Risk Management in the Enterprise: The Essence, Approaches, and Methods

Abstract

The purpose of the article is to substantiate the features of risk management at the enterprise in conditions of uncertainty of the situation to increase its adaptive capabilities and maneuverability, as well as to outline the basic principles and methods allowing to quickly respond to existing and potential threats and to limit the negative impact of risks on the activities of the enterprise. The author identifies the transformation of the approach to the formation of a risk management system from financially-oriented to personnel-oriented. It is found that in the process of risk management, a register of risks along with a risk map should be formed and appropriate management measures should be worked out, which should not formally, but actually improve the quality of management. Based on the changing circumstances of business functioning, the basic principles of risk management in the enterprise are identified, including the following: systematicity, integratedness, comprehensiveness, efficiency, dynamism, prevention, consistency, multi-variateness. The stages of risk management in the enterprise are allocated, the quality of which affects the overall result that will be obtained in the end. Approaches to risk management in the enterprise are substantiated and attention is focused on the need for their regular review and adaptation to the conditions, which will ensure compliance with the requirements of dynamism and flexibility of business decision-making. The methods of risk management in the enterprise are systematized. It is proved that the methods can be applied both at the stage of preliminary elaboration of risks and managerial decision-making regarding them, and in the process of their transformation consequently to a certain level of uncertainty inherent in both the external and the internal environment

Keywords

• risk management
• risk identification
• risk assessment
• risk avoidance
• risk neutralization
• risk transfer