The critical evaluation of risk management process and theories can provide the researcher an understanding of risk management in British airways. In this way, the researcher has enabled to focus over gap analysis. In order to complete the empirical study, the researcher has taken the help of previous journals and books.
Moreover, the journal Cost, risk-taking and value in the airline industry by Paul A and Laux has pointed out the empirical measurements that are taken into account to shape the price inputs of the airline industry. The price is determined by the oil and fuel cost that adds substantial risk to the finance. The journal also mentioned that the corporate tax codes and financial distress cost have been greater than the profit downside. However, Kizildag et al. (2010, p.89) counter-argued that the study has focused on all the cost and the financial proceedings but somehow did not identify the risk associated with the unfortunate events that can arise any time. The resources that can be used to minimize the risk factors are not observed in the study.
In addition to this, the journal Risk Management Practices in the airline industry by Sharon Fernando has disclosed the capital market theories and identified the underinvestment problems, taxes, financial distress and the management incentives leading to the industry to engage in hedging activities. The journal further apprehended the risk exposure and the risk assessment practices associated with the airline industry. On contrary to this, Loudon (2011, p.315) opined that the study did not identify the unpredictable risk that can lead to a devastating financial loss in the airline industry. Risk linked with the human variables and the decision making process have not been observed.