Risks Of Economic Activity Research Articles

Financial Pressure in Russia: Issues in Theory and Practice

This article attempts to understand in theory the concept of financial pressure. In order to analyze financial pressure, the authors found that system analysis, logistic regression model, large sample and economic entropy could be suitable methods in the financial pressure study. The authors used deductive and analytical cognition methods, studied the financial pressure causes, taking into account the financial transactions specifics leading to high risk in economic activity of the enterprise and the country as a whole. It has been established that the Russian capital market differs from foreign markets in its specificity. It has been determined that the financial pressure study should begin with a study of transformations in enterprises with state participation in the form of ownership. For this purpose, in the financial risk and fraud study there was studied various theoretical approaches, the scientific results of which are of a different nature. It was revealed that business entities should take into account financial pressure in order to respond in a timely manner to a potential economic crisis, since financial problems periodically give rise to economic problems, the failure of which can become threatening either for enterprises or for the national economy in general.

The use of an indicative method to identify threats and risks to the financial security of an organization

The article attempts to analyze and evaluate the financial security of an organization using an indicative method. In modern conditions, the stability of the national economy is particularly dependent on the stability of economic entities, therefore, the issue of ensuring the safety of organizations from internal and external adverse factors is particularly acute. Financial security is one of the most important components of the economic security of an organization, for this reason, maintaining the financial security of an enterprise is considered a priority in the field of economic security. One of the most popular methods of assessing the level of financial security is the indicative method,according to which financial security indicators are calculated, and then compared with their threshold values. Using this method, an assessment of the current financial condition of the organization was carried out, the main threats and risks of economic activity were identified. An information and analytical system for ensuring financial security is proposed, which makes it possible to organize an integrated approach to the processes of modeling the development of an organization in all major financial aspects, to minimize risks and threats arising in the process of financial activity.

THE ESSENCE OF FINANCIAL SECURITY AS AN OBJECT OF ANALYSIS

Introduction. In the conditions of the instability of the economic situation in Ukraine, the challenges and threats to the security of Ukraine are intensifying, in particular, there is an increase in the risks of inflation, the shadowing of the economy, and the legalization of illegal income. Therefore, it is important to rethink the theoretical prerequisites and the terminological and conceptual apparatus of the security sphere in the context of solving the current tasks of financial security analysis at all levels of the economic system of the state. The purpose of the article is to determine the content of economic and financial security as objects of analytical research based on the analysis of information from professional sources and current regulatory and legal acts. Results. It has been established that a stable state of the state's financial system is recognized as financially safe, under which the necessary financial conditions are created for its sustainable development and ensuring the stability of the country's financial system. For the purposes of financial security analysis, it is advisable to classify it at the following levels: global, state (national), regional, industry, business. The analysis of financial security at different levels allows to optimize information support for management decision-making, including taking into account strategic goals and the influence of the external environment. Conclusions. The essential content of the definitions "economic security", "financial security" has been developed and their content and functional characteristics have been revealed. A state is recognized as economically secure if its economic condition is stable, characterized by the balance of relevant indicators and invulnerability to external and internal threats, and ensures sustainable and effective development based on the observance of national economic interests. Financial security is a priority component of the economic security of the state. A stable state of the state's financial system is recognized as financially safe, under which the necessary financial conditions are created for its sustainable development and ensuring the stability of the country's financial system. Analysis of financial security at the global, state (national), regional, branch, and business levels allows for the formation of a scientifically based information field for making management decisions. The results of the analysis of the company's financial security allow timely diagnosis of the threat of bankruptcy and risks of economic activity. Analysis of financial security at the state level allows identifying real and potential threats to national interests in the financial sphere.

