delay. Typical causes of an exogenous nature are delays, interruptions, bans or the interruption of the production logistics chain due to the failure of a supplier. But the expiry of patents is also conceivable, which protects the manufacturing processes used so that potential competitors can imitate them more cheaply without paying licenses. Opportunities and risks of the success factor personnel are among the potentials that can usually only be described qualitatively and are expressed in parameters such as the degree of qualification, employee satisfaction, their motivation or fluctuation. Accordingly, opportunities and risks can be derived from qualitative characteristics that, as a requirement profile of the company for its employees, contrast with the skills actually available.

The corporate environment is only included in the BCR management's risk card as an additional success factor in order to enable external risks to be dealt with. Actions and events outside the company that affect the target values and success factors, but are not directly related to the other success factors, are the subject of this area and are to be observed with the methods of risk management and their consequences for the company controlled . After all, the risks in the corporate environment can take on dimensions that threaten the existence of the company.

As in the balanced scorecard model, there are interdependencies between the success potential of BCR management and the formulated strategies, goals, tasks and instruments. It can be assumed that a competitively designed product will successfully meet the demands of customers and sales markets. The use of a state-of-the-art machine park that is organized in efficient processes will increase the motivation of the employees and thus indirectly the quality of the product and, if applicable, the associated services. This will ultimately translate into a positive financial result.

The implementation of strategies takes place in a control loop that uses the described cause-effect relationships between success potentials. The control loop runs between strategy, goals, opportunities, risks, key figures and measures. If the instruments detect a discrepancy, a countermeasure is initiated. The functioning of this step-by-step specification of the strategy is used in the same way as in the basic model of the balanced scorecard. In Balanced Chance and Risk Management, the strategic goals as the starting point for operationalization are differentiated according to opportunities and risks.

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