Risk Management Mechanism Research Articles

The Mechanism of Identification and Management of Risks Affecting the Process of Supporting Creativity Based on the Sample from the Slovak Academic Environment

This article focuses on risks while supporting creativity. This represents a knowledge gap that is addressed. The employees’ creativity is desired, but there is often no approach process to its support. The implementation is affected by risks needed to be managed. The aim was to create a mechanism for managing risks within the support of creativity in organizations, including commercial companies and others, e.g., sports clubs. Content analysis, case studies, questionnaire surveys, or models were applied. The results combined secondary (cases) and primary data (survey with two groups of respondents). The findings showed that when creativity is supported, people are willing to increase their performance (50% of academicians, 88.78% of students). The process is negatively affected by the lack of managerial skills and the interconnectedness of processes. Organizations should increase their managers’ skills. A proactive approach to risk prevention leads to continuous improvement. A procedure was selected when the potential of applying findings from the academic environment to other organizations was identified. A generalization of the findings was performed so that the research results can be applied in different environments after considering their specificities. The recommendations include the process for supporting creativity, the identification of risks, and the risk management mechanism.

Construction of Enterprise Audit Risk Identification Platform Under the Background of Financial Management Reform

Internal audit is an important way for state-owned enterprises to carry out risk management. The internal audit system developed and implemented based on risk management can not only effectively evaluate and supervise the internal control of enterprises, but also help enterprises effectively manage risks and improve the value and efficiency of enterprises through the identification, judgment and disposal of contingencies encountered in the operation of enterprises. This paper analyzes the existing problems in risk management of internal audit of state-owned enterprises In this context, this paper first briefly introduces the internal audit of enterprises from a theoretical point of view, summarizes the characteristics of the audit department, and then discusses the construction scheme of the current internal audit risk management mechanism of state-owned enterprises, aiming to provide useful guidance for state-owned enterprises to build a scientific and efficient internal audit department in the next step, and finally serve the risk management mechanism.

RISK MANAGEMENT OF REGIONAL INNOVATION PROCESSES

The article summarizes the methodology for assessing the risks of innovative projects. A methodological approach to the formation of an investment program for territorial innovation clusters is proposed. An approach to forming teams of innovative projects has also been developed, characterized by the completeness of technical and entrepreneurial competencies, which makes it possible to formulate an investment program for the cluster by selecting the optimal combination of project options. This ensures a maximum of net present value within a given time frame, with a limited funding fund, and, in addition, a given value of an integrated quality indicator reflecting the level of achievement of the global goal of the cluster. Qualitative and quantitative methods of risk assessment are considered; it was concluded that innovative projects are in dire need of government support in the early stages of implementation in order to reduce the degree of uncertainty and riskiness of their implementation. Based on economic and mathematical models of decision-making by cluster participants, a mechanism for coordinating the interaction of subjects has been formed, which makes it possible to coordinate the interests of participants in financing an innovative project within the framework of the concept of single-level interaction of economic agents. The area of compromise that is necessary for consultations and negotiations, as well as for making management decisions on territorial innovation clusters, has been quantitatively determined. To minimize risks and increase the efficiency of budget financing, a risk management mechanism is proposed, which involves identifying the main risk factors at each stage of the innovation process and using government support tools aimed at minimizing them. The methodology for assessing the risks of innovative projects is generalized, qualitative and quantitative methods of risk assessment are considered; it was concluded that innovative projects are in dire need of government support in the early stages of implementation, in order to reduce the degree of uncertainty and riskiness of their implementation; To minimize risks and increase the efficiency of budget financing, a risk management mechanism is proposed, which involves identifying the main risk factors at each stage of the innovation process and using government support tools aimed at minimizing them.

A case study of the Handeni District (Tanzania) examining drought coping strategies and risk management among pastoralists based on livestock

