REASONS AND POTENTIAL CONSEQUENCES OF RISK OPERATIONS

  • Svitlana Tulchynska National Technical University of Ukraine “Igor Sikorsky Kiev polytechnic institute”
  • Oleksandr Solosich National Technical University of Ukraine “Igor Sikorsky Kiev polytechnic institute”
Keywords: communal enterprises, risk, risk management, risk administration, communal enterprises risks

Abstract

The article outlines the risks of communal enterprises’ the activity in the social sphere in Kyiv on the example of the Communal enterprise “Promin” with the aim of qualitative analysis of their economic nature and ways of minimization. The study substantiates the relevance of considering the problems of risk management at the level of communal enterprises of the social sphere as a necessary component of their full functioning and safe development. The general characterization of the current condition of communal enterprises in Kyiv is presented as well as financial indicators of their activity in time are analyzed. The key problems in their activity, which have a deterrent effect on the dynamics of development of the enterprise and the level of its safety status, are analyzed. Based on the selected issues, the main types of risk were chosen, which represent the greatest threat for this type of enterprises, namely the emergence of new competitors with greater financial, organizational and production capabilities; late payment by budget managers for rendered services; losing in the tender for the provision of school catering in the Svyatoshinsky district of Kyiv; change of state approaches in the organization of school catering in the direction of commercialization of this sphere and decrease in support of the state and communal enterprises; untimely delivery of food and unfair work of suppliers. A step-by-step qualitative analysis of the risks of communal enterprise activity was carried out, using the example of Communal enterprises “Promin”. The causes and potential consequences of these risk situations are identified. A set of factors that influence in the likelihood and level of potential threat of risk is developed, the main of which are macroeconomic, local, microeconomic and socio-cultural factors. A number of measures are proposed to minimize the likelihood of risk occurrence and the level of negative consequences, which include measures to diversify activities, optimize the organizational and administrative structure of enterprises, and increase the level of staff’s professional competence and an effective use of reserve funds.

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Published
2019-12-30
How to Cite
Tulchynska, S., & Solosich, O. (2019). REASONS AND POTENTIAL CONSEQUENCES OF RISK OPERATIONS. Entrepreneurship and Innovation, (8), 76-80. https://doi.org/10.37320/2415-3583/8.12
Section
Practice innovation and entrepreneurship