Economic theory

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

Economic Annals-XXI

Economic Annals-ХХI: Volume 152, Issue 7-8(1), Pages: 4-7

Citation information:
Radzihovska, L., & Ivashchuk, O. (2015). The essence of the «economic risk» concept: retrospective and modernity. Economic Annals-XXI, 7-8(1), 4-7. https://ea21journal.world/index.php/ea-v152-01/

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Larіsa Radzihovska
PhD (Pedagogical Sciences),
Associate Professor,
Vinnytsia Institute of Trade and Economics, KNTEU
87 Soborna Str., Vinnytsa, 21050, Ukraine
Larirad@ukr.net

Olena Ivashchuk
PhD (Physical and Mathematical Sciences),
Associate Professor,
Vinnytsia Institute of Trade and Economics, KNTEU
87 Soborna Str., Vinnitsa, 21050, Ukraine
olena_ivash@mail.ru

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

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.

Keywords: Probability; Uncertainty; Economic Risk; Business Entity

JEL Classіfіcatіon: В12; В13; В29

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Received 17.08.2015

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