Business Risk Analysis Research Articles

Reliability in mass alert system for dam emergencies: Case study of Vale S/A

AbstractIn its iron ore operations, Vale, the largest mining company in Brazil and the fourth largest mining company in the world by market value, has 77 dams considered with high potential damage in case of a failure in the stability controls. This classification follows the criteria of the sector regulatory agency in Brazil and determines that, for this class, a mass alert system is necessary for the resident population and workers immediately downstream of the dam within a region preset by legislation, considering a simulated flood area. For Vale, the mass alert system for dam emergencies is part of a critical mitigating control for a business risk analysis considering the hypothetical dam break as an unwanted material event. Therefore, both the probability of failure on demand, spurious failure, and availability of the assets of this protection barrier are important elements for this purpose, as well as the emergency response plan and the evacuation simulation of flood areas, which are part of a risk management system that require continuous verification and continuous improvement. Currently, Vale has 375 sirens, and it is planned to reach 420 sirens by the end of 2024. The purpose of this article is to present how the safety concepts applied to these systems were developed, the good practices applied from this study, and the lessons learned from the dam emergency management arising from the break of the Brumadinho dam in 2019. The reliability analyses of the systems involved and the main contributors to the Safety Critical Unavailability are presented, as well as the results of the reduction in the maintenance time and increase in system availability.

ОРГАНІЗАЦІЙНО-МЕТОДИЧНЕ ЗАБЕЗПЕЧЕННЯ АУДИТУ БЕЗПЕРЕРВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ

The article is concerned with disclosing the theoretical, organisational foundations and methods of continuity audit based on analytical procedures. The purpose of the study is to substantiate the theoretical, organisational and methodological foundations of the going concern audit of enterprises under conditions of uncertainty. Object of research - organisational and methodological support for the audit of business continuity of enterprises. Methods used in the study: scientific cognition, method of generalisation, comparison, logical and substantive, methods of induction and deduction, analysis. The main hypothesis is the development of organisational and methodological foundations of the going concern audit based on the expansion of analytical procedures to meet the information needs of stakeholders about the status and potential of the financial viability of the enterprise's going concern under conditions of uncertainty. Summary of the main material. Under martial law, the importance of the continuity audit as a tool for protecting the interests of users of financial statements and ensuring that stakeholders are aware of the state of financial solvency and prospects for sustainable development of enterprises increases. Organisational and methodological support of the continuity audit is determined by the objectives of the audit and the needs of stakeholders to obtain reliable information on the assessment of financial viability to ensure continuing operations in the future. The proposed methodology for auditing the going concern of enterprises based on analytical procedures provides a holistic view of the organisation of the audit by the following stages: 1) analysis of liquidity and solvency of enterprises; 2) analysis of profitability potential; 3) analysis of financial stability; 4) analysis of risks of activity; 4) analysis of the potential of continuous activity of the enterprise. Particular attention in the process of a going concern audit is paid to the classification and analysis of business risks. Analytical procedures for assessing business risks, determining reserves to cover losses of economic benefits in relation to the risks of non-payment of receivables and reduction in the value of financial instruments have been substantiated. The methodology for auditing the going concern of enterprises based on the expansion of analytical procedures, the implementation of which provides an opportunity to generate high-quality information to assess the potential of the enterprise's going concern, taking into account the risk and prepare a reasonable audit opinion, is original and of practical importance. Conclusions. The implementation of scientific and methodological recommendations on the organisation and methodology of the continuity audit based on the expansion of analytical procedures will help to obtain sufficient evidence for a realistic assessment of the potential of financial solvency of enterprises, preparation of the audit opinion on compliance with the principle of continuity and improve the quality of the audit.

In-depth Analysis of Business Risks in the Cattle Livestock Industry: Comprehensive Literature Review

Cattle farming is a vital sector in the livestock industry, but it is also faced with various complex business risks. This literature review aims to provide an in-depth understanding of the risks associated with cattle farming. Through a thorough analysis of various literature sources, we explore the main aspects that influence risk in the cattle industry, including external factors such as fluctuations in feed prices, changes in government policies, and market uncertainty, as well as internal factors such as livestock health, financial management, and operational efficiency. By thoroughly understanding these risks, cattle farmers can develop effective mitigation strategies to increase the resilience of their business amidst the challenges facing the cattle farming industry.

