ANALYSIS OF RISKS AND THEIR IMPACT ON ENTERPRISE PERFORMANCE BY CREATING ENTERPRISE RISK MODEL

Dana Kiselakova (), Jarmila Horváthová, Beata Sofrankova () and Miroslava Soltes,
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Dana Kiselakova: University of Presov in Presov, Faculty of Management
Miroslava Soltes,: University of Presov in Presov, Faculty of Management

Polish Journal of Management Studies, 2015, vol. 11, issue 2, 50-61

Abstract: The aim of this article is the analysis of impact of selected systematic and unsystematic risks to performance of the enterprises. For the realization this aim, we used secondary data of financial statements the selected company, which is representative of the Slovak food industry. Systematic risks were represented as ß coefficient, which has been modified to levered ß coefficient. Addition to the above ß coefficient, we analyzed also impact of market risk and country risk. These systemic risks were compared between the selected countries in the EU. The second group of risks represented risks arising from the internal enterprise environment. We can conclude that the most significant impact on performance of the enterprise has just financial risk. The value of this risk was determined by low current liquidity of the analyzed company. According to our calculations, it was confirmed that the unsystematic risks have a higher impact on performance of the enterprise as systematic risks. For confirming this conclusion was constructed Enterprise Risk Model (ERM), which consisted of selected financial indicators, systematic and unsystematic risk and prediction models. This ERM can be used in managerial practice in order to minimize, diversify and predict risks on global market.

Keywords: risk models; systematic and unsystematic risks; ß coefficients; enterprise performance; Enterprise Risk Model. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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