financial risk. Financial risk management at the enterprise Elements of the financial risk management system

Content

1. The concept of risk, types of risks

1.1. Risk system.

1.2. Classification of financial risks.

1.3. Methods for assessing the degree of risk.

2. Essence and content of risk management.

2.1. The structure of the risk management system.

2.2. Risk management functions.

3. Organization of risk management.

3.1. Stages of risk management organization.

3.2. Features of the choice of strategy and methods for solving managerial problems.

3.3. Basic rules of risk management.

4. Financial risk management methods.

5. Ways to reduce financial risk.

List of used literature.

1. The concept of risk, types of risks.

1.1. Risk system.

The purpose of entrepreneurship is to obtain maximum income with minimal capital expenditure in a competitive environment. The implementation of this goal requires a comparison of the size of the capital invested (advanced) in production and trade activities with the financial results of this activity.

At the same time, in the implementation of any type of economic activity, there is objectively a danger (risk) of losses, the volume of which is determined by the specifics of a particular business. Risk- This the probability of losses, damages, shortfalls in planned income, profit. Losses occurring in entrepreneurial activity can be divided into material, labor, financial.

For a financial manager, risk is the probability of an unfavorable outcome. Different investment projects have a different degree of risk, the most highly profitable option for investing capital can turn out to be so risky that, as they say, “the game is not worth the candle”.

Risk is an economic category. As an economic category, it represents an event that may or may not occur. In the event of such an event, three economic outcomes are possible: negative (loss, damage, loss); null; positive (gain, benefit, profit).

Risk is an action performed in the hope of a happy outcome on the principle of “lucky or not lucky”.

Of course, the risk can be avoided, i.e. simply avoid risky activities. However, for an entrepreneur, avoiding risk often means giving up potential profits. A good proverb says: "Who does not risk, he has nothing."

Risk can be managed, i.e. use various measures that allow, to a certain extent, to predict the onset of a risk event and take measures to reduce the degree of risk. The effectiveness of the organization of risk management is largely determined by the classification of risk.

The classification of risks should be understood as their distribution into separate groups according to certain characteristics in order to achieve certain goals. Science-based risk classification allows you to clearly determine the place of each risk in their overall system. It creates opportunities for the effective application of appropriate risk management methods and techniques. Each risk has its own risk management technique.

The qualification system of risks includes categories, groups, types, subspecies and varieties of risks.

Depending on the possible As a result (risk event), risks can be divided into two large groups: pure and speculative.

Pure risks means the possibility of obtaining a negative or zero result. These risks include: natural, environmental, political, transport and part of commercial risks (property, production, trade).

Speculative risks expressed in the possibility of obtaining both positive and negative results. These include financial risks that are part of commercial risks.

Depending on the underlying cause(basic or natural feature), risks are divided into the following categories: natural, environmental, political, transport and commercial.

Commercial risks represent a risk of losses in the process of financial and economic activity. They mean the uncertainty of the result of the given commercial transaction.

On a structural basis, commercial risks are divided into property, production, trade, financial.

Property risks - these are risks associated with the probability of loss of property of a citizen-entrepreneur due to theft, sabotage, negligence, overvoltage of technical and technological systems, etc.

Production risks - these are the risks associated with a loss from stopping production due to the influence of various factors and, above all, with the loss or damage of fixed and working capital (equipment, raw materials, transport, etc.), as well as the risks associated with the introduction of new equipment into production and technology.

Trading risks represent risks associated with loss due to delayed payments, refusal to pay during the period of transportation of goods, non-delivery of goods, etc.

1.2. Classification of financial risks.

financial risk arises in the process of relations between an enterprise and financial institutions (banks, financial, investment, insurance companies, stock exchanges, etc.). The reasons for financial risk are inflationary factors, growth in bank discount rates, depreciation of securities, etc.

Financial risks are divided into two types:

risks associated with the purchasing power of money;
risks associated with capital investment (investment risks).

The risks associated with the purchasing power of money include the following types of risks: inflationary and deflationary risks, currency risks, liquidity risk.

Inflation means the depreciation of money and, consequently, the rise in prices. Deflation is a process that is the opposite of inflation, it is expressed in a decrease in prices and, accordingly, in an increase in the purchasing power of money.

inflation risk - it is the risk that, as inflation rises, cash incomes received depreciate in terms of real purchasing power faster than they rise. In such conditions, the entrepreneur bears real losses.

deflationary risk is the risk that, as deflation increases, the price level will fall, economic conditions for business will worsen, and incomes will decline.

Currency risks represent a risk of currency losses associated with a change in the exchange rate of one foreign currency against another in the course of foreign economic, credit and other foreign exchange transactions.

Liquidity risks - these are risks associated with the possibility of losses in the sale of securities or other goods due to a change in the assessment of their quality and use value.

Investment risks include the following sub-types of risks:

the risk of lost profits;
the risk of lower returns;
risk of direct financial losses.

Risk of lost profit - this is the risk of indirect (collateral) financial damage (lost profit) as a result of the failure to carry out any activity (for example, insurance, hedging, investment, etc.).

Return risk may arise as a result of a decrease in the amount of interest and dividends on portfolio investments, on deposits and loans.

Portfolio investments are associated with the formation of an investment portfolio and represent the acquisition of securities and other assets. The term "portfolio" comes from the Italian "Porte foglio" in the sense of the totality of securities that an investor has.

Yield downside risk includes the following varieties: interest rate risks and credit risks.

To interest rate risks includes the risk of losses by commercial banks, credit institutions, investment institutions as a result of the excess of interest rates paid by them on attracted funds over rates on loans granted. Interest risks also include the risks of losses that investors may incur due to changes in dividends on shares, interest rates on the market for bonds, certificates and other securities.

An increase in the market rate of interest leads to a decrease in the market value of securities, especially bonds with a fixed interest rate. With an increase in interest, a massive dumping of securities issued at lower fixed interest rates and, under the terms of issue, early accepted back by the issuer, may also begin. The interest rate risk is borne by an investor who has invested in medium-term and long-term fixed-interest securities with a current increase in the average market interest compared to the fixed level. In other words, the investor could receive an increase in income due to an increase in interest, but cannot release his funds invested on the above conditions.

The interest rate risk is borne by the issuer issuing mid-term and long-term fixed-interest securities in circulation at the current decrease in the average market interest in comparison with the fixed level. In other words, the issuer could raise funds from the market at a lower interest rate, but he is already bound by the issue of securities he made.

This type of risk, given the rapid growth of interest rates in the face of inflation, is also important for short-term securities.

Credit risk- the danger of non-payment by the borrower of the principal and interest due to the creditor. Credit risk also includes the risk of such an event in which the issuer that issued debt securities will be unable to pay interest on them or the principal amount of the debt.

Credit risk can also be a type of direct financial loss risk.

Risks of direct financial losses include the following varieties: stock risk, selective risk, bankruptcy risk, and credit risk.

Exchange risks represent the risk of losses from exchange transactions. These risks include: the risk of non-payment on commercial transactions, the risk of non-payment of commission fees of a brokerage firm, etc.

Selective risks(from lat. selectio - choice, selection) - these are the risks of choosing the wrong method of investing capital, the type of securities for investment in comparison with other types of securities when forming an investment portfolio.

Bankruptcy risk represents a danger as a result of the wrong choice of the method of investing capital, the complete loss by the entrepreneur of his own capital and his inability to pay for his obligations. As a result, the entrepreneur becomes bankrupt.

Financial risk is a function of time. As a rule, the degree of risk for a given financial asset or investment option increases over time. For example, the importer's losses today depend on the time from the moment of the conclusion of the contract to the date of payment for the transaction, as the foreign exchange rates against the Russian ruble continue to grow.

In foreign practice, it is proposed to use a tree of probabilities as a method for quantitatively determining the risk of investing capital.