Abstract. Mwakalonge HL, Chingonikaya EE. 2023. A case study of the Handeni District (Tanzania) examining drought coping strategies and risk management among pastoralists based on livestock. Intl J Trop Drylands 7: 1-11. A case study was done to learn more about how pastoralists in the Handeni District, Tanzania, cope with drought. Drought poses a serious threat to pastoralists' way of life globally. The purpose of this research was to analyze and record data on the efficacy of livestock-based risk management and coping mechanisms in mitigating the negative consequences of drought. Despite the common belief that pastoralists can't make a living without their animals, there is a lack of information on how to make pastoral communities more resistant to drought and other dangers, information that is essential for any system of sustainable management. Many efforts have been made to deal with the drought, but it continues to worsen. Therefore, a cross-sectional research strategy was adopted to learn more about cattle risk management and coping strategies. Questionnaires, focus groups, and interviews with key informants were used to gather socio-economic information from 160 herders. Frequencies and percentages were calculated using a statistical software package for social sciences. A regression model was used for inferential statistics to establish a connection between the socio-economic status of pastoral households and the independent variable of interest. A negative correlation with age was found (? = -0.451; p = 0.808), a positive correlation with education (? = 43.821; p = 0.497), a positive correlation with family size (? = 3.379; p= 0.50), a negative correlation with marital status (? = -53.979; p = 0.847), and a positive correlation with the land area (? = 58.898; p = 0.004). Herd mobility positively influenced the socio-economies of pastoral households (? =91.749; p = 0.01), as did the availability of an early warning system (? =; 316.537; p = 0.00) and the timely availability of a market (? = 11.516; p = 0.021). A total of 3.666 animals out of 57,785 were lost due to the effects of the drought. The death rate was 6.34%.

Volatility spillover and hedging strategies between the European carbon emissions and energy markets

Much attention has been paid to the complex risk transmission between carbon and energy markets along with the increasing global financial market integration. This research thus uses the DCC-MVGARCH model and spillover index method to investigate volatility linkages between the European carbon emissions and energy markets. The results make it clear that there are indeed volatility correlations and bidirectional spillover effects for the above two markets. In particular, the volatility correlations and the spillover index dramatically change when global economic turbulence and political events occur. Apart from the strongest volatility correlation between coal and carbon markets, the volatility spillover effect from the renewable energy market to the carbon market is gradually increasing. The role of the carbon market is also changing: the net information recipient becomes a transmitter from phase II to phase IV. Therefore, our findings provide investors with flexible portfolio strategies by making full use of dynamic volatility linkages between the two markets. This research also gives a decision-making basis for market regulators to improve the carbon market's risk management mechanism. It means that regulators should pay close attention to potential market risk sources. Further policy recommendations are put forward in the conclusion section.

INITIATIVE IS THE BASIS FOR BUSINESS SUCCESS IN THE KNOWLEDGE ECONOMY

The paper analyzes the challenges of the knowledge economy to management: globalization, internationalization, informational and intellectualize of labor, integration, migration, ecological. The formation of values is related to human emotions, not rational ideas, that is, they are formed with motivational subsystems (material motivation, immaterial motivation, control of key indicators or concentration on achieving goals). The interpretation of the concept of value management as an alignment of the development priorities of society as a whole with business priorities (customers, owners, managers and staff) has been deepened. Value management allows you to effectively distribute the efforts of the company and minimize conflicts of priorities at the level of contradictions. Priorities form the criteria basis for managerial decision-making by managers at all levels of the enterprise hierarchy. The features of value management are structured: continuous change management (technology, management, values, needs, culture, structure, efficiency, image, social responsibility, environmental management); initiating business changes through product renewal (for international competition and creating sustainable competitive advantages). The features of value management in order to increase the competitiveness of business have been studied: the study of social needs; effective partnership agreements in the market; use of opportunities of information technologies; training of top managers in the concept of value management; development of corporate culture; team leadership; change management; professional support of structural changes. The components of management for the formation of conditions for promoting the manifestation of initiative by specialists at all stages of value management are identified: selection of personnel (making team decisions); training (maximum program vitalization); adaptation (staff rotation); motivation (involvement in the implementation of social tasks); control (systematization and individualization of results); advanced training (coordination of values). The use of value management in practical management will allow: to ensure the competitiveness of the business; increase the productivity of specialists who perform intellectual tasks; optimize the use of resources; constantly innovate; improve staff motivation; effectively implement social responsibility activities of business. The issues of further research are indicated: the study of risk management mechanisms for business in the event of dismissal of personnel.

