PROCEDURAL ASPECTS OF THE STRATEGY RISK MANAGEMENT

Keywords: risk, risk management, management strategy, risk management mechanism

Abstract

The purpose of the article is to reveal the essence and features of the procedural aspects of building a risk management strategy. Risks are an integral part of any business. Management should avoid or eliminate possible risks both to increase the efficiency of the company and sometimes to preserve the business as a whole. One of the most commonly used tools to minimize and overcome risks is to develop a strategy for managing them. At the same time, research on risk issues is generalized and, in our opinion, needs to be specified in terms of the practical level of use to ensure the development of an adequate situation of the risk management mechanism. Such concretization can be provided, first of all, by a choice of procedures of strategy of management of risk that defines urgency of the chosen subject. First of all, frequently used methods belong to the group of qualitative methods of risk analysis, such as the specification of types of risk, the method of analogies, causal methods, and others. The main methods that combine quantitative and qualitative analysis include the method of expert assessments, creating a risk profile or risk map. The purely quantitative methods of risk analysis include: the method of scenarios, sensitivity analysis, the method of reliable equivalents, simulation, etc. When developing and making management decisions must clearly define the advantages and disadvantages of these methods and choose the most appropriate for each situation. Risk management strategy is considered to be quite a difficult process to achieve maximum effect from production at the lowest financial or any cost. The obtained results: The directions of realization of strategic planning of risk management and the theoretical essence of the concept of risk management strategy connected with certain procedural moments – elements of management mechanisms are revealed. Thus, the risk management process is presented as a set of stages – different mechanisms. They, in turn, constitute a system of procedures for implementing the risk management strategy. The practical value of the study is determined by the phased structure of mechanisms, such as: actually, the definition of risk mechanism, risk analysis mechanism, risk response mechanism, risk monitoring and management, which can be applied in the management of enterprises of any ownership.

References

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Published
2021-09-28
How to Cite
Artyomova, A. (2021). PROCEDURAL ASPECTS OF THE STRATEGY RISK MANAGEMENT. Economy and Society, (31). https://doi.org/10.32782/2524-0072/2021-31-14
Section
MANAGEMENT