Portfolio of business risks in the context of transformational changes in the economy

Abstract

The article states that the functioning of business in a changing environment associated with transformational changes in the economy requires increased attention to uncertainty, identification and neutralization of possible risks that may adversely affect its functioning and further development. The greater the uncertainty in making a business decision, the greater the degree of risk. It is virtually impossible to eliminate risks in the course of business activities, as they are an element of objective reality. However, it is possible to neutralize or minimize them through timely managerial decision-making. It is substantiated that decision-making on entrepreneurial risk management requires a structured approach, and therefore, the formation of a clear algorithm of actions. It is emphasized that both in the world practice and in Ukraine, corporate risk management standards have been introduced. It is emphasized that with the transformational changes in the economy, accelerated development of digitalization and an active offer of business risk assessment software products, these standards are losing their value every day. It is proved that the current DSTU ISO 31000:2018 "Risk Management. Principles and Guidelines" needs to be modified. Principles and Guidelines" should be modified by supplementing the standard with a clear algorithm for building a risk portfolio and briefly describing each of its stages. It is proved that the introduction of the proposed amendments to DSTU ISO 31000:2018 "Risk Management. Principles and Guidelines" and their implementation in practice will allow not only to clearly observe the trends in changes in the priority of risks and promptly make decisions on their neutralization or minimization of the impact on the activities of an economic entity, but also to model the development of events or changes in the situation in both the short and long term, which will facilitate the early creation of reserves to cover losses due to the occurrence of difficult to manage and/or unmanageable risks.