Economic sciences/7. Accounting and audit

Ph. D., Ass. Prof. Tetyana M. Korolyuk

Ternopil Ivan Pul’uj National Technical University, Ukraine

Essence of risk in Ph. D. theses in Ukraine

In modern conditions the study of risk is carried out in all fields of science. Scientists in the sphere of management, marketing, audit, economics and production control, trade have been studying the essence of risk in details for a long time, the notion being identified as «risk», «economic risk», «entrepreneurship risk» and «business risk». In order to realise the difference between the mentioned notions let us systemize the treatment of definitions of the notions «risk», «economic risk», «entrepreneurship risk» and «business risk» in the scientific investigations.

O. A. Kovtun, O. Yu. Nychyporuk, Yu. O. Kovalenko, O. I. Mastykash, G. L. Verbytska, O. Yu. Mishyn, N. S. Skopenko, O. I. Yusypovych, I. M. Vyhivska belong to the first group of scientists, who concentrate their attention on the definition of the notion «risk» in their papers [1]. Thus, O. A. Kovtun has found that multivariant notion «risk» is identified as two directions: the first – the notion of risk from the point of view of the financial results of the activity; the second – the treatment of risk taking advantage of the mathematic set of notions of the probability theory. Both approaches do not contradict each other and are connected by the subject of investigation. In the paper by O. Yu. Nychyporuk risk is proposed to be defined as the income decrease or loss by the subject of economic activity in the case of disadvantageous for the business events of the probability nature. In the paper by Yu. O. Kovalenko risk was proved to be the objective stable element of any decision making, because uncertainty is the unavoidable characteristics of the management conditions. O. I. Mastykash proposes the definition of his own: «Risk is the situational characteristics of the subject of the economic activity, which is followed by the alternatives of its development of the probability nature and because of that they describe the uncertainty of the final result of its activity» [1]. G. L. Verbytska treats the notion «risk» not only as the probability of danger or failure, loss of uncertainty under some conditions, overcoming of uncertainty and conflict in the condition of unavoidable choice by the business subject, and combination of possibility to obtain both disadvantageous and especially advantageous deviations from expected results. O. Yu. Mishyn defines risk as the value of deviation from goals, from expected results, the amount of failure taking into account the impact of controlled and uncontrolled factors, direct and feed-back links relatively the object of control. In the paper by N. S. Skopenko the definition of risk is presented as the economic category of the dialectic objective-subjective structure and is the element of any process: setting of aims, estimation, control, decision making, which are sufficiently complicated by the possibility of appearance of disadvantageous outcomes or obtaining the additional effect as compared with that expected, caused by the multivariant possible decisions in the case of uncomplete or untrue information taking into account the impact of unpredictable factors of the external and internal environment. O. I. Yusypovych treats risk as uncertainty, connected with the possibility to obtain the result different from that expected, as the result of the changed conditions while decision making. I. M. Vyhivska defines «risk» as the realized probability of disadvantageous or advantageous outcomes of the business activity in the conditions of impact and change of external and internal factors of activity as the result of realisation of the chosen control decisions, which affect the financial state of the enterprise.

The second group includes such scientists as V. V. Chepurko, O. Yu. Mishyn, O. R. Bednarska, who analyse in their Ph. D. theses the notion «economic risk» [1]. So, V. V. Chepurko has defined the category of economic risk as the apprehended relations between the reality of economic system and possibilities of its transformation in some future identified by the subject reality under the inexhaustible uncertainty, which can originate from the interrelations of causes and effects, accidental and necessary, internal and external conditions. O. Yu. Mishyn defines the economic risk as the property of the entrepreneurship subject under the impact of external and internal factors to transfer from the state of normal functioning into unpredictable state, that is, into the state, which is worse, than that expected, under which there appears the probability to lose some part of its assets by the enterprise, less incomes or additional expenses caused by the production-commercial activity operation. O. R. Bednarska proposed to treat economic risk as the economic phenomenon, which describes the value of deviations of the expected indices from those real results of the enterprise activity, which can be predictable with certain probability, taking into account the available information and multivariant decision making.

The third group of scientists (I. G. Cherdantseva, O. A. Kovtun, M. A. Dyadyuk, N. V. Radkevych) studies the notion «entrepreneurship risk» [1]. I. G. Cherdantseva defines the entrepreneurship risk as the ability to conduct business activity in the conditions of uncertainty and need to choose, which makes possible thanks to some entrepreneur’ traits, to predict, to present and to decrease the disadvantageous impact of uncertainty on the results of business activity while choosing the most effective decision from some alternatives, obtaining the profit in these conditions. O. A. Kovtun has stressed in her paper that entrepreneurship risk is the possibility to lose resources, less income or exceeding of the expectable benefit, which result from any types of activity dealing with the production of products consumer goods and services, their selling, commodity-money and financial transactions, commerce, as well as carrying out of social-economic and scientific-technological projects. M. A. Dyadyuk treats entrepreneurship risk as the situational characteristics of the risk subjects and objects interrelation while carrying out different types and forms of entrepreneurship in the conditions of uncertainty in achieving the desired outcome because of availability of variety of alternatives and caused by it unavailability of complete confidence in the realisation of the set goal. N. V. Radkevych has systematized the treatment and critical analysis of the available points of view on the notion «entrepreneurship risk»: «Risk is the probability (threat) to lose the part of resources by the entrepreneur, less income or additional expenses resulted from the business activity» [1].

The fourth group of scientists (O. S. Dubrova, I. V. Kotchura, N. S. Skopenko, K. V. Zhuravel) in their papers analyse the notion «business risk» [1]. O. S. Dubrova has concluded that business risk is the specific feature of entrepreneurship activity dealing with the overcoming of uncertainty in the situation, which does not exclude the probability of the appearance of unpredictable outcomes. I. V. Kotchura considers that the treatment of business risks for the industrial enterprises is wider and deals not only with economic aspects of the enterprise activity, but with the manufacturing, managerial, financial, etc. N. S. Skopenko defines business risk as the probability of deviation of the business activity outcomes from the effective and strategic goal tasks, which resulted from the uncertainty of the hierarchic economic and social-political space of the enterprise activity. K. V. Zhuravel has defined the essence of the economic category «business risk» as notion, which describes the level of reality of undesirable development of the business activity of the enterprise under certain case of decision making.

Thus, in the Ph. D. theses «risk» is defined as the unexpectable outcome during decision making and covers all spheres of activity of any business subject. Beside the general notion «risk» the scientists investigate the notion «economic risk», which is treated as one of its types. The latter, in its turn, is sufficiently wider than those «business risk» and «entrepreneurship risk».

Literature

1.            Search result in the fund of electronic documents [Electronic resource] National Library of Ukraine named after V. I. Vernadsky. – Access regime: http://www.irbis-nbuv.gov.ua/cgi-bin/irbis64r_81/cgiirbis_64.exe.