Home  Journals  Financial Analytics: Science and Experience  1(351) - 2020 January-March

The toolkit for financial risk management in financially unsustainable corporations

Received: 16 July 2019

Received in revised form: 6 August 2019

Accepted: 1 September 2019

Available online: 28 February 2020

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: G32

Pages: 50–70

https://doi.org/10.24891/fa.13.1.50

Subject Financial risk management is a cornerstone for the strategic development of any corporation. This especially matters when the economy is volatile and the financial standing of the corporation is affected externally. In this case, it is important to find tools to manage financial risks during the unstable period of corporate operations.
Objectives The study aims to devise and substantiate tools for financial risk management by identifying them and striving to reduce the exposure of financial operations during the strategic period.
Methods To substantiate the above ideas, I apply a systems approach. Studying equity management, I use methods of logic and structural analyses, synthesis, induction, deduction, graphic interpretation, mapping of relationships.
Results The study was proved with the case of Coca-Cola HBC Russia. Following a step-by-step strategy, I identified risks, their causes, and the appropriateness of the strategy for their reduction as part of the full financial risk management process (ERM).
Conclusions and Relevance The study gave theoretical and practical results that contribute to the methodology for financial risk management. I specify what tools will work to evaluate financial risks, and find techniques for avoiding, preventing and eliminating their impact on corporate operations. I discover the dependence of factors, which influence the financial position and possibilities of eliminating adverse effects that cause the exposure of financial operations and financial wellbeing of corporations. The findings can be used by those responsible for corporate risk management in financial risk management. The findings can underlie further research into the identification, assessment and management of financial risk during the volatility of the economy.

Keywords: financial risk, management, financial position, risk map

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