Risk Management in Small and Medium Enterprises in Economic Downturn: Distinctive Features of Insurance for Small Enterprises

Abstract

This study examines the distinctive features of insurance models for the risks faced by small and medium enterprises in Russia. Aim. This study aims to determine major distinctive features of insurance models for the risks faced by enterprises as well as the major distinctive features of the risks faced by small enterprises in an uncertain market environment. Tasks. This study determines the sequence of steps that the Chinese monetary authorities need to take on in their way of reforms. It also examines the aggregate of applied measures and clarifies the reasoning of Chinese monetary authorities who do not want to rush monetary liberalization. Methods. This study uses general methods of scientific cognition to examine the distinctive features of insurance models for the risks faced by small and medium enterprises in various aspects. Results. When risk is defined as a category of deviation from the goals of small enterprises, the following situations are distinguished: possible deviation of the actual outcome of the small enterprise’s activity from the expected one and risk of losing control over its revenues and expenses during the implementation of an investment project or business operation. Conclusion. Conceptually important features of diagnostic risk assessment for small and medium enterprises in an uncertain market environment are examined. These features are analyzed from the point of view of prominent scientists, whose opinions are then used to substantiate methodological aspects of conceptual factors for the emergence of uncertainty considering possible risk categories. The concept of acceptable risk of economic process is also examined.