Methods of risk management in a modern enterprise

In cases of occurrence of various kinds of risk factors for more effective risk reduction, generally accepted methods that affect one or another type of activity of an enterprise are used throughout.

Basically, risk management methods that are used in entrepreneurial activity are divided into four groups of methods.

- risk aversion;

- localization of risks;

- risk diversification;

- compensation of risks.

Now we will take a closer look at risk management methods in the form of risk aversion methods.
Methods of risk aversion are the most used in business practice.

Risk avoidance methods include:

- rejection of partners who are not credible;

- rejection of projects that are very risky;

- the main way to reduce risk is insurance;

- The process of finding guarantors.

Risk management methods include methods for localizing risks, they are used quite rarely, only in cases where it is possible to clearly determine the likelihood of risks and the sources of their occurrence. The main methods of localization are usually - the creation of subsidiaries and special units to carry out projects with clear risk.

The meaning of risk diversification methods is based on the distribution of total risk:

- expanding the range of products or services;

- diversification of sales and supplies;

Methods of risk compensation are used to create special mechanisms to prevent danger.
They are the most labor-intensive and require primarily analytical work: strategic planning of activities, planning of the external environment, as well as the creation of reserves.

Assessment of the effectiveness of risk management.

For example, the project is fully completed, and reporting on this project has already been formed. But the question arises, how to calculate the benefits in monetary terms, including in temporary terms, from the implementation of the measures that are aimed at risk management? An assessment of the effectiveness of risk management is calculated using three formulas, which in turn take into account the indicators of the costs of risk processing.

First, we must calculate the predicted effect, which is calculated as the difference between the indicators before processing and after - the sum of the planned losses from the identified risks.
Risk management costs are calculated using this calculation - the sum of the costs of processing the identified and unidentified risks.

And of course, the value of the risk management effect itself is calculated as the difference between the predicted effect and the actual risk management costs.

Risk management methods such as insurance significantly increase the responsibility of managers, while forcing them to take the decision-making process more seriously and more responsibly, as often as possible to take protective measures that are consistent with the insurance contract. That is why insurance as a risk management method is a very effective financial tool .

In cases of creating new types of products, problems arise in the use of insurance, this is due to the fact that insurance companies do not have statistical data and therefore are afraid to insure technologies that they are not aware of.

In the end, it turns out that, in any particular case, it is very important to know whether this factor can be an object of insurance. From this it should be understood that risk insurance always has its own characteristics. First of all, you need to know that it is not risk that is insured, but namely the interest of the insured, about the possibility of paying losses.

As such, the risk should not be withheld, meaning that the investor is not obliged to take the risk, for example, if the loss is quite large in comparison with the savings on the amount of the insurance premium. In a situation in which there is only one solution, you must undoubtedly first try to find other solutions. It is likely that they exist. In cases of insurance risk, when a preliminary analysis indicates the absence of other decisions, then they plan according to the rule of "counting on the worst," which means that a negative decision must be made.


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