DIRECTIONS OF ACTIVATION OF RISK MANAGEMENT OF TELECOMMUNICATIONS ENTERPRISES IN UKRAINE IN MARTIAL LAW AND POST-WAR CONDITIONS

Aim: The aim of the research was to determine the risks of telecommunications enterprises in Ukraine in martial law and post-war conditions. Methods: During the writing of the article, scientific research methods were used – namely: dialectical, analysis and synthesis, generalization and specification, monographic; forecasting and abstraction; systematic; factorial, statistical analysis; the abstract method, methods of system analysis, and a systems approach. Results: The authors analyzed the changes and systematized the specific risks of telecommunications enterprises in the conditions of the Russian-Ukrainian war. The author’s definition of the concept of the “activation of risk management of telecommunications enterprises” was proposed, taking into account the specifics of risks in the field of telecommunications. Conclusions: The article builds a triangle of directions of activation of risk management of telecommunications enterprises, which are interconnected and cover the stages of the risk management process that relate to management functions. Based on the obtained results, recommendations were presented for the risk management mechanism of the telecommunications enterprise.

Third country central counterparty (CCP) supervision as a catalyst for more centralized EU CCP supervision?

ABSTRACT In early 2022, a UK CCP cancelled some $4 billion of transactions in the war-affected nickel market, triggering outrage from market participants that were in the money. The ‘nickel debacle’ illustrates that CCP risk management and loss absorption mechanisms may result in value redistribution among stakeholders. With CCP stakeholders located in multiple jurisdictions, crisis management decisions from a single-jurisdiction CCP supervisor may not pursue multi-jurisdictional financial stability or a fair balance of stakeholder interests across jurisdictions. Although the case for centralised supervision of EU CCPs thus appears strong, national concerns have persistently blocked increased centralisation. This article re-examines decentralised EU CCP supervision in light of the much-debated post-Brexit centralised EU supervisory regime for systemically important third country CCPs. Two new arguments emerge from this juxtaposition, revealing a dichotomy between the named supervisory regimes that appears hard to justify. First, a decentralised supervisory regime for EU CCPs is difficult to logically square with the policy arguments underpinning the post-Brexit EU supervisory system for systemically important third country CCPs. Secondly, the controversial location policy for ‘too systemically important’ third country CCPs could be more justifiable if the EU were to adopt centralised EU supervision of systemically important EU CCPs.

Value-based Reimbursement as a Mechanism to Achieve Social and Financial Impact in the Healthcare System

Value-based reimbursement strategies have been considered in the continuous search for establishing a sustainable healthcare system. For models that have been already implemented, success is demonstrated according to specific details of the patients’ consumption profile based on their clinical condition and the risk balance among all the stakeholders. From fee-for-service to value-based bundled payment strategies, the manner in which accurate patient-level cost and outcome information are used varies, resulting in different risk agreements between stakeholders. A thorough understanding of value-based reimbursement agreements that views such agreements as a mechanism for risk management is critical to the task of ensuring that the healthcare system generates social impacts while ensuring financial sustainability. This perspective article focuses on a critical analysis of the impact of value-based reimbursement strategies on the healthcare system from a social and financial perspective. A critical analysis of the literature about value-based reimbursement was used to identify how these strategies impact healthcare systems. The literature analysis was followed by the conceptual description of value-based reimbursement agreements as mechanisms for achieving social and financial impacts on the healthcare system. There is no single successful path toward payment reform. Payment reform is used as a strategy to re-engineer the way in which the system is organized to provide care to patients, and its successful implementation leads to cultural, social, and financial changes. Stakeholders have reached consensus regarding the claim that the use of value reimbursement strategies and business models could increase efficiency and generate social impact by reducing healthcare inequity and improving population health. However, the successful implementation of such new strategies involves financial and social risks that require better management by all the stakeholders. The use of cutting-edge technologies are essential advances to manage these risks and must be paired with strong leadership focusing on the directive to improve population health and, consequently, value. Payment reform is used as a mechanism to re-engineer how the system is organized to deliver care to patients, and its successful implementation is expected to result in social and financial modifications to the healthcare system.

ADAPTIVE RISK MANAGEMENT IN FOOD INDUSTRY ENTERPRISES: INTEGRATION OF STRATEGIES AND INNOVATIONS IN AN ENVIRONMENT OF ECONOMIC INSTABILITY