Machine learning-based business risk analysis for big data: a case study of Pakistan

Machine learning-based business risk analysis for big data: a case study of Pakistan

Optimization And Business Risk Analysis On Independent Oil Palm Farming In Muara Tembesi District, Batanghari Regency

This study aims to analyze the optimal use of production factors and business risks in independent palm oil farming. This research was conducted in Jebak, Ampelu, and Ampetu Mudo, Muara Tembesi District villages. The analytical method used is descriptive and quantitative analysis. Descriptive method to see the description of farming. A quantitative method to analyze input usage by using the cobb-Douglas function. The sample villages were determined purposively based on the consideration that the three villages had the largest area of productive plantations (TM). Determination of the number of samples used the census method with a total of 116 respondents. The results showed that (1) palm oil production produced from oil palm farming activities in the study area averaged 15,025.18 kg/ha/year with an average selling price of Rp. 2.208/kg. Farmers operate oil palm farming with a land area of 2.55 ha/farmer, plant age of 10.87 years, fertilizer 243.92 kg/ha/year, herbicides 2.29 liters/ha/year, and labor 88.60 HOK /ha/year. (2). Partially, the variables of land area, plant age, and use of fertilizers have a positive and significant effect on independent oil palm production in Muara Tembesi District, Batanghari Regency, while the variables use of herbicides and use of labor do not have a significant effect on oil palm production. The optimal use of production factors for a land area of 3.82 ha and fertilizer use is 1,053.55 kg/ha/year. (3). Independent oil palm farming is consistently profitable, with a CV value <0.5, the L value > 0, and the R/C value obtained is R/C = 4.45 per farmer and R/C = 4.48 per hectare.

BUSINESS FEASIBILITY STUDY TO PROMOTE LOCAL FASHION (A CASE STUDY ON GAYAKU)

In recent years, business in all fields have faced increasingly global competition. In 2022, the fashion industry is growing and is seen as an industry with the potential to support economic recovery. At present, clothing is not only a primary demand, but also an artistic demand. Gayaku is a fashion product with a design of Indonesian culture as theme. Gayaku products are made of high-quality textile materials, so the clothes are very comfortable to wear, the material is not easy to stretch, and the silk screen will not break quickly, so that it can be used for a long time. Gayaku has a modern and contemporary design concept. In order to better understand market efforts and developments, Gayaku conducts a SWOT analysis, market potential analysis, and business risk analysis. The research method in this study is Qualitative research methods aim to explain a phenomenon in depth and are carried out by collecting data as deeply as possible. Gayaku also has a marketing plan to keep the business running. In order to compete with well-known and brand-name brands, Gayaku will carry out a series of marketing strategies, namely customer relations, activation of social media platforms, endorsement of key opinion leaders, digital campaigns, bajoe E-commerce, and special events.

Rice farming business risk analysis in Padang City

Based on the Area Sample Framework (KSA) results, rice production in West Sumatra has decreased by 6 per cent from 2019 to 2020. This shows that rice farming still faces various risks affecting its production and productivity. As the main farming actors, farmers receive the most significant impact and risk due to climate-related disasters. Farmers must bear risks in production, price, market, financial, technological, social, legal, and human risks. Production risk occurs due to yield fluctuations due to various factors that are difficult to predict (climate change, extreme weather, floods, droughts, and pest attacks). This study aims to (1) identify the risks of rice farming in Padang City and (2) measure the magnitude of rice farming risks faced by farmers in Padang City. Data were collected using questionnaires from 30 farmers. The results showed that the risks faced by farmers were the risk of land management, the risk of flooding, risk of drought and the risk of pest and disease attacks. The risk faced by farmers in their farming business as a whole is low. The risk of flooding and drought has a large percentage of greater risk. The flood risk mitigation carried out by farmers, in general, is to let their land be flooded, while farmers carry out drought risk management by looking for water sources.

Business Feasibility Analysis of Shredded Layang Fish (Decapterus) at Thanko Shredded Fish Msmes

Shredded fish is a processed fishery product consisting of fish meat or seasoned, processed fish. This research aimed to analyse the business capital, profit, and feasibility of processing shredded Layang fish. This study was undertaken at Thanko Shredded Fish MSMEs in Jembrana, Bali from April to May 2022. The research employed observation of the process of shredded Layang from receiving raw materials to packaging and storing finished products. The data was analysis utilised cost, revenue, profit, efficiency and business risk analysis methods. The findings of this study indicated that the business of selling shredded Layang fish can generate business profits. The business has a capital of IDR. 57,501,093 and produces 2,880 packets of shredded Layang fish each year at a selling price of IDR. 25,000 per 100 grammes. An annual revenue of IDR 72,000,000 will generate a profit of Rp 14,498,907. With a selling price of IDR 25,000, the shredded Layang fish firm will Break Even Point or repay the money in less than a year if it can manufacture 2,290 units or more. The business feasibility research indicates that the shredded Layang fish business can be profitable with a payback period of less than one year.