Підприємницький ризик: сутність та класифікація в залежності від втрат, які несе підприємець

In conditions of high competition and variability of economic conditions, timely insurance of business risks can help the enterprise to preserve its financial resources and ensure stability and security in the market. The article aims to systematize business risks by groups of losses and generalize and characterize the types of insurance policies that can be useful to the enterprise due to their manifestations. It was found that entrepreneurial risk in economic activity is a generalizing term for a group of risks that arise at various stages of the capital cycle as a result of the actions of the enterprise itself, competitors, counterparties, changes in the market situation, technological failures and other internal and external factors. Types of business risks are systematized. Four main groups of enterprise losses due to business risks were identified, with the selection of types of insurance policies that can be useful for enterprises in case of corresponding losses. Different conditions for insurance against cyber threats and liability for environmental damage in Ukraine were disclosed under four main costs depending on the type of damage subject to compensation. The results of the study show that business risk is a complex category that covers various aspects of business activity, protection against which occurs mainly within the scope of property insurance and liability insurance, but at the same time can go beyond these fields of insurance, if it is determined by the needs of business activity Business risk includes financial risks, such as market instability, changes in the economic environment, exchange rate fluctuations, rising costs, insufficient financial resources. It also covers operational risks related to business management, including supply chain issues, staffing issues, technology failures, legal conflicts, and more.

Prospects for methodological support of procedures for managing the economic security of enterprise activities

In this scientific study, the task is to consider the issues of methodological support of analytical procedures for managing economic security. The relevance of the issues under study is due to the need to ensure that the choice of methods for assessing the economic security of enterprises is consistent in the context of the real economic situation in society and the assessment of the degree of economic threats that occur in the activities of enterprises of various forms of ownership. Since the economic security of an enterprise is characterised as the state of security conditions for the implementation of its functions (through the introduction of resources, the implementation of the accumulated economic potential, prevention of hazards and risk management), therefore, an integrated economic security management system is based on an integrated system for assessing the general condition, and the latter, in a complex combination of methods assessment for the implementation of assessment objectives and the achievement of its goal. The purpose of this research work is to determine the prospects for high-quality methodological support of economic security management procedures. The leading approach to the implementation of the purpose of this research work is a combination of analytical and logical methods of researching the issues raised in its topic. The main results of this research should be considered: the development of a conceptual model for determining the level of economic security of an enterprise and the direction for setting the tasks of assessing composite systems of economic security. Prospects for further scientific research in a given direction were determined by the significance of the research topic in the context of the subsequent development of the economic situation in the country and the resulting need for a timely and correct assessment of the degree of risks of economic activity, as well as the proper provision of methodological procedures for their assessment. The applied value of this research work is in the possibility of practical application of the results obtained in theory in order to create opportunities for a qualitative assessment of the level of methodological support for the possibilities of analysing the effectiveness of managing the economic security of an enterprise, functioning in a real economic situation.

ТРАНСФОРМАЦІЯ СТРУКТУРИ ЕКОНОМІКИ МІСТ ЗАХІДНОГО РЕГІОНУ УКРАЇНИ: СЕКТОРАЛЬНИЙ ВИМІР

Анотація. Досліджено особливості трансформації структури економіки міст Західного регіону України. Для цього проаналізовано просторову концентрацію економічної діяльності в містах обласного значення Західного регіону України, а також швидкість та інтенсивність трансформації структури їхніх економік. Залежно від структури економіки міст обласного значення в базовому періоді та інтенсивності структурних зрушень у ній упродовж досліджуваного періоду виокремлено два типи досліджуваних адміністративних одиниць: 1) міста обласного значення, які зберегли профільність економічної структури; 2) міста обласного значення, які диверсифікують структуру економіки. До останніх, зокрема, належать: а) міста обласного значення — промислові центри, які диверсифікували свою діяльність шляхом розвитку сервісної економіки; б) міста обласного значення, які трансформували структуру економіки в напрямі розвитку промисловості; в) міста обласного значення, які, попри поліпрофільність економічної структури в базовому періоді, наростили упродовж наступних років економічний потенціал лише в певному секторі економічної діяльності; г) інші міста обласного значення, зокрема ті, які змінили вектор економічної діяльності в напрямі розвитку суміжних галузей. Констатовано існування позитивних тенденцій (вища адаптивність структури економіки досліджуваних адміністративних одиниць до сучасних умов соціально-економічного розвитку), а також негативних тенденцій (асиметричність регіонального суспільно-економічного розвитку внаслідок концентрації ділової активності та капіталу в містах обласного значення; диспропорційність секторальних і просторових структурних змін в економіці міст обласного значення; посилення монопрофільності економічного розвитку окремих міст обласного значення в контексті загострення ризиків економічної діяльності) у трансформаційних процесах економіки міст обласного значення. Ключові слова: трансформація економіки, міста обласного значення, структура економіки, регіональна економіка, сектор економіки. Формул: 2; рис.: 0; табл.: 2; бібл.: 10.

