ORGANIZATION OF THE RISK REDUCTION SYSTEM AT ENTERPRISES UNDER CONDITIONS OF INSTABILITY

Abstract

In the current economic environment characterized by unpredictability and instability, manufacturing enterprises must develop an effective and well-structured risk reduction system. Considering a comprehensive range of risk factors that may affect project implementation enables organizations to mitigate their impact on business performance. This study examines critical infrastructure facilities, identified as the most vulnerable, with particular attention to oil and gas enterprises. It emphasizes that the breakeven point of a company is a function of risk, demonstrated through the case of the Carpathian Geophysical Works (CGW), an enterprise engaged in geophysical research. A baseline risk analysis was conducted based on the assessment of potential consequences of risk occurrence. The research focuses primarily on energy risk, defined as the probability of events that disrupt the stable functioning of the energy system, with adverse effects on the economy, security, and public welfare. Since the onset of the full-scale war in Ukraine in 2022, this type of risk has evolved into the risk of destruction of critical energy infrastructure. The study provides an assessment of key risks relevant to CGW operations, acknowledging that the enterprise operates under conditions of multi-level risk exposure. It is highlighted that risk management in oil and gas enterprises, as a multi-level system, requires scientific justification, digital integration, regulatory alignment, and organizational adaptability under uncertainty. In the context of war, energy crisis, and workforce losses, such a system must be flexible, proactive, and strategically oriented. These principles are reflected in the integrated risk management system developed by the authors as part of the enterprise’s strategic management framework. The paper also introduces the RISE risk management model (Recognise – Interpretation – Strategic – Evaluate) and its adaptation for the oil and gas extraction sector, which is among those most exposed to military, energy, and geopolitical risks, as well as to potential man-made accidents.