Strategic Risk Identification and Evaluation

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Nowadays, enterprises are facing more changes and uncertainties, for the airlines, they are facing the greatest and complex challenges. It is time to manage airlines from the points of risk and strategy. And strategy risk should be managed systemically and comprehensively. Strategy management consists of strategy position, strategy choice and strategy implementation generally. In order to identify sub-factors, work-risk analysis and expert interview are used. Based on the data from many experts, 16 strategy risks (sub-factors) are generated. Analytic Network Process (ANP) is one useful method created by American professor Saaty. Superdecisions is the software which facilitates the calculation of ANP. Based on the understanding from 20 experts, the airline industry strategy risk levels were evaluated in three layers, strict control layer, control layer and watching layer. Combined with fuzzy evaluation method, it evaluated the strategy risks of 12 Chinese airlines companies and analyzed their differences. Based on the identification and evaluation, one decision model was proposed. Chinese Eastern Airline is the case study to expound the strategy risk management.