Business risk management in times of crises and pandemics

Abstract

The purpose of the article is to identify approaches and tools for business risk management in times of crises and pandemics for 3 risk groups. The goal was achieved through the following methods: content analysis (for summarizing the views on business risk management, grouping the main types of risks into three groups, which allowed to develop models and management systems), inductive reasoning (for the formation of subgroups of business risk, systematization of the slogans of companies), expert survey (for identifying trends in the development of corporate culture as a tool for managing business risks). The formation of competitive systems requires effective mechanisms for managing business risks, especially in periods of crises and pandemics, which in modern conditions have become more frequent and deepened. The authors suggested that crises and pandemics trigger a mechanism of negative expectations, which further worsens the business and narrows its competitive advantages. Choosing the right model of behaviour allows businesses to make profits due to the expansion of the market niche, the exit of competitors from the market, increasing demand for goods and services due to limited market supply. The authors proposed to divide all business risks into three groups (internal, strategic, external) with a division into 12 subgroups according to the criteria of developing systems and management models. The results of the study show that a corporate culture is a key tool in managing internal business risks, improving the management system is a tool to minimize strategic risks, but business can only mitigate external risks.