Risks

Research

19 pages, 1652 KiB

Open AccessArticle

Opportunities for the Application of a Model of Cost Management and Reduction of Risks in Financial and Economic Activity Based on the OLAP Technology: The Case of the Agro-Industrial Sector of Russia

by Liudmila I. Khoruzhy, Yuriy N. Katkov, Ekaterina A. Katkova, Valeriy I. Khoruzhy and Meri K. Dzhikiya

Risks 2023, 11(1), 8; https://doi.org/10.3390/risks11010008 - 23 Dec 2022

Cited by 7 | Viewed by 3367

Abstract

The development of cloud technologies enables companies to actively implement technologies for cost management and risk reduction in their financial and economic activities. The use of cloud-based models of risk management in the financial and economic activities of the enterprise will help small [...] Read more.

The development of cloud technologies enables companies to actively implement technologies for cost management and risk reduction in their financial and economic activities. The use of cloud-based models of risk management in the financial and economic activities of the enterprise will help small and medium-sized companies in the agro-industrial sector in Russia to make structural and strategic changes, as well as discover new opportunities for business expansion. The purpose of the study is to develop models for cost management and reduction of risks in the financial and economic activities of companies based on the OLAP technology for application in Russian agro-industrial enterprises. The study employs a qualitative approach based on the case study methodology. The paper discloses and substantiates the authors’ conceptual model of a cost management system that allows executives to make decisions proceeding from four types of cost prices. The distinguishing feature of the management system is the use of a digital twin, which makes it possible to manage risks at the early stages of decision-making. The application of OLAP systems improves the quality of analysis and visualization methods as part of the cost management system. In addition, the study provides practical insight into how the applied model will help small and medium-sized agro-industrial enterprises to develop different business vision strategies based on cost reduction, manage the level of risk at the early stages of decision-making, and analyze information from a geographically dispersed logistics chain of divisions (production facilities, warehouses, stores). Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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24 pages, 1284 KiB

Open AccessArticle

Corporate Social Responsibility in Terms of Sustainable Development: Financial Risk Management Implications

by Denis E. Matytsin, Yelena S. Petrenko and Nadezhda K. Saveleva

Risks 2022, 10(11), 206; https://doi.org/10.3390/risks10110206 - 31 Oct 2022

Cited by 8 | Viewed by 4493

Abstract

The motivation for this study was a new context associated with the increased cyclical nature of the economy and, accordingly, the increased financial risks of the business, which complicated the implementation of corporate social responsibility. The purpose of the article is to explore [...] Read more.

The motivation for this study was a new context associated with the increased cyclical nature of the economy and, accordingly, the increased financial risks of the business, which complicated the implementation of corporate social responsibility. The purpose of the article is to explore the relationship of corporate social responsibility with the financial risks of the business and explain this relationship in terms of sustainable development (SDGs). The article contributes to the development of the concept of financial risks of the business by clarifying their connection with corporate social responsibility and substantiating the relationship between the financial risks of the business. Structural equation modeling (SEM) showed that in 2020–2021, financial risks have demonstrated a complex (in most cases negative) relationship with each other and a contradictory impact on corporate social responsibility. The complex systemic relationship between corporate social responsibility and financial risks of business from the point of view of sustainable development is substantiated. In the context of increased financial risks, by systematically implementing SDGs 8, 9, 11, and 12, responsible companies get the opportunity to restore and improve their position in the market. The significance of the findings for businesses is that they proposed the SDGs as a promising new benchmark for business financial risk management. This will allow responsible companies to find a new Pareto optimum in the current conditions of uncertainty and determine for themselves the preferred level of corporate social responsibility that contributes to the effective financial risks of business management in the long term. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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14 pages, 429 KiB

Open AccessArticle

The Effect of CSR Policy on Earnings Management Behavior: Evidence from Visegrad Publicly Listed Enterprises

by Marek Nagy, Katarina Valaskova and Pavol Durana

Risks 2022, 10(11), 203; https://doi.org/10.3390/risks10110203 - 25 Oct 2022

Cited by 9 | Viewed by 3415

Abstract

A corporate socially responsible-focused approach adds value to a firm in the form of financial benefits in addition to improving its corporate image. To meet the demands of various stakeholders, including consumers, employees, and shareholders, and to produce high-quality financial reporting, some managers [...] Read more.

