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Analysis Of Risks And Their Impact On Enterprise Performance By Creating Enterprise Risk Model

Author

Listed:
  • Dana Kiselakova

    (University of Presov in Presov, Faculty of Management)

  • Jarmila Horvathova

    (University of Presov in Presov, Faculty of Management)

  • Beata Sofrankova

    (University of Presov in Presov, Faculty of Management)

  • Miroslava Soltes,

    (University of Presov in Presov, Faculty of Management)

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.

Suggested Citation

  • Dana Kiselakova & Jarmila Horvathova & Beata Sofrankova & Miroslava Soltes,, 2015. "Analysis Of Risks And Their Impact On Enterprise Performance By Creating Enterprise Risk Model," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(2), pages 50-61, June.
    • Handle: RePEc:pcz:journl:v:11:y:2015:i:2:p:50-61
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    References listed on IDEAS

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    Cited by:

    1. Camelia Mihaela Oane (Marinescu) & Klaudia Smol¹g & Emanuel Stefan Marinescu & Romuald Szopa, 2015. "Value-Based Management As The Innovating Paradigm Of Contemporary Governance – A Theoretical Approach," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 12(1), pages 106-120, DEcember.
    2. Wioletta Skrodzka, 2015. "The Assessment Of The Efficiency Of Investment In The Shares Of The Polish It Sector," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 12(1), pages 186-197, DEcember.
    3. Veronika Cabinova & Erika Onuferova & Peter Gallo Jr. & Peter Gallo & Juraj Gallo, 2018. "A Comparative Analysis of Modern Performance Methods in Economic Practice," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(4), pages 85-96.

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