The main ways to reduce risk are to organize business activities. Question

Risk classification

In the specialized literature there is a classification of risk types containing three large groups:

-economic risk;

-risk associated with the nature of man himself;

-risk caused by natural factors.

B. A. Raizberg notes that the implementation of entrepreneurship in any form is associated with risk, which is usually called economic or entrepreneurial.

A. M. Omarov distinguishes by source of occurrence the risk itself economic, caused by imperfections in the management mechanism, associated with the personality of the employee and due to natural factors; Global in scope of consequences(at the level national economy) and local; based on time manifesting itself immediately after a decision is made or in the distant future, due to risk may be a consequence of the uncertainty of the future, the unpredictability of the behavior of partners and unlawful actions of higher-level economic management bodies.

In recent publications by domestic authors, as well as scientists from near and far abroad countries, economic risk, its types and subtypes are considered without a coherent system of classification characteristics. Thus, A.V. Postyushkov notes that eight characteristics have been proposed for risk classification.

1.By scale and size: global and local risk.

2.By aspect: psychological, social, economic, legal, political, medical-biological, combined (socio-economic) risk.

3. According to the degree of objectivity and subjectivity of decisions: risk with objective probability, subjective probability, objective-subjective probability.

4. According to the degree of risk saturation of solutions: minimum, average, optimal, maximum.

5. By risk type: rational (reasonable), irrational (unreasonable), adventurous (gambling).

6. By time of making risky decisions: risk is advanced, timely, lagging.

7. By number of decision makers: individual risk, group risk.

8. According to the situation: risk under conditions of uncertainty (deterministic risk), under conditions of uncertainty (stochastic risk), under conditions of conflict (competing risk).

Risks are also classified:

By the nature of occurrence (subjective, objective);

Based on the stage of solving the problem (at the stage of decision making, at the stage of implementing the decision);

By scale (local, industry, regional, national, international);

By sphere of origin (external, internal);

If possible, insurance (insurable, not insurable);

By appearance entrepreneurial activity(insurance, financial, technological, commercial, production, legal, innovation, investment).

Pure risk is a measure of uncertainty and conflict in human activity, characterized by possible danger, failure, deviation, and loss. Here there is only the probability of loss or minimum loss, i.e. pure risk is manifested in the possibility of obtaining a negative or zero result.

Types of pure risk can be caused by the negative manifestation of force majeure circumstances of a man-made, natural and environmental nature, as well as deliberate arson, racketeering, and robbery.

Conditional risk is a measure of uncertainty and conflict in human activity, resulting in

According to the validity of risk situations, the possibility of insuring them and the interest of business entities to take risky actions, the following subtypes of risks are distinguished:

Motivated;

Unmotivated;

Mixed motivated and unmotivated risks;

Insured;

Not insurable.

Motivated economic risk characterized by:

a) the weighing of the arguments by the risk subject, taking into account the fact that additional damage may be received or suffered;

b) forecasting the economic process with its possible deviation in conditions of uncertainty of situations and the multiplicity of possible positive or negative consequences, taking into account factors that enhance or weaken the occurrence of certain provoked consequences;

c) a system-forming goal, i.e. the set goal and strictly defined tasks constantly stimulate the subject of economic risk, contribute to the unification of its potential capabilities into a single rational mechanism of action;

d) confidence in the timely removal or neutralization of negative factors and consequences.

IN depending on the subject’s behavior when making risky decisions The following main subtypes of economic risk are distinguished: pessimistic, cautious, optimistic, gambling.

Economic risks can manifest themselves at high or low levels. There are global and local risks.

Global risky situations are associated with an unfavorable external environment, and their outcome significantly affects the economy of not only large enterprises, but also industries, inter-industry complexes, largely determining the level of socio-economic development and economic condition of individual zones, regions and countries.

Local risks manifest themselves within small enterprises, divisions of a large enterprise and at an individual workplace.

Depending on the presence or absence of a situational factor, the time of making and implementing risky decisions identify situational and supra-situational risks, risks at the stages of decision-making and at the stage of their implementation.

Situational risk forces a business entity to carry out risky activities because it finds itself in a difficult situation.

Supra-situational economic risk may be determined not only by target activities, realizing his motive, external in relation to the most risky situation, but also in the form of an independent motive for actions and actions. This means that along with economically feasible risk, there is also disinterested risk, risk for the sake of risk.

According to the causes of occurrence, they distinguish:

1) political risks(nationalization, introduction of economic restrictions, wars, conflicts, unrest). They can be national, regional and international;

2) technical risks(obtaining negative results, failure to achieve set goals, side effects, failures, breakdowns).

But according to experts, the following assessment of technical risks can be given: the risk of fire - 0.08, explosion - 0.13, lightning - 0.06, spontaneous combustion - 0.013, storm - 0.013, flood - 0.02, plane crash - 0.006;

3) production risks

4) business risk- inability to maintain the level of income on invested capital.

The reasons for this are as follows:

Non-obligatory, irresponsible partners,

Inflexibility and variability of legislative acts,

Political instability,

High inflation and financial instability,

No personal responsibility

The dependence of entrepreneurs on the criminal world,

Politicians' interference

Bureaucratization,

Unstable tax legislation

Low level of education of the population;

5) industry risk- the risk of changes in the economic state of the industry; determined by the level of price and non-price competition, the ease or difficulty of entering it, and the environment;

6) natural risks(environmental, risk of natural disasters);

7) commercial risks

8) inflationary(increase in prices, decrease in the purchasing power of money);

9) innovative );

10) currency risk includes economic risk(change in asset value; decrease in revenue and increase in expenses due to unfavorable changes in exchange rates). It is mainly due to the fact that expenses and income take place in different currencies.

Direct economic risk is the threat of changes in profitability of future operations. Sources of direct risk are already concluded contracts, the need to pay foreign expenses, etc.

Indirect risk- this is the risk of non-competitiveness compared to foreign manufacturers. In addition to economic, types of currency risk are: translation risk and transaction risk(the impact of the exchange rate on the profitability of transactions due to the uncertainty of the value of the national currency in the future). Currency risk is divided into export and import;

There may also be specific risks, which are specific to this particular project.

By level of losses risks are divided into the following groups:

Acceptable financial risk. It characterizes the risk for which financial losses do not exceed the estimated amount of profit for the ongoing investment project.

Critical financial risk. It characterizes the risk of financial losses for which do not exceed the estimated amount of gross income for the ongoing investment project.

Catastrophic financial risk. It characterizes the risk for which financial losses are determined by partial or complete loss of equity or all capital.

