Ireland and Slovenia in the European Union: comparison of economic development

Abstract

The article considers the concept of «business risk», discloses the types and methods of its assessment and presents possible ways to reduce it. It has been established that business risk characterizes the specifics of the activity of a business entity to overcome the uncertainty of the situation of an inevitable choice, during which it is possible to assess the probability of achieving the desired result, failure and deviation from the goal. The level of influence of the risk of entrepreneurial activity on the results of the functioning of a business entity is expressed depending on the factors of its external and internal environment. The authors found that it is expedient to carry out the analysis of business risks through their qualitative analysis, as a result of which risks are identified, described and classified, and the reasons for their occurrence are analyzed. Quantitative analysis of business risks will allow you to calculate, evaluate and predict possible business risks. The method of influencing business risks will help reduce business risks or completely neutralize them. The process of managing business risks and their main stages has been studied. As a result, managerial decisions are made to protect the results of entrepreneurial activity from the consequences of situations caused by risks, control of results from the onset of business risks, their reassessment and adjustment through the adoption of operational management decisions. The main methods for assessing business risks are presented. It has been determined that the ways to reduce the impact of business risks on entrepreneurial activity can be: directly reducing the amount of damage arising from business risk; creation of appropriate conditions under which it is possible to quickly respond to the consequences of the realization of business risks; transfer of responsibility for the possible occurrence of risk to third parties; distribution of risk between participants jointly carrying out entrepreneurial activities; business risk insurance; reservation of funds necessary to cover unforeseen expenses by eliminating partial risks; reduction of risks due to their financing.