UTILIZING SYSTEM DYNAMICS APPROACH TO ANALYZE TRADE-OFF AMONG POSSIBLE STRATEGIC RESPONSES OF KARAZIN HOLDIN

Abstract

Presence of risks and uncertainties in organizations' markets plays significant role in organizations' performance. Thus, there is a considerable need to have an effective risk analysis approach in order to assess the impact of different risks on the organization's success and the outcomes that potential responses may have. A powerful risk analysis approach may consider dynamic nature of risks, as well as accounting for feedback loops affecting the overall risk impacts. This paper presents a new approach to construction risk analysis in which these major influences are considered explicitly. The proposed methodology is a system dynamics based approach in which different risks may efficiently be modeled. To make the concepts more clear, one model is introduced at the final section merely to show one strategic response framework.