A corporate socially responsible-focused approach adds value to a firm in the form of financial benefits in addition to improving its corporate image. To meet the demands of various stakeholders, including consumers, employees, and shareholders, and to produce high-quality financial reporting, some managers participate in CSR initiatives. The investigation of the relationship between corporate social responsibility and earnings management in publicly listed Visegrad companies is the main aim of the paper. The purpose is to identify the correlation between the CSR concept (measured by ESG score) and earnings management behavior determined by discretionary accrual levels (using the modified Jones model). To ascertain the association between CSR and earnings/discretionary accrual levels or to describe the major changes in the development of these variables, several statistical techniques were applied (correlation analysis, one-way ANOVA, and one-way ANOVA with repeated measures). As this is a pioneering study in the Visegrad environment (analyzing 35 publicly listed enterprises reporting ESG score), the research findings may have significant policy implications for decision-makers, regulators, auditors, and investors in their efforts to restrict earnings management techniques and enhance the quality of financial reporting. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

27 pages, 973 KiB

Open AccessArticle

The Concept of Corporate Social Responsibility Based on Integrating the SDGs into Corporate Strategies: International Experience and the Risks for Profit

by Aleksei V. Bogoviz, Svetlana V. Lobova and Alexander N. Alekseev

Risks 2022, 10(6), 117; https://doi.org/10.3390/risks10060117 - 2 Jun 2022

Cited by 3 | Viewed by 3590

Abstract

This paper aims to study the international experience (in the aspect and taking into account the specifics of regions of the world) integrating the SDGs into corporate strategies and to identify the following: (1) supported SDGs (UN standards); (2) implemented measures of corporate [...] Read more.

This paper aims to study the international experience (in the aspect and taking into account the specifics of regions of the world) integrating the SDGs into corporate strategies and to identify the following: (1) supported SDGs (UN standards); (2) implemented measures of corporate social responsibility to support the SDGs and (3) approach from the positions of risks for profit. Based on a sample of 193 countries (seven regions of the world) from 2020–2021 (386 observations) based on the method of structural equation modelling (SEM), it was discovered that the SDGs (UN standards) are supported by companies to a different extent in the different world regions, but, on the whole, they are strongly integrated into the corporate strategies in each region. The largest support of the SDGs from business is observed in the Organisation for Economic Co-operation and Development (OECD). The risks of integrating the SDGs (UN standards) into corporate strategies for profit are low (moderate in the OECD). The commercial approach to integrating the SDGs into corporate strategies is implemented in all regions of the world. The theoretical significance of the results consists in the fact that the discovered differences pointed at the necessity for and set the foundation for the transition from global to regional management of the integration of the SDGs (UN standards) into corporate strategies. The practical significance of the authors’ conclusions and developments consists in the fact that they allow increasing the effectiveness of risk management of the practices of corporate social responsibility for profit. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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18 pages, 1183 KiB

Open AccessArticle

Corporate Social Responsibility as an Alternative Approach to Financial Risk Management: Advantages for Sustainable Development

by Veronika V. Yankovskaya, Timur A. Mustafin, Dmitry A. Endovitsky and Artem V. Krivosheev

Risks 2022, 10(5), 106; https://doi.org/10.3390/risks10050106 - 19 May 2022

Cited by 12 | Viewed by 3498

Abstract

Using the example of the COVID-19 global crisis (2020), we prove the low effectiveness of the existing approach to managing the financial risks of investments based on commercial investments. For this, we performed an applied quantitative study based on the statistics from the [...] Read more.

Using the example of the COVID-19 global crisis (2020), we prove the low effectiveness of the existing approach to managing the financial risks of investments based on commercial investments. For this, we performed an applied quantitative study based on the statistics from the World Bank for 2020 and the Forbes Global 2000 ranking in 2021, using as an example 17 developing countries with lower-middle and upper-middle incomes from different regions of the world. As an alternative, we suggest a new approach for managing the financial risks of investments, which is based on corporate social responsibility. It implies the placement of long-term, large-scale investments in social and ecological innovations based on the mechanism of public-private partnership. We substantiated the high effectiveness and advantages of the new approach. The new approach to financial risk management amid a crisis was more effective (in comparison with the existing approach) for businesses (ensures higher return on investments, allows avoiding losses), the government (contributes more to economic growth, the probability of which achievement is higher), and for society (supports SDGs to a larger extent and contributes to sustainable development). This paper contributes to the development of the Theory of Investments (Neo-Keynesianism) and fills a gap in the literature, bridging the gap between the Theory of Investments and the Theory of Sustainable Development—outlining the perspectives of the simultaneous overcoming of economic crises and supporting sustainable development during the management of financial investment risks based on corporate social responsibility. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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20 pages, 1041 KiB