This article examines modern approaches and innovations in risk management at food industry enterprises. The focus is on the development of a comprehensive, multi-level risk management mechanism that combines both traditional and advanced methods of risk analysis, assessment, and minimization. The study emphasizes the importance of a comprehensive approach to identifying both external and internal risks, including monitoring market trends, political and environmental changes, and operational processes. Special attention is given to the development of flexible and adaptive risk management strategies capable of rapid modification in response to changes in the external environment and encompassing various response scenarios. The article highlights the significance of integrating modern technologies and analytical tools into the risk management process, including the use of big data, artificial intelligence, and machine learning for accurate forecasting and risk assessment. The author of the article points to the need to enhance the culture of risk management at all levels of the enterprise, including regular training and increasing employee awareness. The article underlines the importance of regular monitoring and evaluation of the effectiveness of the risk management system, as well as maintaining open communication with stakeholders and regular reporting on the state of risks and measures taken. Particular attention is paid to continuous improvement and integration of innovations to enhance the effectiveness of the risk management system, defining the significance and innovation of the integrated approach. The research results present significant interest for forming the theoretical basis of risk management, as well as for practical application in a real business environment, contributing to the formation of more resilient and innovative enterprises in the food industry. Keywords: adaptive management, enterprise, food industry, crisis management, economic instability, risk, integrated approach, strategy, innovation, risk management mechanism.

ЦИФРОВЫЕ ФИНАНСОВЫЕ АКТИВЫ КАК ИНСТРУМЕНТ УПРАВЛЕНИЯ РИСКОМ ЛИКВИДНОСТИ

The article discusses the possibility of using digital financial assets (UFA) as a liquidity risk management tool in the global and Russian financial markets; the mechanism of interaction between participants in the CFA market. The definition of CFA, distinctive features are given. A number of their advantages over traditional assets and the way they are exchanged have been identified, which make it possible to organize a mechanism for effective liquidity risk management. It is clarified that the UFA world market is at the stage of forming and building a scheme of interaction between participants, the regulatory framework is being approved, platforms for interaction between buyers and sellers are emerging.

Algorithm of stress testing of business risks

The article states that the functioning of business in the VUCA environment, when the existing methods and mechanisms of enterprise risk management are no longer fully adequate to new realities and modern challenges, raises the question of the need, along with standard risk management tools, to apply the latest tools that can not only minimise their impact, change business models and approaches to the implementation of business processes, but also transform business to new levels. It is substantiated that one of such tools, which has already proven itself in the financial sector, is stress testing of risks. Its advantages are briefly described and it is noted that stress testing is effective only if it is systematic. Haphazardness, uncertainty of its place in business management and lack of a clear algorithm for its implementation lead to insufficiently accurate results, which complicates the adoption of correct management decisions to prevent or minimise risks. The article considers approaches to stress testing: "bottom-up approach and top-down approach. Their advantages and disadvantages and conditions of application are emphasised. The author also focuses on the methods of stress testing. It is proved that the choice of a particular stress testing method by a business should be individual. Each business structure should develop its own procedure for conducting stress testing and implement its own models for analysing the impact of various risk factors on the financial result, taking into account the individuality, specifics of its activities, the mechanism for ensuring economic security and the procedure for making managerial decisions. An algorithm (stage) of stress testing of entrepreneurial risks is proposed, which provides for a sequence of actions at each stage of stress testing. The necessity of stress testing the stress resistance of each of the structural units of companies is emphasised, which will ensure a quick response of business to possible threats and challenges in the early stages. The expediency of presenting a detailed description of possible scenarios and consequences in case of their occurrence in the stress testing report is substantiated.

Modelling exchange rate volatility under jump process and application analysis

<abstract> <p>Exchange rate is an important part of financial markets. Our analysis finds that the fluctuations of exchange rates have several obvious features, such as spikes, thick tails, fluctuation aggregations and asymmetry. Based on this, we build novel GARCH class model by introducing a jumping process to describe the dynamics of their fluctuations. Our empirical results show that the models with jump factors can better characterize the agglomeration and thick tail characteristics of these return fluctuations than the models without jump factors. In particular, the model with double exponential jumps can fully handle and capture the fluctuation characteristics of the returns. Our findings will be useful for individuals and governments to predict exchange rate fluctuations, provide reference for the effective management of exchange rate risk in China, and further improve the financial risk management mechanism.</p> </abstract>

