scholarly journals PROCEDURE FOR IDENTIFICATION OF RESERVES AND METHODS OF REFLECTING THEM IN ACCOUNT – A RISK MANAGEMENT TOOL FOR CALCULATIONS OF ENTERPRISES

2021 ◽  
Vol 71 (2) ◽  
Author(s):  
Anna Hevchuk
Keyword(s):  
Risk Management ◽  
Balance Sheet ◽  
Management Tool ◽  
Individual Risk ◽  
Risk Indicator ◽  
Negative Consequences ◽  
Industrial Enterprises ◽  
Integrated Risk ◽  
The Matrix ◽  
The Impact

Іt is proved that business risk management of agro-industrial enterprises requires the introduction of an effective risk management system. In this aspect, the risk management methodology plays an important role and determines the future effectiveness of risk management methods, actions and measures. The study identified three groups of accounting reserves, which cover all components of calculations as an integrated object of accounting and are one of the effective methods of risk management in optimizing the impact of risk on the activities of the business entity. The procedure for selecting a reserve in risk management of enterprise settlements is developed, proposals are made in terms of methodology for calculating reserves taking into account the impact of risks, implemented through the matrix of risk calculations of agribusiness enterprises, group integrated risk indicator and individual risk indicator for individual settlements with debtors / creditors. It is determined that one of the methods of risk management of settlement operations of agribusiness enterprises is internal provisioning to cover the negative consequences of risks arising from non-receipt / non-repayment of receivables and payables for settlement operations with direct and indirect business interest. It is proposed to improve the method of forming reserves through the accumulation of information on the accrual of accounting reserves in transit account 841 "Reserves for settlements in risk conditions", in particular in social and environmental areas, which will assess the effectiveness of risk management in terms of internal provisions. integrated risk reporting on the components of the agribusiness company. It is determined, in addition to the formation and accounting of reserves for risk management of settlements, to keep off-balance sheet records of contingent assets and liabilities, as well as guarantees and collateral received / provided. This will allow to clearly identify possible threats, risk factors and the need to review the size of the reserve, the feasibility of additional accrual or reversal.

FEATURES OF ACCOUNTING AND ANALYTICAL SUPPORT FOR ENTREPRENEURIAL RISK MANAGEMENT

2021 ◽  
Author(s):  
Ruslan Skrynkovskyy ◽  
◽  
Oleh Kramar ◽  
Khrystyna Zamula ◽  
Vasyl Khmyz ◽  
...  
Keyword(s):  
Risk Management ◽  
Management Program ◽  
Negative Consequences ◽  
Development Trends ◽  
Stage Of Development ◽  
Risk Management Program ◽  
Industry Affiliation ◽  
Business Entities ◽  
Entrepreneurial Activities ◽  
The Impact

The article reveals the features of accounting and analytical support for entrepreneurial risk management. It was found that entrepreneurial risk is a certain act as a result of which the business entity may suffer losses. It is proved that entrepreneurial risks should be classified according to the specifics of origin, the specifics of the legal settlement, the specifics of industry affiliation, the specifics of the consequences, the specifics of the duration of the impact of entrepreneurial risk, the specifics of the expression of will, the specifics of the form, the specifics of the level of typicality, the specifics of the level of validity, the specifics of the possibility of assessing and resolving the impact, the specifics of the possibility of insuring entrepreneurial risks, the specifics of the occurrence of entrepreneurial risks by sources of origin, the specifics of the scale of the impact, the specifics of the level of losses and the specifics of character. It is established that the process of entrepreneurial risk management is the process of managing the activities of the business entity as a whole and its individual parts, and takes into account the management of not only existing risks but also potential entrepreneurial risks in space and time, that may occur in the future during entrepreneurial activities. It is determined that the process of entrepreneurial risk management should take into account the stage of preparation and implementation of appropriate measures to reduce the risk as a result of making erroneous decisions by business entities, the stage of reducing the impact of possible negative consequences that may occur, especially, if the entity operates in unexpected changes and alarming development trends, as well the stage of development and implementation of the Declaration on Risk Management and the Risk Management Program. It is established that the important information on which it is possible to estimate possibility of occurrence of entrepreneurial risks, is the accounting reporting. In the perspective of further research, it is recommended to study entrepreneurial risks in Ukraine in the context of such aspects as causes, consequences and management.

scholarly journals PARAMETRIZATION OF THE MECHANISM OF FINANCIAL RISK MANAGEMENT IN THE DIGITAL SECURITIES CIRCULATION

2019 ◽  
pp. 77-83
Author(s):  
Oleksandr Volodmyrovych Lutskevych ◽  
Keyword(s):  
Risk Management ◽  
Social Life ◽  
Financial Risk ◽  
State Regulation ◽  
Securities Market ◽  
Financial Risks ◽  
Negative Consequences ◽  
Management Mechanism ◽  
Financial Risk Management ◽  
The Impact