This method allows you to accurately determine the likely future cash flows of an investment project in relation to the results of previous periods of time. If a capital investment project is acceptable in the first period of time, then it may also be acceptable in subsequent periods of time.

If it is assumed that cash flows in different time periods are independent of each other, then it is necessary to determine the probable distribution of the results of cash flows for each time period.

In the case when there is a connection between cash flows in different periods of time, it is necessary to accept this dependence and, on its basis, present future events as they can happen.

1.3. Methods for assessing the degree of risk.

Many financial transactions (venture investment, purchase of shares, selling transactions, credit transactions, etc.) are associated with a rather significant risk. They require to assess the degree of risk and determine its magnitude.

The degree of risk is the probability of a loss occurring, as well as the amount of possible damage from it.

The risk may be:

admissible - there is a threat of complete loss of profit from the implementation of the planned project;
Critical - non-receipt of not only profits, but also revenues and coverage of losses at the expense of the entrepreneur's funds are possible;
catastrophic - possible loss of capital, property and bankruptcy of the entrepreneur.

Quantitative Analysis- this is the determination of the specific amount of monetary damage to individual subspecies of financial risk and financial risk in the aggregate.

Sometimes a qualitative and quantitative analysis is carried out on the basis of an assessment of the influence of internal and external factors: an element-by-element assessment of the share of their influence on the work of a given enterprise and its monetary value is carried out. This method of analysis is quite laborious from the point of view of quantitative analysis, but brings its undoubted results in qualitative analysis. In connection with this, more attention should be paid to the description of methods for quantitative analysis of financial risk, since there are many of them and some skill is required for their competent application.

In absolute terms, the risk can be determined by the amount of possible losses in material (physical) or cost (monetary) terms.

In relative terms, risk is defined as the amount of possible losses related to a certain base, in the form of which it is most convenient to take either the property state of the enterprise, or the total cost of resources for this type of entrepreneurial activity, or the expected income (profit). Then we will consider losses as a random deviation of profit, income, revenue in the direction of decrease. compared to expected values. Entrepreneurial loss is primarily an accidental decrease in entrepreneurial income. It is the magnitude of such losses that characterizes the degree of risk. Hence, risk analysis is primarily associated with the study of losses.

Depending on the magnitude of probable losses, it is advisable to divide them into three groups:

Losses, the value of which does not exceed the estimated profit, can be called admissible;
Losses, the value of which is greater than the estimated profit, are classified as critical - such losses will have to be compensated from the pocket of the entrepreneur;
Even more dangerous is the catastrophic risk, in which the entrepreneur risks incurring losses in excess of all his property.

If it is possible to predict in one way or another, to assess the possible losses from this operation, then a quantitative assessment of the risk that the entrepreneur is taking has been obtained. By dividing the absolute value of possible losses by the estimated cost or profit, we obtain a quantitative risk assessment in relative terms, in percent.

Speaking about the fact that the risk is measured by the magnitude of the possible. possible losses, the random nature of such losses should be taken into account. The probability of an event occurring can be determined by an objective method and a subjective one.

The objective method is used to determine the probability of an event occurring based on a calculation of the frequency with which the event occurs.

The subjective method is based on the use of subjective criteria, which are based on various assumptions. Such assumptions may include the appraiser's judgment, his personal experience, the assessment of the rating expert, the opinion of the auditor-consultant, etc.

Thus, the assessment of financial risks is based on finding the relationship between certain amounts of losses of the enterprise and the probability of their occurrence. This dependence finds expression in the construction the probability curve for the occurrence of a certain level of loss.

The construction of the curve is an extremely difficult task, requiring sufficient experience of knowledge from employees dealing with financial risk issues. To construct a probability curve for the occurrence of a certain level of losses (risk curve), various ways: statistical; cost feasibility analysis; method of expert assessments; analytical method; analogy method. Among them, three should be highlighted: the statistical method, the method of expert assessments, and the analytical method.

Essence statistical method consists in the fact that the statistics of losses and profits that have taken place in a given or similar production are studied, the magnitude and frequency of obtaining one or another economic return is established, and the most probable forecast for the future is made.

Undoubtedly, risk is a probabilistic category, and in this sense it is most reasonable from scientific positions to characterize and measure it as the probability of a certain level of losses occurring. Probability means the possibility of obtaining a certain result.

Financial risk, like any other, has a mathematically expressed probability of a loss, which is based on statistical data and can be calculated with a fairly high accuracy.

To quantify the amount of financial risk, it is necessary to know all the possible consequences of any individual action and the likelihood of the consequences themselves.

As applied to economic problems, the methods of probability theory are reduced to determining the values of the probability of occurrence of events and to the choice of the most preferable possible events based on the largest value of the mathematical expectation, which is equal to the absolute value of this event multiplied by the probability of its occurrence.

The main tools of the statistical method for calculating financial risk: variation, variance and standard (root mean square) deviation.

Variation - change in quantitative indicators when moving from one result option to another.

Dispersion- a measure of the deviation of actual knowledge from its average value.

Thus, the magnitude of the risk, or the degree of risk, can be measured by two criteria: the average expected value, the volatility (variability) of the possible outcome.

The mean expected value is that value of the event magnitude that is associated with the uncertain situation. It is a weighted average of all possible outcomes, where the probability of each outcome is used as the frequency, or weight, of the corresponding value. Thus, the result that is supposedly expected is calculated.

· Cost-benefit analysis focused on identifying potential risk areas, taking into account the company's financial stability indicators. In this case, you can simply get by with standard methods of financial analysis of the results of the activities of the main enterprise and the activities of its counterparties (bank, investment fund, client enterprise, issuing enterprise, investor, buyer, seller, etc.)
· Method of expert assessments usually implemented by processing the opinions of experienced entrepreneurs and professionals. It differs from statistical only in the method of collecting information to build a risk curve.

This method involves the collection and study of estimates made by various specialists (of the enterprise or external experts) of the probabilities of occurrence of various levels of losses. These estimates are based on taking into account all financial risk factors, as well as statistical data. The implementation of the method of expert assessments is much more complicated if the number of assessment indicators is small.

· Analytical method building a risk curve is the most difficult, since the elements of game theory underlying it are available only to very narrow specialists. A subspecies of the analytical method is more commonly used - model sensitivity analysis.

Model sensitivity analysis consists of the following steps: selection of a key indicator against which sensitivity is assessed (internal rate of return, net present value, etc.); choice of factors (inflation rate, the degree of the state of the economy, etc.); calculation of key indicator values at various stages of the project implementation (purchase of raw materials, production, sales, transportation, capital construction, etc.). The sequences of costs and receipts of financial resources formed in this way make it possible to determine the flows of funds of funds for each moment (or period of time), i.e. define performance indicators. Diagrams are constructed that reflect the dependence of the selected resulting indicators on the value of the initial parameters. Comparing the obtained diagrams with each other, it is possible to determine the so-called key indicators that have the greatest influence on the assessment of the profitability of the project.

Sensitivity analysis also has serious drawbacks: it is not comprehensive and does not specify the likelihood of alternative projects being implemented.

· analogy method when analyzing the risk of a new project, it is very useful, since in this case data on the consequences of the impact of adverse financial risk factors on other similar projects of other competing enterprises are examined.

Indexation is a way to preserve the real value of monetary resources (capital) and profitability in the face of inflation. It is based on the use of various indexes.

For example, when analyzing and forecasting financial resources, it is necessary to take into account price changes, for which price indices are used. Price index - an indicator that characterizes the change in prices over a certain period of time.

Thus, the existing methods for constructing a probability curve for the occurrence of a certain level of losses are not entirely equivalent, but one way or another they make it possible to make an approximate assessment of the total amount of financial risk.