The role of forecasting in the business management system

In the market relations of the current economy, when the necessary information about the demand for goods and services is completely unavailable, when it is impossible to predict not only the behavior of competitors but also partners, when it is necessary to make decisions that provide not so much development as the survival of the enterprise, the need for knowledge and use of business forecasting methods is especially important. The problems of forecasting have become recently increasingly complex, as the environment of firms is becoming turbulent and uncertain. Limiting factors that negatively affect the use of forecasting in the domestic environment are the low level of capital accumulation in enterprises, which does not allow to make effective costs for the organization of forecasting. The essence of forecasts is revealed in this paper, their classification is presented and supplemente. The importance of forecasting in business management system is revealed and the main problems that hinder effective forecasting at Ukrainian enterprises are presented. The main advantages of accurate forecasts for business and the consequences of inaccurate and non-existent forecasts are identified. The main stages of forecasting are defined. The effective functioning of enterprises is impossible without the use of forecasting methods in management. It is noted that the choice of the appropriate method for use in a particular situation is an important and difficult task. Managers use those forecasting methods that are most appropriate under the existing constraints and correspond to the situation in the enterprise. However, in practice, managers of some companies neglect them and use different approaches, techniques and principles that, in their opinion, make it possible to abandon the use of forecasting methods. Taking into account the outlined shortcomings, the ways of improving the forecasting process in business management system are given. The author's vision of improving approaches to the use of forecasting opportunities in the activities of enterprises is also proposed and it is offered to develop «Regulations on forecasting», which should provide resources for this process, stages and methods of forecasting and responsibility of performers for quality forecasts. It is noted that taking into account the above mentioned recommendations, Ukrainian companies will be able to avoid many risks of economic activity or reduce their negative impact in the future.

СТАТИСТИЧЕСКОЕ МОДЕЛИРОВАНИЕ НАЛОГОВОГО БРЕМЕНИ ИНСТИТУЦИОНАЛЬНЫХ ЕДИНИЦ – ИНСТРУМЕНТ БИЗНЕС-АНАЛИТИКИ

In the context of the digitalization of the economy, issues of planning, preventive assessment of the possibilities for the effective functioning of various business systems, including and their tax burden as a factor in the success and safety of businessXNUMX; the development of economic, mathematical and statistical models for analyzing the reserves of their development are becoming the focus of attention of theorists and practi-tioners. A systematic solution to the problem of preventive assessment of the tax component at the institutional level as a tool for measuring the risks of economic activity of institutional units remains unrealized. Based on a comprehensive analysis of existing approaches to assessing the tax burden on business, the author's inter-pretation of this category is proposed, which underlies the assessment of the flow of tax payments as the sum of discrete flows for individual taxes and fees, taking into account the withdrawals of part of taxes and benefits on the tax base and tax rates from the turnover of companies ... The constructed additive-multiplicative model of the tax flow and, on its basis, the model of the mixed type of tax burden of an institutional unit will allow business structures of various types of economic activity, both already functioning and those intending to invest in business, to carry out a comprehensive assessment of the tax burden and thereby reduce the risks of their own functioning and investment. The universal character of the models presupposes their adaptability and integration into the current system for assessing the tax burden of the Federal Tax Service of Russia, the possibility of use of existing classifiers of objects of statistical and accounting records, integration into the system of sectoral and territorial administration in order to monitor the activities of economic entities.

Ризик-менеджмент у господарській діяльності малих підприємств: сучасні імперативи

