A company's financial risk assessment and management: The practical aspects of implementation for small and medium-sized businesses

2020 ◽  
Vol 23 (6) ◽  
pp. 643-666 ◽  
Author(s):  
A.V. Glushchenko ◽  
E.N. Samedova ◽  
V.A. Temnikov
Keyword(s):  
Risk Assessment ◽  
Software Maintenance ◽  
Financial Stability ◽  
Financial Risk ◽  
Operating Conditions ◽  
Expert Assessment ◽  
Event Tree ◽  
Assessment Index ◽  
Scenario Analyses ◽  
Risk Assessment And Management

Subject. This article deals with the issues of financial risk assessment and management of economic entities. It also considers the application and implementation of risk assessment techniques by small and medium-sized enterprises. Objectives. The article aims to develop applied aspects of the original methodology of stepwise assessment of a company's total financial risk using mild conditions of software maintenance. Methods. For the study, we used the methods of SWOT and scenario analyses, scoring, expert assessment, index numbers and ratio analysis methods, and the tabular, graphical, financial risk map, and event tree techniques. Results. Using the SME subject as a case study, the article reveals the applied aspects of the implementation of the total financial risk assessment methodology steps. By analyzing the performance and operating conditions of the company, it identifies the main risk components of financial risk, assesses the probability and cost of losses from their implementation, and determines risk indices and total financial risk. The article presents certain proposals for the financial recovery of the organization on the basis of internal changes and standards of indicators that ensure financial stability. A subsequent assessment of the effectiveness of the proposed measures shows the positive dynamics of the forecast financial indicators. Conclusions. Providing insight into the original methodology use at SMEs helps assess the potential for its practical application using relatively moderate data volumes and no specialized software.

Financial Risks of the Bank: Assessment and Mechanism of Neutralization

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Stable Operation ◽  
Financial Risks ◽  
Negative Consequences ◽  
Conceptual Approach ◽  
Relevant Today ◽  
Banking Institution ◽  
The Impact

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.

Risk Assessment and Management in Hospital Merger and Acquisition

2017 ◽  
Vol 23 (2) ◽  
Author(s):  
Fei Ren ◽  
Li Han
Keyword(s):  
Risk Assessment ◽  
Financial Risk ◽  
Economic Losses ◽  
Chinese Government ◽  
System Reform ◽  
Core Competitiveness ◽  
Strategic Risk ◽  
The People ◽  
Quantitative Analysis Method ◽  
Risk Assessment And Management

Abstract: In recent years, the Chinese government has introduced a series of policies to promote the health care reform and further promote the hospital industry towards marketization, which makes the hospital M & A continue to heat up. In order to effectively integrate the existing resources, expand the operation scale, strengthen the comprehensive strength, improve the hospital's core competitiveness, make the M & A behavior more scientific to promote the deepening of the medical system reform, this paper studies the risk evaluation and management of M & A based on the theory of hospital M & A. The risks in the current M & A include financial risk, strategic risk, transaction risk, integration risk, etc. These risks will restrict the future development of hospitals, and even lead to the failure of mergers and acquisitions and huge economic losses. Therefore, correct risk assessment and management is the key to the success of M & A. By applying the qualitative identification method, the quantitative analysis method and the expert investigation method as well as making corresponding management adjustment and countermeasures, the risk probability can be reduced and the success rate of M & A can be improved so as to realize the strategic goal. In the hospital M & A, the use of risk assessment and management can prevent and evade risks, which enables the industry chain to extend, helps the development of the industry and provides better medical and health services for the people. 

THE ROLE OF FINANCIAL ANALYSIS INDICATORS IN THE PROCESS OF RISK REDUCTION IN COMMERCIAL BANKS

2021 ◽  
Vol 2 (2) ◽  
pp. 73-77
Author(s):  
AL-SAADI MOHANAD RAHIM SALIM ◽  
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Financial Stability ◽  
Financial Risk ◽  
Financial Analysis ◽  
Bank Risk ◽  
Credit Institution ◽  
Russian Bank

The article is devoted to the use of financial analysis for the purposes of risk management of a commer-cial bank. The paper defines the bank risk, provides a classification of banking risks, and also uses the exam-ple of the largest Russian bank, Sberbank PJSC, to calculate the main indicators used in assessing the finan-cial risks of a credit institution. In particular, the dynamics of indicators of liquidity and financial stability, indi-cators of credit risk assessment, indicators of market risk assessment are analyzed. Based on the results of the calculations, the relevant conclusions were drawn and basic recommendations for the bank’s financial risk management were developed.

