The concept of risk, risk classification and management

In modern market conditions, there is alwaysthe need to assess the possible risks for the effective management of human, material resources, to reduce losses from them and to compensate for their negative consequences.

The concept of risk includes the uncertainty factor,which is based on three important reasons. This is ignorance, chance and opposition. Therefore, uncertainty is the main, absolutely legitimate reason for the occurrence of any type of risk.

Risk is a certain probability of occurrenceadverse factors, as a result of which both material losses (loss of funds, property, etc.) and physical losses are possible. This is a short-term loss of health, physical and mental trauma, etc.

Any human activity is at risk. The risk contains some elements that convey its basic essence: the possibility of achieving the goal, the possibility of deviation from it, the possibility of obtaining in exchange different losses as a result of unfavorable external and internal influences. An example of the onset of risky circumstances may be force majeure. These are unpredictable risks (ecological cataclysms), and predictable risks. Classification of risks is very important for making managerial decisions, since the problem of their occurrence and behavior is not well researched. And in our rapidly changing world, it is very, very difficult to envisage and accurately calculate the impact of risk factors on business processes and possible losses.

The classification of risks is divided into separatespecies according to the nature of the perceived danger, in different areas of their manifestation, by sources of origin, by the extent of possible damage, by the temporal nature of manifestation, by the degree of possible insurance and foresight, by frequency, by the time of manifestation, etc.

By the nature of the perceived danger, the classification of risks is divided into separate types. These are man-caused, natural and mixed risks.

In the areas of their manifestation, risks can be divided into: environmental, political, social, commercial and professional.

For possible sources of occurrence of risks are divided into: external (market) and internal (specific), having a different frequency of occurrence.

By the amount of possible damage and apparent financial losses, the risks are divided into: economic, in which there is a significant loss of capital, risks in the form of lost profits, etc.

At the same time, these risks are further subdivided into the critical level. Risks can be permissible, critical and catastrophic

If possible, forecasting and insurance, the frequency risk factors are divided into predictable, insured and unpredictable, and insurable, high, medium and small.

By the time of manifestation, risky circumstances can be permanent or temporary.

But, despite all this, some types of risksare manageable and it is very important to study them, investigate and try to foresee, use all possible methods to exclude the possibility of their harmful effects. The classification of risks makes it possible for them to be considered in detail and studied for further counteraction to them. Risk management should be, first of all, reasonable and carefully considered, because the whole social life of a person is sometimes placed on the map of life. This is finance, and career, and emotional well-being, etc. And their loss can very adversely affect both the entrepreneur himself and his close people. After all, practically without its own society, modern man can not survive as a person. Risk management is expressed in the adoption of certain methods when doing business. Risk management methods that exclude and anticipate various unfavorable circumstances include the risk taking policy, its reduction, insurance, diversification and transaction size limits. Therefore, providing for possible risk situations, entrepreneurs try to avoid any negative consequences for their business in the form of bankruptcy and insolvency, which is very important. After all, the main goal of business is to get maximum profit.

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