Introduction. Small business is a basis of market relations, creating new working places, paying mandatory payments to budget, being able to adapt quickly to market needs. Like any economic entity, small businesses operate at risk. However, the risk that causes little discomfort to a large enterprise can be catastrophic for a small business. Purpose. Research of modern risks in the activity of small business and preconditions for using of risk management in their economic activity. Results. It is noted that risks are inherent in any stage of entrepreneurial activity, the essence of which involves their acceptance and processing. It is indicated that small business, as an important component of market relations, is more sensitive to various risks compared to large businesses. Identification and effective risk management in nowadays challenges is a necessary component of any enterprise’s management, especially of small businesses. It is noted that the risk management system, which is aimed at ensuring the required level of enterprise’s resilience to possible threats to its sustainable development, involves the involvement of specialists managers. However, in a small business, these functions are usually entrusted to a manager who performs various tasks at the same time. The main groups of risks of economic activity of small enterprises in Ukraine at the present stage, considering their origin, level of influence, spheres and scales of distribution (market, administrative and legal, financial, personnel, investment and innovation, reputation, commercial, information and digital, globalization risks) are presented and characterized. Modern characteristic features of domestic practice in risk management which cause additional difficulties, in particular, in small business activity are presented: non-transparency of economic processes, lack of standards of risk management and appropriate culture of risk management; lack of professionals in the field of risk management with sufficient practical experience. Conclusions. It is proposed to carry out risk management at all stages of the life cycle of products (services), involving specialists from all departments (areas of activity), taking into account the advice of external experts, analyzing the actions of competitors.

Precarização das relações laborais: análise crítica sobre as disposições do teletrabalho na lei 13.467/2017

Este artigo se propõe a compreender de que maneira as transformações ocorridas nas relações de trabalho ao longo do século XX contribuíram para o desenvolvimento da regulamentação do teletrabalho por meio da Lei 13.467/2017. Consiste em uma pesquisa teórica qualitativa, com finalidade explicativa, utilizando uma abordagem dedutiva, a partir do método de procedimento histórico e da investigação bibliográfica-documental. Justifica-se o tema pela necessidade de compreender de que maneira as transformações ocorridas na produção capitalista repercutem no desenvolvimento das novas formas laborais como o teletrabalho. Conclui-se que as transformações na estrutura das relações laborais ao longo do século XX contribuíram para o desenvolvimento de modalidades de trabalho mais precárias, com vistas a jornadas de trabalho com menor fiscalização, maiores negociações individuais entre empregado e empregador e transferência dos riscos da atividade econômica ao empregado, fatos observados na regulamentação do teletrabalho pela Lei 13.467/2017.

Genesis of modern concept of risk in the activities of business entities

This article is devoted to the study of approaches to the formation of the category “risk” as an object of management in the activities of an economic entity. Various theories that reveal the primary source of the concept of “risk” have analyzed. The main stages of risk development in the activities of economic entities are considered. The main modern approaches to the characterization of risk as an object of management in business entities are highlighted and critically evaluated. An actual interpretation of the term “risk” is proposed taking into account international scientific and applied research. The necessity of continuing the development of approaches to understanding the risk of economic activity has substantiated.

Organizational principles of formation of accounting support management of AIC entities settlements in risk conditions

The uncertainty that is present in all economic processes of business entities of agroindustrial complex (AIC) causes the risk of economic activity and the negative effects provoked by their consequences. The article identifies elements of the system of settlements of AIC business entity, distinguishes the classification features of such settlements in order to properly organize the accounting of the settlement transactions of the entities of the studied industry. The organizational foundations of forming accounting support for accounting management of AIC business entities under risk conditions are investigated and the main directions of development of accounting policy of the investigated entities in the part of settlements as an object of integrated accounting are determined. Considering the philosophy of management and business, as well as the principles of integrated reporting, the components of accounting support management of the AIC business entity settlements are characterized: the objects of accounting for settlement transactions (in particular, external payments for ensuring uninterrupted business activity), their documentation, accounting records, reporting indicators. The peculiarities of the organization of accounting of agrarian receipts as a specific form of settlements at AIC entities have been established, the elements of accounting policy have been identified, which should be clearly defined for accounting of agrarian receipts.

