The Risk Management System as an Enhancement Factor for Investment Attractiveness of Russian Enterprises

Abstract

The business environment is characterized by a high degree of uncertainty and risk. This primarily requires using resources additional to those that can be obtained from profit. The purpose of the study is to assess the impact of a risk management system on the investment attractiveness of an enterprise. Structurally, the study consisted of three stages. At the first stage of the study, the selected information was grouped depending on the type of documents. The first group included statistical data, indicating the source of the data obtained. The second group of documents included scientific research on the characteristics of the risk management system at enterprises and investment attractiveness. At the second stage of the study, an analysis of enterprises was carried out with the calculation of a correction factor, which determined the possibility of obtaining a loan. At the third stage, an indicator of the effectiveness of the risk management complex was determined. The authors revealed two classes of factors influencing the decision to issue borrowed funds, namely, the parameters of the very enterprise and the parameters of the financed project. It is proposed to divide each of the presented classes into three groups: general reports; consolidated data on the personnel, management, and owners of the enterprise; and reports directly related to risk management. Expert analysis of the identified additional factors influencing the decision to issue borrowed funds supported the conclusion that the group of factors that directly relate to the risk management system has the greatest impact. The analysis of the correspondence of the number of points scored by enterprises according to existing methods and adjusted considering the effects of the identified additional factors gave reason to state that the presence of well-established risk management increases the investment attractiveness of the enterprise. It is revealed that using the methodology for assessing the effectiveness of risk management based on the ratio of the difference in the financial capabilities of the enterprise and the costs of risk management, reduced by the amount of expected damage after the implementation of risk management to the difference in the financial capabilities of the enterprise and the costs of risk management, allows for increasing the investment attractiveness of such enterprises as the Moscow Plant of High-Voltage Fittings JSC and the Moscow Instrumental Plant JSC.