УПРАВЛІННЯ РИЗИКАМИ ЯК НАПРЯМ ЗАБЕЗПЕЧЕННЯ КОНКУРЕНТОСПРОМОЖНОСТІ ПІДПРИЄМСТВА

Тask statement. The aim of the article is to investigate risk management peculiarities and determine their impact on the competitiveness of an enterprise. Research results. The article analyzes the characteristics of modern risks, including technological changes, globalization, dynamic markets, environmental threats, pandemics, political unrest, social risks, and financial instability. Internal factors contributing to the emergence of risks in the enterprise, which play a key role in shaping its competitiveness and resilience, are identified. The risk management mechanism encompasses a set of measures for risk identification, assessment, and minimization. The most common means and techniques to influence risks include risk reduction, preservation, transfer, avoidance, acceptance, prevention, and mitigation. The article identifies and analyzes the main directions for effectively reducing risks during project implementation, including risk assessment, the development of contingency plans, efficient time management, the utilization of modern technologies and tools, and the development of team competencies. Conclusion. Effective risk management requires all project participants to realize that the real risk lies not in the execution of modern projects but in their abandonment, which may lead to a loss of competitiveness and market positions in the future. The competitiveness of modern enterprises depends on their ability to manage potential risks effectively. Enterprises that take risks into account can adapt to changes more rapidly, develop strategies to counter adverse impacts, and implement flexible business models. Risk consideration opens up new opportunities for innovation and the creation of competitive advantages, forming the basis for successful competitiveness in the dynamic contemporary business environment.

УПРАВЛІННЯ ОПЕРАЦІЙНИМИ РИЗИКАМИ В ПЛАТІЖНИХ СИСТЕМАХ

The article examines the peculiarities and forms of manifestation of operational risks in payment systems in the conditions of increased digitalization of the payment services market. Based on the analysis of the recommendations of international financial organizations and the National Bank of Ukraine, a classification of operational risks inherent in the activity of payment systems was carried out, and four types of them were distinguished: information risk, risk of errors in management processes, cyber risk and risk of user errors. The main sources of operational risks are identified and it is proven that the vast majority of them are related to the use of new information technologies and the strengthening of cyber threats in the market of payment services. The analysis of operational risk management practices in payment systems allows to conclude that they are heterogeneous and depend on factors that expose payment organizations and payment systems to risks. The characteristics of the forms of manifestation of certain types of operational risks in payment systems are given. The main results of the potential impact of operational risks on the activity of payment systems are characterized, and a method of calculating the indicator of inherent risk is proposed, which characterizes the level of its priority for the payment organization. It is determined that the main goal of operational risk management in payment systems is to maintain the operational stability of the payment organization and ensure the continuity of the payment system. The structure and main components of the operational risk management system are characterized. A functioning scheme of the operational risk management mechanism in the payment system has been developed, the use of which makes it possible to increase the efficiency of their management. A system of key indicators characterizing the limits of changes in the level of operational risk is proposed and can be used for the purpose of early detection and assessment of the potential impact of individual risk factors. The main sources of coverage of damages and losses arising as a result of implementation of operational risk events in the payment system are determined. The main sources of occurrence and features of the influence on the activity of payment systems of cyber threats are characterized. A system of measures to increase the efficiency of operational risk management based on the improvement of the technical-technological and organizational-management characteristics of the functioning of payment systems is proposed.

Legal aspects connected with the preparation of risk management mechanisms in public administration

Legal aspects connected with the preparation of risk management mechanisms in public administration

Analysis of possible directions for improving the operational risk management mechanism

This article is devoted to the study of the operational risks of the organization, as well as the consideration of various mechanisms for managing them. The relevance of studying this issue is emphasized by the need for banks to implement internal corporate measures in order to ensure the proper level of economic stability and security. The article presents the components of risk management, their types and features. As the author notes, the operational risk management system in the Bank ensures security in the activities of various structures and is aimed at continuous improvement, taking into account the possible emergence of new risks. Particular attention in the article is paid to the assessment system, which is most widely used in the process of selecting candidates for a position by modeling the situation in which his competencies are manifested. The author emphasizes that this method is actively used in practice in other countries, but in Russia its use is not so widespread. The information obtained through the assessment is used in the ranking of candidates for the position and selection, taking into account its "security" in relation to the Bank. However, risk management is carried out not only at the stage of selection of candidates. In order to assess the effectiveness of personnel, annual certification is carried out, under the supervision of persons specially trained for this purpose, authorized to analyze employees. In addition, I would like to focus on the fact that an important role in ensuring economic security is played by the internal corporate Assessment Center, which is engaged in the certification of personnel on issues of their competence. The success of the bank's activities is largely dependent on the qualifications of key employees. Currently, there is a shortage of qualified personnel in operations, engineering and technology areas, on which the implementation of business processes at different levels depends. In the final part of the article, the author formulates conclusions regarding possible directions for improving the practical implementation of the operational risk management mechanism.

