ASSESSMENT OF RISKS WHEN CONDUCTING BUSINESS ACTIVITIES

Abstract

Business risk assessment is key for today's businesses in the context of a constantly changing business environment. Risk analysis allows enterprises to identify, analyze and effectively manage the dangers that may arise in the course of their activities. Risk assessment includes identification of potential threats, analysis of the likelihood of their occurrence and impact on business, as well as development of strategies for minimizing and managing these risks. Studying this topic will help enterprises to increase their competitiveness, prevent financial losses, and also adapt to changes in the external environment. The main key aspects that emphasize the importance of research in this direction are the rapidity of the market environment, modern business functions in conditions of extremely rapid changes in the market environment. Technological innovations, changes in consumer preferences, economic fluctuations and other factors significantly affect business. Timely detection and assessment of risks allows companies to quickly adapt to changes and remain competitive. The impact of globalization opens up new opportunities for business, but also brings new risks, such as currency fluctuations, political instability in different countries, risks of disruption of supply chains, etc. Risk analysis helps entrepreneurs consider these factors when planning international operations. A constant risk factor is increased competition both at the local and global levels. Identifying and managing competitive risks is critical for maintaining and strengthening market positions. Risks associated with technological innovations, such as digitalization, artificial intelligence, blockchain and others, open up new opportunities, but also carry certain risks. Insufficient understanding or incorrect use of new technologies can lead to significant losses. It is necessary to note the risk of economic fluctuations, crises and other macroeconomic factors that can significantly affect business. Risk analysis helps entrepreneurs predict possible negative scenarios and develop strategies to minimize their impact. Changes in legislation and regulatory requirements can significantly affect business activities. Timely detection of such risks and preparation for them allows you to avoid fines, lawsuits and other unpleasant consequences. The importance of sustainable development has also increased. Modern trends are aimed at increasing attention to sustainable development and environmental responsibility. Ignoring environmental risks can lead to reputational losses and negative financial consequences. A risk factor that is characteristic recently is the growing dependence on information technologies, which increases the risks of cyber threats. Investigating risks in this area helps businesses protect their data and avoid significant financial losses. Therefore, the study of the risks of entrepreneurial activity consists in the need to ensure the stability of business in conditions of constant changes and uncertainties. Thorough risk research helps entrepreneurs effectively manage potential threats, make informed decisions, and ensure the sustainable development of their companies.