RISKS IN THE INVESTING
Svitlana Gutkevych () and
Mykhailo Vikhliaiev ()
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Svitlana Gutkevych: National University of Food Technologies, Ukraine
Mykhailo Vikhliaiev: Publishing House "Helvetica", Ukraine
Baltic Journal of Economic Studies, 2021, vol. 7, issue 3
Abstract:
Risk is a possible danger of performance. It is necessary to choose and make a decision in production, economic activity, which is always burdened with risk. Therefore, the risk is a normal phenomenon, a consequence of the actions of a variety of reasons that give rise to its various species. Risk management involves optimal use of all possible or allowable means of avoidance, or reduce the risk degree associated with significant losses; risk control, optimization of risk or maximum possible decrease in volumes and probability of possible losses. Investment risk is the risk of an investment project, which is defined as the probability of obtaining a possible loss from its implementation. The investment risk of industries is characterized by the level of uncertainty in the forecast of profit from investments. The risk is possible only when the controlled economic system functions in conditions of uncertainty, and the person who makes the decision is interested in the final result.
Keywords: risks; investment attractiveness; industries; profit; factors; development (search for similar items in EconPapers)
JEL-codes: D24 E22 E27 G32 K23 N50 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2021:7:3:10
DOI: 10.30525/2256-0742/2021-7-3-82-87
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