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Financial Analytics: Science and Experience
 

Establishing a risk management system with comprehensive assessment of events

Vol. 16, Iss. 3, SEPTEMBER 2023

Received: 21 May 2020

Received in revised form: 4 June 2020

Accepted: 18 June 2020

Available online: 30 August 2023

Subject Heading: MONITORING OF ECONOMIC PROCESSES

JEL Classification: D81, G32

Pages: 337–354

https://doi.org/10.24891/fc.26.7.1661

Subject. The availability and adequacy of the risk management system of any company is taken into account by government regulation, rating agencies, auditors, and company owners and shareholders. Therefore, companies make arrangements for risk management in some form or other. However, the assessment of event risk and creation of a transparent and effective event assessment system raise many questions.
Objectives. We focus on solving the problem of attaining an objective assessment of event risk for company's units, creating an effective risk management system for companies operating in a rapidly changing environment.
Methods. The methodology of the study draws on the use of parallel work of departments on assessing event risk and adopting measures to mitigate it.
Results. We offer a solution for creating an effective system for event risk assessment. The system also deals with events that simultaneously affect different departments.
Conclusions. Organization of simultaneous work of units on assessment of events, their classification as event risk, and taking measures to minimize the impact on company's activities will reduce the time for the analysis of events and increase the objectivity of event risk assessment.

Keywords: risk management, risk assessment

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