USE OF THE KEY RISK INDICATORS METHOD IN RISK MANAGEMENT STRATEGIES

Abstract

As part of the rapid development of the global economy in recent decades, a clear demand for timely and effective response to changes in the macroeconomic environment of the multinational enterprises (MNE), as well as the influence of endogenous factors on the achievement of operational and strategic goals of the enterprise, is created within the framework of the corporate governance structure of MNE. Such changes and factors can create both risks and opportunities for MNE. As part of the strategic planning processes, modern MNE must identify and assess risks and opportunities in relation to the key objectives of their strategy and assess the potential change in the risk profile of the enterprise, if there are changes in the strategy and any of its sensitivity to internal or external factors. Existing and new risk management strategies should become an integrated part of the operational and strategic planning process of MNE. At the same time, an effective system of key risk indicators (KRI) is an important component of an effective risk management strategy of MNE, based on a holistic approach to the organizational structure of MNE and taking into account the geographical, functional, operational specifics of the enterprise's business.

Applying a natural methodological basis, the article describes the concepts and principles of KRI, their typology and the order of determination. As part of the practical analysis, the role and place of KRI in the system of operational and strategic activity of MNE were determined, as well as a study of the use of KRI was carried out on the example of the collapse of the US residential real estate market in 2007.

The conducted study showed the high efficiency of the practical use of KRI to achieve the goals of MNE and increase the efficiency of their business activities.