Business Risk Assessment Research Articles

Some techniques for the treatment of business risks: an important element that the company must be able to treat to be able to achieve success in the market

The assessment of business risk is the basis of any decision-making and business process. Risk Manager's task is to identify, evaluate, manage and control business risks and concerns all possible types of risk. The efficacy of risk management also depends on the information available for the decision: more information available, the better risk response. To effectively manage risks, a systematic and organized approach is required, it is necessary to resort to specific methodologies and techniques. In this document we will propose some techniques to deal with business risks, thus limiting its negative effects on society.

Business Risk Assessment and Measurement Tools: A Risk That the Company Must Manage for the Success of the Business

Every company in its ordinary activity can run into multiple dangers that can evolve in an unfavorable direction to the company and compromise its development and economic stability with often irreversible consequences. In practice, it involves a complex of risks that could potentially affect the entire social and environmental context if not recognized and overcome. Risks can threaten a business's growth and existence. For this reason, in recent years, increasing attention has been paid to risk management in order to achieve corporate objectives. In the work we assessment center on risk assessment and assessment aims to attribute a value to the dimensions that risk the risk: the severity and frequency.

Оцінка підприємницьких ризиків для підприємств нафтогазового сектора

Assessment and consideration of business risks in the process of making management decisions for enterprises in the oil and gas sector reduces the probability of non-receipt (loss) of income or profit, occurrence of a crisis situation or bankruptcy of the enterprise. Determination of risk limits, in turn, makes it possible to differentiate identified risks into acceptable, critical and catastrophic, and risk management is the lever with which enterprises have the opportunity to influence the results of their own economic activity. The authors of the article investigated the trends of the series of dynamics of financial and economic indicators of the oil and gas sector enterprise using methods of quantitative assessments of the degree of risk. The problems of functioning and development of oil and gas production enterprises of Ukraine are considered. Three potential zones of business risks (acceptable, critical, catastrophic) for the resource base and financial results of JSC "Ukrgazvydobuvannya" and the probability of the enterprise falling into potential zones of business risk under different scenarios of the development of the political and economic situation in Ukraine and, accordingly, different risk criteria, have been determined.

Multi-criteria Decision Making based on EDAS Approach for Business Risk Assessment in Electricity Retail Companies

This paper introduce a multi- criteria decision making (MCDM) perfect to assess business risk in electricity retail company to decrease risk loss and mange risks of business. The evaluation of business risk in electricity company included many conflicting criteria such as risk of political, risk of economic, and risk of market. So, this paper presented an Evaluation based on distance from average solution (EDAS) MCDM method to compute the weights of these criteria and rank the alternatives. Distances between each option and the mean answer on each criteria form the basis of EDAS. It expedites the decision-making process by streamlining the computation of distances to the deal solution. But in this evaluation, there are many imperfect and unclear data. So, the neutrosophic sets is presented to overcome this vague information. The interval valued neutrosophic sets (IVNSs) is a type of neutrosophic sets is presented in this work.

The Perception of Market and Economic Risks by Owners and Managers of Enterprises in the V4 Countries

The aim of the paper is to assess the impact of the length of entrepreneurship on the perception of the most important business risks in Slovakia and the Visegrad Group of Countries (V4 countries). The empirical research was conducted in 2019-2020. It was focused on assessing the state of enterprise risk management (ERM) application. The research file contained 422 online questionnaires completed by owners and managers of enterprises (OMEs). The results of this case study were compared with the results of similar studies performed in the V4 countries in 2017-2018. In total, 1,781 OMEs participated in the surveys mentioned. The following statistical methods were used to assess the data: ANOVA, Bartlett’s test, Agostini test, good fit test, and Grubbs test. The overall results of the empirical research highlight the significance and importance of the assessment of business risks in the V4 countries. The results in Slovakia in 2019-2020 and the research results in the V4 countries in 2017-2018 show that OMEs still consider market and economic risks to be most important in their business. Market and economic risks are related to sources that exert the most negative influence on enterprise success. The results are valuable for entrepreneurs, enterprise managers and institutions that provide comprehensive entrepreneurship support in the V4 countries. The overall results are significant at the regional, national, and international levels of the V4 countries and have the ability to strengthen the competitiveness of entrepreneurs within the EU common market.