2. Essence and content of risk management.

2.1. The structure of the risk management system.

Risk is a financial category. Therefore, the degree and magnitude of risk can be influenced through the financial mechanism. Such an impact is carried out with the help of financial management techniques and a special strategy. Together, the strategy and techniques form a kind of risk management mechanism, i.e. risk management. Thus, risk management is a part of financial management.

Risk management is based on a targeted search and organization of work to reduce the degree of risk, the art of obtaining and increasing income (profit, profit) in an uncertain economic situation.

The ultimate goal of risk management corresponds to the target function of entrepreneurship. It consists in obtaining the greatest profit at the optimal ratio of profit and risk acceptable to the entrepreneur.

Risk management is a system for managing risk and economic, more precisely, financial relations that arise in the process of this management.

Risk management includes strategy and management tactics.

Management strategy refers to the direction and method of using funds to achieve the goal. This method corresponds to a certain set of rules and restrictions for decision making. The strategy allows you to focus on solutions that do not contradict the adopted strategy, discarding all other options. After achieving the goal, the strategy as a direction and means of achieving it ceases to exist. New goals set the task of developing new strategy.

Tactics- these are specific methods and techniques to achieve the goal in specific conditions. The task of management tactics is to choose the optimal solution and the most appropriate management methods and techniques in a given economic situation.

Risk management as a management system consists of two subsystems: a managed subsystem (management object) and a management subsystem (management subject). Schematically, this can be represented as follows.

The object of management in risk management is risk, risky investments of capital and economic relations between business entities.

subjects in the process of risk realization. These economic relations include relations between the insured and the insurer, the borrower and the lender, between entrepreneurs (partners, competitors), etc.

The subject of management in risk management is a special group of people (financial manager, insurance specialist, acquirer, actuary, underwriter, etc.)

The process of the influence of the subject on the object of control, i.e. the control process itself can be carried out only if certain information is circulated between the control and controlled subsystems. The management process, regardless of its specific content, always involves the receipt, transmission, processing and use of information. In risk management, obtaining reliable and sufficient information under the given conditions plays a major role, since it allows you to make a specific decision on actions under risk.

Information support for the functioning of risk management consists of various kinds and types of information: statistical, economic, commercial, financial, etc.

This information includes awareness of the likelihood of an insured event, an insured event, the presence and magnitude of demand for goods, capital, financial stability and solvency of its customers, partners, competitors, prices, rates and tariffs, including for the services of insurers, about insurance conditions, dividends and interest, etc.

Whoever owns the information owns the market. Many types of information are often the subject trade secret. Therefore, certain types of information may be one of the types of intellectual property (know-how) and be made as a contribution to the authorized capital joint-stock company or partnerships.

A highly qualified manager always tries to get any information, even the worst, or some key points of such information, or refusal to talk on this topic (silence is also a language of communication) and use them to his advantage. Information is collected bit by bit. These grains, collected together, already have a full-fledged informational value.

The presence of a financial manager of reliable business information allows him to quickly make financial and commercial decisions, influences the correctness of such decisions, which naturally leads to a reduction in losses and an increase in profits. Proper use of information in transactions minimizes the likelihood of financial loss.

Every decision is based on information. The quality of the information is important. The more vague the information, the more uncertain the decision. The quality of information should be assessed as it is received, not as it is transmitted. Information ages quickly, so it should be used promptly.

An economic entity must be able not only to collect information, but also to store and retrieve it if necessary.

2.2. Risk management functions.

Risk management performs certain functions. There are two types of risk management functions:

functions of the control object;
functions of the subject of management.

The functions of the control object in risk management include the organization:

risk resolution;
risk capital investments;
work to reduce the magnitude of the risk;
risk insurance process;
economic relations and connections between the subjects of the economic process.

The functions of the subject of management in risk management include:

forecasting;
organization;
regulation;
coordination;
stimulation;
the control.

Forecasting in risk management, it is a development for the future of changes in the financial condition of the object as a whole and its various parts. Forecasting is the prediction of a certain event. It does not set the task of directly implementing the developed forecasts in practice. A feature of forecasting is also the alternativeness in the construction of financial indicators and parameters, which determines different options for the development of the financial condition of the control object based on emerging trends. In the dynamics of risk, forecasting can be carried out both on the basis of extrapolation of the past into the future, taking into account expert assessment of the trend of change, and on the basis of direct prediction of changes. These changes may occur unexpectedly. Management based on anticipation of these changes requires the manager to develop a certain flair for the market mechanism and intuition, as well as the use of flexible emergency solutions.

Organization in risk management, it is an association of people who jointly implement a program of risky capital investment based on certain rules and procedures. These rules and procedures include: the creation of management bodies, the construction of the structure of the management apparatus, the establishment of relationships between management units, the development of norms, standards, methods, etc.

Regulation in risk management, it is an impact on the control object, through which the state of stability of this object is achieved in the event of a deviation from the specified parameters. Regulation covers mainly current measures to eliminate the deviations that have arisen.

Coordination in risk management, it is the coordination of the work of all parts of the risk management system, the management apparatus and specialists.

Coordination ensures the unity of relations between the object of management, the subject of management, the management apparatus and the individual employee.

Stimulation in risk management is the motivation of financial managers and other professionals to be interested in the result of their work.

The control in risk management is a check of the organization of work to reduce the degree of risk. Through control, information is collected on the degree of implementation of the planned action program, the profitability of risky capital investments, the ratio of profit and risk, on the basis of which changes are made to financial programs, the organization of financial work, and the organization of risk management. Control involves the analysis of the results of measures to reduce the degree of risk.

3. Organization of risk management.

3.1. Stages of risk management organization.

Risk management in terms of economic content is a system for managing risk and financial relations that arise in the process of this management.

As a management system, risk management includes the process of developing a risk goal and risky capital investments, determining the likelihood of an event occurring, identifying the degree and magnitude of risk, analyzing the environment, choosing a risk management strategy, choosing risk management techniques and methods necessary for this strategy. reduction (i.e. risk management techniques), the implementation of a targeted impact on the risk. These processes together constitute the stages of risk management organization.

The organization of risk management is a system of measures aimed at the rational combination of all its elements in a single technology of the risk management process.

The first step in the organization of risk management is to determine the purpose of the risk and the purpose of risky capital investments. Target risk is the result to be obtained. They can be winnings, profits, income, etc. The purpose of risky investments of capital is to obtain maximum profit.

Any action associated with risk is always purposeful, since the absence of a purpose makes the decision associated with risk meaningless. The goals of risk and risky investments of the wicket must be clear, specific and commensurate with risk and capital.

The next important point in the organization of risk management is obtaining information about the environment, which is necessary to make a decision in favor of a particular action. Based on the analysis of such information and taking into account the goals of risk, it is possible to correctly determine the probability of an event, including an insured event, identify the degree of risk and evaluate its cost. Risk management means a correct understanding of the degree of risk that constantly threatens people, property, financial results economic activity.

It is important for an entrepreneur to know the true cost of risk to which his activity is exposed.

The cost of risk should be understood as the actual losses of the entrepreneur, the costs of reducing the magnitude of these losses or the costs of compensating for such losses and their consequences. A correct assessment by a financial manager of the actual cost of risk allows him to objectively represent the amount of possible losses and outline ways to prevent or reduce them, and if it is impossible to prevent losses, ensure their compensation.

Based on the available information about environment, probability, degree and magnitude of risk, various options for risky investment of capital are developed and their optimality is assessed by comparing the expected profit and the amount of risk.

This allows you to choose the right risk management strategy and techniques, as well as ways to reduce the degree of risk.

At this stage of the organization of risk management, the main role belongs to the financial manager, his psychological qualities. This will be discussed in more detail in the next chapter.

When developing a program of action to reduce risk, it is necessary to take into account the psychological perception of risk decisions. Decision making under risk is a psychological process. Therefore, along with the mathematical validity of decisions, one should keep in mind the psychological characteristics of a person that manifest themselves when making and implementing risky decisions: aggressiveness, indecision, doubts, independence, extraversion, introversion, etc.

