Journal of Applied Economic Research
ISSN 2712-7435
Risk-Oriented Approach to Ensuring the Financial Stability of the Iron ore Enterprise
Dolgikh Yu.A.
Abstract
This article is devoted to research of the risks of ensuring the financial stability of an industrial enterprise (using the example of Russian iron ore enterprises). The choice of this topic and the subject of research is caused, first, by the presence of industry-specific risks and threats, and, second, by a low level of development of risk management in Russian iron ore enterprises. The article describes a classification of the risks of ensuring the financial stability of an iron ore enterprise proposed by the author. This classification is the basis for the formation of the corresponding unified register with 127 risks. The identified risks are evaluated using the example of EVRAZ KGOK (this company is one of the five largest iron ore enterprises in Russia) using the expert method. Twelve highly qualified experts were involved in the examination. The experts are leading employees and managers of production, economic and financial services of EVRAZ KGOK, as well as researchers and faculty members of the Ural State Mining University. Appropriate methodological, organizational and control-analytical stages of the examination were implemented. The validity and reliability of the obtained risk assessment results is confirmed by high Kendall ranks. This indicator characterizes the degree of consensus among experts. On the basis of the received results a Card of risks of ensuring the financial stability of EVRAZ KGOK is created. This Card of risks characterizes the scale of importance and probability of emergence of the risks, and also admissible limits (zones) of risks. The author formulated the main measures for minimizing the critical risks of ensuring the financial stability of EVRAZ KGOK. Preventive implementation of these actions helps to achieve and maintain the target objective of financial stability of the enterprise, strengthen the adaptive capabilities of its activities in today's unstable economic environment.
Keywords
financial stability of the enterprise; iron ore industry; risks of ensuring financial stability; classification of risks; risk register; risks assessment; expert method; card of risks; actions for risk minimization.
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About Authors
Dolgikh Yuliya Alexandrovna – Senior Lecturer, Department of Finance, Money and Credit, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: rimdm@rambler.ru.
For citation
Dolgikh Yu.A. Risk-Oriented Approach to Ensuring the Financial Stability of the Iron Ore Enterprise/ Bulletin of Ural Federal University. Series Economics and Management, 2017, Vol. 16, No. 3, 484-506. DOI: 10.15826/vestnik.2017.16.3.024.
Article info
Received May 2, 2017; Accepted May 18, 2017.
DOI: http://dx.doi.org/10.15826/vestnik.2017.16.3.02
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