Zykayeva Zh.K.
Al-Farabi Kazakh National University, Kazakhstan
Modern methods of decreasing
enterprise risks
Important element of a risk control system is development of actions for
their decrease. Means of permission of risks are: their avoidance, deduction,
transfer.
Risk avoidance means simple evasion from the action connected with risk. However risk
avoidance for the investor often means refusal of profit.
Risk deduction is a leaving of risk for the
investor, i.e. on his responsibility. So, the investor, investing the venture
capital, it is in advance sure that he can cover possible loss of the venture
capital at the expense of own means.
Risk transfering means that the investor transfers responsibility for risk to someone to
another, for example, to insurance company. In this case risk transfering
happened by risk insurance.
Decrease in risk degree is a reduction of probability and volume of
losses. Various methods are applied to decrease in risk degree. The most
widespread are:
- standard method;
- creation of insurance (reserve) funds;
- risk insurance;
- insurance of percentage risk;
- hedging;
- diversification.
- acquisition of additional information on a choice and results;
- limitation;
The standard method is an establishment of certain standards, limits, restrictions on
carrying out certain actions, namely: establishment of limit output volume,
limit volume production on credit’s
shipment (taking into account a
financial position of consumers), limits on attraction of borrowed funds,
limits on the investment volume into a certain field of activity (on concrete
structural divisions, levels of responsibility etc.), etc.
Decrease in risks by
insurance
Creation of insurance
(reserve) funds includes, in particular, formation
of reserve funds of raw materials stocks, materials and finished goods, the
reserve rest of money on the settlement account of the enterprise, reserve fund
for payment of percent on bonds and dividends on preference shares, etc.
However it must be kept in mind that creation of reserve funds slows down
turnover of the capital and consequently, conducts to decrease in production
efficiency.
The main forms of risk insurance
is insurance of workers upon accidents, property insurance (freights,
transport, property, etc.), insurance of financial risks, responsibility
insurance. Certainly, it is quite good to insure all risks, but where to find
to the enterprise available financial means.
For insurance of percentage risk,
which arises when releasing by the company of coupon bonds and it is connected
with possibility of losses from decrease in interest rates, early repayment of
bonds, establishment of the variable (floating) coupon, etc. is used.
Decrease in risks by
hedging and diversification
Hedging is connected with the possible change in price for raw materials,
materials finished goods, fluctuations of an exchange rate, etc. Procedures of
hedging are reduced to the conclusion of urgent contracts on purchase (sale) of
production or currency values on the fixed dollars in the future. Main types of
hedging are the forward contracts providing mutual obligations of the parties
on purchase and sale of production in the future at the prices, specified in
the contract, and also forward contracts on currency and currency options.
Hedging is used in banking, exchange and commercial practice for
designation of various methods of insurance of currency risks. "Hedging –
system of the conclusion of urgent contracts and the transactions, considering
probabilistic changes in the future of exchange exchange rates and the pursuing
aim to avoid adverse effects of these changes".
Diversification - expansion of technologically diverse fields of activity of the
enterprise. It includes products diversification when the enterprise lets out
the various types of production separate from which aren't connected with
specialization of production and development of new technology demands often;
diversification of capital investments on regions and types of production;
diversification of financial assets — acquisition of different types of
securities.
Acquisition of
information on a choice and results.
Information plays an important role at decrease in degree of risk. The
businessman often should make risk decisions when results of capital
investments aren't defined and based on limited information. If it had fuller
information, it could make more exact forecast and reduce risk.
Limitation is an establishment of a limit, i.e. the limit sums of expenses, sales,
the credit, etc. Limitation is important reception of decrease in degree of risk
and is applied by banks at issue of loans. It is applied by managing subjects
at sale of goods on credit, granting loans, determination of the sums of
capital investments, etc.
References
1.
John Adams,
RISK, Routledge 1995
2.
David
Hillson; Ruth Murray-Webster (30 March 2007). Understanding and Managing Risk Attitude. Gower Publishing, Ltd. ISBN 978-0-566-08798-1. Retrieved 17 April 2012.
3. Kowert, P.A., & Hermann, M.G. (1997).
"Who takes risks? Daring and caution in foreign policy making". Journal od Conflict Resolution 411 (5):
611–37.doi:10.1177/0022002797041005001. JSTOR 174466.
4. Станиславчик Е.Н Риск-менеджмент на
предприятии. Теория и практика. – М.: «Ось-89»,2002.-80 с.
5. Гончаренко Л.П. Риск-менеджмент:
учебное пособие / Под ред. д-ра тех. наук, проф., засл. деятеля науки РФ Е.А.
Олейникова; Л.П. Гончаренко, С.А. Филин. – 2-е изд, стер. – М.: КНОРУС, 2007. –
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