Open AccessEditor’s ChoiceArticle

The Impact of Corporate Social Responsibility and Innovative Strategies on Financial Performance

by Joana Costa and José Pedro Fonseca

Risks 2022, 10(5), 103; https://doi.org/10.3390/risks10050103 - 12 May 2022

Cited by 16 | Viewed by 9394

Abstract

The article aims to appraise the role of Corporate Social Responsibility (CSR) and innovation strategies as leverages of a company’s financial performance. The theoretical and empirical statement of this link aims to reinforce the importance of these strategical options in both the managerial [...] Read more.

The article aims to appraise the role of Corporate Social Responsibility (CSR) and innovation strategies as leverages of a company’s financial performance. The theoretical and empirical statement of this link aims to reinforce the importance of these strategical options in both the managerial and the public policy domain. Shedding light on the economic return of these practices will help managers make better strategic decisions. Policy makers will also grasp the required evidence to encompass CSR in policy packages. To address the research question, data were collected from the Thomson Reuters Eikon Datastream covering the 1000 largest companies listed on the stock exchange worldwide. Thereafter, hierarchical linear regressions were performed to produce the econometric results. Two time frames (2015–2019) were compared to address time–space trends. Enrolling in CSR activities entails additional costs which can undermine the company’s financial performance if not properly supported by public policies. Combining CSR and innovation appears to be the best strategy for companies seeking improvements in their financial performance while being socially responsible. The contribution of this study is threefold: first, the analysis covers the largest thousand firms in operation worldwide; secondly, the econometric results demonstrate that combining CSR with innovation positively impacts financial performance; and lastly, the time comparison evidences a positive but slow evolution in CSR adoption. The article provides an applied perspective, of use both for managers and policy makers, as to how they should approach and disseminate involvement in these types of activities. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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16 pages, 1047 KiB

Open AccessArticle

Monitoring the Modern Experience of Financial Risk Management in Russia Based on Corporate Social Responsibility for Sustainable Development

by Nikolai I. Berzon, Maksim M. Novikov, Elena L. Pozharskaya and Yulia I. Bakhturina

Risks 2022, 10(5), 92; https://doi.org/10.3390/risks10050092 - 21 Apr 2022

Cited by 6 | Viewed by 3561

Abstract

Goal: To perform monitoring of the modern experience of CSR (corporate social responsibility) manifestation in Russia and to differentiate and quantitatively measure the contribution of the support of SDGs (Sustainable Development Goals) and responsible HRM (human resources management) to managing businesses’ financial risks. [...] Read more.

Goal: To perform monitoring of the modern experience of CSR (corporate social responsibility) manifestation in Russia and to differentiate and quantitatively measure the contribution of the support of SDGs (Sustainable Development Goals) and responsible HRM (human resources management) to managing businesses’ financial risks. For this, a sample of the 11 largest companies of one sphere—the extracting industry—which are included in the ranking of Global 2000 Forbes for 2020 are used. Based on the sample, the authors determine the level of the financial risks of Russian companies in the 2020–2021 period and the impact of CSR (in terms of its distinguished indicators) on it. The authors model and measure the contribution of CSR (in terms of its distinguished directions) to the reduction in the financial risks of Russian companies in 2020 and assess the perspective of the decrease in the financial risks of Russian companies for the 2022–2024 period based on CSR. The novelty of this paper lies in the development of a proprietary classification of the directions of CSR by the criterion of contribution to financial risk management. According to the proprietary classification, the following aspects are distinguished: (1) support of SDGs and (2) responsible HRM. The uniqueness and originality of this paper are due to the fact that for the first time the authors perform quantitative measuring of the contribution of CSR (in terms of the distinguished directions—each in isolation) to managing businesses’ financial risks in developing countries based on the example of Russia. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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26 pages, 589 KiB

