Method Development to Assess the Enterprise Financial Risks

Abstract

The activities of the enterprise are associated with financial risks, the management of which is considered mandatory to ensure sustainable and efficient functioning. Underestimation or reassessment of financial risks can lead to financial losses; therefore, the result of the organization’s risk management depends on the quality of the financial risk assessment. The article presents: the concept of “financial risk” formulated by the authors; classification of financial transactions by risk areas; the developed methodology for assessing financial risks is presented, consisting of two successive stages (calculating the amount of damage and calculating the probability of occurrence of financial risk after identifying a risk event; the developed methodology for monitoring financial risks and calculating the residual value of financial risk is presented; the developed methods for quantitative and qualitative assessment of financial risks are presented; a methodology for determining the development of scenario analysis of financial risk assessment is presented.