Academic journal article Journal of Positive Management

Risk Management in Provision of City Attractiveness

Academic journal article Journal of Positive Management

Risk Management in Provision of City Attractiveness

Article excerpt

(ProQuest: ... denotes formulae omitted.)

1. Introduction

Nowadays under the influence of competition the role of risk management is more recognized not only in investment management but also in other spheres of entrepreneurship. Being aware that territories (countries, regions, cities a.o. administrative-territorial units) compete with each other about the attraction of inhabitants, investments and tourists, a deliberative risk management can result in competitive advantage and as a result develop more successful consummation of planned goals and facilitating the decision making within the limited city's budget.

This article is the first stage of a bigger research in order to find out potential risks that affect city's attractiveness in the viewpoint of inhabitants. It is planned that the final result of the research will be defined possible risks that affect city attractiveness within each attractiveness criterion and potential action in the risk derogation, taking into account its short-term and long-term consequences on city's socio-economic situation and development potentialities.

City management is a complicated process, which is influenced by normative documentations, political relations, successful realization of social politics and ensuring of future development. Risks impact all the fields of management. Awareness of risks and their impact can help to reach aims successfully and give evidence about practice of positive city management.

The aim of the article is to define potential risks to the twelve criterions of city attractiveness.

Advanced tasks for the attainment of objective:

* to study city attractiveness and risks' management theoretical aspects,

* to work out potential risks within each city attractiveness' criterion,

* to draw appropriate conclusions about the first step of the research and to define the next activities for the next stage.

Research methods: synthesis and analysis, experts' inquiry, and data analysis employing the Kendall's concordation rate.

2. Theoretical aspects of city attractiveness and risks management

In the fast age of globalisation when the distance is not an unconquerable barrier, cities (this sense can be transformed also to other territorial units, for example, regions (in Latvia), federal states (in Germany and the like) as a state administrative builds as to their functions and achievable results are like economic activity where as the result is a high level of socio-economic development. In this aspect the long-term territory development is very significant. As a result of this new scientific researches appear and some of them are integrated also in the European Union's territorial planning documents.

One of concept that is now in the process of elaboration initially appeared in the second half of the 20 century and is associated with a concept "city attractiveness". In the scientific literature (Braun, 2008; Berg and Braun, 1999; Sinkiene and Kromolcas, 2010) and the European Union's policy and in the strategic planning documents of the EU (The Territorial State..., 2006; European Communities, 1999 and Leipcigas harta..., 2007) the concept of territorial attractiveness is mentioned more frequently by appointing necessity for such conception development and application in practice (Litavniece, 2012).

After studying available definitions of city attractiveness the author considered as more acceptable "city and region's quality that is a precondition for long- term local development". (Inception report, 2010). Being aware of the fact, that attractiveness is a way how to strengthen the competitive advantage (Final reports, 2011).

The concept of city attractiveness predicts that every city has three groups of users - inhabitants, entrepreneurs, tourists and each of the groups has their own interest in the city which is characterised with various criterions (Van den Berg et ah, 2007).

As in the concept of city attractiveness all groups of city users are taken into account, it should be developed also in the future and could be used as a basis of the city's long-term development planning document's draw up. …

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