Methodological basis of risk management system with regard to industrial activities in the course of radical transformations

Economic Annals-ХХI: Volume 156, Issue 1-2, Pages: 67-70

Citation information:
Taraniuk, L., & Taraniuk, K. (2016). Methodological basis of risk management system with regard to industrial activities in the course of radical transformations. Economic Annals-XXI, 156(1-2), 67-70. doi: https://doi.org/10.21003/ea.V156-0015

Leonid Taraniuk
D.Sc. (Economics),
Associate Professor,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
taraniukl@ukr.net

Karina Taraniuk
PhD (Economics),
Assistant Professor,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
taraniukk@ukr.net

Methodological basis of risk management system with regard to industrial activities in the course of radical transformations

Abstract. Introduction. The main problem of transformational changes in the economic activity of industrial enterprises is the impact of different types of economic risk on transformations, including a radical change of their character, which is a reengineering of business processes.

Purpose. The main objective is to develop a methodology for the risk management system reengineering of business processes at enterprises of the industrial sphere.

Methods. The authors used the method of expert analysis to score the main risks of reengineering, the method of comparative evaluation to systematize the risks related to reengineering of business processes, the empirical method to form the principles of operation for the subsystems of risk management business process reengineering, the system method to develop a system of risk management reengineering, the structural method to define the formation of the risks that arise in the relevant stages of reengineering.

Results. The authors have carried out an analysis of the main risks that affect decision-making processes and the subsequent transformation of the radical nature of the conduct in the workplace, which made it possible to score the major risks relevant to the implementation of reengineering activities at enterprises. This study is based on information received from staff management, management of logistics, marketing department, planning and economic departments, management of personnel employed at industrial enterprises PJSC «Sumy Machine-Building Science and Production Association» This information will help to assess the major factors of in the course of radical transformations. The authors of the present article have developed a subsystem of functioning reengineering of the risk management business processes at industrial enterprises which includes information and analytical identification of risks at the appropriate stages of business process reengineering; analytical detection of risks due to reengineering of management activities; provision of risk management business process reengineering. The article touches upon the principles and methods for evaluating the functioning of these subsystems.

Conclusions. The authors have formulated principles and methods of evaluation of functioning of the relevant sub-systems of risk management at industrial enterprises based on a point scoring.

Keywords: Risk Management System; Business Process Reengineering; Transformation; Enterprise

JEL Classіfіcatіon: D81; М11; М49; Р42

DOI: https://doi.org/10.21003/ea.V156-0015

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Received 27.01.2016