ENTERPRISE RISKS MANAGEMENT IN MODERN CONDITIONS

Authors

  • V. B. Kochkodan Ivano-Frankivsk National Technical University of Oil and Gas, Ministry of Education and Science of Ukraine, Department of Management and Administration, Karpatska str., 15, Ivano-Frankivsk, 76019, Ukraine https://orcid.org/0000-0001-5962-9741
  • M. Yu. Petryna Ivano-Frankivsk National Technical University of Oil and Gas, Ministry of Education and Science of Ukraine, Department of Management and Administration, Karpatska str., 15, Ivano-Frankivsk, 76019, Ukraine https://orcid.org/0000-0003-2233-6341

DOI:

https://doi.org/10.15330/apred.1.20.230-238

Keywords:

risk, risk management, risk management principles, risk management system, risk management process, risk management methods

Abstract

The article is aimed at researching problems related to enterprise risk management in modern conditions. The purpose of the article is to consider the features of risk management at the enterprise in conditions of uncertainty, in order to increase its adaptability and flexibility, as well as to determine the main principles and management methods that allow a quick response to existing and potential threats and minimize the negative impact of risks on the enterprise's activities.

The following research methods were used in the research process: theoretical generalization - to form definitions of concepts, general approaches and principles; analysis and synthesis; modeling - to form a model of the risk management process.

To realize the set goal, the concepts’ definitions of "risk" and "risk management" were considered. The key conditions under which the risk assessment process will be most effective were formulated. The principles, compliance with which will contribute to enterprise’s successful risk management, were outlined. It was established that risk management requires careful development of strategy and tactics, which must be constantly coordinated with other system parameters and economic criteria of the enterprise's efficiency.

The scientific novelty of the conducted research consists of solving tasks that have theoretical and practical significance in enterprise risk management field in modern conditions. The following tasks were solved to achieve the set goal:

- Aspects of risk concept in the economic sphere are considered, including risk as a danger or threat, risk as an opportunity and risk as uncertainty.

- The purpose of enterprise’s risk management is determined and it is aimed at preventing problems or negative consequences through effective crisis management and avoiding additional costs.

- The risk management policy was established and it includes various methods and techniques aimed at reducing the risk of making wrong decisions and minimizing negative consequences.

- The process of risk management was considered and it was established that it is cyclical and includes a sequence of well-defined stages, which help entrepreneurs identify business risks: risk identification, risk analysis, risk assessment, formulation of an action plan, mitigating the impact of risk, monitoring and controlling risks.

- Risk management methods were investigated, including: risk avoidance (deviation from risk or prevention of its occurrence); risk neutralization through its transfer (includes insurance, hedging and financial guarantees), reduction (includes diversification, limitation, optimization and localization) or preservation (includes the creation of a reserve fund, self-insurance and the creation of insurance reserves for stocks of raw materials and cash).

Author Biographies

V. B. Kochkodan, Ivano-Frankivsk National Technical University of Oil and Gas, Ministry of Education and Science of Ukraine, Department of Management and Administration, Karpatska str., 15, Ivano-Frankivsk, 76019, Ukraine

PhD (Econ.), Associate Professor

M. Yu. Petryna, Ivano-Frankivsk National Technical University of Oil and Gas, Ministry of Education and Science of Ukraine, Department of Management and Administration, Karpatska str., 15, Ivano-Frankivsk, 76019, Ukraine

PhD (Econ.), Associate Professor

References

Bondar, Oksana. Situational management: training manual. Kyiv, Center for Educational Literature, 2010.

Tiuleneva, Yu. V. “Definition of the category "business risk" as the basis of effective enterprise activity.” Economic Bulletin of NTUU "Kyiv Polytechnic Institute: collection of scientific works, no. 6, 2009, pp. 47-52.

Savchenko, O. R. “The role and place of risk management in the activities of enterprises.” Scientific notes of TSPU named after V. Hnatyuk, no. 15, 2003, pp. 155-160.

Sakhartseva, Iryna, and Olha Shliaha. Risks of economic diagnosis of the enterprise. Kyiv, Condor, 2008.

Shepelenko, O. V. “Management of business risks of the economic entity.” Economic sciences: Bulletin of DonNUET, no. 4(52), 2011, pp. 189-199.

Borysova, T. “Theoretical aspects of risk management at the enterprise.” Actual problems of the economy, no. 7, 2005, pp. 116-121.

Mostenska, T. L., and N. S. Skopenko. “Risk management as a tool for managing the enterprise's economic risk.” Bulletin of Zaporizhzhya National University. Series "Economic Sciences", no. 3, 2010, pp. 72-79.

Vitlinskyi, Valdemar, and N Stepan akonechnyi. Risk in management. Kyiv, Borysfen-M, 1996.

Pikus, Ruslana, and Nataliia Prykaziuk. Management of financial risks: training manual. Kyiv, Znannia, 2010.

Riazanova, N. O. “Formation of the risk management system at industrial enterprises.” Academic review, no. 1 (56), 2022, pp. 63-71.

Kutsyk, Petro. Financial risk management: training manual. Lviv, Rastr-7, 2016.

Baldzhy, Maryna, Karpov, Volodymyr, Kovalov, Anatolii, Kostusiev, Oleksii, Kotova, Inna, and Nataliia Smentyna. Justification of business decisions and risk assessment: training manual. Odesa, ONEU, 2013.

Zakharova, N. Yu. “Risk management at the enterprise: essence, approaches and methods.” Business Inform, no. 1, 2023, pp. 203-209.

Downloads

Published

2024-06-13

How to Cite

Kochkodan, V. B., & Petryna, M. Y. (2024). ENTERPRISE RISKS MANAGEMENT IN MODERN CONDITIONS. The Actual Problems of Regional Economy Development, 1(20), 230–238. https://doi.org/10.15330/apred.1.20.230-238