The same risky situation is perceived differently by different people. Therefore, the assessment of risk and the choice of financial solution largely depends on the person making the decision. Managers of a conservative type, who are not prone to innovation, who are not confident in their intuition and in their professionalism, who are not confident in the qualifications and professionalism of the performers, usually leave risk. their employees.

Extraversion - there is a property of the individual, manifested in its focus on the surrounding people, events. It is expressed in a high level of sociability, a lively emotional response to external phenomena.

introversion- this is the orientation of the individual to the inner world of his own sensations, experiences, feelings and thoughts. An introverted personality is characterized by some stable features of behavior and relationships with others, reliance on internal norms, self-absorption. Judgments, assessments of introverts are distinguished by significant independence from external factors, reasonableness. Usually a person combines in a certain proportion the traits of extraversion and introversion.

An integral step in the organization of risk management is the organization of activities to implement the planned action program, i.e. determination of certain types of activities, volumes and sources of financing of these works, specific executors, deadlines, etc.

An important stage in the organization of risk management is the control over the implementation of the planned program, the analysis and evaluation of the results of the implementation of the selected option of a risk decision.

The organization of risk management involves the definition of a risk management body for a given economic entity. The risk management body can be a financial manager, a risk manager or the appropriate management apparatus: the insurance operations sector, the venture investment sector, the risk capital investment department, etc. These sectors or departments are structural divisions financial service of an economic entity.

The risk capital investment department, in accordance with the charter of an economic entity, can perform the following functions:

· carrying out venture and portfolio investments, i.е. risky investments of captains in accordance with the current legislation and the charter of an economic entity;
· development of a program of risky investment activities;
collection, processing, analysis and storage of information about the environment;
determination of the degree and cost of risks, strategies and methods of risk management;
· development of a program of risky decisions and organization of its implementation, including control and analysis of results;
· implementation of insurance activities, conclusion of insurance and reinsurance contracts, insurance and reinsurance operations, insurance settlements;
· development of conditions for insurance and reinsurance, establishment of tariff rates for insurance operations;
· performing the function of an emergency commissioner, issuing a guarantee on the guarantee of Russian and foreign insurance companies, indemnifying losses at their expense, instructing other persons to perform similar functions abroad;
· maintaining appropriate accounting, statistical and operational reporting on risky capital investments.

3.2. Features of the choice of strategy and methods for solving managerial problems.

At this stage of the organization of risk management, the main role belongs to the financial manager, his psychological qualities. A financial manager dealing with risk issues (risk manager) should have two rights: the right to choose and the right to be responsible for it.

The right to choose means the right to make the decision necessary to realize the intended purpose of risky investment of capital. The decision must be made by the manager alone. In risk management, due to its specificity, which is primarily due to the special responsibility for taking risk, it is inappropriate, and in some cases even unacceptable collective (group) decision-making, for which no one bears any responsibility. The team that made the decision is never responsible for its implementation. At the same time, it should be borne in mind that a collective decision, due to the psychological characteristics of individual individuals (their antagonism, egoism, political, economic or ideological platform, etc.), is more subjective than a decision made by one specialist.

To manage the risk, specialized groups of people can be created, for example, the insurance operations sector, the venture investment sector, the risk capital investment department (i.e. venture and portfolio investments), etc.

These groups of people can prepare a preliminary collective decision and adopt it by a simple or qualified (ie two-thirds, three-quarters, unanimous) majority vote.

However, one person must finally choose the option of accepting risk and risky investment of capital, since he simultaneously assumes responsibility for this decision.

Responsibility indicates the interest of the person making the risky decision in achieving the goal set by him.

When choosing a risk management strategy and techniques, a specific stereotype is often used, which is formed from the experience and knowledge of a financial manager in the course of his work and serves as the basis for automatic skills in work. The presence of stereotyped actions gives the manager the opportunity to act promptly and in the most optimal way in certain typical situations. In the absence of typical situations, the financial manager must move from stereotypical decisions to the search for optimal, acceptable risk decisions.

Approaches to solving managerial problems can be very diverse, because risk management has many options.

The multivariance of risk management means a combination of the standard and originality of financial combinations, the flexibility and uniqueness of certain methods of action in a particular economic situation. The main thing in risk management is the correct goal setting that meets the economic interests of the managed object.

Risk management is highly dynamic. The effectiveness of its functioning largely depends on the speed of response to changes in market conditions, the economic situation, and the financial condition of the control object. Therefore, risk management should be based on knowledge of standard risk management techniques, on the ability to quickly and correctly assess a specific economic situation, on the ability to quickly find a good, if not the only way out of this situation.

There are no ready-made recipes in risk management and there cannot be. He teaches how, knowing the methods, techniques, ways of solving certain economic problems, to achieve tangible success in a particular situation, making it more or less certain for himself.

A manager's intuition and insight play a special role in solving risky tasks.

Intuition is the ability to directly, as if suddenly, without logical thinking, find the right solution to the problem. An intuitive solution arises as an inner insight, enlightenment of thought, revealing the essence of the issue under study. Intuition is an indispensable component of the creative process. Psychology considers intuition in connection with sensory and logical knowledge and practical activity as direct knowledge in its unity with mediated, previously acquired knowledge.

Insight - it is the realization of a solution to a problem. Subjectively, insight is experienced as an unexpected insight, comprehension. At the moment of the insight itself, the decision is realized very clearly, but this clarity is often of a short-term nature and needs to be consciously fixed on the decision.

3.3. Basic rules of risk management.

Heuristic is a set of logical techniques and methodological rules of theoretical research and search for truth. In other words, these are rules and techniques for solving particularly complex problems.

Of course, heuristics are less reliable and less certain than mathematical calculations. However, it makes it possible to obtain a well-defined solution.

Risk management has its own system of heuristic rules and techniques for making decisions under risk.

BASIC RULES OF RISK MANAGEMENT

1. You can't risk more than your own capital can afford.

2. We need to think about the consequences of the risk.

3. You can't risk a lot for a little.

4. A positive decision is made only when there is no doubt.

5. When there is doubt, negative decisions are made.

6. You cannot think that there is always only one solution. Perhaps there are others.

The implementation of the first rule means that before making a decision on risky capital investment, the financial manager must:

determine the maximum possible loss on this risk;
compare it with the amount of capital injected:
compare it with all its own financial resources and determine whether the loss of this capital will lead to the bankruptcy of this investor.

The amount of loss from capital investment can be equal to the amount of this capital, slightly less or more than it.

With direct investment, the amount of loss is usually equal to the amount of venture capital.

The investor invested 1 million lei in a risky business. The case burned down. The investor lost 1 million lei.

However, taking into account the decrease in the purchasing power of money in conditions of inflation, the volume of losses may be greater than the amount of money invested. In this case, the amount of possible loss should be determined taking into account the inflation index. The investor invested 1 million lei in a risky business, hoping to receive 5 million lei in a year. The case burned down. If a year later the money was not returned, then the amount of loss should be calculated taking into account the inflation index (for example, 220%), i.e. 2.2 million lei (2.2 x 1). In case of direct loss caused by fire, flood, theft, etc., the amount of loss is greater than direct loss of property, since it also includes additional monetary costs for eliminating the consequences of the loss and acquiring new property.

With portfolio investment, i.e. when buying securities that can be sold on the secondary market, the amount of loss is usually less than the amount of capital expended.

The ratio of the maximum possible amount of loss and the amount of the investor's own financial resources represents the degree of risk leading to bankruptcy. It is measured using the risk factor: K=U/S,

where K is the risk factor;

Y - the maximum possible loss, lei;

C - the volume of own financial resources, taking into account exactly known receipts of funds, lei.

