Open AccessBUSINESS ANALYTICS IN FINANCIAL RISK MANAGEMENT
Author(s) -
Olena Steshenko,
Yuliia Bondarenko
Publication year - 2021
Publication title -
ìnfrastruktura rinku
Language(s) - English
Resource type - Journals
ISSN - 2519-2868
DOI - 10.32843/infrastruct55-28
Subject(s) - risk management , analytics , financial risk management , risk analysis (engineering) , financial management , financial risk , business , enterprise risk management , strategic financial management , futures contract , business intelligence , business process management , business process , computer science , finance , knowledge management , strategic planning , marketing , data science , work in process
The article examines the definition of the category "risk" in the works by domestic scientists. Financial risk management in the company managementsystem is considered. Its basic principles and postulates are established. Risk management is defined as the process of identifying, analysing, and makingor reducing uncertainty in making investment decisions. Approaches to the formation of modern strategies and tactics of risk management are generalized.The sequence of stages, which most fully reflects the essence of the risk management process, is presented. The main stages of financial risk management are characterized and their functional significance is determined. It is established that the main direction for improving the management system isthe deve-lopment and implementation of active management based on systemic and situational approaches. To choose the optimal tactics for managingfinancial risks, it is advisable to classify them into industry and quality. The strategies for financial risk management of modern business are generalizedin two categories: passive and active response. The use of integrated approaches and new business concepts for efficient financial risk managementis substantiated. The main means of reducing financial risk are identified, namely insurance and sale of financial instruments (forward contracts, futurescontracts, swaps and options). The main elements of using business analytics tools are considered and analysed. It is noted that most business analytics tools are used to improve risk management; therefore, risk management tools benefit from business analytics approaches. The use of artificialintelligence models, such as neural networks and the method of reference vectors, agent-oriented theory, cognitive computation, is characterized. Theproposed approach is aimed at combining several expert solutions, achieving the highest return on investment and reducing losses by working withdifficult situations in a dynamic market environment. It is proved that researching business analytics tools in the field of risk management is useful forboth practitioners and academic researchers.