Economic risks are associated with the activities of an individual enterprise. These include:

- risk of accidental loss of property associated with the possible loss of enterprise property (buildings, structures, equipment, inventories of goods, etc.) as a result of an accident, fire, theft, non-compliance with storage conditions, sabotage. As a rule, the listed reasons lead to significant losses, which indicates the high importance of this type in the general list of possible economic risks;

- risk of non-fulfillment of contractual obligations determined by the dishonesty of commercial partners, their failure to comply with their obligations, or their insolvency. IN modern conditions Almost every commercial enterprise faces this type of risk;

- economic risk occurs as a result of a disruption economic activity enterprises and failure to achieve planned economic indicators(for example, the volume of sales of goods or profit). It may be associated with changes in the market situation, as well as with economic miscalculations of the managers of the enterprise itself. This type of risk is the most common in the activities of an enterprise;

- price risk- this is one of the most dangerous species risk, since it directly and significantly affects the possibility of loss of income and profit of a commercial enterprise. It manifests itself in an increase in the level of selling prices of goods manufacturers, wholesale prices of intermediary organizations, an increase in prices and tariffs for services of other organizations (for example, energy, transport tariffs, rent, etc.), an increase in the cost of equipment. Price risk constantly accompanies the economic activities of an enterprise;

- marketing risk represents the risk of choosing the wrong market behavior strategy. This may be an incorrect orientation towards the consumer of goods, errors in choosing the assortment, incorrect assessment of competitors, etc.;

- currency risk inherent in commercial transactions in the field foreign economic activity. It represents the danger of foreign exchange losses associated with changes in the exchange rate of one currency against another. By importing goods, the enterprise loses when the exchange rate of the corresponding foreign currency increases in relation to the national one. On the contrary, a decrease in this exchange rate leads to losses in the export of goods;

- inflation risk- this is the risk that cash income received when inflation rises will depreciate faster than grow. At the same time, the real value of the enterprise’s capital will also depreciate;

- investment risk characterizes the possibility of unforeseen financial losses in the process of investment activity of an enterprise (i.e. investing capital in the creation of other enterprises, expansion or re-equipment own enterprise or for the purchase of securities);

- insolvency risk represents a situation where a company will be unable to pay its obligations. The reason for its occurrence may be improper planning of the timing and amount of receipt and expenditure of funds. Due to its financial consequences, this risk can lead to the initiation of bankruptcy proceedings, therefore it is also considered one of the most dangerous;

- transport risk is the risk of loss or damage to goods during transportation.

In addition to those listed, there are also other types of economic risks, but their consequences are not so dangerous for the activities of the enterprise.

These include:

The risk of loss of goods in stores due to theft from customers;

Loss of goods as a result of violation of storage terms and conditions;

Financial losses due to untimely execution of settlement transactions due to an unsuccessful choice of a commercial bank;

Forgery of financial documents by employees, etc.

Based on the duration of exposure, risks are divided into:

- temporary- those that threaten participants in commercial activities over a certain period of time (transport risk);

- permanent e - those that continuously threaten commercial activity in a given geographic region (regions of the Northern Delivery).

Types of risks by nature (sources) of occurrence:

- economic risk- risk directly related to the economic activities of a trading enterprise;

- risk associated with the personality of the merchant(his competence, experience, culture, moral qualities);

-risk associated with lack of information about the external environment- the most important, since the inaccessibility of information about partners, suppliers, financial condition, about the state of the market, about competitors can become a source of losses for participants in commercial activities.

Types of risks by area of ​​occurrence:

- internal- the source is the trading enterprise itself (its management, incompetence);

- external- the source is the external environment, which participants in commercial activities cannot influence, but can foresee and take into account in their work.

Types of risks if possible, insurance:

- insured

Not insured- these are those that insurance companies do not undertake to insure due to the high probability of their own losses. Therefore, commercial participants often create a special insurance fund. In the absence of risk, this fund becomes a source of profit for the trading enterprise.

By scale:

- local- arises at the level of a trading enterprise;

- global- This is a reflection of the economic situation in the country and in individual regions.

According to expected results:

- clean ( simple) - mean the possibility of obtaining only a negative or zero result (natural-climatic, political and some economic risks). Pure risks by type of loss are: personal, property, associated with liability (when the actions of one trade organization cause damage to another entity);

- dynamic(speculative) - mean the possibility of obtaining both positive and negative results (most business risks).

According to the degree of admissibility:

- acceptable- the threat of a limited loss of profit from the commercial activities of the trading enterprise as a whole, i.e. losses are possible, but they are less than the expected profit;

- critical- characterized by loss of profit and shortfall in expected revenue. Such a risk has the danger of losses that exceed the expected profit;

- catastrophic- leads to bankruptcy of a trading enterprise, i.e. to the loss of all funds.

According to the degree of validity(most important sign):

- legitimate- risk arising from legal actions corresponding to regulations and governing documents. Such a risk is always justified and such actions are not related to what the result turned out to be, even if it is negative. The risk is considered legitimate if the following conditions are simultaneously met:

The risk must correspond to the value of the purpose for which it is taken;

This goal cannot be achieved by ordinary, non-risky means;

The risk should not lead to deliberate damage;

The object of risk should be material, material factors, and not human life and health. Violation of at least one of these conditions excludes the legitimacy of the risk;

- illegal.

Figure 1 - Types of risks

P about the type of business activity (insurance, financial, technological, commercial, production, legal, innovation, investment).

Insured- a probable event or set of events against which insurance is provided (risk of loss of property, consequences of fire, accidents, accidents with employees).

Insured risks may be associated with:

manifestation of natural forces (floods, earthquakes, weather conditions);

purposeful human actions in the distribution of goods (man-made risks);

Funding areas the project can be risky, which is facilitated by:

Economic instability in the country;

Inflation;

The current situation of non-payments in the industry;

Budget deficit.

As causes financial risk the project can be called:

Political factors;

Exchange rate fluctuations;

Government regulation discount bank rate;

Increase in the cost of resources in the capital market;

Increased production costs.

Technical risks may be caused by the following reasons:

Design errors;

Disadvantages of technology and incorrect choice of equipment;

Incorrect determination of power;

Weaknesses in management;

Lack of qualified labor force;

Lack of experience in working with imported equipment among local personnel;

Disruption of supplies of raw materials, building materials, and components;

Failure to meet construction deadlines by contractors (subcontractors);

Increase in prices for raw materials, energy and components;

Increased cost of equipment;

Rising salary costs.

Commercial risks(inability to sell products or decrease in sales volumes, rising prices, falling demand, loss of quality);

Production risks(decrease in production volumes, downtime, defects; increased costs, premature wear of equipment). The main risks in industrial entrepreneurship are: the risk of lack of demand for products, non-fulfillment of the contract, increased competition and worsening market conditions, the occurrence of unforeseen circumstances and costs, loss of capital;

Legal risks may arise due to:

imperfections of legislation;

incorrect execution of documents, contracts, for example, fixing property rights, leases, etc.

Innovative(failures in developing new markets, product of technology );

Investment risk characterizes the possibility of unforeseen financial losses in the process of investment activity of an enterprise (i.e. investing capital in the creation of other enterprises, expansion or re-equipment of one’s own enterprise, or in the purchase of securities).

