The Risk Assessment of the Firm Activity Using the Operating Lever

Anca-Jarmila Guta
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Anca-Jarmila Guta: University of Petrosani, România

Economics and Applied Informatics, 2016, issue 2, 70-77

Abstract: This paper aims identify the ways in which the risk generally and specifically operating the risk can compete in the failure or success of a business. For awareness phenomena, actions and events that can generate losses for the adoption of prudent behavior it is necessary in a first step to identify the types of risk that a company may face. For the company that makes the subject of this paper have revealed a risk of exploitation by means of operating leverage, expressing elasticity operating result of the company in relation to its turn over. Analysing the evolution of the society we found that increasing the volume of activity on the period under study led to an increase in operating leverage which means that society has become more risky because it involves revenue growth and increased operating costs.

Keywords: Business; Risk; Firm; The exploatation result; The operating lever (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ddj:fseeai:y:2016:i:2:p:70-77

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