Early warning concept in identifying risks in business activity

The growing importance of risk management in business activity encourages managers to bring various methods and concepts into the decision-making processes. One of these concepts, introduced as a response to rapid changes in the conditionality of business activity, is a method for early warning (EW). This method can be used to identify risks, thereby having a positive influence on the effectiveness of decision-making processes. The introduction of an EW concept into the analysis of dynamics of changes in undesired events and processes, occurring both outside and inside enterprises, may reduce negative and strengthen positive processes in business activity. The authors present the EW concept, as well as its methods and tools, which may be implemented to support risk management. The identification of existing needs and requirements in this scope resulted from the previous research performed in Polish machine-building enterprises over the period 2010-2013. Outlined proposals may be implemented in enterprises operating in different lines of business. However, the implementation needs to be adapted to specific conditions of business activity.