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The concept, indicators and criteria of risk tolerance of the system of material and technical support to the combat readiness of the armed forces

Vol. 28, Iss. 4, APRIL 2022

Received: 3 March 2022

Received in revised form: 17 March 2022

Accepted: 31 March 2022

Available online: 28 April 2022

Subject Heading: THEORY OF FINANCE

JEL Classification: R11, R12, R58

Pages: 732–747

https://doi.org/10.24891/fc.28.4.732

Sergei F. VIKULOV 46th Central Research Institute of Ministry of Defense of Russian Federation, Moscow, Russian Federation
sergviculov@yandex.ru

ORCID id: not available

Aleksandr O. ZUBOV Military Academy of Logistics named after A.V. Khrulev, St. Petersburg, Russian Federation
prlopa26@yandex.ru

ORCID id: not available

Yurii A. NIKITIN Military Academy of Logistics named after A.V. Khrulev, St. Petersburg, Russian Federation
nikitin_gpa@mail.ru

ORCID id: not available

Subject. The system of material and technical support to the combat readiness of the Armed Forces of the Russian Federation plays an extremely important role in ensuring the defensive ability of the country. The article offers indicators and criteria to assess risk tolerance of the logistics support to the Armed Forces of the Russian Federation, which act as a solid foundation for theoretical and methodological framework development.
Objectives. Our aim is to develop a concept, indicators and criteria for risk tolerance of the logistics support to the combat readiness of the Armed Forces.
Methods. The study employs normative and integrated approaches to investigate the efficiency of public funds utilization in ensuring the combat readiness of the Russian Federation, and methods of retrospective, systems, functional, and structural analysis, observation, classification, grouping, sampling, comparison, generalization, dynamic analysis.
Results. The paper offers a set of measures and recommendations aimed at improving the efficiency of budgetary funds utilization in the development of armaments and military and special purpose equipment, by assessing the risk tolerance of the system of logistical support to combat readiness of the Armed Forces.
Conclusions. The Russian Federation needs a comprehensive program for assessing the risks and risk tolerance of the logistics system to support the combat readiness of the Armed Forces from the stage of substantiating the initial contract price to the stage of serial production.

Keywords: State defense order, risk, process, uncertainty

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