Open AccessArticle

Systemic Risk Management of Investments in Innovation Based on CSR

by Vladimir V. Lebedev, Nelia A. Deberdeeva, Natalya A. Farkova and Larisa S. Korobeinikova

Risks 2022, 10(5), 87; https://doi.org/10.3390/risks10050087 - 19 Apr 2022

Cited by 3 | Viewed by 3349

Abstract

The problem studied in this paper consists in the fact that the social and financial risks of investments in innovations are managed in isolation, which leads to limited results (reduces certain risks but raises other risks). This paper is devoted to the search [...] Read more.

The problem studied in this paper consists in the fact that the social and financial risks of investments in innovations are managed in isolation, which leads to limited results (reduces certain risks but raises other risks). This paper is devoted to the search for a new strategy of managing the risks of investments in innovations, which would allow balancing the financial interests of business and the interests of employees and is aimed at developing a framework strategy of the systemic management of all risks based on corporate social responsibility. The methodology of this research is based on regression analysis. The research sample comprises data from 80 countries of the world in 2021. The social and financial risks of investments in innovations are identified, systematized, and quantitatively measured and reconsidered from the positions of the UN SDGs. The paper’s contribution consists in substantiating a systemic interconnection between the social and financial risks of investments in innovations and the possibility of complex management of all these risks based on corporate social responsibility. The theoretical value of this paper consists in overcoming the gap in studying the social and financial risks of investments in innovations. The practical value of the authors’ conclusions and recommendations consists in the developed framework strategy being a practical guide for the systemic management of the risks of investments based on corporate social responsibility. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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20 pages, 584 KiB

Open AccessArticle

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

by Liudmila I. Khoruzhy, Valery I. Khoruzhy, Bogdan S. Vasyakin and Wenhao Shen

Risks 2022, 10(3), 58; https://doi.org/10.3390/risks10030058 - 4 Mar 2022

Cited by 7 | Viewed by 3076

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 [...] Read more.

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. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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19 pages, 860 KiB

Open AccessArticle

Ecologically Responsible Entrepreneurship and Its Contribution to the Green Economy’s Sustainable Development: Financial Risk Management Prospects

by Vladimir S. Osipov, Yuriy A. Krupnov, Galina N. Semenova and Maria V. Tkacheva

Risks 2022, 10(2), 44; https://doi.org/10.3390/risks10020044 - 18 Feb 2022

Cited by 10 | Viewed by 3619

Abstract

This paper’s goal is to develop a scientific methodology of financial risk management of ecologically responsible entrepreneurship for the sustainable development of the green economy. The originality of this paper is due to the fact that, for the first time, the financial risks [...] Read more.

This paper’s goal is to develop a scientific methodology of financial risk management of ecologically responsible entrepreneurship for the sustainable development of the green economy. The originality of this paper is due to the fact that, for the first time, the financial risks of the green economy are considered through the prism of its sustainability. The paper’s novelty is due to the modelling and quantitative measuring of the impact of the COVID-19 pandemic and the financial and economic crisis on the financial risks to the green economy’s sustainability, in addition to the development of precise quantitative recommendations for financial risk management of the green economy. This enables an increase in its sustainability and reduces ecological disproportion in regions of the world (reducing the differences in the green economy’s sustainability among regions of the world through the management of green investments). The paper’s contribution to the literature consists of specifying the theory of financial risks to the green economy. According to the specified fundamental provisions of this theory, the essence of the process of green economy development is clarified (the “black box” is opened) as the increase in its contribution to sustainable development. As the indicator of achieving this development, an increase in the green economy’s sustainability is offered. A new source of achieving the goal is proposed, consisting of a financial risk management of ecologically responsible entrepreneurship based on (private) green investments. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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18 pages, 639 KiB

Open AccessArticle

Socially-Oriented Approach to Financial Risk Management as the Basis of Support for the SDGs in Entrepreneurship

by Anna N. Zhilkina, Marina V. Karp, Anna V. Bodiako, Samal M. Smagulova, Tatiana M. Rogulenko and Svetlana V. Ponomareva

Risks 2022, 10(2), 42; https://doi.org/10.3390/risks10020042 - 16 Feb 2022

Cited by 8 | Viewed by 3800

Abstract

This paper demonstrates that the level of financial risks and the impact of the COVID-19 pandemic and crisis on them are high. The existing approach to financial risk management is not very effective and does not allow coping with financial risks in entrepreneurship, [...] Read more.