Business Risk Analysis of Ferrari, Mercedes and Toyota in The Automotive Industry

As one of the largest industries in the world, the automotive industry is booming in recent years. Recently, engine fuels have also undergone a change from conventional fuels to electric vehicles. With the emergence of electronic vehicles and the deterioration of the environment, traditional car companies are facing critical challenges. The purpose of this paper is to analyze which is the better investment for Ferrari, Mercedes and Toyota from various financial data such as Equity Beta and Assets Beta. This paper also compares different financial data of the three companies to explain the business risks. Then, two sets of comparisons between luxury cars and commercial cars, electric cars and fuel cars are applied to argue the reasons for the business risk for each company. From the data, it can be seen that Ferrari has the highest business risk, which means that they are more sensitive to market fluctuations, followed by Mercedes. On the contrary, Toyota's share price fluctuations are stable throughout the year. Finally, this paper provides investors with advice on investing in the automotive industry from their perspective, to help them make savvy decisions whenever possible.

Ways to reduce the risks of business activity

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.

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

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.

Machine learning-based business risk analysis for big data: a case study of Pakistan

Machine learning-based business risk analysis for big data: a case study of Pakistan

Моделювання розвитку венчурного бізнесу

In modern conditions, innovation is one of the most important factors of economic development, and the development of innovation is the main condition for ensuring the competitiveness of the economy. Therefore, modeling the development of venture business is relevant and very important for the development of investment and innovation market and structural adjustment of Ukraine's economy. The development of venture financing as a proven extrabudgetary financing in science-intensive sectors of the economy and its adaptation to the realities of our country will allow it as one of the most effective tools for commercializing scientific innovations to become a promising source of financial resources for innovation. The level of economic development of venture structures is determined not so much by the scale of activity, but by the innovative orientation and flexibility of management. Among the main problems associated with investment activities are the problems of stimulating systemic innovations, from basic research, stages of implementation of new technologies, goods and services, to commercial development of new products, creating conditions that will promote venture capital, and modeling and forecasting. venture business. World experience proves the important role of innovative entrepreneurship in the transformation of the economic mechanism, increasing the intensity of its restructuring, where the dominant development should be the effective use of innovation potential of the country. Given the difficulties in attracting material resources by domestic businesses, it is necessary to provide for the development of the venture industry through the active attraction of funds from commercial banks and foreign capital. The issues of modeling the development of venture business deserve special attention, which requires the study and use of significant practical experience of Western venture structures. It is clear that the main elements of the mechanism of risk financing of innovation, which normally work in a highly developed market economy, can not be used without change in the domestic economy where there is no competition and sources of free capital. An important factor in intensifying venture business in Ukraine is the improvement of methodological support for venture capital. Such activities concern special forms and types of implementation of the innovation and investment process as a whole. First of all, the issues of modeling the development of venture business in Ukraine are becoming important in today's conditions. Since development is a rather multifaceted and interdisciplinary concept, including a wide variety of indicators, the studied developments often contain various methods, approaches and indicators for evaluating and modeling the development of venture funds. In addition, the complexity and versatility of asset management activities complicate the process of modeling the development of venture business. Summarizing the above, it is worth noting that the results of the study can be concluded: taking into account the work of both domestic and foreign scientists, in modeling the development of venture business use different models and perform modeling through the prism of venture business risk analysis, systemic risk, venture attractiveness analysis investment projects, the formation of a balanced investment portfolio, etc., taking into account both the availability of information and the tasks and objectives set by scientists.

“Security trap” as a challenge for Syria’s post-conflict reconstruction

The present article is dedicated to comprehensive analysis of business-risks in Syria in the security sphere (the author named it as “security trap”). Among them are the seats of combat activities between the government forces and the opposition, contradictions between the central government and local elite, rise in criminality among former combatants, traumatized by war, “urban” terrorism, stepped up activity on the part of ISIS militants in desert areas and not in the last measure the conflicts of interests among external actors. This topic seems to be quite new for scientific research in Russia and abroad since most analytical work has been previously focused on impacts of security in military political and social spheres rather than in the economic one. Such approach would allow us to make a conclusion that business risks alongside other difficulties such as territorial fragmentation, economy lying in ruins, sanctions, crisis in neighboring Lebanon, COVID-19 pandemic are hampering the revival of businesslike life. This is important and useful for constructing hierarchy of external and internal challenges for Syria’s post-conflict reconstruction, including the stabilizing role of Russia. The author has used empirical materials gathered during the term of his diplomatic service at the Russian Embassy in Damascus (in 2014–2017) along with his subsequent regular visits to Syria.

