Risk management strategy

: pp. 65 - 74
Kyiv national university of trade and economics

The purpose of the article is to determine the content of the risk management strategy and methodical approaches to formation her at domestic enterprises.

To achieve this goal, the following tasks were identified: clarification of the contents of the risk management strategy; formalization of the main models that determine the strategic behavior of risk management; approaches to the formation of risk management strategy; analysis of factors influencing the strategy of risk management; definition of the tasks of strategic risk-management of the enterprise.

Research results. Strategic risk management forms part of the overall strategy for enterprise development. The risk is considered in relation to the intended result, it determines the possibility of deviation from the foreseen goals for which the chosen alternative is carried out. The risk management strategy is based on strategic goals and objectives that are determined by the analysis of the external and internal environment of the enterprise and the external and internal context of risk.

Risk management strategy refers to the direction and method of using funds to achieve the goal in accordance with the defined risk appetite. This method corresponds to a certain set of rules and limitations to make a decision. Strategic risk management is implemented at the highest level and permeates the entire company.

There are two main models that formalize the strategic behavior of risk management: the strategy of maximizing profits while limiting the level of risk and the strategy of minimizing the risk of maintaining a profitability indicator at a certain level, not below the given level.

There are four approaches to the formation of a risk management strategy: conservative, maximizer, manager and pragmatist. The main characteristics of risk management in strategic management are considered, depending on these approaches, which determine the attitude to risk of decision-makers.

Clarifying the context of risk means defining internal and external parameters that will be taken into account when dealing with risks, as well as defining the scope and risk criteria for their reflection in the risk management strategy. Among these factors, some of them have a key strategic importance and their analysis is important for the formation of a risk management strategy.

The formation of a risk management strategy involves defining KPIs (Key Performance Indicators) and KRIs (Key Risk Indicators). KPI and KRI have differences, the first is responsible for business efficiency, and the second is for the risk of getting this efficiency. KRIs must be consistent with business strategy, KRIs are more risk-oriented. Risk appetite sets the company’s perceived risk level, which includes policies, processes, controls, and systems that help you set up, transfer, and control the appetite for risk in an organization. KPI and KRI are determined depending on the goals, objectives and risk appetite of the enterprise environment and its context of risk analysis.

Conclusions. The proposed approach to the formation of a risk-management strategy serves as the basis for justifying the areas of treatment, that is, the conscious influence on risk. The risk management strategy allows you to concentrate on options for solutions that do not contradict the adopted strategy, rejecting all other options.

  1. 1. Barton T.L., SHenkir U.G., Uoker P.L. (2008) Risk-menedzhment. Praktika vedushchikh kompaniy [Risk management. The practice of leading companies]. М.: Izdatel'skiy dom "Vil'yams" (in Russian)
    2. Vyatkin V. N., Gamza V. A., Mayevskiy F. V. (2016) Risk-menedzhment [Risk management. The practice of leading companies]. М.: Izdatel'stvo YUrayt (in Russian)
    3. Andrieieva T. Ye., Petrovska T. E. (2005) Ryzyk u rynkovii ekonomitsi [Risk in a market economy]. Kharkiv: "Burun y K" (in Ukrainian)
    4. Verbytska H. L. (2016) Vplyv chynnykiv investytsiinoho ryzyku na rozvytok vitchyznianykh mashynobudivnykh pidpryiemstv [Influence of investment risk factors on the development of domestic machine-building enterprises] Visnyk Natsionalnoho universytetu "Lvivska politekhnika". Problemy ekonomiky ta upravlinnia, No 847, pp. 35-41. (in Ukrainian)
    5. Starostina A. O., Kravchenko V. A. (2018) Ryzyk-menedzhment : teoriia ta praktyka [Risk management: theory and practice]. K.: IVTs "Vydavnytstvo "Politekhnika" (in Ukrainian)
    6. Klymenko S. M. (2013) Osoblyvosti upravlinnia ryzykamy rozvytku pidpryiemstva [Features of enterprise development risk management] Stratehiia ekonomichnoho rozvytku Ukrainy, No 32, pp. 24-29. (in Ukrainian)
    7. Vasylieva T. A., Lieonov S.V., Kryvych Ya.M. et al. (2015) Ekonomichnyi ryzyk : metody otsinky ta upravlinnia [Economic risk: methods of assessment and management]. Sumy : DVNZ "UABS NBU" (in Ukrainian)
    8. Lukianova V.V., Holovach T.V. (2007) Ekonomichnyi ryzyk [Economic risk]. K.: VTs "Akademiia" (in Ukrainian)
    9. Vitlinskyi V. V., Velykoivanenko H. I. (2004) Ryzykolohiia v ekonomitsi ta pidpryiemnytstvi [Riskology in Economics and Entrepreneurship]. K.: KNEU (in Ukrainian)
    10. Pikus R.V. (2010) Upravlinnia finansovymy ryzykamy [Financial Risk Management]. K. : Znannia (in Ukrainian)
    11. Kravchenko V., Kryzhanovska H. (2017) Upravlinnia finansovo-ekonomichnymy ryzykamy pidpryiemstva na osnovi dovhostrokovoi modeli rozvytku [Management of financial and economic risks of the enterprise on the basis of long- term model of development] Naukovyi visnyk [Odeskoho natsionalnoho ekonomichnoho universytetu], No 3, pp. 82-102. (in Ukrainian) 
    12. ISO/IEC GUIDE 73:2002. Risk management-Vocabulary - Guidelines for use in standards. International Organization for Standardization, 2002.
    13. Willis Re Managing Extremes (2010) Planyyrovanye y postroenye prohrammy upravlenyia ryskamy predpryiatyia (ERM) na osnove peredovoi hlobalnoi praktyky, Oktiabr, 2010. [Planning and Building an Enterprise Risk Management Program     (ERM)     Based     on     Global     Best     Practices,     October,     2010].           Retrieved from: URL: https://riskviews.files.wordpress.com/2012/01/281010-erm_intro_kazak_rus... (in Russian)
    14. Sergio Scandizzo Risk Mapping and Key Risk Indicators in Operational Risk Management. Economic Notes, 2005, vol. 34, issue 2, pp. 231-256.