Entrepreneurial Risks: Nature, Types, Assessment Methods and Ways to Reduce Them

The article studies the essential, substantive properties and features of the concept (category) “entrepreneurial risk”, defines the types and methods of assessing entrepreneurial risks and ways to reduce them. It is established that entrepreneurial risk characterizes the specifics of the business entity in the direction of overcoming the uncertainty of the situation of inevitable choice, in which it is possible to assess the probability of achieving the desired result, failure and deviation, contained in selected alternatives. It has been found out that the analysis of entrepreneurial risk should be carried out at the expense of: qualitative analysis of entrepreneurial risks, which identifies, describes and classifies risks, as well as a breakdown of what may be caused by them; quantitative analysis of entrepreneurial risks, as a result of which possible entrepreneurial risks are formalized, modelled, calculated and evaluated; the choice of methods of influencing business risks, as a result of which it is expected to reduce business risks or completely neutralize them; making management decisions regarding the protection of business results from the consequences of situations caused by risks; control of results from the occurrence of business risks, their revaluation and adjustment through the adoption of operational management decisions. For the assessment of business risk, it is advisable to use expert methods, calculation and analytical methods, statistical methods, methods of analogies, and methods of cost-effectiveness analysis. It is determined that the ways to reduce the impact of business risks on business activities are: to directly reduce the amount of damage that occurs due to business risk; creation of appropriate conditions under which it is possible to react quickly to the consequences of the realization of business risks; transfer of responsibility for potential risk to third parties; distribution of risk between participants who jointly carry out business activities; business risk insurance; setting aside funds that are necessary to cover unforeseen costs by eliminating partial risks; reducing risks through their financing. In the prospect of further research, it is proposed to investigate the components and features of the accounting system and analytical support of business risk management.

Simulation and risk management of financial activities in the digital economy era

The present article attempts to study the role of financial risk management in the digital economy era. The main purpose of the article is to identify the main patterns that determine the features of risk assessment in business as the main element contributing to the achievement of economic security of the organization, as well as to carry out a comparative analysis of risk assessment and risk management methods in the context of digitalization. The contemporary economic analysis employs various risk management methods. Digitalization also creates new risks, most of which are related to cybercrime and fraud on the Internet. The most effective ways to reduce risk in the context of instability of the economic and political situation in Russia are the scenarios method and the method of analyzing hierarchies, as well as diversification, i.e. the distribution of risks among several business participants. The article discusses various types of economic risks, risk analysis, and assessment methods, as well as risk neutralizing strategies.

Organizing sports events: the promoters’ perspective

PurposeThis study aims to develop a battery of items that assess the factors affecting sports events’ success from the promoters’ perspective and a measurement tool that identifies these stakeholders’ main priorities based on the importance-performance analysis (IPA) framework.Design/methodology/approachThe research was conducted using mixed methods. In the first qualitative step, sports event management’s main dimensions were identified based on the existing literature and a comprehensive battery of corresponding items were developed via content analysis of interviews with experts. The second quantitative step focused on Lisbon, the 2021 European City of Sport. Promoters of 21 different medium or large sports events (number = 41 respondents) were asked to fill out a survey ranking each dimension’s items by performance and room for improvement. The IPA’s results are presented both for the overall sample and by promoter type (i.e. events with or without sports facilities).FindingsThe 46 items identified fall into the following three categories: sports infrastructure, city image and hospitality and event management (i.e. pre-event, event and post-event). Pre-event includes stakeholder management, organigram and responsibilities, business plan, marketing mix, risk assessment and sponsorship management. Sponsorship management stands out among the areas considered a priority by event promotors.Originality/valueThis study adds to the literature by offering a comprehensive approach to assessing empirically all stages of the event management process.

International experience in business planning and risk assessment

International experience in business planning and risk assessment

Performing business risk assessment with real-world data set and data visualization

While real-world data may be publicly available and easily accessible, data require context to be delivered in a classroom. Apart from providing students experience working with real-world data for data analytics, this case also provides an example to university instructors on how to contextualize the real-world data set for teaching. This case equips students with relevant skills in data analytics that are aligned with the industry need. The context that we provided in this teaching case is applicable to undergraduate courses. We applied this case as one of business information system–related courses for the first-year university students.

115 The Beef Industry in a Post-Pandemic World

The onset of the COVID-19 pandemic in 2020 caused unprecedented shocks and disruptions in the cattle and beef industry. The shutdown of food service in March 2020 caused an unparalleled stacking of food demand on the retail grocery sector. The rigidity and specialized nature of food service and retail grocery supply chains, compounded by a surge in consumer demand at retail grocery, resulted in temporary shortages of meat in other consumer products in supermarkets. The food service sector recovered somewhat over many weeks but remained diminished through the balance of 2020 and beyond. In April 2020, COVID-19 infections affected the labor forces of many meat packing and processing facilities and resulted in significant reductions in beef packing and further processing for eight to twelve weeks. This caused additional product shortages in retail grocery and food service sectors. These impacts have raised many questions about how the beef industry might adapt to be more resilient in the face of such profound disruptions. Possible changes include more use of multi-purpose facilities (less specialized for food service or retail grocery supply chains); design changes in new plants and retrofitting existing facilities to reduce human health impacts; changes in labor management; changes in inventory management; and changes in business supply chain management and risk assessment practices.

