RISK MANAGEMENT AND THE CONCEPT OF RISK-BASED INTERNAL CONTROL

Roman Voronko, Natalia Vovchyk

Abstract


Introduction. This article summarizes the theoretical development of domestic and foreign scientists on the content category "risk" and risk management in the enterprise. The necessity of improving risk management from the point of view of economic entities in the conditions of functioning of the risk-oriented internal control. Purpose. Scientific rationale for risk management, the group's business risk for the purposes of control and management of the company, disclosure of the concept of risk-based internal control. Methods. In the process of the study were used General scientific and special research methods (dialectical, historical, empirical, induction, deduction, observation, comparison, dialectic, systematization, simulation, synthesis) to identify trends identify business risks and management a risk-based approach to the construction of internal control. Results. The content category "risk" and its modern interpretation. The differences of risk of danger or threats. The attention is focused on the status of the risk management process of the enterprise, which is now characterised not as coordinated by the leadership, and episodic. The risk is considered as a situational characteristic of activity of the business entity about which there is a probability of its occurrence causing adverse effects, or non-occurrence – subject to the adoption of the necessary measures. Defined risk management in the sphere of entrepreneurial activities as the optimal allocation of resources and efforts of the company's management in accordance with pre-defined structure and risk values that are acceptable to the enterprise. Necessity group business risk monitoring and management. Highlights the individual approaches to risk assessment by external auditors, and business risks risk-oriented internal control system of the enterprise. Discussion. Further studies will be aimed at establishing relations of business risks and business risk that are constantly in the field of view of the internal control and audit and the development of conceptual approaches to creation of system of monitoring and evaluating business risks in the risk management of the company.

Keywords


internal control; audit; risk; danger; risk management; risk-oriented control system

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References


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DOI: https://doi.org/10.35774/ibo2018.03.049

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