Problems of financial support to State guarantees for free medical care under extreme conditions

2020 ◽  
Vol 26 (11) ◽  
pp. 2542-2566
Author(s):  
Yu.А. Altynov
Keyword(s):  
Medical Care ◽  
Financial Support ◽  
Financial Stability ◽  
Risk Sharing ◽  
Financial Risk ◽  
Health Sector ◽  
Health Financing ◽  
Medical Insurance ◽  
Operating Conditions ◽  
Extreme Conditions

Subject. The article considers the mechanisms of the insurance model of domestic health financing from the perspective of readiness for extreme operating conditions caused by the spread of a new coronavirus infection. Objectives. The purpose is to assess the financial sustainability of the Russian model of compulsory medical insurance in the fight against the pandemic, and propose measures to improve the financial support to State guarantees of free medical care. Methods. I employ the methods of logical analysis, statistical analysis, comparison, and other general scientific methods. Results. Extreme conditions caused by COVID 19 pandemic negatively affect the financial stability of healthcare organizations. However, the Russian version of compulsory medical insurance does not provide for any mechanisms to compensate for financial losses in case of economic instability. Thus, the debate about the need to return to the budgetary model of health care becomes particularly relevant in the new economic situation. Conclusions. There is a need to modernize the key elements of the financial model of compulsory medical insurance in terms of increased transparency of tariff policy in payments for medical care, financial risk sharing, automation of operational processes in industry management, etc. It is also crucial to continue reforming the public health sector based on the patient-centered approach through strengthening the outpatient medical care, developing the telemedicine, introducing chronic disease management programs, etc.

scholarly journals PROBLEMATIC ASPECTS OF FINANCIAL RISK ASSESSMENT METHODOLOGY IN STEVEDORING COMPANIES

World Science ◽  
2019 ◽  
Vol 1 (12(52)) ◽  
pp. 32-38
Author(s):  
Boiko M. O. ◽  
Gevrek Yu. S.
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Financial Risks ◽  
Assessment Methodology ◽  
Net Income ◽  
The Us ◽  
Definition Of ◽  
Risk Assessment Methodology ◽  
Relevant Factors

The study is dedicated to identification of problematic aspects of financial risk assessment methodology on the example of stevedoring companies. In research established the list of issues for improvement the methodology of financial risk assessment both in theoretical and practical aspects. Formulated industry features of the stevedoring companies’ activity, relevant factors from the perspective of financial risk impact on results of activity, among which are distinguished: loss of net sales, exchange rate instability and decrease of financial stability. It was found that the loss of net income from the sale of state stevedoring companies of Ukraine occurred: due to the failure to fulfill the plan of cargo processing by reducing the number of the number of ship-measures and change of the nomenclature of cargo towards the less profitable and instability of the US dollar. Particular attention is paid to assessing the level of financial stability of state-owned stevedoring companies in Ukraine and identifies a downward trend in recent years. It is argued that the definition of factors that affect financial risks should be conducted using factor analysis, mathematical models that require comprehensive consideration of uncertainty factors and related to the peculiarities of stevedoring companies operation. The feasibility of drawing up a financial risk map and the options of management's response to their presence have been proved.

scholarly journals Strategic Analysis of Export Activities of Enterprises to Ensure Sustainable Development

2021 ◽  
Vol 10 (4) ◽  
pp. 251
Author(s):  
Elina Pakhucha ◽  
Natalia Babko ◽  
Tamila Bilousko ◽  
Roman Bilousko ◽  
Serhiy Vynohradenko ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Qualitative Assessment ◽  
Small Enterprises ◽  
Financial Risks ◽  
Negative Consequences ◽  
Risky Decision ◽  
Wholesale Trade ◽  
Medium And Small Enterprises

In the article necessity and significance to study of financial risks, which are a constant factor in the activity of any enterprise, are substantiated. It is established that for a broader understanding of the essence of financial risk it is necessary to consider it as a cumulative risk of the enterprise. The growing impact of financial risks on the results of financial and economic activities is associated with the uncertain economic situation, the instability of financial market conditions, the rapid introduction of new financial technologies and financial instruments, expanding the scope of financial relations of the enterprise. Methods of financial risk assessment are investigated, which involve the identification of risks, determining the causes of their occurrence and potential risk areas, as well as the negative consequences of making a risky decision or possible benefits. Comparing the methods of quantitative assessment of financial risk, it was found that the level of risk may vary depending on the chosen method of assessment. A system of financial ratios has been formed to quantify the risk of enterprises of different sizes, namely for large, medium and small enterprises, which most accurately reflect the current financial situation. An assessment of the financial results of enterprises operating in the field of wholesale trade. The financial results before the taxation of activity as an indicator that characterizes the potential for profit generation of wholesale trade enterprises by size distribution are studied. The value of financial results (balance) before taxation of wholesale trade enterprises is forecasted. It is established that the growing pressure of the crisis and insecurity on the part of the state will lead to the transition from the crisis in which enterprises are today, to a state of economic bankruptcy. This situation requires the formation and use of financial resources of enterprises, based on the system and complexity of making and implementing management decisions. Quantitative and qualitative assessment of financial risks of wholesale trade enterprises belonging to groups of large, medium and small enterprises was carried out. Based on these calculations, the ranking of priorities in the management of financial stability. It is established that the first place among the blocks of financial coefficients of risk assessment of enterprises is occupied by the block of business activity, then the block of profitability indicators, the block of liquidity indicators, the final block of capital structure. For each of the defined blocks the directions of increase, or optimization that will provide financial stability of the enterprise are presented.

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