The essence of the «economic risk» concept: retrospective and modernity Cover Image

Сутність поняття «економічний ризик»: ретроспектива та сучасність
The essence of the «economic risk» concept: retrospective and modernity

Author(s): Olena Ivashchuk, Larіsa Radzihovska
Subject(s): Economy
Published by: Інститут трансформації суспільства
Keywords: Probability; Uncertainty; Economic Risk; Business Entity

Summary/Abstract: Practical relevance of detection, assessment, minimization and risk management generates the need to study the concept of «economic risk». The authors review and analyze existing historical and contemporary theoretical approaches to the definition of economic risks, reveal essential features and nature of the given concept. It was established that at early development stages of riskology as a science the economic risk was associated only with one component – ambiguity, uncertainty, probability, threat, loss and failure. With the accumulation of new knowledge there appeared definitions of economic risk containing several components. The majority of modern interpretations of the category «economic risk» include qualitative and quantitative concepts as well as a subjective component. According to the results of the content analysis of a large number of literary sources, it has been established that the most important features of the concept «economic risk», if we take into account definitions given by contemporary foreign and domestic researchers, are «probability», «loss» and «uncertainty». It is suggested to consider economic risk as an objective-subjective category in the activity of business entities caused by uncertainty related to the random nature of economic processes, insufficiency and inaccuracy of the information thereof, influence of external and internal environmental factors and calculated on the basis of estimate of the probability of negative (loss) or positive deviation from the expected values in cases of the subjective choice of the optimal decision among a certain number of alternatives.

  • Issue Year: 2015
  • Issue No: 7-8(1)
  • Page Range: 4-7
  • Page Count: 4