Urgency of the research. Digital technologies are transforming all spheres of social life, and the financial sphere is no exception. In general, such trends cannot but leave an imprint on approaches to managing the financial risk of digital securities. Target setting. Currently, scientific and methodological support for the formation of a mechanism for managing the financial risks of digital securities is in the early stages of development, while the quality of state regulation and supervision of participants in digital securities directly depends on the effectiveness of the current mechanism for managing such risks. Actual scientific researches and issues analysis. Theoretical and applied aspects of the securities market, features of the impact of financial innovations and financial risk management in the field of securities circulation, are researched by V. Bodrov [1], O. M. Kovaleva [2], I. V. Krasnova [3], N. V. Tkachenko [4], Yu. B. Kolupaeva [5] and others. Uninvestigated parts of general matters defining. The methodology of formation the mechanism for managing the financial risks of digital securities needs more precise research. The research objective. Deepening the scientific understanding of the term "financial risk management mechanism for the circulation of digital securities" will ensure to outline ways of increasing the efficiency of this financial instrument usage. The statement of basic materials. This article analyzes the essence of the term "financial risk management mechanism". The construction of the mechanism has been adapted to the specifics of digital securities risk management. Conclusions. The essence of the mechanism of financial risks management of digital securities circulation is improved due to application of a set of methods for identification, quantitative and qualitative analysis, measures to prevent realization and / or reduction of negative consequences of financial risks of digital securities circulation, ways of control over some events.

scholarly journals Hedge or Rebalance: Optimal Risk Management with Transaction Costs

Risks ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 112
Author(s):  
Florent Gallien ◽  
Serge Kassibrakis ◽  
Semyon Malamud
Keyword(s):  
Risk Management ◽  
Lower Bound ◽  
Transaction Costs ◽  
Balance Sheet ◽  
Total Risk ◽  
Current Position ◽  
Net Return ◽  
Trading Zone ◽  
Futures Contract ◽  
The Impact

We solve the problem of optimal risk management for an investor holding an illiquid, alpha-generating fund and hedging his/her position with a liquid futures contract. When the investor is subject to a lower bound on net return, he/she is forced to reduce the total risk of his/her portfolio after a loss. In this case, he/she faces a tradeoff of either paying the transaction costs and deleveraging or keeping his/her current position in the illiquid instrument and hedging away some of the risk while keeping the residual, unhedgeable risk on his/her balance sheet. We explicitly characterize this tradeoff and study its dependence on asset characteristics. In particular, we show that higher alpha and lower beta typically widen the no-trading zone, while the impact of volatility is ambiguous.

Development and distribution of karst and suffusion processes on the territory of the Belgorod region, assessment of their impact on the environment

2021 ◽  
Vol 27 (2) ◽  
pp. 42-51
Author(s):  
D. Sarychev ◽  
◽  
А. Sarychev ◽  
I. Arkhiptsev ◽  
N. Demchenko ◽  
...  
Keyword(s):  
Mathematical Modeling ◽  
Agricultural Land ◽  
Integrated Approach ◽  
Physical Models ◽  
Negative Consequences ◽  
Economic Activities ◽  
Industrial Enterprises ◽  
Geological Processes ◽  
Industrial Buildings ◽  
The Impact

Relevance. The problem of studying karst-suffusion processes is that soluble rocks in Russia occupy large areas. The Belgorod region is rich in Cretaceous deposits, which are widespread throughout the territory. Due to the fact that carbonate rocks are susceptible to dissolution by surface and groundwater leads to the formation of karst forms. Such forms open and form places of karst waters’ accumulation, open fissure and cave systems and are becoming areas with an increased environmental hazard to the life of people, infrastructure, civil and industrial buildings. Dangerous exogenous geomorphological processes negatively affect the economic development of the region. The purpose of the article is to study the factors influencing the development and distribution of karst and suffusion processes, the reasons for their occurrence, as well as the impact on the environment. Among hazardous exogenous geological processes, karst-suffusion processes are the most unpredictable. Their occurrence has negative consequences for the economics and economic activities of the region. The main methods used in this study are observation method, laboratory experiment and mathematical modeling. The method of mathematical modeling has relatively recently come into the use by the researchers and allows for a better reproduction of processes on physical models. This study is aimed at determining the interaction of karst and suffusion processes, as well as assessing their impact on the environment. The zoning of the karst and suffusion distribution on the territory of the Belgorod region has made it possible to identify the causes of these processes. To prevent the development and spread of karst-suffusion processes, an integrated approach to the analysis of manifestation, drawing up a forecast plan and measures to counter negative consequences is required. Based on the results of the study, measures were proposed to minimize damage to agricultural land, residential and farm buildings, as well as measures to combat karst and suffusion processes. It should be noted that the results of the study and the developed measures to prevent the negative consequences of karst and suffusion processes can be used in human agricultural activities, construction of civil and industrial enterprises, their reconstruction, laying of communications and development of carbonate new deposits

scholarly journals Social integration matters: factors influencing natural hazard risk preparedness—a survey of Swiss households