This paper demonstrates that the level of financial risks and the impact of the COVID-19 pandemic and crisis on them are high. The existing approach to financial risk management is not very effective and does not allow coping with financial risks in entrepreneurship, not even in a certain category of countries. As a prospective alternative, we offer a new socially-oriented approach. The theoretical value of the paper lies in the offering and scientific substantiation of a new hypothesis: that the SDGs could and should be constantly supported by business in their financial risk management with the help of the socially-oriented approach, which is available and expedient for use under the conditions of economic crisis. The practical value of the received results is as follows: the developed new (alternative) socially-oriented approach to financial risk management in entrepreneurship allows increasing the effectiveness of financial risk management in entrepreneurship and raising its robustness against the current COVID-19 crisis. The social importance of the obtained conclusions and results is that the developed approach allows for and stimulates continuous support for the SDGs in entrepreneurship. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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13 pages, 644 KiB

Open AccessArticle

Financial Risk Management Based on Corporate Social Responsibility in the Interests of Sustainable Development

by Sergei G. Vagin, Elena I. Kostyukova, Natalia E. Spiridonova and Tatiana M. Vorozheykina

Risks 2022, 10(2), 35; https://doi.org/10.3390/risks10020035 - 2 Feb 2022

Cited by 15 | Viewed by 6529

Abstract

This paper aims to study the perspectives of sustainable development amid the COVID-19 pandemic and crisis in 2021, backed by financial risk management and corporate social responsibility. To achieve this goal, the authors use the methods of regression analysis, horizontal and trend analysis, [...] Read more.

This paper aims to study the perspectives of sustainable development amid the COVID-19 pandemic and crisis in 2021, backed by financial risk management and corporate social responsibility. To achieve this goal, the authors use the methods of regression analysis, horizontal and trend analysis, and variation analysis. As a result, it is proven—for the first time—that in isolation, investments and corporate social responsibility do not contribute positively to sustainable development. In addition, the authors determine the absence of the outflow of investments from the world economy during crises. Based on this, a new approach to crisis management of sustainable development is developed—it is based on stimulating corporate social responsibility, for which the complex recommendations in the sphere of state management are offered. The theoretical significance of the conclusions made consists in specifying the essence of financial risk management of sustainable development, which has to be conducted with a strict connection to and based on corporate social responsibility. The practical significance of the developed new approach and offered recommendations on its practical implementation consists of strengthening the scientific and methodological provision of economic crisis management of COVID-19 and the maximization of its contribution to sustainable development to support the Decade of Action. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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15 pages, 1327 KiB

Open AccessArticle

The Risks of Smart Cities and the Perspectives of Their Management Based on Corporate Social Responsibility in the Interests of Sustainable Development

by Irina A. Morozova and Stanislav S. Yatsechko

Risks 2022, 10(2), 34; https://doi.org/10.3390/risks10020034 - 2 Feb 2022

Cited by 9 | Viewed by 3390

Abstract

Purpose: Bring to light the risks of smart cities and the perspectives of their management. It has been discovered that smart cities are created and developed under the impact of not only technological factors but also social factors. The connection between smart cities [...] Read more.

Purpose: Bring to light the risks of smart cities and the perspectives of their management. It has been discovered that smart cities are created and developed under the impact of not only technological factors but also social factors. The connection between smart cities and quality of life is systemic (direct and reverse)—the quality of life also specifies the creation and development of smart cities. The impact of the COVID-19 pandemic on the development of smart cities is almost null (smart cities do not depend on the implementation of SDG 3). This paper’s originality lies in the description of a new angle of studying smart cities—from the position of risks, and in the determination of the current level of these risks and the dynamics of their change during systematisation and description of the wide international experience of creation and development of smart cities. This paper’s uniqueness lies in the development of a new approach to managing the creation and development of smart cities, which is based on corporate social responsibility, thus specifying and ensuring the involvement and important role of the subjects of entrepreneurship in this process. It is proved that the contribution of smart cities to the implementation of the SDGs is much wider and goes beyond the limits of SDG 9—it also extends to SDG 1 and SDGs 11–13. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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23 pages, 1484 KiB

