Risk management modeling for an industrial enterprise

Abstract

Introduction. The paper examines the definitions of risk concept applied to an industrial enterprise and differentiates between risk and uncertainty. The paper also describes the functions of risk management which focus on instant decision making in terms of a clear action plan and measures aimed to limit the damages and control the enterprise’s budget.

Purpose. The paper aims at exploring the key components of enterprise’s risk management, describing and documenting the functions of the system’s stakeholders.

Materials and Methods. Theoretically and methodologically, the paper originates from the existing approaches to risk management for the companies, including an industrial enterprise. The approaches were analyzed to find the adequate purpose-oriented type of risk management for an enterprise – hierarchical.

Results. The paper gives a scenario for risk management of an industrial enterprise (Center) in the event of a risk event involving third parties – system’s participants or Agents (an insurance company, waste disposal operator, repair company, bank). A target function of profit is constructed for each participant.

Conclusion. The proposed multiagent risk management system for an industrial enterprise includes the enterprise’s cash flows aimed to mitigate the risk.  Further research will outline the types of functions for profit and damage of each participant in the system to specify the performance and interaction between the Center and Agents.

Keywords: risk event, risk management, Center–Agent system, industrial enterprise, cost optimization

For citation

Ivanov D., Rostova E., Klyovina M. Risk management modeling for industrial enterprises. Perm University Herald. Economy, 2023, vol. 18, no. 3, pp. 247–257. DOI 10.17072/1994-9960-2023-3-247-257. EDN AFECXU.

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