Abstract
The authors investigated the issues of assessing financial risks in the mining industry, studied the problems of hedging risks in conditions of high uncertainty when a company enters foreign markets. The importance of the SPIC document was determined as a form of interaction between enterprises and the state, which allows more actively investing in the mining industry, while reducing risks for investors. The article outlines the issues of digitalization that allow managing financial risks, based on biogeography in order to optimize the rules for mining, as well as a system of classification rules (CRI) for a qualitative and quantitative approach in predicting bankruptcy and analyzing credit risk.
Highlights
Modern conditions for the functioning of mining companies are aggravated by the instability of the external processes of entrepreneurship
It should be noted that the complication of the mining process, sharp fluctuations in raw material prices are primarily associated with the disruptions in supply chains, instability in demand due to economic uncertainty and the introduction of a number of procedures and protocols caused by restrictions due to COVID-19
The world economy today is in a period of uncertainties, price volatility in the commodity markets, which affects the rating of a number of major risks, and the opening opportunities for mining companies in 2021
Summary
Modern conditions for the functioning of mining companies are aggravated by the instability of the external processes of entrepreneurship. The main factors causing operating risks are the fluctuates of Bank of Russia rates (in April 2021 discount rate was increased by 0.5% to 5%), interest rates on loans, oil prices, exchange rates, inflation, stock market indices. Many mining entrepreneurs note the instability of the legislative framework, the presence of a significant amount of insider information, mergers and acquisitions of companies. The above mentioned factors predetermine financial risks, both for individual transactions and contracts, and for companies as a whole, including mining entities. Cyclic financial crises affect the financial state and performance of mining companies [1]
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