You can determine the degree of risk using:

Statistical method(based on methods of mathematical statistics using financial indicators economic activity);

Expert method (taking into account the influence various factors risk and determine the likelihood of various losses).

Risk aversion

The simplest and most acceptable direction of risk neutralization is that commercial organization may refuse in the process of conducting business activities to carry out financial transactions associated with high risk, i.e. avoid risk.

Decisions to avoid certain risks can be made both at the preliminary stage of decision-making and in the future.

Risk aversion is used when following conditions:

If avoidance of one type of risk does not entail the emergence of other types of risks;

If the level of risk is much higher than the level of possible income of a commercial transaction;

If the trading enterprise is not able to compensate for financial losses due to this type of risk from its own financial resources due to its large size.

However, not all types of commercial risks can be avoided by a trading enterprise; for the most part, it consciously takes risks and engages in commercial activities. Some types of risks are accepted as inevitable, other risks are accepted because they carry the possibility of profit.

Measures to reduce financial risks may include:

Involving the largest companies with extensive experience in design, production, construction and operation in the development and implementation of the project;

Participation of the Government of the Republic of Belarus as an insurer of investments, receipt of guarantees from the Government of the Republic of Belarus for loans provided by Western investors; obtaining tax benefits;

careful development and preparation of documents on the interaction of parties directly involved in the implementation of the project, as well as on interaction with involved organizations; development of development scenarios unfavorable situations.

Main directions of risk policy are:

Risk avoidance policy;

Risk Acceptance Policy;

Risk reduction policy.

Risk Avoidance Policy consists in developing such measures that make it possible to completely eliminate a specific type of economic risk. This is mainly achieved by refusing to carry out such business transactions, the level of risk of which is excessively high. This policy is the simplest, but not always effective, since by avoiding risks, the enterprise simultaneously loses the opportunity to obtain a fairly high profit.

Risk Policy means the desire and ability to cover the risk using one’s own funds. Such a policy is appropriate if the financial condition of the enterprise is stable and there is a desire to expand its activities, but it can lead to large unjustified losses.

Risk Mitigation Policy involves reducing the probability and volume of losses. There are methods and techniques that can be used to reduce the risk of business activities.

Most widely used and effective methods of preventing and reducing risk are:

Insurance (internal and external);

Diversification;

Limitation.

Insurance

When resorting to insurance, a commercial organization must clearly define the types of risks for which it is necessary to provide insurance protection.

The relationship between a trade enterprise and an insurance company is based on an insurance contract - an agreement between the policyholder and the insurer regulating their mutual rights and obligations under the terms of insurance of certain commercial risks.

External insurance consists of transferring risk (responsibility for the results of negative consequences) for a certain reward to another organization (insurance company). The following events can be insured:

reduction in the volume of trade turnover as a result of events specified in the contract;

recognition of bankruptcy of a commercial enterprise;

unforeseen expenses;

non-fulfillment (improper fulfillment) of contractual obligations by the counterparty of the insured person, who is the creditor of the transaction;

legal expenses incurred by the insured entity;

other events.

This may be insurance of company property, cargo during transportation, employees against accidents and other types of insurance.

Domestic insurance carried out within the enterprise itself. It is carried out by creating special funds for compensation of losses. The list of such funds and the amount of contributions to them are determined by the charter of the enterprise. Their source is profit. Insurance covers only part of the property of a commercial enterprise. Such insurance trading company more profitable than hiring an insurance company for this purpose.

Diversification(Latin - change, variety, “diversis” - different, “fazio” - doing; expanding the range of goods, areas of activity) is the process of distributing funds between various objects that are not directly related to each other. This allows you to reduce risk, since it is difficult to assume that a risk situation will arise simultaneously at all facilities.

There are several forms of diversification:

Diversification of business activities involves the use of various opportunities to generate income and profit, i.e. investing in several simultaneously different enterprises, creation of branches in various regions, etc.

Supplier diversification provides for an abundance of sources of goods.

Diversification of the assortment involves the inclusion in the enterprise’s assortment of goods with the opposite direction of demand (for example, soft drinks and hot tea in a cafe). This allows you to reduce economic risk during a period of temporary decrease in demand for certain goods.

Diversification of goods buyers allows you to expand the boundaries of the market to other territories and market segments and increase trade turnover.

Limitation involves establishing a system of restrictions on the size of the transaction. This may be a restriction on the maximum volume of a transaction with one partner, the maximum size of inventory, the maximum size of a loan provided to one buyer, the maximum size of a deposit in one bank, etc.

Any risk reduction comes at a price. This is the so-called risk reduction fee. With external insurance, the payment for risk reduction will be the amount of insurance premiums; for domestic insurance, these are the costs of creating reserve funds. Diversification typically results in lower returns from each source of income. A similar phenomenon is observed during limiting. Therefore, when choosing a method to reduce risk, it is necessary to take into account its cost and feasibility.

In order to reduce the likelihood investment risks at the enterprise it is necessary:

Carefully develop a plan of activities related to the project;

Select qualified workers and competent workers managers;

Observe all safety measures.

For reductioncredit risk you can do the following:

Get financial guarantees

Get insured.

Correctly develop a project strategy

Entrepreneurial risks due to the following reasons:

Wear and tear of buildings and structures, breakdowns of machinery and equipment;

Personnel errors;

Malicious actions;

Violation of their obligations by the entrepreneur's counterparties in transactions;

Unforeseen expenses - legal and other.

In order to reduce business risks need to:

Monitor the condition of equipment, purchase and adjust equipment on time;

Prevent staff negligence by introducing various types of punishments, deprivations, or, conversely, rewards for conscientiousness;

Avoid litigation with partners: pay for contracts on time, deliver orders on time.

Ways to reduce risks - or methods (techniques, methods) of risk management, means of risk resolution, methods (methods) of influencing risk) is a set of techniques aimed at reducing the level or probability of losses, compensating them or preventing them. Since there are many ways to influence risk situations that are used in various fields and types of business activity, we can identify and consider a group of the most universal and frequently used means of risk resolution.

Risk management mechanism (tool)- that's more broad concept, which includes a set of homogeneous (in time or basis) methods of influencing risk.

In relation to the moment (time) of occurrence of a risk event, we can distinguish:

- pre-event tools- include methods that are aimed at preventing risk events or minimizing losses from their occurrence in advance (eliminating dangerous incidents, reducing the likelihood of their occurrence);

- current arrangements risk management - designed to influence the advancing at the moment the time of a random event (detection of the occurrence of hazards, minimizing the consequences of the occurrence of risk phenomena);

- post-event mechanisms Risk management involves carrying out various types of protective measures after risk events have occurred (minimizing losses and areas of danger, saving property, restoring normal operation of a business entity).

Based on this we can distinguish non-financial And financial risk management mechanisms.

