Methods of risk management in a modern enterprise

In cases of occurrence of various kinds of risk factors for more effective reduction of the degree of risks, generally accepted methods that influence certain types of enterprise activities are in common use.

Basically, the methods of risk management that are applied in entrepreneurial activities are divided into four groups of methods.

- avoidance of risks;

- localization of risks;

- Diversification of risks;

- Compensation of risks.

Now we will consider in more detail the methods of risk management in the form of ways to avoid risk.
The methods of risk evasion are the most used in economic practice.

The methods of risk avoidance include:

- rejection of partners who do not inspire trust;

- rejection of projects that are very risky;

- the main way to reduce the risk - insurance;

- the process of finding guarantors.

Risk management methods include methods for localizing risks, they are used rarely, only in cases where it is possible to clearly determine the probability of risks and the sources of their occurrence. The main methods of localization are as a rule - the creation of subsidiaries and special units for the implementation of projects with a clear risk.

The meaning of risk diversification methods is based on the distribution of the overall risk:

- Expanding the range of products or services;

- diversification of sales and supplies;

Risk compensation methods are used to create special mechanisms to prevent hazards.
They are the most labor-intensive and require primarily analytical work: strategic planning of activities, planning the external environment, as well as creating reserves.

Evaluation of the effectiveness of risk management.

For example, the project is fully completed, and already reporting on this project has been formed. But the question arises, how to calculate the benefits in terms of money, including in time, from the implementation of the envisaged activities that are aimed at risk management? The evaluation of the effectiveness of risk management is calculated using three formulas, which in turn take into account the risk management costs.

First, we must calculate the predicted effect, which is calculated as the difference between the indicators before processing and after - the amount of planned losses from identified risks.
Calculate the cost of risk management with the help of such a calculation - the amount of processing costs for identified and unidentified risks.

And, of course, the value of the risk management effect itself is calculated as the difference between the projected effect and the actual cost of risk management.

Such methods of risk management as insurance significantly increase the responsibility of managers, while forcing them to take more seriously and responsibly to the decision-making process, as often as possible to carry out protective measures that correspond to the insurance contract. This is why insurance as a method of risk management is a very effective financial instrument .

In cases of creating new types of products, there are problems in using insurance, this is due to the fact that insurance companies do not have statistical data and therefore are afraid to insure technologies that are not known to them.

In the end, it turns out that in any particular case it is very important to know whether this factor can be an object of insurance. This should be understood that risk insurance always has its own characteristics. First of all, you need to know that insurance is not insured, namely the interest of the insured, about the possibility of paying damages.

As such, the risk should not be withheld, meaning that the investor is not required to take the risk, for example, if the amount of the loss is quite large in comparison with the savings on the amount of the insurance premium. In a situation in which there is only one solution, one must, of course, first try to find other solutions. It is likely that they exist. In cases of insurance risk, when preliminary analysis indicates the absence of other solutions, they plan according to the rule "counting on the worst", this means that it is necessary to take a negative decision.