Application of Risk Management 
 
 
 
 
An improved speed of change in the business environment not only accentuates risk, but also shrinks the time available for planning, evaluation and adjustment. Risk is a crucial consideration since September 11, but corporations are also concerned with less catastrophic forms of risk. These risks are customer credit problems, labor strikes, changes in market acceptance or energy prices and any type of uncertainty that could cause their businesses to stray from plan. 
 
 
Risk assessment
 
 
A survey of ninety senior executives from manufacturing companies in Israel in  1999, found that the managers used few basic components of risk calculation or assessment like efficient frontier estimations or maximum accepted risk exposure in their decision making, and few companies reported they had formal risk strategies. It was a surprise to know that managers are aware of the question of risk in strategy but they are not using any of the apparatus. 
 
 
Some managers felt that risk-assessment tools were the sole domain of the finance department, where such quantitative analysis is more finely honed and widely accepted. With follow-up interviews with twenty one survey respondents in the year two thousand, the authors found some managers were simply not familiar with risk-assessment models. Others believed their experience and intuition to be more reliable than models based on forecasts. And a third group relied on more conventional calculations, like simply adding in a fudge factor or using sensitivity analyses. 
 
 
Risk Strategy
 
 
In the study, it is found out that most companies did not follow holistic risk strategies. In the second paper of the authors' research asserts that the formation of risk strategy typically varies across the organization. In Corporate Risk Strategy it is a Unified Whole or Does It Vary across Business Activities. The majority of companies are risk averse when forming strategies for non-core-competency functions, such as finance, but welcome risk in research and development, marketing and operations deemed essential for competitive advantage. It suggests that different risk-assessment strategies are appropriate in different functional areas of the corporation. 
 
 
A new theory
 
 
An Academic research into the role of uncertainty in strategy formation frequently delves into modern portfolio theory to explore frameworks for factoring risk into strategic decision making, but the gap between theory and management practice remains large, according to a 2002 working paper, risk is a Neglected Component of Strategic expression of Formula. 
 
 
Conclusion
 
 
It is assumed that the development of a new product line or entry into new geographical markets, there was a distinct lack of acceptance of risk-evaluation techniques. The authors conclude that managers must improve their understanding and use of even simple techniques for assessing risk. Foretelling is getting more and more difficult but doing without it is worse. It means not using risk-assessment tools could be the riskiest plan.