Risk Aversion, Exposure, and Management; organizational aspects in Emerging Markets

Antonio Jose, Alfazema (2025): Risk Aversion, Exposure, and Management; organizational aspects in Emerging Markets.

Abstract

This article aims to study risk aversion, risk exposure and value, risk exposure management, and organizational aspects, with the objective of analyzing the relationship between risk aversion, risk exposure, and organizational value in Mozambique, highlighting effective risk exposure management strategies for the sustainability of companies in the local context. The article discusses aspects of the different perceptions that reveal the organization's degree of vulnerability to adverse events, both external, such as economic and political changes, and internal, such as operational failures and problems in the supply chain. It deepens the understanding of the relationship between risk aversion, risk exposure, and value creation, highlighting how companies can use advanced management practices to mitigate risks and transform uncertainties into opportunities. It is important to mention that effective risk exposure management is essential for Mozambican companies to balance risk aversion with the pursuit of opportunities that drive growth. It was found that, with regard to risk mitigation practices, some companies use insurance, currency hedge contracts, and market diversification strategies to protect their assets and ensure financial predictability. Strengthening governance and promoting an organizational culture focused on innovation and risk mitigation are fundamental to transforming uncertainties into competitive advantages.

• Item Type: MPRA Paper
• Language: English
• Keywords: Risk aversion; Risk exposure; Risk Management
• Subjects: G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions

References

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