The Sense and Support of a Mechanism of Industrial Enterprise Financial Risk Management

Abstract

The author has analyzed the sense and support of a mechanism of industrial enterprise financial risk management, taking into account a dynamically changeable economic environment. The article contains the main approaches to methodical support of financial risk assessment on the basis of quantitative methods. The author has determined that formation of the mechanism of industrial enterprise financial risk management is complicated by a very considerable amount of different forms of risks emerging in the process of daily activities of enterprises and a considerable amount of forms of financial risks. Moreover, it is worth taking into consideration that there are a significant amount of methods and ways of the assessment of risks, types of organizing functioning of the economic and financial mechanism for risk management at enterprises, and ways of prevention, counteraction, and minimization of risks. Furthermore, financial risk management is complicated by necessity of choice of the most appropriate instruments for assessment of their level and the choice of methods of financial risk management. Under contemporary conditions of a lack of financial resources, issues of computation of precise amounts of industrial enterprise protection from financial risks and prior directions of formation of the financial risk management single mechanism assume great importance. The choice of an appropriate economic and mathematical policy of formation of the financial risk management single mechanism enables to considerably decrease financial risks without great additional expenses. Hence, the article has substantiated a severe need for development of methods of implementation of the financial and economic mechanism at industrial enterprises under conditions of existence of financial risks in the context of providing effective management. Particularly, some aspects of the financial risk theory are insufficiently examined nowadays; a system of industrial enterprise risk classification is not precisely substantiated; there are significant weaknesses of the quantitative assessment of enterprise financial risks. There is a need to focus on the necessity of mathematical substantiation of the main directions of application and an extent of usage of some instruments of the financial risk management single mechanism. In general, financial risk management for industrial enterprises contains a considerable number of insufficiently researched aspects. Under conditions of the contemporary unstable economic situation, industrial enterprises must use a low-cost and highly efficient system of financial risk management. The above-mentioned reasons have stipulated the preparation of this article. In addition, this article proposes methodical recommendations regarding decrease of financial risk levels, formation of an industrial enterprise management system with the account of economic risks, directions and mechanisms of industrial enterprise riskmanagement integration.