МЕТОДЫ ОЦЕНКИ РИСКОВ В БИЗНЕСЕ

In this article, the subject of research is the methods of risk assessment in business as the main way to minimize risks when choosing a particular scenario for the development of events, as well as the difficulty in choosing a method for further analysis. The purpose of this article is to identify the most appropriate risk assessment method for a given situation and, accordingly, compare them and analyze the advantages and disadvantages of the methods under consideration. The article provides examples for specific situations of the most commonly used risk assessment methods in modern business. Recommendations for the most effective application of the analyzed methods are offered, depending on the goal of risk analysis and a specific situation. The results and conclusions are presented, corresponding to the set goal.

Development of energy companies in a digital environment, taking into account business risk factors

The paper deals with the development of energy companies, taking into account business risk factors. It has been established that the identification and assessment of business risk factors makes it possible to identify areas of development on which it is advisable to focus the available management resources of energy companies. The paper discusses the assessment of business risks in the framework of design work, which play a key role in the implementation of development programs for individual functional subsystems of energy companies. The presented descriptive model of the formation of the reaction of the management of a high-tech enterprise to the occurrence of risk is based on the subject’s ideas about risk. At the same time, it was determined that the line between acceptable and unacceptable for the enterprise level of risk in the implementation of priority areas of development in different periods of the enterprise’s life cycle is different. The identification of business risk factors results in a list of risk factors for energy companies, which is presented in the paper by two groups reflecting internal and external factors. Risk identification is carried out in accordance with the process of detecting and establishing temporal, quantitative and spatial characteristics that are necessary and sufficient for the development of preventive and operational measures aimed at ensuring the effective implementation of the risk management process.

Identification of risk factors involved in SCP of developing coun-tries-establishing guidelines: an analysis of mixed method se-quential approach

Risk evaluation and its identification is one of the prominent fields in the construction industry concerning performance management and project success. Under the project mechanism and business development system, risk assessment and mitigation are compulsory components of a management network to achieve the project's success. In this study, the major focus of risk assessment and management revolves around the SCP (small construction projects) which are the backbone of the construction industry. Every stakeholder is involved in this process because the construction of the house is a basic need of humans for a living. Targeting the major stakeholders (contractors, consultants, and clients) as mixed-method (qualitative & quantitative) sequential approach has been adopted to evaluate the major risk factors and their occurrence with the assessment of risk management system at the country level in SCP (small construction projects). The data used in this research has been collected from sixty-two (62) small construction firms, thirty-two (32 projects), to attain the research objectives. The results indicate that the performances of most of the risk management system and organizations are responsive, shapeless, semi-stable, and unorganized with inexistent and confined compromised resources to respond with risks. The major issue was identified as the non-existence of a proper risk management system because no formal education is involved with the personals working in small construction projects. The five most important risks that should be preferable are quality and quantity dissimilarity, change in scope of work/design, deficiency of manpower, planning, and management, and technical errors. The prime hurdles which are analyzed for impressive risk management are the absence of connection between construction experts and contractors who have not been formally trained at any technical institute. This study will help in targeting the existing gap for implementation of the risk management system at small construction engineering projects. Furthermore, it will generate a pathway for the young enterprisers to come forward and take part in the development of the small construction industry by implementing effective risk management practices to achieve the project performance in terms of project success and fruitful outcomes for the upcoming projects.

Feature Selection Optimization Model for Business Risk Assessment Model

Financial risk assessment becomes a hot research topic among financial firms or companies to assess the financial status and thereby avoid future crises. Earlier studies have focused on statistical models for the assessment of financial risks and the recently developed machine learning (ML) models find useful to improve the assessment performance. In this aspect, this study introduces a novel Butterfly Optimization based Feature Selection with Classification Model for Financial Risk Assessment (BOFS-CFRA) technique. The proposed BOFS-CFRA technique involves pre-processing at the primary stage to get rid of unwanted data. In addition, K-means clustering approach is developed to group the financial data into clusters. Then, the BOFS technique is applied to choose the subset of features from the clustered data. Finally, the classification of financial risks takes place by the use of functional link neural network (FLNN). In order to ensure the enhanced performance of the BOFS-CFRA technique, a series of simulations were carried out and the results are inspected under various measures. The simulation outcome portrayed the supremacy of the BOFS-CFRA technique over the other financial risk assessment models in terms of several performance measures.