The financial business characteristics of hand line fisheries in the SAP Area of Raja Ampat Islands and the surrounding sea

Aktivitas perikanan tangkap di Kawasan Suaka Alam Peraian (SAP) Kabupaten Raja Ampat sebagian besar adalah usaha perikanan skala kecil. Pengembangan usaha alat tangkap pancing ulur menjadi sangat penting untuk pemanfaatan secara berkelanjutan kegiatan perikanan tangkap skala kecil di kawasan konservasi. Tujuan dari penelitian ini adalah untuk menilai kelayakan usaha perikanan pancing ulur dari aspek finansial dan resiko pengembangannya di Kawasan SAP Kepulauan Raja Ampat dan laut sekitarnya. Jenis data yang dibutuhkan dalam penelitian ini adalah data primer dan sekunder. Analisis data yang digunakan dalam penelitian analisis parameter finansial, kriteria investasi dan analisis resiko usaha. Hasil penelitian menunjukkan bahwa usaha perikanan pancing ulur di Kawasan SAP Kabupaten Raja Ampat dan laut sekitarnya mendapatkan keuntungan dan layak untuk dikembangkan. Dilihat dari analisis kelayakan finansial usaha dengan nilai keuntungan sebesar Rp. 9.003.171,00, nilai R/C ratio sebesar 1,11 dan nilai payback periode (PP) sebesar 2,95 tahun. Dilihat dari kelayakan investasi menunjukkan bahwa nilai NPV>0, net B/C>1 dan IRR> tingkat suku bunga yang berlaku 5,25%. Dilihat dari resikonya bahwa usaha pancing ulur masuk dalam kategori tidak beresiko untuk dikembangkan. Hasil ini dilihat dari nilai CV (0,2) ≤ 0,5 maka nilai L (8.428.400) ≥ 0, yang berarti perusahaan akan selalu untung atau impas dan tidak mengalami resiko kerugian.

Theoretical analysis of business risks

Internal risks associated with economic activity are directly related to the processes of production, reproduction, treatment and management. Production risks, in turn, are subdivided into separate types of farm activities: basic, additional and service processes. Entrepreneurs face different set of risks that differ from each other by the way and place of origin, the combination of external and internal factors influencing the level of risks, methods of analysis and description. All risks are interconnected, and to some extent, they affect the business. At the same time, a change in a particular risk will affect many other types of risks.

The Concept of Freedom of Enterprise Through the Prism of Criminal Law Characteristics of Fraud

The research of issues connected with the analysis of business risks is relevant because of the problem of qualifying the actions of entrepreneurs under the fraud-related Articles of the Criminal Code of the Russian Federation. Besides, the development of technologies increases the number of frauds in the digital environment, which makes it necessary to determine key features of fraudulent actions connected with the changes in the economic organization of the society connected with the digital transformation of some branches of the world economy in general and Russian economy in particular, of the social sphere, and of the specifics of public administration of some areas of life. The responsiveness of lawmakers manifested in amending a group of Articles in the Criminal Code of the Russian Federation regarding the legal characteristics of fraud, shows that there are some problems in the legislative regulation of this sphere. The author believes that they are caused by an attempt to assess the degree of freedom of enterprise and the degree of involvement of each side of legal relations in the risk of investment. The analysis of legislation, the law enforcement practice, statistical data give reason to believe that most of the problems of legislative understanding of fraud in entrepreneurship are not connected with contradictions in the legal regulation, but rather with the drawbacks of the law enforcement practice, the prevalence of repressive methodology in classifying the actions of entrepreneurs and the inner conviction of the law enforcement employees that entrepreneurs intentionally strive to obtain negative results in any, and primarily entrepreneurial, activities. The author argues that further improvement of the Criminal Code of the Russian Federation will not yield any tangible results, which testifies to a considerable transformation of the fraud-related Articles in the last 15 years. Changes in the practice of enforcement of the criminal law’s articles regarding fraud are only possible after the principles of such work are worked out by the Supreme Court of the Russian Federation, who at present pays much attention to this issue, although some clauses of the Plenary Session of the Supreme Court of the Russian Federation require further analysis and improvement.

