Methods for assessing risks of sustainable development of an enterprise: Theory and empirical analysis

Abstract

Subject. The study deals with risk assessment of sustainable development of the enterprise. Objectives. The purpose is to review and evaluate the main methods for analysis of social, environmental, and economic condition of the company, build a risk model and underpin its key methodological stages; provide empirical proof of the proposed concept based on data from financial and non-financial reporting and stock market risk of the organization. Methods. The study employs techniques of stochastic and deterministic types of analysis of enterprise economic activity. Results. The paper offers a new method to assess ESG risk based on a normative approach to calculating risk indicators. I modified the classical parameter of the challenge to sustainable development, as well as the methodology for integrated assessment of sustainable business development. Conclusions. The risk theory is currently a worthy way to obtain transparent and objective information to assess the sustainable development of a corporate unit. The proposed risk analysis tool for a complex of socio-ecological and economic areas has a better quality of explanation of the current situation in the stock market than the classical valuation technique that serves as its basis.