Non-financial instruments include:

- technical measures- involve the use of various devices and devices that reduce the likelihood of negative events occurring or minimize losses, the area of ​​distribution of hazardous phenomena, and the time to take into account a risk event. In turn, they distinguish passive And active technical measures. Passive activities are designed, with the help of certain technical solutions (emergency exits, generators, fire-resistant structures, etc.), to influence possible risk situations. Active events carried out before the occurrence of an incident, involve the use of a wide range of technical means to reduce the spread of losses or restore property and work of an economic entity (security alarms, property rescue operations, etc.).

- organizational events involve the use of a set of measures aimed at optimally building technological processes and individual operations, for the development of security and preventive measures, for encouraging employees to comply with protective measures, etc.

- legal events involve the development and approval of appropriate regulatory documents, which regulate certain situations, establish maximum or minimum levels of values ​​of certain indicators, impose responsibility for violation or improper performance of assigned duties, etc.

- staff training can also be attributed to specific measures to influence risk situations, since risk is often based on a human or subjective factor. Carelessness, incompetence or lack of special knowledge, incorrect actions of personnel due to lack of practical experience are the reasons for the occurrence of certain risk events leading to losses of various levels. In order to prevent this situation, it is necessary to train and improve the qualifications and practical experience of personnel in emergency and similar situations. Employees must understand the risky nature of the business entity's activities and must have the skills and knowledge to influence random events that arise.

More often studied financial instruments to influence risk or risk financing.

Risk financing– search and mobilization of financial resources to implement preventive measures and prevent losses in the event of adverse events.

Sources of risk financing are: the current budget of the business entity, reserve funds self-insurance, insurance funds, credit and investment resources of banks and other financial institutions, special budgetary and extra-budgetary funds.

In relation to the time of risk occurrence, the same is distinguished:

D special risk financing- is associated with the diversion of part of the funds of an economic entity to organize reserve funds or pay insurance premiums until the occurrence of a random event;

- post-event risk financing- is associated with the need to cover losses arising from the attack random events at the expense of reserve and other funds of the business entity. If insurance is available, only insured risks are subject to compensation;

- current risk financing - is associated with the provision of administrative costs for risk management, with the organization of monitoring of adverse situations and current expenses to compensate for losses incurred, with the hiring of specialized organizations and experts, etc.

Financial risk management mechanisms include certain methods of influencing risk situations, which can be systematized and grouped as follows (Fig. 7).

Rice. 7. System of risk management methods

Firstly, in relation to the subject’s attitude towards risk, two main ways of influencing risk can be distinguished - either to refuse risk (risk avoidance), or to agree with the presence of risk events as an objective characteristic of the activities of business entities.

Risk avoidance (risk avoidance)– a conscious decision not to be exposed to a particular type of risk. To carry out such an action, it is necessary to develop appropriate measures that completely eliminate a specific type of risk. These include refusal to carry out financial transactions for which the level of risk is very high, from using large amounts of borrowed capital and current assets in low-liquidity forms, from using temporarily free monetary assets in short-term financial investments, from unreliable partners and complete transfer (transfer) of risk.

In general, it can be noted that refusal to make a risky decision simultaneously generates the risk of lost profits in the event of successful implementation of the rejected project. In addition, it is not always possible to avoid a risky situation.

Consent to risk- conscious decision to be affected a certain type entrepreneurial risk. Risk with this approach represents an objective characteristic of the activity of an economic entity, which cannot be avoided, since this will still lead to the emergence of a risk situation. Agreeing with the inevitability of a risk situation involves the use of a number of methods to resolve risks.

Acceptance (retention, compensation, reservation, self-insurance, internal insurance) of risk– involves leaving all or part of the risk (in the event of transferring part of the risk to someone) to the entrepreneur, i.e. accepting a possible risk and its consequences and taking measures to create funds of funds to cover possible losses with one’s own funds (self-insurance) or at the expense of raised funds (obtaining loans and borrowings, receiving government assistance, etc.). This method is the most complex and subtle tool for ensuring economic security economic activity of the enterprise.

The main forms of risk management under the compensation method are:

1) formation of a reserve (insurance) fund by an economic entity, created in accordance with the requirements of the legislation and the charter of the economic entity;

2) formation of target reserve funds (price risk insurance fund, goods discount fund, etc.) in accordance with the charter of the economic entity and other internal documents (standards).

3) formation of reserve amounts of financial resources in the budget system, communicated to various responsibility centers.

4) formation of a system of insurance reserves of material and financial resources for individual elements of current assets (in the process of their standardization).

5) formation of a system of material and (or) information reserves, their reservation and planning of actions of participants in economic activities in the event of certain changes in the conditions for its implementation.

6) conducting active risk management, that is, environmental monitoring, targeted marketing, forecasting changes in factors external environment and strategic planning.

Risk Reduction– means reducing the probability of an adverse event occurring and (or) the size of expected losses. In general, it can be noted that risk reduction is a group of certain methods of influencing risk, among which risk transfer is distinguished.

Transfer (transfer, transfer) of risk– is a method of neutralizing risk through the transfer of risk to partners in individual business transactions by concluding contracts. This method is the most reliable way to manage risk both from the point of view of the economic entity and from the point of view of the entire economy as a whole.

Its main areas include the transfer of risk by concluding a guarantee agreement (for loans), insurance and stock exchange transactions (hedging), transfer of risks to suppliers of raw materials and materials (associated with damage or loss of property during their transportation, loading, etc.) .

Localization of the risk or its consequences- a method that is carried out by transferring economic activities associated with increased investment risk within a small subsidiary of the economy or creating special structures for the implementation of certain risky projects. This method in its content is related to the risk transfer method.

Diversification (distribution, dissipation)– involves the redistribution of risk both in time and in space, that is, investing funds between various objects of capital investment that are not directly related to each other, in order to reduce the degree of risk and losses.

Dissipation, the versification of risks in space, is achieved through the redistribution of risk between participants in the economic process, diversification of activities, fragmentation of the sales market and suppliers.

Diversification of types can be used as the main forms of dissipation of financial risks. financial activities, currency portfolio of an economic entity, deposit portfolio, loan portfolio, securities portfolio and diversification of real investment programs.

Asset and liability management (ALM)– This method of risk management aims to carefully balance cash, investments and liabilities in order to minimize changes in income and profits received. Theoretically, there is no need to divert resources to form a reserve or open a compensating position. ALM is aimed at avoiding excessive risk by dynamically regulating the main parameters of capital investment, which presupposes the presence of prompt and effective feedback between the decision-making center and the control object.

Proactive methods (methods of preventing or reducing risks to an acceptable level)- come down to actions taken to reduce the likelihood of losses and to minimize their consequences.

The following main directions can be distinguished:

1) Price regulation through output pricing strategy enterprises;

2) Managing the amount of financial and operational leverage;

3) Mechanism for limiting the level of risk (limitation);

4) Optimization of taxation;

5) Ensuring the possibility of receiving an additional level of risk premium from the counterparty to a business transaction;

6) Reducing the list of force majeure circumstances in contracts with counterparties;

7) Ensuring compensation for possible financial losses by including a system of penalties in contracts;

8) Improving management working capital subject of the economy;

9) Regulation of the company’s accounting and dividend policies;

10) Information and forecasting support for management, etc.

