Open AccessA MANAGEMENT RISKS OF ENTERPRISE IS IN MODERN TERMS MENAGE
Author(s) -
Lesia Sarana,
Olena Bilan,
Інна Битюк
Publication year - 2021
Publication title -
problemi sistemnogo pìdhodu v ekonomìcì
Language(s) - English
Resource type - Journals
ISSN - 2520-2200
DOI - 10.32782/2520-2200/2021-2-15
Subject(s) - risk analysis (engineering) , risk management , it risk management , enterprise risk management , risk management plan , risk assessment , business , identification (biology) , control (management) , operations management , process management , computer science , engineering , finance , computer security , botany , artificial intelligence , biology
The article examines the definition of "risk" and "risk management" based on the scientific works of domestic scientists. There are six main interrelated stages (risk identification, risk analysis, risk assessment, action plan development, risk mitigation, risk monitoring and control) of risk management, which will prevent problems or adverse events through effective crisis management and prevention occurrence of additional costs at the enterprise. The end result of each stage of risk management is a decision. Usually the output is more solutions. An unacceptable level of risk requires stopping the current process and taking measures to reduce the risk. If the risk is acceptable and not insignificant and the profit potential is significant, a precautionary plan is usually used to mitigate it. A system model of risk management is developed and the characteristics of its constituent elements are given (risk management strategy; identification of processes and risks; risk management; monitoring of risks and their impact; optimization of corporate risk management system). Proactive and reactive risk management strategies are researched and characterized, indicating the advantages and disadvantages of strategies. Reactive strategy is used to solve problems after they arise, without planning for the long term. In some cases, unforeseen problems can arise, both internal and external. In such cases, the company must respond quickly. Proactive strategies are designed to anticipate challenges, threats and opportunities. This approach focuses on planning for the future. In addition, it helps to identify and prevent potential hazards before they appear. In this way, he can predict the future and achieve better results. Planning for the future will bring favorable results for the organization in all aspects. If the company follows a purely reactive approach, it will be exposed to enormous risk. However, there are problems that business cannot avoid, especially problems related to the external environment. In these circumstances, the organization must act quickly, and pre-planning does not work. Thus, businesses should apply both strategies in risk management.