Managing Entrepreneurial Risks

An attempt to study the role of risk management from the perspective of an entrepreneur is made in this article. The main goal of this article is to identify the main patterns that define the characteristics of risk assessment in business as the main element contributing to the achievement of economic security of the organization. Methods of cognition, retrospective and documentary analysis, as well as synthesis, generalization, and systematization were used in the article. The goal is to study methods for assessing entrepreneurial risks. The object of the study is public relations associated with the formation of the risk management institution at the micro level. Various types of economic risks, methods of risk analysis and assessment, as well as risk mitigation strategies are explored in the article. Various risk management methods are used in the modern economic analysis. The most efficient way to reduce risk in conditions of instability of the economic and political situation in Russia is diversification, i.e., risk sharing among several business participants. The specifics of applying the project risk analysis methods in practice are explored.

Uncertainty, sensitivity analysis and optimization of a reservoir geological model

Geological models are mainly obtained via interpolation of simulations using geostatistical algorithms, and the simulation results are highly uncertain. In this paper, several factors that have great influences on model results are analyzed. Through an analysis of the sensitive uncertain factors, it is found that the uncertainty of the lithofacies model has the greatest influence on the geological model, and the variogram has the second greatest influence. Therefore, ensuring the rationality of lithologic model can effectively reduce the uncertainty of the model. It is found that using seismic impedance as constraints can effectively improve the accuracy of the lithofacies model, and one can use the seismic impedance to obtain a reasonable variogram (effectively overcoming the shortage of well data), thus reducing the uncertainty of the model. Although the stochastic simulation technology used in geological modeling can yield many simulation results, only a limited number of models can be applied in practical work. In this paper, a probabilistic analysis method is proposed to optimize the model, which can provide a reference for business decision-making and risk assessment of oil and gas companies. Reserve uncertainty analysis in the exploration stage can determine the most probable reserve of the reservoir through the probabilistic characteristics of the reserve so as to determine the next exploration target. In the development stage, probabilistic analyses of the porosity, remaining oil saturation and other parameters related to oil field production can maximize the development of remaining oil. The idea of model optimization based on sensitivity analysis of model uncertainties proposed in this paper can effectively reduce the uncertainty of the model, improve the accuracy of the geological model and meet the needs of different research stages and levels.

Modeling the Activities of Internet Companies by Using Innovative Processes

The article is devoted to the urgent theme of the modernity – modeling the activities of Internet companies, whose main task is to run efficient business. The main purpose of this article is to define the basic regularities that determine the peculiarities of risk assessment in business as the main element that contributes to achieving the economic security of an organization, as well as to explain the choice of the optimal model for integrating a company into the information business. In the article the information business models have been analyzed, the areas of information commerce, factors for the efficient implementation of business models, and the attractiveness of the online market have been considered. The possibilities of using new online technologies in intracompany processes and communications in advertising and other commercial activities of the company have been assessed.

A Study on the Framework of Quick-Hit for BIA and RA in BCMS

Business Continuity Management System (BCMS) activities include policy development, planning, mitigation, training, and evaluation. Business Impact Analysis (BIA) and Risk Assessment (RA) are necessary for establishing a contingency plan and are traditionally conducted by the staged development approach. However, a general approach requires more time than that scheduled for the BCMS project because it includes imparting education and conducting surveys and analyses. In addition, this will cause a profit aggravation of the organization as a result of the low quality of the plan. The outcome will be revealed after analyzing the BCMS projects of other business firms. A Quick-Hit approach will be introduced in this paper as a recommended alternative when obstacles of any form arise in the RA and BIA on the business environment. This approach comprises its process, components, and outputs, and illustrates the results of the Quick-Hit and staged development approach in terms of BCMS projects. The suggested approach is an efficient alternative method for the RA and BIA when dealing with limitations of time, small project budgets, low quantity of disaster records, and small-sized business firms. Keywords: BCMS, BIA, RA, Quick-Hit Framework, Staged Development

Business risks: psychological features of risk assessment in business

The risk analysis of the enterprise allows to avoid not only substantial material losses, but also irreplaceable damage and even bankruptcy. Risk is the probability of damage (loss, failure) due to the uncertainty of the result. Entrepreneurial risk arises from any type of entrepreneurial activity related to the production and sale of products, commodity-money and financial transactions. The purpose of the work to study the factors of particular entrepreneurial even risks. To achieve the stage of this goal, the following natural tasks were set optimally for energy resources: to reveal the concept of the most and the essence of entrepreneurial high risk; characterize the investment types of entrepreneurial risk; display the developmental features of the interaction classification of financial and operational optimal leverage and the estimated price of the total risk receives. Conclusion: Avoiding risk in business is almost impossible, but you can reduce the degree of risk. Risk management consists of predicting adverse events and taking measures to some extent preventing the negative consequences of these events.