FACTORS OF EMERGENCE OF ECONOMIC RISKS AS AN INEVITABLE ELEMENT OF ECONOMIC ACTIVITY OF AN ENTERPRISE

Abstract

The subject of this study is a comprehensive examination of economic risks as an inherent and obligatory component of entrepreneurial activity in enterprises. The analysis encompasses the theoretical foundations of risks, their classification, and genesis amid pervasive economic uncertainty. The article

systematically reviews classical and neoclassical theories of risk, elucidates the multifaceted structure of risk situations, and meticulously delineates the preconditions leading to these risks in a dynamic market environment. Classical risk theory, embodied by J.S. Mill and J. Senior, characterizes risk as the probable frequency of losses arising from managerial decisions or strategic choices, thereby narrowly framing it as a determinant of enterprise profitability. In contrast, the neoclassical definition, proposed by A. Marshall, A. Pigou, and J.M. Keynes, reconceptualizes risk as deviations from predefined objectives. However, both models exhibit methodological limitations: the former neglects the entrepreneurial utility of risk-taking, while the latter underestimates subjective motivational dynamics. The study establishes a dual ontology of risk—objective, manifesting independently of object cognition as an exogenous feature of economic processes, and subjective, reflecting the object’s propensity to overcome uncertainty through conscious choice.

A key distinction is drawn between risk situations and pure uncertainty (per F. Knight): the former involves estimable probabilities, alternative pathways, and tangible loss potential grounded in incomplete but quantitatively measurable information, whereas pure uncertainty resists probabilistic assignment due to informational gaps or unprecedented events. Core attributes of risk situations include the exigency of decision-making under ambiguity, selection of alternatives, probabilistic forecasting, and risks of material, reputational, or ethical losses. Uncertainty manifests statistically (via empirical frequency distributions) or non-statistically (via subjective a priori valuations), amplified by temporal unpredictability, behavioral idiosyncrasies, and exogenous shocks such as geopolitical shifts, technological disruptions, demand fluctuations, or climatic anomalies.

The analysis advocates a synergetic application of quantitative assessment methods—sensitivity analysis, Monte Carlo simulation, and probabilistic distributions leveraging big data analytics—alongside qualitative heuristics, including the Delphi method, SWOT analysis, and brainstorming, to ensure accurate risk quantification and prioritization. It highlights contemporary transformations in risk profiles: globalization intensifies systemic interdependencies; financial derivatives and hedging instruments enable risk transfer; and risk-oriented corporate culture fosters proactive identification, monitoring, and mitigation, transforming risks from mere threats into catalysts for innovation. The literature review integrates foundational works, such as V. Fostikova and Yu. Havrylyuk on risks to Ukraine’s economic security, systemic assessments by Ye. Fedorov, and global reports like the World Economic Forum’s Global Risks Report 2025, underscoring the need for interdisciplinary risk management.

The study’s findings emphasize risk’s Janus-faced essence—as a stimulus for innovation and progress, yet the progenitor of adventurism when mismanaged—proposing a holistic risk management paradigm to enhance enterprise resilience and competitiveness. Practical implications encompass actionable principles: integration of hybrid evaluation protocols, strengthening internal controls, IT-based forecasting, cultivation of organizational risk awareness ethos, and refinement of hedging strategies. This systemic approach not only mitigates adverse outcomes but harnesses uncertainty for adaptive, innovative growth in volatile socio-economic conditions.