Risk Limitation– a risk management method, which consists in establishing a system of restrictions both above and below, which allows reducing the level of risk.

The system of internal standards that ensure a reduction in the degree of risk may include the maximum size (share) of borrowed funds used in business activities, the minimum size (share) of assets in highly liquid form, the maximum size of a commodity (commercial) or consumer loan provided to one buyer, the maximum size of a deposit placed in one bank, the maximum amount of investment in securities of one issuer, the maximum period for the diversion of funds into accounts receivable.

In general, it should be noted that restrictions are generally established by size (costs, payments, etc.), by timing (borrowings, investments, etc.), by structure (costs, sources, etc.), by level of effect (size of expected profitability, etc.).

Hedging– a system that allows you to eliminate or limit the risks of ongoing (financial) transactions as a result of unfavorable changes in future exchange rates, commodity prices, interest rates, etc. in the future.

This term is used in management in a broad and narrow (applied) meaning. Broadly interpreted hedging characterizes the process of using any mechanisms to reduce the risk of possible financial losses - both internal (carried out by the economic entity itself) and external (transfer of risks to other economic entities - insurers). In a narrow (applied) meaning the term characterizes a mechanism for neutralizing financial risks based on the use of appropriate types of financial instruments (usually derivatives). This term is mainly used in in the narrow sense.

Hedging is carried out by concluding special transactions (agreements, contracts), which may provide for both immediate delivery of an asset (spot transactions) and in the future (forward transactions). In general, the derivatives market is divided according to the type of instruments sold - forward, futures, options and swaps markets.

Forward contracts– represent agreements between two parties to buy or sell a certain amount of an asset (commodity, shares, bonds, currency, etc.) at a certain date in the future at a price determined at the time of the transaction. This deal is firm, but counterparties are not protected from non-fulfillment by their partner. One of the participants may not fulfill his obligations if he can make a large profit, even after paying all the penalties. The conclusion of such an agreement does not require any significant costs from counterparties, except perhaps overhead costs for processing the transaction and commissions to intermediaries.

Futures contract- in essence, the same forward contract, which is traded on some exchanges and its conditions are standardized in a certain way. The exchange on which these contracts are concluded takes on the functions of an intermediary between the seller and the buyer. The result is that each participant enters into a separate contract with the exchange. Standardization means the same conditions for all parties.

The main advantage of a futures contract over a forward contract is that it guarantees protection against risk without changing the location of the parties to this agreement and without breaking the usual ties with other economic entities. In addition, the usual rhythm of the enterprise’s economic activity is not disrupted. Another advantage is that the execution of the futures contract is guaranteed by the clearing house of the exchange. As a result, when concluding an agreement, it is unnecessary to analyze the financial position of the counterparty.

Option(the right to choose) - one of the methods of neutralizing financial risks in transactions with securities, currency, real assets, etc.; This right buy or sell something at a fixed price in the future; this is a contract concluded between two parties: one of them writes and sells the option, and the second acquires it, thereby receiving right fulfill the contract within the agreed period, refuse to perform the contract, sell the contract to another person before its expiration. The peculiarity of options is that as a result of the transaction the buyer does not actually acquire financial assets, but only the right to purchase them.

Swap– consists of two parties exchanging their successive payments with each other at certain intervals and within a set period of time. Payments under the swap are based on the agreement amount agreed upon by the parties (contract par). This type The transaction does not involve immediate payment of money, therefore, the swap itself does not provide cash flows to either party.

In general, if there are several hedging methods, you should choose the one that is less costly for an economic entity.

Insurance– one of the main methods of risk reduction. It is necessary to distinguish between insurance in the broad and narrow sense of the word. In a broad sense insurance means protection, protection from something unwanted, unpleasant. In this sense, all measures aimed at preventing and reducing risk can be considered as insurance against risk. In the narrow sense words insurance is considered as one of the ways to influence risk. With this approach, insurance is an agreement under which the insurer, for a certain specified remuneration (insurance amount), undertakes the obligation to compensate the insured for losses or part thereof arising as a result of the dangers and (or) accidents provided for in the insurance contract (insured event) to which the insured is exposed or property insured by him.

In this case, two main methods of insurance can be used: property insurance and accident insurance.

Property insurance can take the following forms:

1) contract construction risk insurance- intended to insure unfinished construction against the risk of material loss or damage;

2) marine cargo insurance- provides protection against material loss or damage to any cargo transported by sea or air;

3) contractor-owned equipment insurance- is widely used by contractors when in their activities they use a large amount of equipment they own with a high replacement cost. This form of insurance usually covers rental equipment as well.

Accident insurance includes:

1) general liability insurance- is a form of accident insurance and is intended to protect the general contractor in the event that, as a result of its activities, a “third” party suffers bodily injury, personal injury or property damage;

2) professional liability insurance - required only if the general contractor is responsible for preparing the architectural or technical project, project management, provision of other professional services for the project.

The main disadvantages of insurance as a method of influencing risk include the fact that full financial compensation for losses is not always provided and there are a number of practical problems in implementing the insurance process. However, despite this, this method was and remains the most popular and accessible. In developed countries such as the USA, Japan and Germany, the annual collection of insurance premiums amounts to 7-9% of gross domestic product.

Guarantees– involves the provision of guarantees to an economic entity from counterparties, letters of guarantee third parties, insurance policies in favor of a business entity from counterparties, etc.

The main methods for reducing internal business risks include:

1) checking business partners (counterparties) and the terms of the transaction;

2) effective business planning;

3) reasonable selection of personnel by the company (enterprise, organization);

4) organization of protection of trade secrets.

In the article by K. Arrow “Information and economic behavior"It is noted that information– this is a concept directly opposite to the term “uncertainty”. Since uncertainty underlies risk, the only way to change this state of affairs, that is, to reduce the degree of uncertainty and risk, is to obtain additional information.

In conditions of information asymmetry, people inevitably take risks in carrying out their economic activities.

One of the first scientists to pay attention to the problem of uncertainty within the framework of modern economic theory was the American economist Frank Knight (1885–1974). He distinguished between two types of probability: mathematical, or a priori, and statistical.

The first type of probability is determined by general predetermined principles. For example, the probability of getting the number indicated on a die is one in six. « Prior probability , – writes F. Knight, – This is an absolutely homogeneous classification of cases, identical in everything.”

The probability of the second type can only be determined empirically. For example, the likelihood of a fire occurring in a given building. Of course, there are certain statistics, but they apply to other buildings in the city, each of which has its own specifics. In case of statistical probability it is difficult to separate the accidental from the necessary and almost impossible to eliminate all accidental factors. There is no complete homogeneity within the distinguished class, there are no equally probable alternatives and therefore it is impossible to accurately determine the probability using a priori mathematical calculations. According to F. Knight statistical probability- it is “an empirical estimate of the frequency of occurrence of relationships between statements that cannot be resolved into variable combinations of equally probable alternatives.”