2020 ◽  
Author(s):  
Elisabeth Maidl ◽  
David N. Bresch ◽  
Matthias Buchecker
Keyword(s):  
Risk Management ◽  
General Population ◽  
Natural Hazards ◽  
Natural Hazard ◽  
Nationwide Survey ◽  
Individual Risk ◽  
Hazard Risk ◽  
Integrated Risk ◽  
Risk Preparedness ◽  
Integrated Risk Management

Abstract Building a culture of risk is an essential objective within the integrated risk management paradigm. Challenges arise both due to increasing damage from natural hazards and the complexity in interaction of different actors in risk management. In Switzerland, the Strategy for Natural Hazards Switzerland, aims to establish efficient protection of the population, natural resources and material goods. This requires that all responsible actors are recognized and aware of their role in risk management. However, previous studies indicate that risk awareness and preparedness levels are rather low within the general population. For the first time, our nationwide survey provides empirical data on factors that influence individual risk preparedness in the general population. Multivariate analysis shows that taking responsibility for natural hazard risk prevention is not only related to personal experience and perceived probability of hazard events, but also crucially influenced by social forms of communication and integration. Therefore, we conclude that social capacity building needs to include such factors in order to render integrated risk management strategies successful.

scholarly journals Relations of COVID-19 and the Risk Management Framework

2021 ◽  
Vol 13 (21) ◽  
pp. 11854
Author(s):  
Jozef Klucka ◽  
Rudolf Gruenbichler ◽  
Jozef Ristvej
Keyword(s):  
Risk Management ◽  
Ad Hoc ◽  
Mitigation Strategies ◽  
Negative Consequences ◽  
Management Framework ◽  
The North ◽  
Risk Management Framework ◽  
Internet Resources ◽  
Internal Procedures ◽  
The Impact

The routine approach used in risk management is based on the scheme that within the prevention period an organisation or a state prepares for the expected risks and once the risks occur, resources and internal procedures are implemented to mitigate their negative consequences. The objective of the paper is to analyse risk management and its constraints, its application in COVID-19 period and based on it provide mitigating strategies for specific problems/risks related to COVID-19. The research methods related to the topics are: (a) study of books, newspapers and other internet resources and (b) interviews with COVID-19 managers at district and regional level in the north of Slovakia. The proposals for mitigation strategies are based on the basic assumption relevant for COVID-19 that there are risks with unknown probability and unknown consequences. Therefore, the mitigation strategies are adapted to the current situation, which includes lack of data and know-how, lack of experience, political and economic unrest and social problems. The impact of constraints is based on an ad-hoc or unplanned and clearly structured approach. Problems and risks are identified and mitigation strategies are proposed. The proposed measures (quantitative/qualitative) should be evaluated and via benchmarking the development and efficiency of applied measures monitored and assessed. The output of identified risk-known and –unknown creates a framework for implementation.

scholarly journals CREDIT DERIVATIVES IN BANKING: BENEFITS AND THREATS

2020 ◽  
Vol 3 (47) ◽  
pp. 7-16
Author(s):  
Anastasiia Petruk ◽  
Roman Stadniichuk
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Credit Derivatives ◽  
Third Party ◽  
Financial Instruments ◽  
Negative Consequences ◽  
Advantages And Disadvantages

Financial institutions have faced a variety of threats, the main reasons for which are weak lending standards, ineffective risk evaluation of the loan portfolio, lack of attention to economic and other factors that can affect the creditworthiness of bank counterparties. Thus, among various threats, credit risk, caused by lending, remains the main source of problems for commercial banks. However, globalization and liberalization of the global financial system has led to the appearance of other sources, including trade and investment transactions, which are reflected both on the balance sheet and off-balance sheet. Banks are increasingly faced with credit risk in other financial operations – for example, with derivative financial instruments. Effective credit risk management is a critically important component of the comprehensive approach to risk management and the long-term success of a banking organization. The use of financial instruments that allows commercial banks to transfer credit risk to a third party for a fee and, thus, avoid the additional costs for forming reserves, has become one of the ways to prevent negative consequences. However, despite the many advantages associated with the risk hedging, credit derivatives, like other financial innovations, pose additional risks directly related to the application of these instruments. For example, these risks have manifested themselves in the global financial crisis of 2008-2009 and minimized the positive effect of the credit derivatives. This article discusses the advantages and disadvantages of using credit derivatives by commercial banks, shows the need for timely identification of probable risks and the development of effective methods for managing them by both the risk management of the bank and regulators.

