variability is, therefore, linked to the rigidity of the organizational and production structures. Any list of factors that
influence risk can hardly be exhaustive of the numerous
phenomena that prevent the virtuous adaptation of administrative behavior to change. Management adopts complex
management strategies and policies aimed at facing the
ever-dynamic business/environment relationship.
The “conscience of risk” (Giannessi 1960) contributes to
the creation of programmed management. This is an indispensable prerequisite of a management action that responsibly addresses management challenges. The importance of
the information system to support decision-making processes is, therefore, well understood.
The final choice could sometimes prefer intuition, in
contradiction with what would suggest evidence of the data
concerning the identification and classification/assessment of
risks (for example, through the probability of the event, the
extent of the damage and of the cost of prevention). This is
not surprising, as intuition is the creative dimension of
decisions. Intuition is the capacity for imagination—supported by the rational component (study and experience)—
together with the profile (and expectations) of the
decision-maker. This is the most important factor when
choosing how to manage risk.
From the examination of the literature review, several
significant observations emerge:
– risk is considered as a state of uncertainty (in other
words, the concept of risk is used to signal perspectives
regarding random events that can be set in a static–
mathematical way);
– risk analysis is conducted considering the factors that
generate it in its complex entirety as well as aiming to
strengthen its economic function, in favor of all stakeholders (Dello Strologo 2006);
– the risk assessment is usually referred to the company
(private and capitalistic)—the reference to the other
organizational models of production (Capaldo 2013) is
considered rare—in addition to the associated general
economic risk that summarizes the complex of risks;
– the numerous classifications—not necessarily opposed
but consequent to the development of a perspective and
purpose of the analysis of the risk system—place the
accent (depending on the cases) on the factors of influence, the functions, the processes (Beretta 2014), the
consequences, on the effects (negative and/or positive)
and, in this regard, distinguished itself between pure and
speculative risks;
– the prospective investigation and the search for integration between risk management and strategic control are
considered as risk mitigation tools (Caramiello 1965;
Forestieri 1996);
– there is a tendency—with some exceptions (Adamo
2002)—to consider business risk in relation to equity
risk.
Considering all the premises made so far, in order to
provide a contribution to the study of the economic function
of companies, it is possible to distinguish the topics of
uncertainty and risk. More precisely, the uncertainty will be
referred to the business going concern, while the risk (more
specifically the distribution of risk) will concern all the
people who oversee the production. Consequently, this
research focuses on the distribution of risk among the participants in the production function. It is possible to establish
and/or guarantee the survival of companies since a level of
uncertainty (going concern) is reached becoming compatible
with the claiming of production factors (especially for the
financially sensitive part). The management of risk distribution means affecting the humanistic and environmental
profiles of production. This framework introduces an ethical
dilemma and, therefore, a normative problem that does not
have an easy solution regarding the forms of production (or
the satisfaction of human needs and aspirations). The
authors, with this paper, intend to deepen and more closely
and systematically link the studies on risk/uncertainty and
those concerning the economic sustainability of the company by analyzing the link between business and community. The study, therefore, focuses on the theoretical–
empirical verification of these links.
3 Methodology
The present work paper is categorized as exploratory
research, based on investigative techniques. It is a fundamental and qualitative research which aims to demonstrate
the growing strong connection between the companies and
the communities in which they operate. Starting from the
analysis of all the configurations that risks can take in relation to strategic and operational choices, as they are linked to
an unpredictable future with respect to many aspects. It is
also shown, in theory, but also as empirical evidence, how
sometimes some companies survive despite the absence of
financial return because they guarantee a social welfare of
the community that is considered more important to private
profit. It, therefore, occurs that the existence of companies is
linked not only to profitability but to sustainability and its
integration with the needs and benefits of the community in
which it operates. The method followed in the analysis is the
use of deductive logical reasoning. A logical reasoning is a
form of reasoning that allows to reach a conclusion (conclusion proposition) starting from a set of premises (logical
propositions), following a logical–rational path. Considered
The Business Going Concern: Financial Return …
203
influence risk can hardly be exhaustive of the numerous
phenomena that prevent the virtuous adaptation of administrative behavior to change. Management adopts complex
management strategies and policies aimed at facing the
ever-dynamic business/environment relationship.