The studies of risk measures conducted by the author allow us to conclude that the optimal risk ratio is 0.3, and the risk ratio leading to the bankruptcy of the investor is 0.7 or more.

The implementation of the second rule requires that the financial manager, knowing the maximum possible loss, determine what it can lead to, what is the probability of the risk, and make a decision to abandon the risk (i.e., from the event), accept the risk on his own responsibility, or transferring the risk to another person.

The action of the third rule is especially pronounced in the transfer of risk, i.e. with insurance. In this case, it means that the financial manager must determine and choose the ratio between the insurance premium and the sum insured that is acceptable to him. The insurance premium is the payment of the insured to the insurer for the insurance risk. The sum insured is the amount of money for which material assets, liability, life and health of the insured are insured. The risk must not be withheld, i.e. the investor should not take the risk if the loss is relatively large compared to the savings on insurance premium.

The implementation of the remaining rules means that in a situation for which there is only one solution (positive or negative), one must first try to find other solutions. Perhaps they really exist. If the analysis shows that there are no other solutions, then they act according to the rule “based on the worst”, i.e. if in doubt, then take a negative decision.

4. Financial risk management methods.

The key to survival and the basis of the stable position of the enterprise is its stability. There are the following facets of sustainability: general, price, financial, etc. Financial stability is the main component of the overall sustainability of the enterprise.

Financial stability of the enterprise - this is such a state of its financial resources, their redistribution and use, when the development of the enterprise on the basis of its own profit and the growth of capital are ensured while maintaining its solvency and creditworthiness under conditions of an acceptable level of financial risk.

Thus, the task of the financial manager is to bring into line the various parameters of the financial stability of the enterprise and the overall level of risk.

The purpose of financial risk management is to reduce the losses associated with this risk to a minimum. Losses can be evaluated in monetary terms, and steps to prevent them are also evaluated. The financial manager must balance these two assessments and plan how best to close the deal from a position of minimizing risk.

In general, methods of protection against financial risks can be classified depending on the object of influence into two types: physical protection, economic protection. Physical protection consists in the use of such means as alarms, the purchase of safes, product quality control systems, data protection from unauthorized access, hiring security guards, etc.

Economic protection consists in forecasting the level of additional costs, assessing the severity of possible damage, using the entire financial mechanism to eliminate the threat of risk or its consequences.

In addition, four methods of risk management are well known: elimination, loss prevention and control, insurance, absorption.

abolition is to avoid taking risks. But for financial entrepreneurship, the elimination of risk usually eliminates profit.
Loss prevention and control as a method of managing financial risk means a certain set of preventive and subsequent actions that are due to the need to prevent negative consequences, protect yourself from accidents, control their size if losses already occur or are inevitable.
Essence insurance expressed in the fact that the investor is ready to give up part of the income, just to avoid risk, i.e. he is willing to pay to reduce the risk to zero.

Insurance is characterized by the intended purpose of the created monetary fund, the expenditure of its resources only to cover losses in predetermined cases; the probabilistic nature of the relationship; return of funds. Insurance as a risk management method means two types of actions: 1) redistribution of losses among a group of entrepreneurs exposed to the same type of risk (self-insurance); 2) seeking help from an insurance company.

Large firms usually resort to self-insurance, ie. a process in which an organization, often exposed to the same type of risk, sets aside funds in advance, from which, as a result, it covers losses. This way you can avoid a costly deal with the insurance company.

When insurance is used as a service of the credit market, this obliges the financial manager to determine the ratio between the insurance premium and the sum insured that is acceptable to him. An insurance premium is a payment for the insured risk of the insured to the insurer. The sum insured is the amount of money for which material assets or the liability of the insured are insured.

Absorption consists in acknowledging damage and refusing to insure it. Absorption is resorted to when the amount of the alleged damage is insignificantly small and can be neglected.

When choosing a specific means of resolving financial risk, the investor should proceed from the following principles:

you can not risk more than your own capital can afford;
one cannot risk much for the sake of little;
the consequences of risk must be foreseen.

The application of these principles in practice means that it is always necessary to calculate the maximum possible loss for a given type of risk, then compare it with the amount of capital of the enterprise exposed to this risk, and then compare the entire possible loss with the total amount of own financial resources. And only by taking the last step, it is possible to determine whether this risk will lead to the bankruptcy of the enterprise.

5. Ways to reduce financial risk.

The high degree of financial risk of the project leads to the need to find ways to artificially reduce it.

Risk Reduction - it is a reduction in the probability and extent of losses.

Various methods are used to reduce the degree of risk. The most common are:

diversification;
acquisition of additional information about the choice and results;
limiting;
self-insurance;
insurance;
currency risk insurance;
hedging;
acquisition of control over activities in related areas;
accounting and evaluation of the share of use of specific funds of the company in its general funds, etc.

Diversification is the process of distributing capital among various investment objects that are not directly related to each other.

Diversification allows you to avoid part of the risk in the distribution of capital between various activities. For example, the purchase by an investor of shares of five different joint-stock companies instead of shares of one company increases the probability of receiving an average income by five times and, accordingly, reduces the degree of risk by five times.

Diversification is the most reasonable and relatively less costly way to reduce the degree of financial risk.

Diversification is the dispersion of investment risk. However, it cannot reduce investment risk to zero. This is due to the fact that entrepreneurship and investment activities of an economic entity are influenced by external factors that are not related to the choice of specific objects of capital investment, and, therefore, they are not affected by diversification.

External factors affect the entire financial market, i.e. they affect financial activity all investment institutions, banks, financial companies, and not on individual business entities.

To external factors include the processes taking place in the country's economy as a whole, military operations, civil unrest, inflation and deflation, changes in the discount rate of the Bank of Russia, changes in interest rates on deposits, loans in commercial banks, etc. The risk posed by these processes cannot be reduced by diversification.

Thus, risk consists of two parts: diversifiable and non-diversifiable risk.

diversifiable risk, also called non-systematic, can be eliminated by dispersing it, i.e. diversification.

non-diversifiable risk also called systematic, cannot be reduced by diversification.

Moreover, studies show that the expansion of capital investment objects, i.e. risk dispersion, allows you to easily and significantly reduce the amount of risk. Therefore, the focus should be on reducing the degree of non-diversifiable risk.

To this end, the foreign economy has developed the so-called "portfolio theory". Part of this theory is the model of linking systematic risk and return on securities (Capital Asset Pricing Model - САРМ)

Information plays important role in risk management. A financial manager often has to make risky decisions when the results of an investment are uncertain and based on limited information. If he had more complete information, then he could make a more accurate forecast and reduce the risk. This makes information a commodity, and a very valuable one at that. The investor is willing to pay for complete information.

Limiting - this is the setting of a limit, i.e. limits on expenses, sales, loans, etc. Limiting is an important technique for reducing the degree of risk and is used by banks when issuing loans, when concluding an overdraft agreement, etc. It is used by business entities when selling goods on credit, providing loans, determining the amount of capital investment, etc.

self-insurance means that the entrepreneur prefers to insure himself than to buy insurance from an insurance company. Thus, he saves on insurance capital costs. Self-insurance is a decentralized form of creating in-kind and insurance (reserve) funds directly in an economic entity, especially in those whose activities are at risk.

The creation by an entrepreneur of a separate fund for compensation of possible losses in the production and trade process expresses the essence of self-insurance. The main task of self-insurance is to promptly overcome temporary difficulties in financial and commercial activities. In the process of self-insurance, various reserve and insurance funds are created. These funds, depending on the purpose of the appointment, can be created in kind or in cash.

So, farmers and other subjects of agriculture create, first of all, natural insurance funds: seed, fodder, etc. Their creation is caused by the likelihood of adverse climatic and natural conditions.

Reserve cash funds are created primarily in case of covering unforeseen expenses, accounts payable, expenses for the liquidation of an economic entity. Their creation is obligatory for joint-stock companies.