scholarly journals ENVIRONMENTAL RISK MANAGEMENT ON THE ENTERPRISE TO REALIZE GREEN DEVELOPMENT

2021 ◽  
Vol 12 (2) ◽  
pp. 178-183
Author(s):  
Ch. Shanyi ◽  
A. Murzin
Keyword(s):  
Risk Management ◽  
Environmental Risk ◽  
Indicator System ◽  
Environmental Risk Management ◽  
Industrial Enterprises ◽  
Brics Countries ◽  
Green Development ◽  
Evaluation Indicator System ◽  
And Performance ◽  
The Impact

The environmental risk of an enterprise refers to the impact on the environment and possibility of accidents. In recent decades, the emerging industrial economies represented by BRICS countries have developed rapidly, which has inevitably led to increased pollution and deterioration of environmental quality in these countries. This chapter describes China, which has the fastest economic development among BRICS countries, as an example, and summarizes some evaluation and performance indicators of corporate environmental risk management, so as to facilitate the construction of a scientific and reasonable evaluation indicator system in our further research. The concluding paragraph briefly introduces several measures to reduce the environmental risks of industrial enterprises.

scholarly journals Significance and Key Challenges in Conducting Stress Testing for Islamic Commercial Banks

2015 ◽  
Vol 1 (2) ◽  
pp. 085 ◽  
Author(s):  
Jamshaid Anwar Chattha
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Financial Stability ◽  
Stress Testing ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Management Tool ◽  
Stress Tests ◽  
Management Tools ◽  
Simple Task

With the current cross-border growth in Islamic finance, Islamic commercial banks (ICBs) are looking forward to being perceived as an industry in the process of becoming mature. This would require the establishment of some basic infrastructure, including sophisticated risk management tools that enhance the soundness and resilience of the ICBS. This paper focuses on the latter that is the role and significance of stress testing as a risk management tool. The stress testing has become part of the regulatory and supervisory authorities within the financial stability analysis. The global financial crisis (2008) has placed the spotlight squarely on stress tests. Though, ICBs operate within the similar financial environment, and their balance sheet composition, however, calls for different treatment in stress testing. Apart from the specificities of ICBs, there are key issues and challenges that should be given due considerations in developing an appropriate stress testing regime. This paper explores key specificities and challenges. The paper argues that in the beginning, conducting the stress testing may not appear a simple task for the ICBs. However, a proper consideration to the challenges identified in the paper would certainly tend to improve the overall effectiveness and credibility of the stress testing programmes.

PERSONNEL SECURITY IN THE SYSTEM OF RISK MANAGEMENT OF EMERGENCIES OF BUSINESS STRUCTURES

2017 ◽  
Author(s):  
Taleb Abdullah Mohammed Ali Alhammadi ◽  
Keyword(s):  
Risk Management ◽  
Management System ◽  
Human Resources Management ◽  
Management Tool ◽  
Remote Work ◽  
Contemporary World ◽  
Process Uncertainty ◽  
Risk Management System ◽  
Business Structures ◽  
The Impact

In economics, the decision-making process at all levels of government takes place in conditions of constant uncertainty of the final results of activities. The growing tendency of process uncertainty and global consequences, which was clearly seen in the example of the coronavirus pandemic, forces all businesses to pay attention to the risk management system as an effective tool to counter the impact of emergencies that affect all aspects of a business. One of the "weaknesses" of the business structure is its personnel component. Risk management, an important management tool at all levels and a risk-oriented approach, provide many methods and ways to make decisions more consciously and reasonably. The theoretical and methodological analysis allowed the author to develop recommendations for improving personnel security in the risk management system of emergencies of business structures. The peculiarity of the proposed guidance is that it allows taking into account modern phenomena, namely emergencies that occur in the contemporary world and tend to increase in size, scale and damage. Ignoring the quality of human resources management of business structures, the level of professional development of workers, mechanisms for reproduction and implementation of their business qualities, protection of the interests of professionals and safety of society from non- professionals poses a real threat the security of all humanity. Crisis phenomena create additional obstacles for business structures on the way to their sustainable development. The risk management system has always been able to protect the organization from harmful influences, the effectiveness of which depended on how modern this system is, i.e. able to meet everyday challenges. Today, the most acute problem is emergencies: pandemics, fires, earthquakes, etc.; all this forces businesses to move to remote work. Thus, when creating a modern system of business management risk, it is necessary to focus on its personnel component through the prism of the impact of emergencies.

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