The analysis of methodical approaches of the risk assessment organization

Authors

DOI:

https://doi.org/10.15587/2312-8372.2018.135482

Keywords:

risk assessment, quantitative and qualitative analysis methods, choice of risk assessment method, result of risk assessment

Abstract

The object of research is methods of approach to risk assessment, each organization independently develops and implements. The author provides practically gained experience in an international company – an effective approach in the use of risk assessment methods.

One of the most problematic places is the choice of the method of assessing the organization's risks. The method is in primarily in the compatibility of the mission and the objectives of the organization, and a number of tasks with the selected methods of risk assessment. For a quantitative method of risk assessment, it is the availability of correctly calculated norms, according to which a risk analysis will be carried out. For a qualitative method of risk assessment, it is the availability of qualified experts with sufficient experience in the field of risk assessment. For a mixed method of risk assessment, it is compliance with the balance and appropriateness of use between a quantitative and qualitative method of risk assessment.

In accordance with the selected types of economic activity, organizations that require strict compliance with production standards, legislation, licensing, etc., it is advisable to use quantitative methods of risk assessment. As an example, the risks associated with violation of the norms: the rates of environmental tax for emissions of pollutants into the air, stationary sources of pollution; disposal of hazardous waste; control over water use and discharges of enterprises.

A mandatory creation of a risk map for each organization is proposed. This is due to the fact that all risks must be structured and investigated, and a risk response method must be chosen for each of the risks. The risk map has a number of features and an important purpose in the corporate governance structure, in particular:

  • risk matrix, or visualization for the top management of the organization;
  • risk table, or working tool for risk management.

Risk assessment in any field is very important. Due to this, the company that invests in the improvement of the internal control system (ICS), in ICS support at a given level, subsequently receives effects in the form of savings, the absence of fines, and protection from corruption. As an example, protection against corruption provides timely detection of risks – red flags, which indicate possible manipulations.

Author Biography

Maksym Tarashevskyi, State University of Infrastructure and Technology, 9, Kyrylivska str., Kyiv, Ukraine, 02000

Postgraduate Student

Department of Business Logistics and Transport Technologies

References

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Published

2018-01-23

How to Cite

Tarashevskyi, M. (2018). The analysis of methodical approaches of the risk assessment organization. Technology Audit and Production Reserves, 3(4(41), 34–40. https://doi.org/10.15587/2312-8372.2018.135482

Issue

Vol. 3 No. 4(41) (2018): Economics of enterprises

Section

Economics and Enterprise Management: Original Research

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Copyright (c) 2018 Maksym Taraschevsky

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