Year: 2023 | Month: December | Volume 68 | Issue 4
Risk Management Strategies in the Global Business Environment: Analysis of Complex Dependencies and Effectiveness of Measures
Maryna Baldzhy
Kateryna Khavrova
Olga Guseva
Alona Goloborodko and Anastasia Artyomova
DOI:10.46852/0424-2513.4.2023.20
Abstract:
The study investigates risk management strategies within the global business environment, focusing on
the analysis of intricate dependencies and the efficacy of corresponding measures. The significance of
this research arises from the contemporary reality wherein the business environment contends with a
multitude of influential factors capable of altering the organizational dynamics of the business realm.
Consequently, enterprises and companies must cultivate preparedness for diverse factors that threaten
their sustained viability. The article deliberates on risk management strategies within the global business
environment, emphasizing the analysis of complex dependencies and the effectiveness of implemented
measures. The significance of risk management in the current stage of development is delineated. The
essence of risk management strategies is explicitly defined, and factors that possess the potential to impact
the operational dynamics of enterprises adversely are systematically examined. The paper outlines various
methods of risk management planning, including acceptance, transfer, avoidance, and reduction. The
specific application nuances of each method are expounded upon. Additionally, the interrelationship
between risk management methods and strategies is delineated, providing clarity on their respective roles
and contributions. The examination of risk management strategies encompasses the analysis of specific
approaches, namely the one percent strategy, stop-loss and take-profit order strategy, diversification and
hedging, exit strategy, and research strategy. The study identifies the predominant domains wherein each
strategy is frequently employed, elucidating their fundamental characteristics and discerning their impact
on alterations within the company’s operations. Furthermore, illustrative examples of these strategies are
provided to enhance understanding. The summary of risk management strategy implementation in the
enterprise’s activities is presented, elucidating the principal aspects, stages, and procedural framework.
The determination of the impact of implementation on the company’s operations and its capacity to
mitigate risks is systematically addressed
Highlights
- The article explores the multifaceted nature of risk management strategies in the global business environment, emphasizing the need for organizations to proactively identify and employ measures to mitigate risks arising from political, economic, and social factors.
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