Open AccessArticle

The Interaction of the EEU Member States and Risks of Their Mutual Trade during the COVID-19 Pandemic: Implications for the Management of Corporate Social Responsibility

by Kuanysh Yelikbayev and Inna Andronova

Risks 2022, 10(2), 27; https://doi.org/10.3390/risks10020027 - 24 Jan 2022

Cited by 5 | Viewed by 2758

Abstract

The research problem is that the COVID-19 pandemic has become a threat to the sustainable development of the EEU and caused uncertainty in terms of the management of corporate social responsibility. This paper is aimed at identifying the impact of the COVID-19 pandemic [...] Read more.

The research problem is that the COVID-19 pandemic has become a threat to the sustainable development of the EEU and caused uncertainty in terms of the management of corporate social responsibility. This paper is aimed at identifying the impact of the COVID-19 pandemic on sustainable development of the EEU from the perspective of the interaction of the member states of the integration association and their mutual trade risks through the prism of the management of corporate social responsibility. The methodological foundation of the research is composed of the provisions of a comprehensive approach that has been used as a basis for determining the cause-and-effect relationship between the member states of the integration association and their mutual trade risks in the age of the COVID-19 pandemic in 2020. The analysis of statistical data is based on the methodology of econometric theory; in particular, the methods of horizontal and trend analysis. This paper analyzes the measures that were taken by the EEU member states to fight the pandemic of a new coronavirus infection both at the national level and at the level of the EEU institutions. The authors showed the asynchronous nature of measures introduced at the national level, while in certain circumstances the economic inefficiency of the introduction of measures, taken at the supranational level, and the impact of imposed restrictions on the current situation with mutual trade in goods and services, and free movement of workers. It has been substantiated that the examination of the economic interaction of the EEU member states in the period of restrictions dictated by a new coronavirus infection has revealed several endemic problems and had a major impact on the achievement of the main objectives of the integration association, transforming the terms for the management of corporate social responsibility. The originality of the paper is that the unique experience of the integration association of the EEU is for the first time studied from the perspective of the impact of the risks of mutual trade during a pandemic on it through the prism of the management of corporate social responsibility. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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15 pages, 1340 KiB

Open AccessArticle

Financial Risk Management for Sustainable Agricultural Development Based on Corporate Social Responsibility in the Interests of Food Security

by Andrey A. Polukhin and Veronika I. Panarina

Risks 2022, 10(1), 17; https://doi.org/10.3390/risks10010017 - 10 Jan 2022

Cited by 8 | Viewed by 5732

Abstract

This paper focuses on the problem of the high financial risks of agricultural entrepreneurship, which hinder the sustainable development of agriculture and do not provide food security. This problem is especially topical in the conditions of the COVID-19 crisis when financial risks are [...] Read more.

This paper focuses on the problem of the high financial risks of agricultural entrepreneurship, which hinder the sustainable development of agriculture and do not provide food security. This problem is especially topical in the conditions of the COVID-19 crisis when financial risks are urgent. The research basis is the theory of financial risks of entrepreneurship. This paper’s RQ is as follows: how should financial risks for the sustainable development of agriculture be managed for the provision of food security? The purpose of this paper is to find ways of managing the financial risks of agricultural entrepreneurship based on its corporate social responsibility for sustainable development and the provision of food security. The contribution to the literature is that the authors offer a solution to the problem of the financial risks of agricultural entrepreneurship. The originality of this paper is that the solution is corporate social responsibility. The universal character of the paper is due to the description of the international experience of corporate social responsibility and proving the contribution of this responsibility for the sustainable development of agriculture and food security as well as its demonstration—based on the case experience of modern Russia of specific, effective, and perspective practices of corporate social responsibility that make a significant contribution to the sustainable development of agriculture and food security. The results are very important for decision making in managing the financial risks of agricultural entrepreneurship. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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19 pages, 1053 KiB

Open AccessArticle

The Case Experience of Integrating the SDGs into Corporate Strategies for Financial Risk Management Based on Social Responsibility (with the Example of Russian TNCs)

by Alexey S. Kharlanov, Yuliya V. Bazhdanova, Teimuraz A. Kemkhashvili and Natalia G. Sapozhnikova

Risks 2022, 10(1), 12; https://doi.org/10.3390/risks10010012 - 4 Jan 2022

Cited by 20 | Viewed by 4578

Abstract

The motivation of this research consists in the following: the traditional commercial approach to financial risk management amid economic crises implies the reduction of corporate social responsibility, based on the assumption that this responsibility raises the financial risk of business. Due to this, [...] Read more.

