ACTUAL QUESTIONS OF RISK MANAGEMENT IN MODELS AFFECTING ENTERPRISE PERFORMANCE

• Authors: Šofranková Beáta , Kiseľáková Dana , Horváthová Jarmila
• Languages of publication: EN

Abstracts

EN

The aim of the article was to design an enterprise performance assessment model that accepts the results of selected financial indicators, ex ante models and risks. For the identification of risks, two approaches to calculating the Cost of Equity were applied. The first approach was based on CAPM's calculation of Cost of Equity, with the assumption of external and systematic risks. The second approach was based on Build-up model with the acceptance of internal and non-systematic risks. The data of the food industry enterprises in Slovakia for the period 2004 – 2013 were used to implement this research. Based on the application of these approaches, it was possible to identify the impact of internal, external risks, systematic and non-systematic risks on a company performance. Finally, we constructed new 3-dimensional Enterprise Risk Model (ERM) is a suitable risk management tool for assessing and predicting the risk impact on the enterprise performance.

Keywords

EN

ENTERPRISE PERFORMANCE; RISKS; COST OF EQUITY; ENTERPRISE RISK MODEL; SLOVAKIA; MANAGEMENT

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2017
• Volume: 65
• Issue: 7
• Pages: 644 – 667

Contributors

author

Šofranková Beáta

• University of Prešov in Prešov, Faculty of Management, Department of Finance, Konstantinova 16, 080 01 Prešov, Slovak Republic

author

Kiseľáková Dana

author

Horváthová Jarmila