Risk management strategy formation for an ICT startup entering the Russian market

Abstract

Startup companies in the field of ICT can easily scale their services internationally with an intangible service or product. Nonetheless, the exposure to risk and uncertainty become an ever growing concern that must be managed in order to operate successfully in a target market. In this study, the author who is the General Manager of a cyber security company called Trulyprotect in Finland, focused on identifying, categorizing and rating various risk factors while entering the Russian market in order to form a proper risk management strategy. The Russian market was chosen due to its market size, favorable change in cyber security legislation and increased awareness of the corporate sector for the need of simiral offered solutions.

In the literature review section the author defined the main key terms in the research, followed by a theoretical background of enterprise risk management, market entry mode, PESTLE and SWOT analysis, risk evaluation and strategic risk management.

The research method applied in the study was qualitative with an exploratory approach. Through surveys, semi-structured interviews of twenty participants and observations the author collected primary data that aimed at forming a risk management strategy based on the predetermined objectives of the company in the Russian market and its context. The collected secondary data further assisted in identifying the most relevant risk factors and methods of risk treatment.

The findings of the research indicated specific risk types and elements based on primary and secondary data on the grounds of ISO 31000 framework for enterprise risk management. In the results and analysis section a risk management strategy was proposed that would assist the company in its endeavors to efficiently enter the Russian market.