Stage one. Identification and risk analysis, Phase two. Analysis of alternative methods of risk management, Methods of risk evasion - Analysis and assessment of risks in business

First. Identification and risk analysis

The identification of risks is understood as the identification of risks, their specific features), due to nature and other characteristic features of risks, identification of the features of their implementation, including the study of the amount of economic damage, as well as the change in risks over time, the degree of interrelation between them and the study of the factors affecting on them. This process involves determining the following:

• sources of uncertainty and risk;

• consequences of risk realization;

• information sources;

• Numerical definition of risk;

• the mutual impact of risks on each other.

At this stage, first of all, an information base is created to implement the further process of risk management: information on risk and its consequences, the magnitude of economic damage, quantitative assessment of risk parameters, etc. In addition, it should be noted that identification and risk analysis are not a one-time action package. Rather, it is a continuous process, carried out throughout the entire algorithm of risk management.

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second. Analysis of alternative risk management methods

There are a number of different methods that can reduce the degree of risk and the amount of damage. At this ethane, these methods are considered and analyzed in relation to a specific situation, i.e. the manager decides how to reduce the risk, loss in the event of a risk situation, seeks to cover the damage.

By themselves, the methods of risk management are quite diverse. This is due to the ambiguity of the concept of risk and the presence of a large number of criteria for their classification. In the next section of this chapter, we'll take a closer look at the basic methods, but here we will limit ourselves to a brief overview.

All approaches to risk management can be grouped as methods for minimizing the negative impact of adverse events as follows:

Pre-event risk management methods - measures implemented in advance aimed at changing significant risk parameters (likelihood of occurrence, extent of damage). This includes the methods of risk transformation ( Risk control , Risk control to stop losses), which are mainly related to preventing the realization of risk. Typically, these methods are associated with the implementation of preventive measures.

Post-event risk management methods - carried out after the occurrence of damage and aimed at eliminating the consequences. With their help, the formation of financial sources used to cover damage occurs. Mainly, the ego is the method of financing risk,

Post-event and pre-event methods are combined in the general direction of compensation methods.

Classification of Risk Management Methods

Fig. 3.3. Classification of risk management methods

Risk management methods can be divided into four groups:

• methods for avoiding risks;

• methods for localizing risk;

• Risk dissipation methods;

• Risk compensation methods.

Methods of risk evasion

Methods for avoiding risk assume:

• exclusion of risk situations from the business;

• Avoiding transactions with unreliable partners, customers;

• refusal of services of unknown or questionable firms;

• rejection of innovative or investment projects, if they cause even the slightest uncertainty in the successful implementation.

If the management decides to use the & quot; evasion & quot; insurance, it is necessary to develop a comprehensive protection program, rather than a single appeal to the insurance company.

If the enterprise does not have enough funds for comprehensive insurance protection, it is necessary to allocate those risks, the realization of which is associated with the greatest losses and insure them precisely.

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