THE ROLE OF RISK MANAGEMENT IN THE ACTIVITIES OF BUSINESS ENTITIES UNDER MODERN CONDITIONS

Анотація

The article examines the role of risk management in the activities of business entities under modern conditions, reviews contemporary approaches to risk management, and develops practical recommendations aimed at improving risk management processes in energy sector enterprises and enhancing the efficiency of their economic activities. The study employs methods of comparison, synthesis, generalization, and a systematic approach.

It has been established that risk management is a critical component of enterprise management systems, enabling business entities to maintain stability and resilience amid uncertainty and constant changes. Effective risk management involves not only identifying potential risks but also responding to them promptly, mitigating their impact, or even leveraging them to the company’s advantage. The article identifies the main types of risks that businesses may face during their operations. It summarizes the principles of effective risk management, details the stages of the risk management process, and highlights the key risk management strategies.

It has been determined that risk management at PJSC «Prykarpattiaoblenerho», whose primary activity is the distribution of electrical energy to consumers in the Ivano-Frankivsk region, is an integral part of the overall enterprise management system. The company employs a combination of internal control, auditing, and monitoring. It adopts a comprehensive approach that includes financial and managerial accounting, auditing, and revision to minimize risks and their consequences. Internal control is carried out at all management levels and is continuous and cyclical in nature.

Practical recommendations have been developed to improve the effectiveness of risk management for enterprises in the energy sector, including engaging qualified risk management specialists, continuously updating the risk management system considering internal and external environmental changes, fostering a risk-oriented management culture, and conducting regular monitoring and auditing of the risk management system.