The evaluation of business risk management in European emerging markets

In several developed countries, the markets have already matured and shown a relatively low level of growth. Thus, many multi-national corporations desiring to expand further their profits are turning into the emerging markets in hope of new promising businesses. Consequently, the main purpose of this chapter is to identify and analyse the types of risks in European emerging markets, including new entrants to European Union and evaluate the way of managing (financial, operational, political, natural, procedural, technical etc.) in order for a company to be able to invest and establish its businesses in countries which often have complex regulations and difficult bureaucracies. The decision processes that businesses go through in order to accept the risks in entering these markets will be explored to identify the strategies that will produce effective risk management. The contribution of this research to the knowledge will be concentrated on the challenges for a firm to enter into these emergent European member states. This will take into account the risks and how effective risk management can lead to competitive advantage. The analysis will have a qualitative approach.