International Management British Airways Lufthansa and KLM
But even then, it is a well-known investment principle that the largest potential returns are associated with the riskiest ventures. (Trieschmann et al., 2007) Consequently, to an overwhelming majority of economists, the risk is a business state of affairs in which supplementary outcomes possibly will take place, and the chance of every potential result is predictable. The risk is the phenomenon that motivates the entrepreneurship to make in-depth analyses and act accordingly to win wonderful achievements in personal and professional life. Timely decision-making in the light of available statistics is highly supportive in respect of accepting the challenge of risks in life. Some potential results may be substantiated by real data, but some may be mere conjectures which may often be used as the basis for decision making. Hence, mere conjectures of results can be predicted (Parkin, 1998). Consequently, entrepreneurs affiliated with any commercial activity, particularly take the cost of risk into serious consideration before embarking upon any business enterprise. The same is applied in the airline industry. As the airline companies expand their service routes on a global scale and seek to stabilize margins and growth projections, they must look for effective ways of mitigating the risks associated with rising jet fuel prices and other relevant factors. (KPMG, 2008) In the high-risk airline operations, risk management usually includes considerations of learning from past events, having safety regulations, review of procedures, and the redesign of control among others (Hood amp. Jones, 1996). There is also the element of confidential reporting systems to minimize the expected risk volume. Similar protocols could be anticipated with all the commercial airlines, considering the rewards for bearing risk and accepting challenges.