Investment risks in the economic system of enterprise

Abstract

The purpose of this paper is to conduct the comprehensive analysis of the impact of investment risks on the business entities and the search for effective mechanisms to overcome them or minimize. Any entity that runs business activity or the investment activity at the capital market is at risk because both the company and the individual investor do not have full confidence in regard to the size and period of occurrence of future cash flows associated with the decisions made. Thus, the comprehensive study of the nature of the investment risks of the enterprise and their classification was provided. We clarify the forms of their manifestation and discuss the effective mechanisms to minimize investment risk, which will give the investor the opportunity to obtain the maximum expected profit. An investment process is very complicated to be predicted and always connected with the risk of investment losses. At the stage of the investment project implementation it is necessary to take into consideration the methods of management practices and organization of production to ensure efficient distribution of available material and technical resources, labor resources and financial funds. It is important to understand how to manage investment risk effectively by using appropriate methods and classification required to optimize the process of further managerial decision-making related to risks and to find ways to minimize them.

Authors and Affiliations

V. О. Kuchmenko, V. V. Zagorovskа

Keywords

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  • EP ID EP273856
  • DOI -
  • Views 126
  • Downloads 0

How To Cite

V. О. Kuchmenko, V. V. Zagorovskа (2017). Investment risks in the economic system of enterprise. Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування, 80(2), 124-127. https://europub.co.uk/articles/-A-273856