Joint-stock companies and enterprises with the participation of foreign capital are required by law to create a reserve fund in the amount of at least 15% and not more than 25% of authorized capital.

The joint-stock company also credits share premium to the reserve fund, i.e. the sum of the difference between the sale and par value of the shares received from their sale at a price exceeding the par value. This amount is not subject to any use or distribution, except in cases of sale of shares at a price below par value.

The reserve fund of a joint-stock company is used to finance contingencies, including the payment of interest on bonds and dividends on preferred shares in case of insufficient profit for these purposes.

Economic entities and citizens for the insurance protection of their property interests can create mutual insurance companies.

The most important and most common method of risk reduction is risk insurance.

The essence of insurance is expressed in the fact that the investor is ready to give up part of his income in order to avoid risk, i.e. he is willing to pay to reduce the risk to zero.

Hedging(English) healing - to protect) is used in banking, exchange and commercial practice to refer to various methods of insuring currency risks. So, in the book by Dolan E. J. et al. “Money, Banking and Monetary Policy”, this term is defined as follows: “Hedging is a system for concluding futures contracts and transactions that takes into account probable future changes in exchange rates and pursues the goal avoid the adverse effects of these changes.” In the domestic literature, the term "hedging" began to be used in more broad sense as risk insurance against adverse price changes for any inventory items under contracts and commercial transactions involving the supply (sale) of goods in future periods.

The contract, which serves to insure against the risks of changes in exchange rates (prices), is called a “hedge” (eng. hedge - fence, fence). An entity that performs hedging is called a “hedger”. There are two hedging operations: hedging for an increase; down hedging.

Hedging up, or buy hedging, is an exchange transaction for the purchase of futures contracts or options. An upward hedge is used in cases where it is necessary to insure against a possible increase in prices (rates) in the future. It allows you to set the purchase price much earlier than the actual product was purchased. Suppose that the price of a commodity (the exchange rate or securities) will increase in three months, and the commodity will be needed precisely in three months. To compensate for the losses from the expected increase in prices, it is necessary to buy a futures contract related to this commodity now at today's price and sell it in three months at the moment when the commodity is purchased. Since the price of the commodity and the futures contract associated with it changes proportionally in the same direction, the previously purchased contract can be sold at a higher price by almost the same amount as the price of the commodity has increased by that time. Thus, a hedger who hedges up insures himself against possible increase prices in the future.

hedging down, or hedging by sale is an exchange transaction with the sale of a futures contract. A down hedging hedger expects to sell a commodity in the future, and therefore, by selling a futures contract or option on the exchange, he insures himself against a possible price decline in the future. Suppose that the price of a commodity (exchange rate, securities) decreases after three months, and the commodity will need to be sold after three months. To compensate for the expected losses from the price decrease, the hedger sells a futures contract today at a high price, and when selling his commodity three months later, when the price of it has fallen, he buys the same futures contract at a lower (almost the same) price. Thus, a short hedge is used when a commodity needs to be sold at a later date.

A hedger seeks to reduce the risk caused by market price uncertainty by buying or selling futures contracts. This makes it possible to fix the price and make income or expenses more predictable. However, the risk associated with hedging does not disappear. It is taken over by speculators, i.e. entrepreneurs who take a certain, pre-calculated risk.

Speculators in the futures market play a big role. By taking on risk in the hope of making a profit when playing on the price difference, they act as a price stabilizer. When buying futures contracts on the stock exchange, the speculator pays a guarantee fee, which determines the amount of the speculator's risk. If the price of the goods (exchange rate, securities) has decreased, then the speculator who bought the contract earlier loses an amount equal to the guarantee fee. If the price of the commodity has risen, the speculator returns the amount equal to the guarantee fee and receives additional income from the difference in the prices of the commodity and the purchased contract.

findings

Financial risk is the risk of losing money.
Financial risks are part of commercial risks and are speculative risks.
Financial risks include credit, interest rate, currency risks and risks of lost financial benefits.
The criteria for the degree of risk are the average expected value and the variability of the possible result.
Means of risk reduction: risk avoidance, risk containment, risk transfer.
Ways to reduce the degree of risk: diversification, acquisition of additional information, limiting, insurance, hedging.

LIST OF USED LITERATURE

Balabanov I.T. Financial management: Textbook. - Moscow. Finance and Statistics, 1994.
Financial management: theory and practice: Textbook / ed. E.S. Stoyanova. - Moscow: Prospect, 1996.
Lyalin V.A., Vorobyov P.V. Financial management (company financial management). - St. Petersburg: Youth, 1994.
J. K. Van Horn. Fundamentals of financial management - Moscow. Finance and Statistics, 1996.

The financial stability of an enterprise is such a state of it, their redistribution and use, when the development of the enterprise on the basis of its own profit and the growth of capital are ensured while maintaining its solvency and creditworthiness under conditions of an acceptable level of financial risk.

Thus, the task of the financial manager is to bring into line the various parameters of the financial stability of the enterprise and the overall level of risk.

In addition, four methods of risk management are well known: elimination, loss prevention and control, insurance, absorption.

1. The abolition consists in the refusal to commit a risky event. But for financial entrepreneurship, the elimination of risk usually eliminates profit.

2. Loss prevention and control as a method of financial risk management means a certain set of preventive and subsequent actions that are due to the need to prevent negative consequences, protect yourself from accidents, control their size if losses already occur or are inevitable.

3. The essence of insurance is expressed in the fact that the investor is ready to give up part of the income, just to avoid risk, i.e. he is willing to pay to reduce the risk to zero.

4. Absorption consists in acknowledging the damage and refusing to insure it. Absorption is resorted to when the amount of the alleged damage is insignificantly small and can be neglected.

When choosing a specific means of resolving financial risk, the investor should proceed from the following principles:

You can not risk more than your own capital can afford;

You can't risk a lot for a little.

The consequences of risk must be foreseen.

Ways to prevent (reduce) financial risks

The high degree of financial risk of the project leads to the need to find ways to artificially reduce it.

Risk reduction is the reduction of the probability and amount of losses. Various methods are used to reduce the degree of risk. The most common are:

diversification;
acquisition of additional information about the choice and results;
limiting;
self-insurance;
insurance;
currency risk insurance;
hedging;
acquisition of control over activities in related areas;
accounting and evaluation of the share of use of specific funds of the company in its general funds, etc.

Diversification is the process of allocating capital among different investment objects that are not directly related to each other.

Diversification allows you to avoid part of the risk in the distribution of capital between various activities. Diversification is the most reasonable and relatively less costly way to reduce the degree of financial risk.

External factors affect the entire financial market, i.e. they affect the financial activities of all investment institutions, banks, financial companies, and not on individual business entities.

External factors include the processes taking place in the country's economy as a whole, military operations, civil unrest, inflation and deflation, changes in the discount rate of the Bank of Russia, changes in interest rates on deposits, loans in commercial banks, etc. The risk posed by these processes cannot be reduced by diversification.

Thus, risk consists of two parts: diversifiable and non-diversifiable risk. Diversifiable risk, also called unsystematic, can be eliminated by dissipating it, i.e. diversification.

Non-diversifiable risk, also called systematic risk, cannot be reduced by diversification. Moreover, studies show that the expansion of capital investment objects, i.e. risk dispersion, allows you to easily and significantly reduce the amount of risk. Therefore, the focus should be on reducing the degree of non-diversifiable risk.

To this end, the foreign economy has developed the so-called "portfolio theory". The Capital Asset Pricing Model (CAPM) is part of this theory. Information plays an important role in risk management. financial manager often you have to make risky decisions when the results of investing capital are uncertain and based on limited information. If he had more complete information, then he could make a more accurate forecast and reduce the risk. This makes information a commodity, and a very valuable one at that. The investor is willing to pay for complete information.

