Models of Evaluating the Effectiveness of Risk-Management

Nowadays, the presence of a high level of risk and complexity in the business environment are indispensable factors for the further growth and development of companies. As a result, in many business areas, risk management is an important factor that affects the profitability, efficiency and viability of companies. Due to their importance, modern risk management practices do not simply describe the current state of affairs in the company, but also offer effective recommendations for solving problems. However, some recent studies have raised concerns about the effectiveness of risk management tools. Based on the results of this study of the company's financial performance, the paper describes the concept of risk management and ERM and analyzes key indicators of its effectiveness. Key performance indicators of risk management were identified: growth of revenue, EBITDA, net assets and risk management costs. Also, risk management effectiveness models were constructed for all companies and separately for 6 industries: banking, metallurgy, oil and gas, construction, telecommunications and trade. As a result, models of economic influence were obtained depending on the company's industry and reflecting the company's financial results from the risk management conducted. These models allow you to link the result of economic efficiency with the financial results of the organization and avoid the disadvantages of applying absolute productivity and net present value. Practical applications of these models can be found in the work of the risk management departments to analyze and revise the costs of risk management: for example, when calculating premiums of insurance brokers, when calculating the fee for consultants, when providing insurance services to the company.