Risks Of Organization's Value Chain

Abstract

An organization’s management specifies planned value of the chain of activities. The outcome is affected by unpredictable, random factors, the source of which can be found both in the organization’s environment and inside it. The effect of this influence can be positive or negative which means that the chain value may be higher or lower than planned. This is a result of the effect of activities-related risks on added value generated in the organization’s functional areas.