+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
International Accounting
 

A company's financial risk assessment and management: The practical aspects of implementation for small and medium-sized businesses

Vol. 23, Iss. 6, JUNE 2020

Received: 18 May 2020

Received in revised form: 28 May 2020

Accepted: 5 June 2020

Available online: 16 June 2020

Subject Heading: Managerial accounting

JEL Classification: M41, M49, D81, G32

Pages: 643–666

https://doi.org/10.24891/ia.23.6.643

Glushchenko A.V. Volga Research Institute for Production and Processing of Meat and Dairy Products, Volgograd, Russian Federation
aleksa-gl@yandex.ru

https://orcid.org/0000-0003-1999-5928

Samedova E.N. Institute of Economics and Finances of Volgograd State University (VolSU), Volgograd, Russian Federation
SamedovaEN@volsu.ru

https://orcid.org/0000-0003-0487-5093

Temnikov V.A. Institute of Economics and Finances of Volgograd State University (VolSU), Volgograd, Russian Federation
vasiliitemnikov@yandex.ru

ORCID id: not available

Subject. This article deals with the issues of financial risk assessment and management of economic entities. It also considers the application and implementation of risk assessment techniques by small and medium-sized enterprises.
Objectives. The article aims to develop applied aspects of the original methodology of stepwise assessment of a company's total financial risk using mild conditions of software maintenance.
Methods. For the study, we used the methods of SWOT and scenario analyses, scoring, expert assessment, index numbers and ratio analysis methods, and the tabular, graphical, financial risk map, and event tree techniques.
Results. Using the SME subject as a case study, the article reveals the applied aspects of the implementation of the total financial risk assessment methodology steps. By analyzing the performance and operating conditions of the company, it identifies the main risk components of financial risk, assesses the probability and cost of losses from their implementation, and determines risk indices and total financial risk. The article presents certain proposals for the financial recovery of the organization on the basis of internal changes and standards of indicators that ensure financial stability. A subsequent assessment of the effectiveness of the proposed measures shows the positive dynamics of the forecast financial indicators.
Conclusions. Providing insight into the original methodology use at SMEs helps assess the potential for its practical application using relatively moderate data volumes and no specialized software.

Keywords: total financial risk, risk assessment, risk management, small and medium-sized business

References:

  1. Slepova A.P., Glushchenko A.V. Zaemno-sberegatel'naya politika sel'skokhozyaistvennykh kreditnykh kooperativov: monografiya [Agricultural credit cooperatives' savings and loan policy: a monograph]. Volgograd, VolSU Publ., 2004, 146 p.
  2. Arzhenovskii S.V., Rudyaga A.A. [Economy risk definition: approaches review]. Uchet i statistika = Accounting and Statistics, 2017, no. 1, pp. 88–92. URL: Link (In Russ.)
  3. Kryzhanovskii O.A., Popova L.K. [An analysis of modern approaches to understanding the terms "risk" and "financial risk"]. Molodoi uchenyi = Young Scientist, 2016, no. 19, pp. 467–471. URL: Link (In Russ.)
  4. Baierbakh A.G. [Some approach to definition of essence and classification of economic risks]. Ekonomika i biznes: teoriya i praktika = Journal of Economy and Business, 2020, no. 2-1, pp. 17–21. URL: Link (In Russ.)
  5. Serebryakova T.Yu. [Enterprise risk management: A methodological aspect]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2017, vol. 20, iss. 5, pp. 294–306. (In Russ.) URL: Link
  6. Sitnikova S.A. [Principles of risk-oriented management accounting]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2018, vol. 21, iss. 4, pp. 466–478. (In Russ.) URL: Link
  7. Serebryakova T.Yu., Gordeeva O.G., Kurtaeva O.Yu. [Accounting and analytical sources of economic risks identification]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2018, vol. 5, no. 5, pp. 24–32. URL: Link (In Russ.)
  8. Shaptala V.G., Latkin M.A., Vetrova Yu.V. [Quantitative methods of assessing and predicting risk]. Innovatsionnaya nauka, 2016, no. 4-4, pp. 51–54. URL: Link (In Russ.)
  9. Zinov'eva E.S., Teselkina E.A., Bukharova E.A. et al. [Strategic financial risks management and their assessment methods]. Innovatsionnaya ekonomika: perspektivy razvitiya i sovershenstvovaniya, 2019, no. 2, pp. 226–233. URL: Link (In Russ.)
  10. Panyagina A.E. [Review of modern methods of quantitative estimation of risks]. Ekonomika i menedzhment innovatsionnykh tekhnologii, 2014, no. 3, part 1. (In Russ.) URL: Link
  11. Ryzhkov S.A. [Methods of assessment of financial risks and development of measures for their minimization]. Economics, 2017, no. 3, pp. 57–60. URL: Link (In Russ.)
  12. Buvaev B.L. [Value-at-Risk risk assessment methodology]. Nauchnyi zhurnal = Science Magazine, 2016, no. 5, pp. 31–35. URL: Link (In Russ.)
  13. Bespalova O.V. [Risk assessment techniques]. Pozharnaya bezopasnost': problemy i perspektivy, 2017, vol. 1, no. 8, pp. 319–321. URL: Link (In Russ.)
  14. Ustyuzhanina A.V. [The use of qualitative methods in the evaluation and analysis of the financial risks of the organization]. Vestnik nauki i obrazovaniya, 2019, no. 9-4, pp. 31–34. URL: Link (In Russ.)
  15. Vsyakikh M.V., Loza A.S. [Financial and economic risk analysis models]. Aktual'nye problemy gumanitarnykh i estestvennykh nauk, 2016, no. 5-2, pp. 51–53. (In Russ.) URL: Link
  16. Sitnikova V.A., Sitnikova S.A. Otsenka riskov v sisteme risk-orientirovannogo upravlencheskogo ucheta. V kn.: Sovremennye problemy bukhgalterskogo ucheta i otchetnosti v Rossii i stranakh sodruzhestva: kollektivnaya monografiya [Risk assessment in the risk-oriented management accounting system. In: Contemporary accounting and reporting problems in Russia and CIS countries: a collective monograph]. Moscow-Almaty, Financial University under Government of Russian Federation and Almaty Academy of Economics and Statistics Publ., 2018, pp. 220–226.
  17. Vinokur I.R. [The method of risk analysis and management]. Vestnik PNIPU. Sotsial'no-ekonomicheskie nauki = PNRPU Sociology and Economics Bulletin, 2019, no. 3, pp. 93–108. URL: Link (In Russ.)
  18. Grebennikova V.A., Baranova P.V. [Methods of identification, assessment and ranking of financial risks in the oil industry]. Economic Consultant, 2019, no. 2, pp. 28–36. (In Russ.) URL: Link
  19. Gerasimova M.V., Avdeeva L.A. [The methodical approach to the evaluation overall risk the construction companies]. Vestnik evraziiskoi nauki, 2015, vol. 7, no. 3. (In Russ.) URL: Link
  20. Lekarkina N.K., Gavrilin N.P. [The model of determining the economic risk on the basis of indicators of financial analysis]. Otsenka investitsii, 2016, no. 4, pp. 52–62. (In Russ.) URL: Link
  21. Glushchenko A.V., Samedova E.N., Temnikov V.A. [A methodology for identifying and assessing financial risk in the company's management accounting system]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2020, vol. 23, iss. 5, pp. 521–542. (In Russ.) URL: Link
  22. Glushchenko A.V., Egorova E.M. [A conceptual vision and mechanism for functional and strategic budgeting in the higher educational institution]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2015, vol. 18, iss. 17, pp. 17–31. URL: Link (In Russ.)
  23. Altukhova A.P., Belkin A.V., Bukhantsev Yu.A. et al. Rasshirenie informatsionnykh vozmozhnostei sovremennoi sistemy bukhgalterskogo ucheta i otchetnosti: kollektivnaya monografiya [Expanding the information capabilities of the modern accounting and reporting system: a collective monograph]. Volgograd, VolSU Publ., 2013, 318 p.
  24. Glushchenko A.V., Slepova A.P. [Loan, credit and subsidy: a categorical analysis]. Finansy i kredit = Finance and Credit, 2003, no. 14, pp. 18–28. URL: Link (In Russ.)

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 25, Iss. 5
May 2022

Archive