Hierarchical classification of entrepreneurial risks

Abstract

Aim. Improvement of the hierarchical classification of entrepreneurial risks.

Objectives. Justification of the relevance of modernization of the hierarchical classification of entrepreneurial risks, coverage of this problem and the experience of its solution in the scientific community; selection of the most acceptable classification of entrepreneurial risks and search for its weaknesses; introduction of new classes and determination of their place in the hierarchical classification of entrepreneurial risks; addition of existing classes of entrepreneurial risks; visualization of cause-and-effect relations between the elements of the hierarchical classification of entrepreneurial risks; argumentation of the following aspects of the hierarchical classification of entrepreneurial risks.

Methods. The author applied the system approach, methods of logical analysis, synthesis, induction and deduction, as well as situational modeling and classification.

Results. On the basis of the known researches the hierarchical structure, interconnected system of entrepreneurial risks is selected and supplemented. The class “Economic risks” was supplemented: the place and interrelations of transportation risks in the classification of the upper level were established. The class “Personnel risks” has been expanded: the place and interrelations of risks of reduction of personnel potential of the company have been determined. The scheme of influence of factor risks on decrease of personnel potential of the company is developed, and also causal relations are grounded. The architecture of the “Financial Risks” class is enriched with six risks. They include interest and credit risks, settlement risk, risk of solvency loss, risk of lost profit, risk of non-payment on commercial transactions and risk of loss of competitiveness. A new class in the system classification of top-level entrepreneurial risks “Digital Risks” is supplemented and described. The structural definitions are singled out, the place and interrelations of the proposed class are determined. The author proposed the place of the risk of reduction of innovation potential outside the classes, opening the prospect of considering a new class of the upper level.

Conclusions. Risk management should have a regular and systematic character. Classification as an element of entrepreneurial risk management requires updating and modernization in connection with new challenges in the business environment. The article substantiates the scientific and practical significance of the outlined approach.