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Program-Targeted Approach to Managing Financial Risks of Sustainable Development Based on Corporate Social Responsibility in the Decade of Action

Author

Listed:
  • Liudmila I. Khoruzhy

    (Institute of Economics and Management of Agro-Industrial Complex, Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, 127434 Moscow, Russia)

  • Valery I. Khoruzhy

    (Department of Taxes and Tax Administration, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia)

  • Bogdan S. Vasyakin

    (Department of Psychology, Plekhanov Russian University of Economics, 115093 Moscow, Russia)

  • Wenhao Shen

    (Department of World Economy, Saint Petersburg State University of Economics, 191023 Saint Petersburg, Russia)

Abstract

This paper aims to find the prospects of improving the practice of managing financial risks of sustainable development in the Decade of Action. We substantiate—based on economic and mathematical modeling based on a sample of 185 countries—that the existing (project-based) approach to managing financial risks of sustainable development, which was successfully implemented in the pre-crisis period (2015–2019), demonstrates reduced effectiveness at the beginning of the Decade of Action (2020–2021). This showed a marked increase in the overall level of financial risk, as well as an increase in the importance of private investment, in financing sustainable development in the first two years of the Decade of Action (2020–2021) compared to 2018–2019. Additionally, the features of the continents are identified: Africa, America and the Caribbean, Asia, and Europe, and specific recommendations are proposed for them on the financial risk management of sustainable development in the Decade of Action. This paper’s originality lies in the development of a new program-targeted approach to managing financial risks of sustainable development, which, due to its increased flexibility and the use of the market mechanism—is optimal for the conditions of the pandemic and will allow the ensuring of the full-scale (quantitative characteristics) financial provision of the SDGs in the Decade of Action using private investments. This paper’s novelty is also due to the recommendation on the improvement of financial risk management based on corporate social responsibility (qualitative characteristics) to support the implementation of the SDGs in the Decade of Action.

Suggested Citation

  • Liudmila I. Khoruzhy & Valery I. Khoruzhy & Bogdan S. Vasyakin & Wenhao Shen, 2022. "Program-Targeted Approach to Managing Financial Risks of Sustainable Development Based on Corporate Social Responsibility in the Decade of Action," Risks, MDPI, vol. 10(3), pages 1-20, March.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:3:p:58-:d:764240
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    References listed on IDEAS

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    4. Alexey S. Kharlanov & Yuliya V. Bazhdanova & Teimuraz A. Kemkhashvili & Natalia G. Sapozhnikova, 2022. "The Case Experience of Integrating the SDGs into Corporate Strategies for Financial Risk Management Based on Social Responsibility (with the Example of Russian TNCs)," Risks, MDPI, vol. 10(1), pages 1-19, January.
    5. Marco Migliorelli, 2021. "What Do We Mean by Sustainable Finance? Assessing Existing Frameworks and Policy Risks," Post-Print hal-03476960, HAL.
    6. Yubin Yang & Xuejian Chu & Ruiqi Pang & Feng Liu & Peifang Yang, 2021. "Identifying and Predicting the Credit Risk of Small and Medium-Sized Enterprises in Sustainable Supply Chain Finance: Evidence from China," Sustainability, MDPI, vol. 13(10), pages 1-19, May.
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