The cost of complete information is calculated as the difference between the expected cost of any acquisition or investment when complete information is available and the expected value when information is incomplete. Limitation is the setting of a limit, i.e. limits on expenses, sales, loans, etc. Limiting is an important technique for reducing the degree of risk and is used by banks when issuing loans, when concluding an overdraft agreement, etc. It is used by business entities when selling goods on credit, providing loans, determining the amount of capital investment, etc.

Self-insurance means that the entrepreneur prefers to insure himself than to buy insurance from an insurance company. Thus, he saves on insurance capital costs. Self-insurance is a decentralized form of creating in-kind and insurance (reserve) funds directly in an economic entity, especially in those whose activities are at risk.

So, farmers and other subjects of agriculture create, first of all, natural insurance funds: seed, fodder, etc. Their creation is caused by the likelihood of adverse climatic and natural conditions. Reserve cash funds are created primarily in case of covering unforeseen expenses, accounts payable, expenses for the liquidation of an economic entity. Their creation is obligatory for joint-stock companies.

Joint-stock companies and enterprises with the participation of foreign capital are required by law to create a reserve fund in the amount of at least 15% and not more than 25% of the authorized capital.

Economic entities and citizens for the insurance protection of their property interests can create mutual insurance companies.

The most important and most common method of risk reduction is risk insurance. The essence of insurance is expressed in the fact that the investor is ready to give up part of his income in order to avoid risk, i.e. he is willing to pay to reduce the risk to zero.

Hedging (eng. heaging - to protect) is used in banking, exchange and commercial practice to refer to various methods of insuring currency risks. So, in the book by Dolan E. J. et al. “Money, Banking and Monetary Policy”, this term is defined as follows: “Hedging is a system for concluding futures contracts and transactions that takes into account probable future changes in exchange rates and pursues the goal avoid the adverse effects of these changes.” In domestic literature, the term “hedging” has come to be used in a broader sense as risk insurance against adverse price changes for any inventory items under contracts and commercial transactions involving the supply (sale) of goods in future periods.

The contract, which serves to insure against the risks of changes in exchange rates (prices), is called a “hedge” (English hedge - a fence, a fence). An entity that performs hedging is called a “hedger”. There are two hedging operations: hedging for an increase; down hedging.

An upward hedging, or buy hedging, is an exchange transaction for the purchase of futures contracts or options. An upward hedge is used in cases where it is necessary to insure against a possible increase in prices (rates) in the future. It allows you to set the purchase price much earlier than the actual product was purchased. Suppose that the price of a commodity (the exchange rate or securities) will increase in three months, and the commodity will be needed precisely in three months. To compensate for the losses from the expected increase in prices, it is necessary to buy a futures contract related to this commodity now at today's price and sell it in three months at the time when the commodity is purchased. Since the price of the commodity and the futures contract associated with it changes proportionally in the same direction, the previously purchased contract can be sold at a higher price by almost the same amount as the price of the commodity has increased by that time. Thus, a hedger who hedges up is insuring himself against a possible price increase in the future.

Downward hedging, or hedging by sale, is an exchange transaction with the sale of a futures contract. A hedger who hedges down expects to sell a commodity in the future, and therefore, by selling a futures contract or option on the exchange, he insures himself against a possible price decline in the future. Suppose that the price of a commodity (exchange rate, securities) decreases after three months, and the commodity will need to be sold after three months. To compensate for the expected losses from the price decrease, the hedger sells a futures contract today at a high price, and when selling his commodity three months later, when the price of it has fallen, he buys the same futures contract at a lower (almost the same) price. Thus, a short hedge is used when a commodity needs to be sold at a later date.

Source - O.A. Firsova - METHODS FOR ASSESSING THE DEGREE OF RISK, FGBOU VPO "State University - UNPK", 2000.

Today, risk management is a carefully planned process. The task of risk management is organically woven into the general problem of improving the efficiency of the enterprise. Passive attitude to risk and awareness of its existence is replaced by active management methods.

Financial risk management can be characterized as a set of methods, techniques and activities that allow, to a certain extent, to predict the onset of risk events and take measures to eliminate or reduce the negative consequences of such events.

The degree and magnitude of risk can be influenced through the financial mechanism. Such an impact is carried out with the help of financial management techniques and a special strategy. Together, the strategy and techniques form a kind of risk management mechanism, i.e. risk management. Thus, risk management is part of financial management.

Financial risks occupy a special place in the risk management system. They have a significant impact on various aspects of the financial activities of the company, but their most significant impact is manifested in two directions. Firstly, the level of accepted risk has a decisive influence on the formation of the level of profitability of the company's financial operations - these two indicators are closely interconnected and represent a single "profitability-risk" system. Secondly, financial risks are the main form of generating a direct threat of a company's bankruptcy, since the financial losses associated with this risk are the most tangible. Therefore, almost all financial decisions aimed at generating a company's profit, increasing its market value and ensuring financial security, require financial managers to master the technique of developing, making and implementing risky decisions.

Compared to financial companies (credit institutions, insurance companies, pension funds), manufacturing companies are less provided with formalized procedures and methods for assessing and managing aggregate risks. Manufacturing companies, unlike financial ones, are deprived of mechanisms for regulating the level of risky activities on the part of government agencies supervision. That is why manufacturing companies need leverage for managing risks and risky investment of capital, that is, they need to create risk management.

From the modern standpoint of decision-making to prevent possible losses, the following approaches to risk management are distinguished: active, adaptive and conservative (passive):

- Active management means maximum use of available information and means to minimize risks. With this approach, control actions should anticipate or anticipate risk factors and events that may affect the implementation of the operation. Obviously, this approach involves the costs of forecasting and assessing risks, as well as organizing their continuous control and monitoring;
- An adaptive approach to risk management is based on the principle of “choosing the lesser of evils”, i.e. to adapt to the current situation. With this approach, control actions are carried out in the course of a business transaction as a response to changes in the environment. In this case, only a part of possible losses is prevented;
- With a conservative approach, control actions are late. If a risk event occurs, the damage from it is absorbed by the participants in the operation. In this case, management is aimed at localizing damage, neutralizing its impact on subsequent events. Typically, the cost of risk management with this approach is minimal, but the possible losses can be quite large.

The financial risk management system consists of two subsystems - managed (managed object) and managing (managed subject):

- The object of management here is risky operations and the resulting financial relations between participants in economic activity in the process of its implementation. Such relationships arise between the insured and the insurer, the borrower and the lender, the customer and the contractor, business partners, etc.;
- The subject of management is a group of people (financial manager, risk specialist, etc.), which, through various techniques and methods, purposefully influences the object of management.

The main tasks of the subject of management are: detection of areas of increased financial risk; risk assessment; analysis of the acceptability of this level of risk for the organization; development, if necessary, of measures to prevent or reduce risk; in the event that a risk event has occurred, taking measures to the maximum possible compensation for the damage caused.

Financial risk management performs certain functions. These functions are divided into two main groups, determined by the complex content of risk management:

- The functions of managing the financial risks of an enterprise as a control system (the composition of these functions is generally typical for any type of management, although it must take into account its specifics);
- Financial risk management functions as a special area of enterprise management (the composition of these functions is determined by the specific object of this functional management system).

In the group of financial risk management functions of an enterprise as a control system, the main ones are:

1) Formation of effective information systems that provide justification for alternative options for management decisions;
2) Implementation of risk analysis of various aspects of the financial activity of the enterprise. In the process of implementing this function, an express and in-depth risk analysis of individual financial transactions, financial transactions of individual subsidiaries and internal “responsibility centers”, the financial activities of the enterprise as a whole and in the context of its individual areas are carried out;
3) Implementation of risk-planning of the financial activity of the enterprise in its main areas. The implementation of this financial risk management function is associated with the development of a system of plans and operating budgets in the main areas of protecting the enterprise from possible financial threats of an external and internal nature, ensuring the neutralization of identified financial risks. The basis of such planning is the developed strategy of financial risk management, which requires specification at each stage of its development;
4) Implementation of effective control over the implementation of the adopted risky decisions. The implementation of this financial risk management function is associated with the creation of appropriate systems internal control at the enterprise, division control duties individual departments and risk managers, defining a system of controlled indicators and control periods, promptly responding to the results of ongoing control.

