Tools for managing financial risks of the retail industry corporations under conditions of economic instability

Abstract

Aim. The work aimed to systematize and assess the impact of economic instability on private financial risks of retail industry corporations, to identify tools for managing financial risks of retail industry corporations under conditions of economic instability.

Tasks. The work was performed to determine the impact of external economic instability, including through external sanctions pressure, on uncertainty and private financial risks; to systematize financial risk management tools of the retail industry under conditions of economic instability.

Methods. The methodological basis of the research is the general scientific methods of research, namely analysis, synthesis, comparison, and modeling. The theoretical foundations of the study are the scientific works of scientists of Russia and other countries.

Results. The financial risks of retail industry corporations are systematized, as well as their additional financial risks arising under conditions of increased volatility of market conditions, economic instability, and external sanctions pressure are identified. The tools for managing financial risks of corporations in the retail industry are analyzed and systematized, directions for the use of derivatives to reduce the risks of loss of financial stability under conditions of economic instability are determined, and the risks of their practical application for these purposes are formalized.

Conclusions. Under conditions of external economic instability, in particular with external sanctions pressure, retail industry corporations are facing an increase in private financial risks. The tools proposed in this article enable to manage the process of reducing the impact of corporate financial risks on the financial stability and risks of corporate bankruptcy.