The Analysis of Current Enterprise-Wide Risk Management System in Russian Companies

Abstract

Risk-management and financial management are going to become the main components of corporate economic governance. All existing theories of financial management consist both of financial analysis, planning and allowance for the implied volatility of future incomes and costs. According to the methodology of a systematic analysis, an enterprise-wide risk management system must be presented as a multi-level system, which involves all employees in the process of risk management. This study is dedicated to features of risk management implementation for Russian companies. Methodology approach is based upon the idea that the levels of company governance may create a strong value oriented risk management system, while the standards provide the matching of stock exchange requirements. We made the assumption that not all Russian companies are equally exposed to the risks, the level of exposure estimates by measurement of differences between the actual value-based indicators and forecasted. Also the problem of effectiveness assessment of risk-management is unsolved. This paper is an attempt to fill this gap.