Comprehensive methodology for assessing the effectiveness of risk management
Year: 2024
Type: article
Abstract: In modern conditions of economic development, risk management is a key aspect for the successful functioning of any organization. When assessing the development of a risk management system, it is necessary to use a certain methodology that allows a comprehensive and objective analysis of existing processes and practices. A comprehensive approach to assessing the effectiveness of risk management is proposed, involving an analysis of this process taking into account many aspects. It is assumed that effective risk management implies not only the identification and assessment of potential threats, but also their interpretation, as well as the use of quantitative analysis for decision-making. The proposed methodology focuses on determining the qualitative characteristics of the assessed risk management systems, which makes it possible to identify the strengths and weaknesses of existing processes. This methodology provides for their subsequent interpretation, which helps the company's management to better understand and manage risks. The quantitative analysis included in the methodology makes it possible to accurately measure and evaluate the effectiveness of the measures applied. The proposed measure makes it possible to make informed and balanced decisions aimed at minimizing risks and increasing the sustainability of the organization. An integrated approach to assessing the effectiveness of risk management offers a multi-level and multidimensional analysis that covers all aspects of risk management – from strategic planning to operational implementation. As a result, the use of this technique helps to improve the risk management system, makes it more transparent and understandable, which ultimately leads to an increase in the stability and competitiveness of the company in the market.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4405577681