The first type of probability is very rare in business, the second is typical for business sphere. The first type can be unambiguously measured; the second type requires subjective assessments.

Risk– this is a probability estimated in any way (i.e. the possibility of obtaining a certain result).

Uncertainty– a situation where, knowing the probability of each possible outcome, it is still impossible to accurately predict the final result. Uncertainty – it is something that cannot be assessed.

The expected value is calculated using the mathematical expectation formula: E (x)= π 1 ×x 1 + π 2 ×x 2 + … π n ×x n = π i ×x i ,

where π i are the probabilities of each outcome,

x i – values ​​of each outcome

For example, your debtor, instead of returning $10, asks you to toss a coin. (In the case of tossing a coin, the probabilities of losing and winning, according to probability theory, are equal and amount to 0.5). If you win, you will receive not 10, but 20 dollars, but if you lose, you will receive nothing. The mathematical expectation E(x) in this case will be: (0.5 × 20) + (0.5 × 0) = 10. It is equal to the 10 dollars that you will receive just like that, without any risk.

That is, in some cases mathematical expectation when carrying out risky activities can be equal to in monetary terms a non-risky option, and yet people will behave differently in a given situation.

There are people who are prone to risk, there are its opponents, and also those who are indifferent to it and neutral.

Risk Averse (risk aversion) is a person who, given an expected income, will prefer a certain, guaranteed outcome to a number of uncertain, risky outcomes. Risk avers have low marginal utility of income.

Risk neutral(risk neutrality) is a person who, given the expected income, is indifferent to the choice between guaranteed and risky outcomes. For a risk-neutral person, average returns are important. Since it will be equal to zero (deviations cancel each other out), such a game will not arouse his interest. A uniform increase in income also causes a linear increase in total utility.

Risk prone(risk preference) is a person who, given an expected income, will prefer a risk-related outcome to a guaranteed outcome. Risk seekers enjoy gambling. These include people who are willing to give up a stable income for the pleasure of trying their luck. They usually overestimate the probability of winning.

Various companies take into account risk attitudes. If swindlers and opportunists profit from those who prefer risk, then insurance companies work with people who are risk averse.

Exists four ways (methods) to reduce risk:

· diversification;

· risk pooling or insurance;

· risk distribution;

· search for information.

Diversification (diversification) – This is a method aimed at reducing risk by distributing it among several risky goods in such a way that the increase in risk from buying (or selling) one means reducing the risk from buying (or selling) another.

Risk Pooling (risk pooling) – it is a technique that aims to reduce risk by converting occasional losses into relatively small fixed costs. It lies at the heart of insurance. Illness, natural disasters, theft and similar unforeseen circumstances are associated with significant costs. Insurance helps mitigate the consequences of these incidents. People all over the world insure their lives and property against unforeseen circumstances.

Insurance companies organize the business in such a way that the amount of payments and the costs of organizing the insurance business do not exceed the amount of premiums received.

The main condition for the effectiveness of risk pooling in insurance is that the risks of the insured persons are independent of each other (or, as in the case of diversification, have multidirectional, negative correlations).

We must also take into account the fact that there are types of activities that are associated with uninsurable risks. This applies For example, to entrepreneurial activity. The very concept of entrepreneurship contains an element of risk, and talking about insurance in this case is inappropriate. However, an entrepreneur, implementing the main risky idea, can insure certain aspects of his activity. For example, if he takes a risk when starting a new lumber business, he will likely try to insure his warehouses against fires and his workers against injuries during production. But the idea itself and its implementation - to form an enterprise in this industry - contains an element of risk.

Risk Sharing (risk spreading) – This is a method in which the risk of probable damage is divided between the participants in such a way that the possible losses of each are relatively small. It is thanks to the use of this method that financial and industrial groups are not afraid to take the risk of financing major projects or new areas of R&D.

Search for information also helps reduce risk. It is known that most erroneous decisions are due to a lack of information. Getting it can significantly reduce the amount of risk. Information is a rare good that you have to pay for. Therefore, to determine the amount of information needed, one must compare the expected marginal benefits from it with the expected marginal cost associated with its receipt.

The final stage of assessing and analyzing business risk factors is the development and adoption management decisions aimed at possibly reducing the degree of risk. Typically, most risk reduction activities can be grouped as follows.

• 1. Risk avoidance. In this case, the investor decides not to participate in this event, i.e. avoids circumstances associated with risk. But the result of such a deviation may be future lost profits. When making this decision, the entrepreneur must compare possible negative consequences, the likelihood of their occurrence and lost profits.
• 2. Risk retention, i.e. leaving the risk to the investor. In this case, the investor, investing capital in this event, is confident in advance that, if necessary, he will be able to repay possible losses at the expense of his own funds, income from other sources, etc. When making such a decision, the investor must have not only sufficient financial resources, but also sufficient information about possible developments.
• 3. Transfer of risk to a third party (insurance) means that the investor transfers responsibility for the financial risk to someone else, such as an insurance company.

The essence of insurance is that investors give up part of their income in order to avoid risk, i.e. willing to pay to reduce risk to zero. In fact, if the cost of insurance is equal to the possible loss (i.e. an insurance policy with an expected loss of 100 thousand rubles will cost 100 thousand rubles), a risk-averse investor will want to insure in a way that ensures full compensation for any financial losses which he can bear. Financial risk insurance is one of the most common ways to reduce its degree

4. Reducing the degree of risk, i.e. reducing the probability and volume of losses using various risk neutralization mechanisms (Fig. 5)

In practice, as a rule, such measures are used in combination, since their actions are interconnected and obtaining the desired effect is possible only by carrying out qualified work on effective forecasting and internal planning, self-insurance and insurance, transferring part of the risk to other companies, etc.

The choice of a specific means of resolving financial risk is determined by the implementation of the following principles:

• 1. you cannot risk more funds than your own capital
• 2. it is necessary to provide for the consequences of the risk
• 3. It is not advisable to risk a lot for a little

When implementing the first principle, the investor needs, before investing capital, to determine the maximum possible amount of loss for a given risk; compare it with the volume of invested capital and with all its own financial resources and determine whether the loss of this capital will lead to bankruptcy.

The amount of loss from capital investment may be equal to the amount of the given capital, be less or greater than it. In private equity investments, as a rule, the amount of loss is equal to the amount of venture capital. For example, an investor invested 100 thousand rubles. in a risky business and in case of failure lost this money. However, taking into account inflation, his actual losses may be less than the amount of possible capital. In this case, the amount of losses is determined taking into account the inflation index.

When making portfolio investments, that is, when purchasing securities that can be sold at secondary market, the amount of loss is usually less than the amount of capital expended. The ratio of the maximum possible loss to the investor's own financial resources represents the degree of risk leading to bankruptcy. It is measured using the risk coefficient:

where Kr is the risk coefficient

Y is the maximum possible amount of loss, rub.