The “conscience of risk” (Giannessi 1960) contributes to
the creation of programmed management. This is an indispensable prerequisite of a management action that responsibly addresses management challenges. The importance of
the information system to support decision-making processes is, therefore, well understood.
The final choice could sometimes prefer intuition, in
contradiction with what would suggest evidence of the data
concerning the identification and classification/assessment of
risks (for example, through the probability of the event, the
extent of the damage and of the cost of prevention). This is
not surprising, as intuition is the creative dimension of
decisions. Intuition is the capacity for imagination—supported by the rational component (study and experience)—
together with the profile (and expectations) of the
decision-maker. This is the most important factor when
choosing how to manage risk.
From the examination of the literature review, several
significant observations emerge:
– risk is considered as a state of uncertainty (in other
words, the concept of risk is used to signal perspectives
regarding random events that can be set in a static–
mathematical way);
– risk analysis is conducted considering the factors that
generate it in its complex entirety as well as aiming to
strengthen its economic function, in favor of all stakeholders (Dello Strologo 2006);
– the risk assessment is usually referred to the company
(private and capitalistic)—the reference to the other
organizational models of production (Capaldo 2013) is
considered rare—in addition to the associated general
economic risk that summarizes the complex of risks;
– the numerous classifications—not necessarily opposed
but consequent to the development of a perspective and
purpose of the analysis of the risk system—place the
accent (depending on the cases) on the factors of influence, the functions, the processes (Beretta 2014), the
consequences, on the effects (negative and/or positive)
and, in this regard, distinguished itself between pure and
speculative risks;
– the prospective investigation and the search for integration between risk management and strategic control are
considered as risk mitigation tools (Caramiello 1965;
Forestieri 1996);
– there is a tendency—with some exceptions (Adamo
2002)—to consider business risk in relation to equity
risk.
Considering all the premises made so far, in order to
provide a contribution to the study of the economic function
of companies, it is possible to distinguish the topics of
uncertainty and risk. More precisely, the uncertainty will be
referred to the business going concern, while the risk (more
specifically the distribution of risk) will concern all the
people who oversee the production. Consequently, this
research focuses on the distribution of risk among the participants in the production function. It is possible to establish
and/or guarantee the survival of companies since a level of
uncertainty (going concern) is reached becoming compatible
with the claiming of production factors (especially for the
financially sensitive part). The management of risk distribution means affecting the humanistic and environmental
profiles of production. This framework introduces an ethical
dilemma and, therefore, a normative problem that does not
have an easy solution regarding the forms of production (or
the satisfaction of human needs and aspirations). The
authors, with this paper, intend to deepen and more closely
and systematically link the studies on risk/uncertainty and
those concerning the economic sustainability of the company by analyzing the link between business and community. The study, therefore, focuses on the theoretical–
empirical verification of these links.
3 Methodology
The present work paper is categorized as exploratory
research, based on investigative techniques. It is a fundamental and qualitative research which aims to demonstrate
the growing strong connection between the companies and
the communities in which they operate. Starting from the
analysis of all the configurations that risks can take in relation to strategic and operational choices, as they are linked to
an unpredictable future with respect to many aspects. It is
also shown, in theory, but also as empirical evidence, how
sometimes some companies survive despite the absence of
financial return because they guarantee a social welfare of
the community that is considered more important to private
profit. It, therefore, occurs that the existence of companies is
linked not only to profitability but to sustainability and its
integration with the needs and benefits of the community in
which it operates. The method followed in the analysis is the
use of deductive logical reasoning. A logical reasoning is a
form of reasoning that allows to reach a conclusion (conclusion proposition) starting from a set of premises (logical
propositions), following a logical–rational path. Considered
The Business Going Concern: Financial Return …
203