Risk impact on resource distribution in sectors of economics and industrialization

The purpose of the study is the impact of the risk of economic activity, which is concentrated in the sectors of the economy, on the distribution of resources between sectors, the change in investment in new and old technologies, the manufacturability and the gross value added created, the themes of its growth. Quantitative risk assessment is carried out by the standard square deviation of gross profit in the sectors and in the Russian economy. Manufacturability is determined by the ratio of production on new and old technologies, and new technologies are newly created advanced technologies. The research methodology is a structural analysis that allows the Russian economy to be represented in the form of a dichotomy of the sectors — processing and transactional raw materials. This dichotomy is applied due to the necessary assessment of the course of industrialization and the influence of risk in processing on the dynamics of general and special coefficients of industrialization. The result of the study is that the positive effect of reducing the risk in the manufacturing sector on the change in its manufacturability and improvement of the parameters of industrialization of the economy has been confirmed. Taking into account the relationship of profitability in the sectors of the economy and the risk of doing business in them, the resulting ratios for the levels of profitability and risk in the two sectors were obtained, which give the best pace of their development and the overall dynamics of the gross value added of the Russian economy during the industrialization process. The ratio of risk in the processing and raw materials sector should be less established in the study of the value (1.3) for the dynamics to be the best. This will require measures to reduce the risk in the manufacturing sector, and, most likely, national projects and state guarantees, in this part, perform the function of damping risks. In the transaction sector, risk apparently should not be reduced (the task of raising it looks extraordinary) so that the risk ratio influences the distribution of investment, capital and labor between the sectors in order to ensure the best contribution of the sectors to the overall dynamics of the economy.

MOTIVATION FACTORS OF PERFORMANCE OF PERSONNEL OF THE ENTERPRISE

Purpose. The work is devoted to the study of the impact of employees' motivation on the performance of their activities. Method. Methods of individual (personal) expert evaluation of interviewing and questioning were used to justify measures to increase the level of employees' performance; Performance Analysis Quadrant (PAQ) has been proposed for use. Results. The methodical approach is based on the use of matrix methods of strategic analysis of employees' performance, which allows to ensure rapid adaptation to external conditions, reduce uncertainty and risk in economic activity and ensure concentration of resources in selected priority directions. Practical significance is the demonstration of the use of matrix methods for the analysis of the effectiveness of personnel of enterprises when the use of only one classical diagnostic method is impossible due to the large number of factors that directly affect the effectiveness of employees and the development of measures to increase the effectiveness of employees of investigated trading enterprises, which depends on the influence of motivational factors.

MOTIVATION FACTORS OF PERFORMANCE OF PERSONNEL OF THE ENTERPRISE

Purpose. The work is devoted to the study of the impact of employees' motivation on the performance of their activities. Method. Methods of individual (personal) expert evaluation of interviewing and questioning were used to justify measures to increase the level of employees' performance; Performance Analysis Quadrant (PAQ) has been proposed for use. Results. The methodical approach is based on the use of matrix methods of strategic analysis of employees' performance, which allows to ensure rapid adaptation to external conditions, reduce uncertainty and risk in economic activity and ensure concentration of resources in selected priority directions. Practical significance is the demonstration of the use of matrix methods for the analysis of the effectiveness of personnel of enterprises when the use of only one classical diagnostic method is impossible due to the large number of factors that directly affect the effectiveness of employees and the development of measures to increase the effectiveness of employees of investigated trading enterprises, which depends on the influence of motivational factors.

The Need for Determining and Assessing Risk in Economic Activity

Abstract In modern terms, risk management is a concept applicable to economic agents, which represent a factor that generates economic and financial performance. In this respect, I appreciate that it is obvious that risk management is a necessity in the activity of any organization regardless of the field of activity or its objectives. Additionally, observing the procedural elements specific to the identification, analysis, quantification and assessment of the economic risk will lead to the company being correctly diagnosed and facilitates the identification of solutions for its elimination, or mitigation within the parameters of a controllable area.

