Redefining Risk in Business and Management An important factor in managing the affairs of the company lies not only in the complexities of the external environment and its potential impacts – favorable or deleterious – on the profitability of the firm but also in factors endogenous to the entity . Companies must proceed at a constant evaluation of all scenic elements that are part of their “quality chain”, the whole supply chains, distribution channels and their market shares. Uncertainty remains at the heart of any business idea. The randomness factor is the highlight of any company that wants to profit. Policy makers are quick to seek not only the best ingredients of strategic success but also systemically find ways of functioning at the best value in a sustainable manner that will intensify the financial value and overall competitiveness of the firm. Uncertainty can be regarded as a dichotomy inherent in daily decisions related to the utility and random, in other words, uncertainty is the sword of Damocles hanging over the heads of corporate executives they keep asking if they take the right decisions and whether those decisions will generate the best results. Have good results is essential to the economic success of the firm in the short term, however, make good decisions is essential for successful long-term strategic for most companies because an ergonomic environment that stimulates the emergence of the best structurally ideas and most effective procedures for entities such positions inevitably an advantage in the competitive balance. These studies highlight related risk that it may be broken in two ways: random and epistemic. The risk relates to a random situation of pure pure luck while the epistemic risk is a conflict whose resolution depends on the threshold of the decision maker’s experience and his trial. The last risk is usually found in the relations between economic agents, while the first results in more probability. For example, Tony Merna and Faisal F. Al-Thani (2008, page 14) have described as the random discovery of Viagra pill because it was originally prescribed for angina, but would have proved during the clinical testing as a good medicine against sexual impotence men. The corporate risk specialists must continually develop a structured framework for systematically addressing the hazards of risk at all levels of the strategic continuum, both higher than ratings. Uncertainty is an integral piece of the business, so the risk can never be fully deleted. This makes it considerably important the presence of a safe procedure that gives preeminence to the detection, analysis and reduction of all risks within the company. One risk management framework suitable for any type of risk It meets today in a variety of risks business, both internally and externally, by economic sector, market conditions and competitive position (monopoly or oligopoly, monopsony or oligopoly, or perfect competition ) and the strategic direction that leaders of the firm are willing to operate. For many entrepreneurs, the conventional type of risk comes in three main areas that are quintessential business processes, profitability and financial viability monetary operational risk, market and credit. These risks have been redefined by the Basel II banking standards as well the tenets of that body of law can be applied effectively in any economic sector. Operational risk lies in the execution of business processes of a company and covers an incredibly large scale functions, processes, internal human resources through computer systems. An example of operational risk information theft or embezzlement. Credit risk is the risk that the borrower does not repay a loan or line of credit due to bankruptcy or credit problems temporary (the epithet “country risk” is preferred when the borrower is a country or sovereign entity). Market risk is the risk of loss that may result from fluctuations in financial instruments (stock prices, interest rates, foreign exchange and commodity prices), which may individually or collectively adverse effect on monetary social investment or portfolio brokerage. Another risk – political risk is present in the external environment of a company and simultaneously emerges when it engages in the international sphere. The risk of financial loss resulting from a change in the political landscape of a country explains in part why many underdeveloped countries receive a reduced amount of foreign direct investment. Manage new risks Admit that the risk is the Achilles heel of the business makes it easier to view that an effective risk management is essential to avoid financial loss or reputation. The department of risk must bring effective tools to detect, analyze and mitigate or eliminate potential risks at all levels of the firm, risk modeling and computer simulation has proved effective in drawing the “cloud of risk “Company. Chapman and Ward (1997, page 169, English) also identified eight phases in more detail in the risk management process: define, focus, identify, structure, ownership, assess, evaluate and plan. There is currently a string of complex methods and systems for risk control, and this list is correspondingly associated with the importance of certain fundamental events (high, medium, low). It may also depend on the confidence interval in which some events can be evaluated (Lifson and Shaif, 1982, page 133, English). New types of risks have been discovered in recent years, although at present they are strangely ignored or underestimated by risk specialists or academics. Although some of these threats have been detected with relative success recently, their stratospheric rise in the last decade and the resulting financial devastation have catapulted into the category “high risk”. These risks are: shareholder activism, reputation risk, regulatory risk. Tony Merna and Faisal F. Al-Thani English) demonstrate that the entire universe of risks can be divided into three sections: the known risks, unknown risks, and “unknown unknowns”. This last category is crucial in the current analysis because it includes new threats mentioned above. Shareholder activism, formerly epiphenomenon, has recently transformed into a more common and potentially deleterious in the economic landscape. Naturally, the harm here is measured in terms of a company director whose programs of action can potentially be defeated by foreign activists. This type of activism using the capital invested in the company to put pressure on its management and to achieve the goals and strategies for activist shareholders. While value creation is an important credo for business leaders, activists do not necessarily pursue common interests with other shareholders or company executives. The dichotomy arises because the first group continued usual monetary targets in the short term while the latter group is of strategic goals in the longer term that will increase market share and competitive status of the firm. One factor that increases the risk of economic activism is the observation that shows they pose is relatively cheap, from the standpoint of the investor to launch a successful campaign with few resources (between 5 and 10% participation) – compared to other companies more costly restructuring in the economic sphere. In practice, shareholder activism can be broken down into several forms: court battles, publicity campaigns, shareholder resolutions, litigation and negotiations with management. Carl Icahn and T. Boone Pickens, billionaire American, have been experts in the art to effect change within the target companies and have amassed a gargantuan profits after the merger, acquisition, or the desired change is accomplished (e). Mr. Icahn has used his excellent business acumen, strategic thinking and his huge checkbook to create The Icahn Report (English) an effective educational resource to promote his views on government and economic subjects. From the perspective of the business, the risks of this class can be very damaging because an upheaval on the board of directors or a takeover abrupt, without the shadow of a doubt, derail goals medium and long term management, which in turn may affect the profitability and market share of the firm because of the millions of dollars in litigation and public relations campaigns. Reputation risk arises when adverse events affecting the mark, the social image and market share of a business enterprise because of actions by the media, employees, management, and government structures or authorities trusteeship (the last group is the source of risk regulation). The leaders of society must address the risks above the ordinary risks differently because of their intense asymmetry (minimal costs, but significant financial damage). It is clear that they must apply the principles of best practices dogma of risk management: present value, financial statements, return on investment but also options and corporate governance code (English Damodaran 2006). In addition to a robust IT infrastructure to reduce risk, companies must create a new post consolidated operating under the aegis of Chief Risk Officer synergistically to treat areas of uncertainty. This role must have overall responsibility for the development and implementation of a comprehensive framework for risk management and will advise managers on best governance practices. The future profitability depends on it.