The Principles and Stages of Building a Multifactor Model Assessing the Effectiveness of Corporate Risk Management

The Bachelor’s thesis is The Principles and Stages of Building a Multifactor Model Assessing the Effectiveness of Corporate Risk Management. The significance of the thesis’ theme is confirmed by the number of companies using enterprise risk-management. Although there is still no any recommendations for evaluating risk management system. Risk management can although be the factor of investment attractiveness, because it can be competitive advantage of the company and it can help investors to make best decision. The paper includes three main chapters. The first chapter is about theoretical aspects of risks and risk-management and it is also mentioned that risk management system positively affects investment attractiveness of the company. The second chapter is about key indicators for evaluating the risk management system effectiveness. There was also done a ranking of the effectiveness of risk management system for 50 Russian companies of food industry with this 9 key indicators. The third chapter is about model of evaluating of risk management. At first the regression was made. The model was not as good as it was expected. The reasons for these results were found and explained. The recommendations for the further improvement of this model were developed.