C- Volume of own financial resources, taking into account precisely known receipts of funds, rub.

A study of risky activities by domestic and foreign scientists showed that the optimal risk coefficient is 0.3, and the risk coefficient leading to investor bankruptcy is 0.7 and higher.

In accordance with the second principle, the investor must know the maximum amount of loss, what this can lead to and decide whether to refuse the risk, accept the risk on his own responsibility, or transfer it to another person.

The third principle is especially clear when transferring risk to another person. In this case, the investor must determine the ratio between the insurance premium and the insured amount that is acceptable to him.

The insurance premium, or insurance premium, is the payment from the policyholder to the insurer for the insurance risk. Sum insured - the amount of money for which the insured material assets(life, health, etc.) of the policyholder. At the same time, the investor should not take on the risk if the amount of loss exceeds the amount of insurance compensation, which also depends on the terms of insurance. The essence of insurance is that the investor gives up part of the income in order to partially or completely avoid risk. Risk insurance is one of the most common and used ways to reduce risk.

Insurance is characterized by the intended purpose and expenditure of the created monetary fund in pre-agreed cases. During the insurance process, funds are redistributed between participants in the insurance fund.

The risk probability of the insurer's activities is determined by such indicators as:

• 1. Frequency of insured events (number of insured events per insurance object)
• 2. Risk cumulation coefficient (the ratio of the number of affected objects to the number of insured events)
• 3. Loss ratio of the insurance amount (the ratio of the amount of insurance compensation paid to the insured amount of all insurance objects)
• 4. The severity of damage (U) shows what part of the insured amount is destroyed, it is determined by the formula:

where B is the amount of insurance compensation paid, rub.;

n- Number of insurance objects, units;

C - Sum Insured;

m - Number of damaged objects as a result of an insured event.

The excess of income over expenses is expressed in the coefficient of financial stability of the insurance fund:

where Ku is the stability coefficient of the insurance fund;

D is the amount of income of the insurer for the tariff period, rub.;

Z - the amount of expenses of the insurer for the tariff period, rub.;

R. - the amount of funds in reserve funds, rubles;

In addition to insurance, to reduce the degree of risk in business practice, the following methods are used:

• · rationing (limitation) of financial expenses;
• · diversification of capital investments and expansion various types activities;
• · creation of an effective system of economic and legal risk management;
• · information and analytical support for risk management decisions (development of preventive measures that weaken the impact of negative trends, expand the possibilities of using positive changes and allow you to control the nature of these processes);
• · maintaining risk at the existing level in the process of conducting business.

Let's look at some of these methods in more detail.

Limitation is setting a limit, i.e. maximum amounts of expenses, sales, loans, etc. limiting is an important means of reducing risk and is used by banks when issuing loans when concluding an overdraft agreement; by an economic entity - when selling goods on credit (by credit cards), by traveler's checks and euro cheques; investor - when determining the amount of capital investment, etc.

Diversification is the process of distributing invested funds among various unrelated objects. The basic principle of the diversification process can be expressed in a very famous saying: “You can’t put your eggs in one basket.”

The activities are based on the principle of diversification investment funds who sell their shares to clients, and invest the received funds in various securities purchased on the stock market and bringing a stable average income. Diversification allows you to avoid some of the risk when distributing capital among various types of activities. Thus, the acquisition by an investor of shares of different joint stock companies instead of shares of one company, it increases the likelihood of receiving an average income and, accordingly, reduces the degree of risk.

Diversification is the most reasonable and relatively less cost-intensive way to reduce financial risk.

But more often than not, the organization does not set itself global problems to reduce risk; it strives to at least maintain its level.

Maintaining the risk at the existing level does not always mean abandoning any actions aimed at compensating for damage, although such a possibility is provided. An organization can create special reserve funds (self-insurance funds or a risk fund), from which compensation for losses will be made in the event of unfavorable situations. This method of risk management is called self-insurance. Self-insurance is associated with reserving funds to cover unforeseen expenses and covering losses using part of one’s own funds. Self-insurance using internal measures is advisable when there is a risk of destruction of property, the value of which is small compared to the financial performance of the entire company or the risk of destruction large quantities property of the same type. This can also include obtaining credits and loans to compensate for losses and restore production, receiving government subsidies, etc.

For banking activities, a fairly common method of reducing risk is securitization (from the English securities - securities) - the participation of two banks in a credit operation. In such cases, the loan transaction is carried out in two stages:

• · development of conditions and conclusion of a loan agreement (transaction)
• · providing a loan to the borrower

The essence of securitization is that these two stages are carried out by two different banks.

Abroad, a common way to reduce risk is hedging (translated as protection from losses) - the creation of counter currency, commercial, credit and other claims and obligations.

When choosing one of the risk reduction methods, the investor must also evaluate the conditions under which decisions are made on the advisability of investing financial resources, i.e. The reliability of the selected event scenario is determined. Obviously, decisions can be made in different conditions:

• · certainty, when all the consequences of a decision can be assessed;
• risk, when the consequences of decisions made can be assessed with a certain degree of probability
• · complete uncertainty, when there are no initial data to assess the consequences of decisions made

Quite often, an investor makes decisions when the results are uncertain and based on limited information. Naturally, if the investor had more complete information, he would be able to make a better forecast and reduce risk. This makes information a commodity. Information is a very valuable commodity for which an investor is willing to pay a lot of money, and if so, investing in information becomes one of the areas of entrepreneurship. The cost of complete information is calculated as the difference between the expected value of an acquisition when complete information is available and the expected value when information is incomplete.

It is especially beneficial to acquire marketing information that characterizes the state of the market, price fluctuations, changes in supply and demand.

If you decide to start your own business, the issue of risks will be one of the most important. He is the first to stand up to an entrepreneur just starting out. Since a business is usually launched at its own expense and at its own risk, it is not surprising that the closest attention must be paid to the issue of risk reduction. Successfully reducing business risks is the goal of any professional manager.

Running a business doesn't happen without. To remain successful in the market, you need to take bold actions, use technological improvements, increasing the potential risk. An important quality of an entrepreneur is the ability to manage it correctly and find an opportunity to manage it.

Types of risks

There are many different definitions and approaches to the concept of “risk”. This is due to the diversity of this term, often a lack of statistical data from practice, and gaps in the current legislation of both federal and local significance.

Let's first look at two main interpretations:

1. Risk is regarded as the likelihood that an economic entity will lose some of its resources, lack of profit or increased costs as a result of its implementation of any activity.
2. Risk is assessed as practical situation, in which it arises. A risk situation is understood as the combination of various circumstances and conditions that create a certain situation in different areas business.

Risk is associated with uncertain circumstances, a situation in which a choice must be made and for possible assessment further development events to analyze the selected alternatives. At the same time, situational risk stands aside from a situation in which the circumstances are not defined. In the absence of certainty, it is sometimes extremely difficult, and sometimes simply impossible, to calculate the probability of the occurrence of certain consequences.

