The paper “ Risk Management Strategy in Low-fare Airlines - How Can Saudi Arabia Benefit from Successful Models” is a meaty example of the research proposal on management. This chapter presents the following information: a detailed background on the topic of the dissertation, the rationale behind selecting the topic of the dissertation, a brief examination of all literature indicative to the research topic, aims and objectives of the study and finally, research methods employed in carrying out the study. It serves as a general introduction to the dissertation that is based on the following subject: risk management in low-cost airlines across the world and how low-cost airlines in Saudi Arabia can learn from these models in implementing a risk management program for their operations. 1.2 Background to the studyA number of studies have attempted to develop a systematic classification of risks that are common to many business corporations.
Many of these classifications have been based on the need to develop universal typologies that can be used to classify all types of business risks for businesses operating across different sectors and in different geographical regions.
One common risk classification system identifies two broad classes of risks: financial and non -financial risks (Damodaran 2008, p. 23). Risks falling under the financial category include those that are associated with liquidity, market conditions, and the credit situation of a corporation (Flouris & Yilmaz 2012, p. 166). On the other hand, non – financial or operational risks include threats that arise from factors such as fraud, political instability, threats arising from information technology infrastructure and lastly, the dangers posed by natural perils and possible failure of the technical operations of a corporation (Damodaran 2008, p.
25). Although this typology of risk identification and classification can be used for corporations operating across all sectors of the economy and in different geographical regions, it is important to note that its application in managing risks is not uniform in nature but rather varies depending on the type of sector involved.
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