Modeliranje poslovnih rizika, analiza slučaja - 'Jasmin d.o.o'

The paper aims to explain the risk analysis of the 'Jasmin d.o.o.' company using the leverage method. Also, the paper points to the importance of the leverage method in detecting and eliminating risks in the company's business. In addition, the paper gives insight into the operations of the 'Jasmin d.o.o.' company during 2016. After the introductory chapter in which the term and types of leverage are explained, the work focuses on the research of all three types of leverage. At the end of the paper, the final premises and literature used in this paper are found. The relevant data are available on the website of the Business Registers Agency. The purpose and significance of this paper is to present the essence of the leverage method in the analysis of business risk. Also, the aim of this paper is to raise awareness of the validity of the leverage method in the analysis of business risk, due to insufficient representation in Serbia. This paper is used by financial analysts as well as by experts who deal with business risk analysis, but students who want to study in the field of business finance can also use this work.

EVALUASI USAHA PENGOLAHAN SUWIR-SUWIR IKAN CAKALANG DI DESA NAMLEA

This study aims to examine the business benefits, added value, and business risks of skipjack processing (suwir-suwir) at POKLAHSAR Huhate in Namlea Village as a first step in evaluating newly established businesses in 2011. Primary data were collected from research informants (owner company and labor) through observation and direct interview with questionnaire. Data analysis was done by qualitative descriptive analysis method, including business profit analysis method, value added analysis method, and business risk analysis method. The results showed that: 1). The business profit is Rp 1.205.945,-/production; 2). Added value of Rp 40.654-,/kg, or 65.05% against the sale value of skipjack suwir by Rp 62.500,-; and 3). The risk of suwir-suwir skipjack business of POKLAHSAR Huhate in Namlea Village has no chance of losing any production process or this business will always experience profit because the lower profit margin is positive at Rp 98.,971,21.

Marketing-risks: classification and methods of assessmen

The paper provides risks analysis in marketing activities. Two statistical methods are identified for marketing risk assessment. Quantitative methods allow to obtain probabilistic risk assessment. Qualitative methods allow to group risks by categories: high, medium and low. Given classification and evaluation system of marketing risk corresponds with generic indicators of marketing theory. The scientific and methodological approach is used to assess market risks in all areas of marketing: in product, price, sales and communicative policies. Marketing research is an instrument for marketing risks assessment, which trend is based on the probability of certain risks for each marketing activity. Keywords: marketing risks, risk assessment, quantitative methods, qualitative methods, marketing research DOI: 10.15276/mdt.1.1.2017.8 American Marketing Association site. www.marketingpower.com. Retrieved from www.marketingpower.com. Rudelius, V., Azaryan, O., & Babenko, N. et al. (2009). Marketing: Textbook. K.: Training Center Consortium for Enhancement of Management Education in Ukraine [in Ukrainian]. Smith, A. (1993). Investigation of nature and causes of nations wealth. Anthology of economic classics : In 2 vols. v.1. M.: Economics [in Russian]. Pavlenko, A., Reshetnikova, I., & Voychak, A. et al. (2008). Marketing: [Textbook]. – K.: KNEU. Granaturov, V. (2003). Analysis of business risks: problems of definition, classification and quantification: monograph. Odessa Institute of Market Problems and Economic and Ecological Studies of NAS of Ukraine. Danko, T. (2001). Marketing Management [Textbook]. M : INFRA-M. Volkov, I. (2004). Project Analysis: Advanced Course: [Tutorial]. M. : INFRA-M. Site Chemo-Pol Technopark. http://chemopol.com. Retrieved from http://chemopol.com.ua/ innovative-structure/technopark-hemopol / organizational-and-functional-structure-of-technopark. Badalova, A. (2009). The main management problems of marketing risk of engineering enterprises. Vestnik MSTU STANKIN. www.stankin.ru. Retrieved from http://www.stankin.ru/science/vestnik-mgtu-stankin/archive/magazin-may-2009.pdf [in Russian]. MacDonald, M., Smith, B., & Ward, K. (2007). A proper marketing check: refocusing of strategy to the value of the company. M.: IDT Group. Solntsev, S., Ovchinnikov, A. (2013). Methods of risks assessment in investment projects. Economy and Entrepreneurship, № 1-2, 644-648. Zozulev, A., Solntsev, S. (2008). Marketing research: theory, methodology, statistics. Kiev : Knowledge. Kendall, M., & Stuart, A. (1973). Statistical conclusions and communication. M. : Nauka. West, Cr., & Baker, M.J. (2002). Marketing researches. SPb. : Piter.