Risk is associated with uncertain circumstances, a situation in which it is necessary to make a choice and, for a possible assessment of further developments, carry out an analysis of the chosen alternatives.

Risk Reduction Methods

There are several methods. Let's consider them further in detail.

Separation

With this method of neutralizing the negative consequences of risks, the organization needs to distribute the directions of its business activity across different markets, master the production and offer consumers new types of goods and services that can be produced and provided. This will improve the efficiency of production processes and lead to additional financial benefits, preventing various negative consequences for any company.

Risk sharing is actions aimed at implementing already existing business to new production processes and its entry into new sales markets that have not yet received attention. This is necessary to avoid dependence on one main activity.

Of course, you need to get more information before making a choice. If you are planning to make decisions that could affect the degree of risk in the activity you are engaged in (for example, investing assets), due to restrictions on access to information, loss may occur.

If sufficiently voluminous and accurate information is available, financiers, together with other management bodies of the company, risk less with the company’s money and have the opportunity to form an objective assessment of the expected scenario for the development of events and correctly predict potential risks. Note that the investor’s desire to pay for information completeness significantly increases the cost of information.

Limitation

The so-called “limit” is used to reduce risks by installing a whole system of restrictions. In business, the “limit” is used in certain forms of lending to the buyer and selling goods in installments.

Restrictions on preventing adverse consequences are imposed mainly on the company’s financial instruments - the introduction of maximum amounts on investments, the amount. A clear example of a “limit” would be setting the maximum amount that an insurer can retain on its own. Exceeding this amount will automatically entail refusal of insurance or the use of more complex forms of contractual structures, such as coinsurance or reinsurance.

Coinsurance

This is a type of contractual form of relationship with an insurance company, in which the policyholder cooperates with several insurance companies, since individually none of them is able to cover the amount of the existing risk. The complexity of such a design is due to the fact that there will be several contracts, each of which has its own tariff, conditions and interest.

Reinsurance

It eliminates the coinsurance deficiency. When using this form insurance company, with which the contract is concluded, assumes obligations for the entire amount of insured risks. Then, on its own behalf, it enters into the required number of contracts with other insurance companies to cover the entire amount of risk.

Self-insurance

When insuring yourself, an entrepreneur prefers to insure himself rather than purchasing a policy from insurers. Thus, he saves money on insurance. Self-insurance, of course, makes sense only when the value of the property to be insured is low relative to the total volume of existing business assets.

Self-insurance makes sense in cases where the risk of loss is low. In a word, if a company has large assets, a small part of which has a small risk of loss, you can safely use self-insurance as a measure to optimize your expenses.

Insurance as a method of risk reduction

Insurance is often used to reduce the level of risk. The point of insurance is that the investor must give up part of his existing income in order to avoid risk; he will pay to reduce the degree of risk to a minimum.

There are several specific types of insurance: for example, title insurance, business risk insurance and much more. Entrepreneurial risk is the risk that an entrepreneur will not receive the planned income from his activities.

The amount of insurance should not be higher than the insured value of business risk, that is, the amount of losses from business activity that the policyholder would have incurred if an insured event occurred. Risk can also be distributed into parts by involving a wider range of business partners or investors in a project containing risks.

Reservation

Reserving funds to cover unforeseen expenses establishes a relationship between probable risks and the amount of expenses necessary to overcome the consequences of these risks.

Other Risk Reduction Approaches

Among other things, if you want to reduce the impact of risks on your business, you need to apply professional techniques. The term “management” itself implies the use of a wide range of methods, techniques and measures to influence the company’s activities. This allows you to build long-term and short-term forecasts of the occurrence of risks, and therefore take preventive measures to reduce or completely neutralize the negative consequences of such developments.

Professional risk management allows you to build long-term and short-term forecasts of the occurrence of risks, and therefore take preventive measures to reduce or completely neutralize the negative consequences of such developments.

To effectively manage risks, a company must have many professionals, each of whom will be an expert in their field. Only a well-coordinated, comprehensive study of the issue through the joint efforts of lawyers, financiers, economists, accountants, business analysts, and logisticians can give a truly high-quality result.

The main task of a top manager is high-quality cross-functional management of representatives of these functions and continuous movement towards the final result, a correct assessment of the existing and potential level of risks for the organization and their relationship depending on the actions taken.

Factoring is one of the risk sharing tools. He came to our country about 10-15 years ago. This method was initially used in Western credit institutions. Why is factoring needed? Let's imagine a situation where a supplier needs to urgently receive funds, but is not reliable. In such a case, and we understand that an advance payment was made for the supply of goods, there is a risk that the bank will not receive the money at all because the buyer has not yet paid for the goods, and the supplier was financed from the bank’s funds.

To insure such a risk, the bank actually charges the supplier a percentage for the use of its (the bank’s) funds. And the size of the commission, that is, the percentage, depends on the degree of unreliability of the supplier - his credit history, the size of his assets and many other factors.

The bank's commission can reach 20% if the degree of unreliability is too high. Of course, company managers are often forced to make decisions in conditions where there is insufficient information. Therefore, remember: the more complete the information provided for analysis, the greater the chances of accurate forecasting and, accordingly, the lower the risks. You should not make hasty decisions in a situation where there is no information support for your business. It is better to take a short break, after which to comprehensively assess the current situation. This way, you have a better chance of preserving your capital and making the right decision.

Basic principles

Never take more risk than the company's capital allows. Always clearly predict for yourself the consequences of a risk. Don't try to risk a lot for little. - this is what will help you reduce risks. Anti-crisis management is a set of measures to “revive” an enterprise, for which everything possible risks have already arrived.

The cause of all crises is improper management - unprofessional, inadequate, associated with manipulation, aimed at pursuing goals beyond the objectives of the target project. Crisis management managers always face difficult challenges. The first of them is to use various analytical tools to understand what actually happened.

To do this, it is necessary to study in detail the activities that the company has carried out, and, based on this data and on an objective and thorough assessment of the current market, determine how to keep the company afloat.

Proper crisis management will reduce the risk. The main vectors of crisis management at the enterprise level are:

• Regular monitoring of business status.
• Conducting large-format review meetings involving a cross-functional team of specialists.
• Implementation of internal regulations and protocols that can ensure the privacy, integrity and confidentiality of the company’s information flows.
• Continuous work to optimize the company's global marketing and business strategies.
• Cost optimization, search for new opportunities and tools to reduce and neutralize them.
• Improving the productivity and quality of staff work.
• Attracting additional funds from founders.
• Increasing employee motivation.

Proper crisis management will reduce the risk.

The set of measures to neutralize and reduce the level of risks includes, without fail, the determination of maximum permissible levels of risks, the search for methods to reduce them, the development and implementation of methods for risky investment of capital. It is imperative to conduct regular assessments of the enterprise’s activities, comparing expected income and current risks.

To achieve an effective result in reducing business risks, it is necessary to apply integrated approach, various techniques, combining them with each other, as well as comprehensively study the impact of all unfavorable factors.