CC BY
3УДК 33 Amanakov A., Serhenov M., Azymov A.
Amanakov A.
Turkmen State Architecture and Construction Institute (Ashgabat, Turkmenistan)
Serhenov M.
Turkmen State Architecture and Construction Institute (Ashgabat, Turkmenistan)
Azymov A.
Turkmen State Architecture and Construction Institute (Ashgabat, Turkmenistan)
WAYS TO IDENTIFY RISKS IN BUSINESS AND WAYS TO MINIMIZE THEM
Аннотация: article provides a brief overview of ways to identify risks in business and how to minimize them. It also talks about understanding the essence of risk.
Ключевые слова: economics, management, business economics, risks, essence, minimize, conclusion.
One of the steps in formulating a strategy and making strategic choices is both risk assessment and risk planning. Risk arises from the lack of information about current and future situations. Risk is inherent in the implementation of any economic decision because of the inherent uncertainty in business operations:
- the uncertainty of the economic situation (in particular, demand and supply of money, production factors),
- variety of yeasts used,
- limited knowledge of the entrepreneur, etc.
Understanding the essence of risk depends on determining the functions of risk during the production process.
1. There is a conflicting nature of regulatory functions, which comes in two
forms:
- in a constructive way - risk acts as a catalyst, encouraging entrepreneurial activity, innovation, vision,
- destructively - risk disrupts stability, the implementation of solutions with unreasonably high risk leads to voluntarism.
2. Protection functions can be considered in two contexts:
- historical-genetic aspect - during its development, humanity is looking for ways to protect against unfavorable conditions, that is, ways to reduce risk.
- the legal aspect - leads to the necessity of legislatively ensuring the entrepreneur's right to reasonable risk.
Risk occurs under certain conditions (risk situation), which include:
1. The presence of uncertainty, that is, the lack of information about the current situation and the future development of events.
2. The need to choose a solution from among the available options.
3. The ability to estimate the probability of each of the available options. Thus, risk can be defined as work related to overcoming uncertainty in the
situation of inevitable, that is, mandatory choice. In case of risk, the following points can be evaluated:
- the probability of obtaining the desired result (success),
- the likelihood of an undesired outcome,
- the probability of missing the selected target,
- possible favorable and unfavorable consequences of actions.
Dynamic (action) risk - risk due to unforeseen changes in the value of the property due to the adoption of management decisions or unforeseen changes in market and political conditions (which can lead to loss of income and additional income).
Static (inactive) risk - the risk of losing real assets due to property damage, as well as loss of income due to the inability of the organization to operate, leads only to losses.
The concept of acceptable risk is known as the ALARA (As Low As Reasonably Achievable) principle. According to this concept, if an "absolutely safe" project cannot be chosen, then it is necessary to try to achieve an acceptable level of safety for this project, that is, to try to make any process, any technology, at all levels ecological, economic, legal and otherwise suitable.
The following dimensions of risk legitimacy can be identified:
1) to recognize that it is impossible to achieve the set goal by using methods that eliminate risk,
2) the orientation of risky actions to outcomes of social importance,
3) Avoiding real foreseeable risks in situations that threaten human life and
health.
СПИСОК ЛИТЕРАТУРЫ:
1. Law of Turkmenistan "On State Support of Small and Medium Entrepreneurs". - Ashgabat, 2009;
2. Law of Turkmenistan "On Enterprises". - Ashgabat, 2000