COMPLEX BUSINESS SOLUTIONS ON RISK ASSESSMENT AND MANAGEMENT IN RETAIL

Retail companies are largely addicted to the risk of economic activity due to their industry specifics, which requires them to focus on a comprehensive study of the problem of risk. The purpose of the article is to investigate the operational and financial leverage in terms of using its capabilities to manage the risks of the retail company. The task, the decision of which is aimed at researching this article, is to improve the methodical tools of integrated assessment and risk management in the economic cycle of retail companies in the process of asset conversion. The research of the conditions for the formation of operational and financial leverage in retail companies showed that the calculation of analytical indicators for their assessment has methodological features, due to the structure and nature of used material and financial resources, as well as the formation of effective indicators of economic activity. Under research, it was confirmed the hypothesis of the possibility of comprehensive assessment and risk management of retail companies on the basis of analysis of the variability of profit and the impact on the process of its risks’ generating associated with the use efficiency of assets and capital of the enterprise by calculating the combined effect of the operational and financial leverage. For the reasoned adoption of effective business decisions and ensuring the comprehensiveness of risk assessment and risk management in retail, the proposed methodological approach, which involves the calculation of the cumulative effect of operational and financial leverage, as well as its components, adapted to the specifics of the retail. The research of combined operational and financial risk using the proposed scientific methodological approach has confirmed its effectiveness and correctness of the hypothesis about the need to reflect in the analytical calculations of use in the trade and technological process of retail companies operating lease objects and the value of trade payables.

Formation of the strategic sustainability management system for the organization's innovation activities

The article deals with the main provisions of the formation of the management system of strategic sustainability of the innovative activity of the organization. The structure and content of the management system of strategic sustainability of innovative activity of the organization are proposed. The management system of strategic sustainability of innovation development of the organization is expressed in the management of effective use of strategic resources of the organization, management of the results of strategic sustainability taking into account the risks of economic activity and innovation management to improve the level of strategic sustainability.

IDEAS in AGORA: Decision-Making Risk: The Difference Between Risk And Uncertainity In Economic Activities

Abstract Economic activities are always supposed to carry with them the risk of market. Our area of research is concerned with what is known as the model of risk decisions at the level of economic activity; a model that can be valuable at any point of economic development. In our research, we present important aspects of risk in taking decisions in the previous and current dynamics of the market. The conditions of taking decisions with potential risks provide decision-makers with the possibility to analyze and calculate risk in order to know what can be gained and lost. In our paper, we present a short description of a different model of risk in economic activity and of decision-making risk, providing examples that have been offered by various authors. For example, Friedman and Savage present the utility function of an economic agent and its availability to accept the risk, while Markowitz defines utility in terms of winning or losing. Our paper starts with a presentation of the quantification of risk in economic activity. In the second part, we present a model of decision-making risk that is applied in economic activities and the difference between risk and uncertainty.

Capital Market Efficiency in the British Industrial Revolution: The Case of the Lancashire Cotton Industry, 1760-1840

Recent debates on the industrial revolution have continued to showcase the role of the cotton textile industry. These discussions have centred on the Schumpeterian view of rapid growth based on a disequilibrium model in which capital market imperfections allow innovative firms to restrict entry, thereby earning long run super-normal profits. Neo-classical interpretations, in contrast, argue that firms were relatively untroubled by capital market imperfections and experienced few problems accessing finance, facilitating entry and rapid adjustments to equilibrium profit levels, with the gains from technological innovation transmitted through falling prices. Important questions can therefore be addressed by examining further the question of capital market efficiency. To operate efficiently, inter alia, a capital market should allow freedom of access, equalise rates of profit across sectors and accurately price the risk of economic activity. To investigate efficiency of the capital market in these respects, the paper uses firm level data to examine whether or not, first the firm’s access to capital was restricted by outdated business practices, second, whether capital goods suppliers were able to charge monopoly rents to textile firms and third, whether the cost of finance accurately reflected the risk of the enterprise. The research uses archival evidence for a sample of cotton textile firms and the steam engine manufacturer, Boulton and Watt. These records are investigated to examine how, and at what cost, firms accessed financial resources. The results show that an important source of disequilibrium was the slow pace of capital market development relative to the technological pace and demands of industrialisation. The underdeveloped capital market perpetuated pre-industrial methods of finance, including high dependency on bills of exchange at prescriptive interest rates. Although some entrepreneurs took advantage of the most efficient steam technology, returns did not systematically reflect underlying risk. At the same time, profitable opportunities remained for firms entering the market using old technology and traditional organisational networks. For these reasons, cotton firms had the potential of super-normal profits but these opportunities were dissipated by the costs of circulation arising from capital market inefficiencies and the rents associated with monopoly, asset mispricing, arbitrage and fraud. As a consequence, although the story of the industrial revolution is one of Schumpeterian disequilibrium, the apparent lack of sustained abnormal profits in manufacturing reflected embedded local networks of capital and transaction cost, rather than the neo-classical story of rapid adjustment to equilibrium.