c.ph.s, docent Moiseeva F.A., Kolotii V.A.
Donetsk national university of economics and trade
Risk Assessment of Enterprise Sustainable Development
Strategy Implementation
Contemporary
conditions of domestic enterprise management are distinguished by the increase of
complexity and intensification of the ambiguity of strategic marketing environment
of enterprise operation. The environment is characterized by the growth of competition
level, fast-changing market conditions, divergence of market participants’ interests
and the necessity of qualitative changes of all life spheres. All this generate
the level of commercial risk, increased attention to risk management problems and
implementation of the effective risk management procedure at enterprises for
the purpose of securing of their sustainable development.
Developing
and implementing the enterprise sustainable development strategy, managers of an
enterprise understand risks significance, which influence on their activities or
will influence in the future, the peculiarities of their quantitative measurements
and of the choice of the most effective ways for risks minimization during the sustainable development
strategy implementation, since there is a threat of deviation from goals, set
for the enterprise, enterprise performance impairing at the market in
perspective and the loss of market power.
Currently
much attention is given to risks researches; consideration is given to risks
roles and meanings for sustainable development strategy implementation in the practice
of enterprise activity in the modern context. However, their amount is not
enough, especially in problems, which concern the management of risks of
commercial enterprises, the analysis, assessment and choice of the method for
their minimization in order to develop the sustainable development strategy.
A lot of
researchers note, that this is the management of business risks, which sets,
checks and rearranges the correlation between the necessary levels of potential
gains and acceptable levels of losses, between the reactions to these or those
risks and the goals of enterprise sustainable development.
Modern economic
researches do not have common interpretation of the term “risk management”.
V.A.Borovkova offers to use the term “risk management”, when it comes to risk
management in broad sense, which includes all the range of practical activities
in terms of forecast, identification, assessment and minimization of risks and
the term “risk control” – in narrow sense, which stipulates minimization of risks
[3,171]. According to A.V.Balabanec risk management in the modern context becomes
more strategic than defensive, which requires implementation of strategic risk
management concept at enterprises.
Besides, there is also a problem of choice of risks assessment methods, since most of them (apart from the statistical ones) are based on managers’ experience, i.e. have subjective nature.
In the modern literature the risks are not defined by types, which influence on the enterprise operation during the implementation of sustainable development strategy, the
attention is not paid to their analysis, assessment and minimization. But
taking into account the risks of implementation of enterprise sustainable
development strategy, the probability of full achievement of its strategic
goals is reduced; the probability of limitation of the enterprise sustainable
development strategy implementation is increased.
In this
respect considerable significance is attached to the development of risk
assessment methods for sustainable development strategy implementation of
commercial enterprises.
The
risks of enterprise sustainable development strategy implementation are
understood to be the risks, which appear in the activities of enterprises
during their implementation of sustainable development strategies and which are
able to influence on the final result of these strategies implementation by
deviation from the set goal, emergence of additional expenditures and losses or
short-received profit.
In
order to assess the risks of implementation of enterprise sustainable
development strategy it is necessary to define risk types of enterprises
strategic portfolio implementation, which are present in the enterprise
operation. The risks of implementation of enterprise sustainable development
strategy can be combined into the following groups:
- uncontrolled
macro-risks (risks of unstable legislation, risks of strengthening of political
struggle, risks of unfavorable business environment, risks of inflation
processes intensification, risks of tax intensification, risks of real
population’s revenue reduction, risks of worsening of demographic situation);
- business-risks
of performance on the market (risks of unfavorable demand trends, risks of unbalanced
market situation, risks of sudden changes in consumers’ preferences and
demands, risks of new competitors, risks of competitive struggle
intensification on operating markets, risks of new similar products);
- business-risks
of cooperation with business partners and contact audiences (risks of entering contractual
relationship with incompetent partners, risks of non-fulfillment of contractual
obligations, risks of pressure increase from controlling entities, risks of ineffective
interaction with social organizations);
- marketing risks (risks of insufficient or mistaken market segmentation,
risks of mistaken choice of a target segment and positioning, risks
of creation of non-optimal
commodities portfolio,
risks of wrong organization of sales network and commodities promotion system);
- risks
of unsuccessful management (risks of the wrong choice of a marketing strategy, risks
of the wrong organization of marketing researches, risks of the wrong choice of
enterprise’s general strategy, risks of management strategic mistakes while implementing
strategies, risks of non-optimal management organizational structure, risks of resistance
emergence);
- risks
of non-optimal internal potential of an enterprise (risks of insufficient or
inadequate information, risks of insufficient qualification of employees, material
and technical basis, financial resources for strategy implementation, risks of
non-optimal structures of enterprise resources, risks of financial insolvency
of an enterprise, risks of threats of bankruptcy).
Information
on risk types, which influence an enterprise, and the level of their influence
will help the enterprises timely prevent their emergence and minimize their
negative impact, which will favor the efficiency of enterprise sustainable
development strategy implementation.