Influences of Power Structure Evolution on Coffee Commodity Markets: Insights from Price Discovery and Volatility Spillovers

This study examines the influences of the power structure evolution along the global coffee value chain on coffee spot-futures commodity markets. Specifically, this study aims to analyze the mechanisms and extent to which the coffee spot-futures commodity markets are affected by shifts in the power structure in each phase following the collapse of the ICA from the perspective of price discovery and volatility spillovers by employing the PT–IS and bivariate EGARCH models. This research covers two actively traded coffee types, Arabica and Robusta, and utilizes daily time-series price data over 1990:01–2020:04 for Arabica and over 2008:01–2020:04 for Robusta. The empirical results indicate that coffee spot markets play a dominant role in price discovery for both Arabica and Robusta over all periods, and volatility spillovers occur from the coffee spot market to the futures markets. This study demonstrates to coffee market players that power structure evolutions across coffee’s global value chain have not significantly changed the underlying socio-spatial distribution of the coffee value chain over the post-ICA period. The results further imply that a buyer-driven governance is emerging in the coffee industry and large coffee roasters are beginning to dominate the global coffee value chain. Moreover, large coffee roasters are incentivized to diversify their marketing strategies by considering more market factors as part of their market differentiation strategies. Government interventions are necessary to establish price risk-management mechanisms to protect small-scale coffee growers.

Big data and big disaster: a mechanism of supply chain risk management in global logistics industry

PurposeAlthough big data may enhance the visibility, transparency, and responsiveness of supply chains, whether it is effective for improving supply chain performance in a turbulent environment, especially in mitigating the impact of COVID-19, is unclear. The research question the authors addressed is: How do logistics firms improve the supply chain performance in COVID-19 through big data and supply chain integration (SCI)?Design/methodology/approachThe authors used a mixed-method approach with four rounds of data collection. A three-round survey of 323 logistics firms in 26 countries in Europe, America, and Asia was first conducted. The authors then conducted in-depth interviews with 55 logistics firms.FindingsIn the first quantitative study, the authors find mediational mechanisms through which big data analytics technology capability (BDATC) and SCI influence supply chain performance. In particular, BDATC and SCI are two second-order capabilities that help firms develop three first-order capabilities (i.e. proactive capabilities, reactive capabilities, and resource reconfiguration) and eventually lead to innovation capability and disaster immunity that allow firms to survive in COVID-19 and improve supply chain performance. The results of the follow-up qualitative analysis not only confirm the inferences from the quantitative analysis but also provide complementary insights into organizational culture and the institutional environment.Originality/valueThe authors contribute to supply chain risk management by developing a three-level hierarchy of capabilities framework and finding a mechanism with the links between big data and big disaster. The authors also provide managerial implications for logistics firms to address the new management challenges posed by COVID-19.

Development of Risk Management Mechanism and the System of Risk Metrics to Evaluate and Enhance the Long-Term Orientation of the Strategies of Non-Financial Companies

Companies that are performing innovation-focused strategies or experiencing digital transformation are exposed to significant long-term risks. The untimely and inefficient management of these risks leads to the destruction of the company’s value and calls into question its survival. This is often underpinned by companies following strategic management with a short-term horizon. Such “strategic myopia” prevents timely identification and treatment of strategic risks and destroys value due to physical and intellectual capital investment restrictions. However, the existing mechanisms of setting up risk management architecture neither addresses the lengths of the horizon and the alignment of the horizon with the strategic objectives, state of the environment and stakeholder expectations nor provides the tools for evaluating the horizon of the firm’s strategy. Moreover, existing systems of evaluating short-termism rely only on financial and governance metrics and do not address environmental and social factors. We closed these gaps and developed a strategic risk-controlling mechanisms to set up the risk management architecture that expanded “conventional” risk management analysis and addressed the “strategic myopia”. We also worked out the critical tool of the mechanism—the system of key risk metrics (SKRI) aimed at assessing the degree of a company’s following of long-term strategic orientation. Finally, we tested it on a sample of Russian non-financial companies. Testing results revealed a strong and positive correlation between the management’s decision to follow a long-term strategic focus and the growth of companies’ long-term value (measured by economic value added (EVA)). SKRI can be utilized in strategic risk controlling to assess the company’s propensity to follow a short-term horizon, evaluate its ability to maintain sustainable value creation, and develop recommendations to stakeholders to expand its strategic focus.