Risk. Identification. Measurement
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The contents of the paper serves to construct a special 'iinstrument' enhancing effectiveness and efficiency of the business organization's risk management system. When reviewing the literature, the author selected the publications crucial to the subject. The multitude of risk definition is surprising. The problem emerges in the area of risk measurement process. It is usually 'ex post' measurement due to the character of existing definitions. At the same time, various definitions are informative - they stress the nature of risk, but do not define the idea of risk. Therefore such a definition of risk itself is of little use in the risk management practice. Chapters 2 and 3 are important for achievement of the purpose of the study. The first of them contains information about the space of the concept being defined and about properties of this space vectors. It presents the necessary definitions and properties of the random vector, this concept constituting the basis for constructing risk measures presented in chapter 4. Chapter 3 is central for the study - it presents the contents of three axioms: the axiom of risk existence, the axiom of risk equivalence to the random vector being an element of (Q, F, P) probabilistic space and the axiom which expresses the possibility of measuring risk. Chapter 4 defines two important concepts: the concept of named risk - its map in (D, F, P) space is a random vector, and the concept of risk profile, with clearly defined characteristics which are random variables. For so defined concepts of named risks and risk profile, the contents of the chapter has been supplemented with definitions of risk profile measures which address the contents of chapter two. This enables one to consider the hypotheses presented at the beginning of the paper as credible.
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