In the group of financial risk management functions as a special area of enterprise management, the main ones are:

1) Management of the formation of a portfolio of accepted financial risks. The functions of this management are the identification of possible financial risks of the enterprise associated with its future financial activities; avoiding certain financial risks by avoiding excessively risky financial transactions and transactions; determination of the final composition of individual systematic and non-systematic financial risks taken by the enterprise;
2) Management of the assessment of the level and cost of financial risks. In the process of implementing this function, the choice of methods for assessing individual financial risks is carried out, taking into account the existing information base and the qualifications of the risk managers of the enterprise, the possible amount of financial losses associated with them in the context of individual operations and financial activities as a whole is revealed;
3) Management of neutralization of possible negative consequences of financial risks within the enterprise. The functions of this department are the development and implementation of measures to prevent and minimize the level and cost of individual financial risks through appropriate internal mechanisms, assess the effectiveness of such measures;
4) Financial risk insurance management. In the process of implementing this function, the criteria for transferring the financial risks of the enterprise to insurance companies are formed, the relevant insurance companies are selected for cooperation, taking into account their specialization and rating on insurance market, the system of terms of the concluded insurance contract is agreed upon, the efficiency of transferring individual financial risks of the enterprise to an external insurer is assessed.

The main functions of financial risk management are considered in the most aggregated form. Each of these functions can be specified more purposefully, taking into account the specifics of the financial activity of the enterprise and the portfolio of its financial risks.

Adequate information support is essential for effective financial risk management. Having reliable and up-to-date information allows you to quickly take management decisions that have an impact on reducing risks and increasing profits.

The specific methods and techniques that are used in making and implementing decisions under risk conditions largely depend on the specifics of the activity, the adopted strategy for achieving the goals set, the specific situation, etc. At the same time, the theory and practice of risk management have developed a number of fundamental principles that should guide the subject of management.

Among the main principles of financial risk management are the following:

- Awareness of taking risks. The manager must consciously take risks if he hopes to receive a corresponding income from the implementation of a particular operation. Despite the fact that for some operations it is possible to adopt the tactics of "risk avoidance", it is not possible to completely exclude it from the activities of the enterprise, since financial risk is an objective phenomenon inherent in most business operations;
-Management of accepted risks. The portfolio of financial risks should include only those that can be neutralized in the management process, regardless of their objective and subjective nature. Risks that are not managed, such as force majeure groups, can either be ignored or transferred to an external insurer or business partners;
- Comparability of the level of accepted risks with the level of profitability of financial transactions - fundamental principle in the theory of risk management. It lies in the fact that the enterprise should take in the course of its activities only those types of financial risks, the level of which is compensated by an adequate value of the expected return. Operations whose risks do not meet the required level of return should be rejected, or, accordingly, the size of the risk premium should be revised;
- Comparability of the level of accepted risks with the possible losses of the enterprise. The possible amount of financial losses of the enterprise in the process of carrying out a particular risky operation should correspond to the share of capital that is reserved to cover it. Otherwise, the occurrence of a risk event will entail the loss of a certain part of the assets that ensure the operating or investment activities of the enterprise, i.e. reduce its potential for generating profits and the pace of further development;
- Accounting for the time factor in risk management. The longer the period of the operation, the wider the range of financial risks associated with it, the less opportunities to ensure the neutralization of their negative consequences. If it is necessary to carry out such operations, the enterprise should include in the required amount of income not only the premiums for the corresponding risks, but also the premium for liquidity (that is, for binding the capital invested in it for a certain period);
- Accounting for the company's strategy in the process of risk management. The financial risk management system should be based on general principles, criteria and approaches corresponding to the development strategy chosen by the enterprise. Focusing on the general development strategy allows you to focus on those types of risk that promise the enterprise the maximum benefit, determine the maximum amount of risks that you can take on, allocate the necessary resources to manage them;
- Accounting for the possibility of risk transfer. - Acceptance of a number of financial risks is incomparable with the company's ability to neutralize their negative consequences. At the same time, the need to implement a particular risky operation may be dictated by the requirements of the strategy and direction of economic activity. Inclusion of them in the risk portfolio is permissible only if their partial or complete transfer to business partners or an external insurer is possible.

Based on the considered principles, the company develops a financial risk management policy. This policy is part of the overall strategy of the enterprise, which consists in developing a system of measures to neutralize their possible negative consequences of risks associated with the implementation of various aspects of economic activity.

FEDERAL AGENCY FOR EDUCATION OF THE RUSSIAN FEDERATION

KAZAN STATE UNIVERSITY

BRANCH in NABEREZHNY CHELNY

DEPARTMENT OF MANAGEMENT

Khuziev Rifat Rashitovich

FINANCIAL RISK MANAGEMENT

Introduction…………………………………………………………................................……3

1. The concept of risk, types of risks…………………………………………….…....5

1.1. Risk system……………………………………………………………..5

1.2. Classification of financial risks………………...……………...…7

1.3. Methods for assessing the degree of risk………………………………………………………………………………………10

2. Essence and content of risk management……………………………….13

2.1. The structure of the risk management system…………………………………………13

2.2. Risk management functions………………………………...…...…...15

3. Organization of risk management………………………...……………….….18

3.1 Stages of risk management organization……………………………………….18

3.2 Features of the choice of strategy and methods for solving managerial problems………………………………...…….……...….21

3.3 Basic rules of risk management………………………………….23

4. Financial risk management methods…………………………………….26

5. Ways to reduce financial risk…………………………….………29

Conclusion………………………………...………………….…………………….35

List of used literature…………………………………...………37

Introduction

Risk is inherent in any form human activity, which is associated with many conditions and factors that affect the positive outcome of people's decisions. Historical experience shows that the risk of not getting the intended results is especially evident in the generality of commodity-money relations, the competition of participants in economic turnover. Therefore, with the emergence and development of capitalist relations, various theories of risk appear, and the classics of economic theory pay great attention to the study of risk problems in economic activity.

There is no business without risk. The highest profit, as a rule, is brought by market operations with increased risk. However, everything needs a measure. The risk must be calculated up to the maximum allowable limit. As you know, all market estimates are multi-variant. It is important not to be afraid of mistakes in your market activities, since no one is immune from them, and most importantly, do not repeat mistakes, constantly adjust the system of actions from the standpoint of maximum profit. The manager is designed to provide additional opportunities to mitigate sharp turns in the market. The main goal of management, especially for the conditions of today's Russia, is to ensure that in the worst case scenario, it could only be a slight decrease in profits, but in no case was there a question of bankruptcy. Therefore, special attention is paid to the continuous improvement of risk management - risk management.

At market economy manufacturers, sellers, buyers act in a competitive environment on their own, that is, at their own peril and risk. Their financial future is therefore unpredictable and little predictable. Risk management is a system for assessing risk, managing risk and financial relationships that arise in the course of a business. Risk can be managed using a variety of measures that allow predicting the onset of a risk event to a certain extent and taking timely measures to reduce the degree of risk.

An entrepreneur is forced to take on the risk of the uncertainty of the economic situation, the uncertainty of the conditions of the political and economic situation and the prospects for changing these conditions. The greater the uncertainty of the economic situation when making a decision, the higher the degree of risk.

The degree and magnitude of risk can actually be influenced through the financial mechanism, one hundred is carried out using the techniques of strategy and financial management. This kind of risk management mechanism is risk management. Risk management is based on the organization of work to identify and reduce risk.

1. The concept of risk, types of risks

1.1. Risk system