The motivation of this research consists in the following: the traditional commercial approach to financial risk management amid economic crises implies the reduction of corporate social responsibility, based on the assumption that this responsibility raises the financial risk of business. Due to this, the contribution of business to the achievement of the SDGs is not stable and is often negative, since practices of business management contradict the SDGs in crisis periods and hinder their achievement in society and the economy. However, the refusal from corporate social responsibility during a crisis does not guarantee the following increase in the level of business development in the period of stability. A study of the case experience of integrating the SDGs into corporate strategies of the largest Russian companies during the COVID-19 crisis improved the understanding of the contribution of corporate social responsibility to financial risk management of the business. Dynamic modelling showed that, in a crisis period, corporate social responsibility leads to a reduction of the financial risks of business—it is commercially profitable, similarly to the phase of stability, and critically important. Based on this, an alternative (new) approach to financial risk management is developed, which allows raising the effectiveness of this management amid economic crises (including the COVID-19 crisis) through the integration of the SDGs into corporate strategies and the manifestation of high social responsibility during crises. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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21 pages, 1974 KiB

Open AccessArticle

Adaptation to the Risks of Digitalization: New Survival Trends for States in a Multipolar World

by Julia V. Ragulina, Vladimir F. Ukolov and Oleg V. Shabunevich

Risks 2021, 9(12), 218; https://doi.org/10.3390/risks9120218 - 2 Dec 2021

Cited by 4 | Viewed by 2745

Abstract

The purpose is to study the new survival trends for states in a multipolar world, determine the successfulness of adaptation to the digitalization of different growth poles, and develop the applied recommendations to improve the practice of adaptation to the risks of digitalization [...] Read more.

The purpose is to study the new survival trends for states in a multipolar world, determine the successfulness of adaptation to the digitalization of different growth poles, and develop the applied recommendations to improve the practice of adaptation to the risks of digitalization of these growth poles. Design/methodology/approach. The authors use the methods of economic statistics: variation analysis, trend analysis, correlation analysis, and regression analysis. Findings. The commonness of strategies of adaptation to the risks of digitalization for different poles of the world economy is substantiated, and two universal mechanisms—talent management and development of science—are found. The originality of this research is due to the consideration of digitalization from a new view—from the positions of setting states at the brink of survival due to the aggressive digital competition and high complexity of ensuring global competition in a quickly changing digital landscape. The uniqueness of this research is due to taking into account the specific features in a multipolar world. The practical implementation of the offered recommendations opens future perspectives for more successful survival trends in a multipolar world and the improvement of their adaptation to risks digitalization by 69.91% in G7 countries (on average) and by 88.40% in BRICS countries (on average). Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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11 pages, 578 KiB

Open AccessArticle

Corporate Fight against the COVID-19 Risks Based on Technologies of Industry 4.0 as a New Direction of Social Responsibility

by Agnessa O. Inshakova, Anastasia A. Sozinova and Tatiana N. Litvinova

Risks 2021, 9(12), 212; https://doi.org/10.3390/risks9120212 - 29 Nov 2021

Cited by 18 | Viewed by 2984

Abstract

The purpose of the article: to find new (most effective) directions for the corporate COVID-19 risks management and developing management implications for leading this fight amid the pandemic and crisis for sustainable development. The methods of correlation and regression analysis are used. It [...] Read more.

The purpose of the article: to find new (most effective) directions for the corporate COVID-19 risks management and developing management implications for leading this fight amid the pandemic and crisis for sustainable development. The methods of correlation and regression analysis are used. It is proved that the most perspective method of the corporate fight against the COVID-19 risks is a flexible transformation of business according to the new conditions based on the Industry 4.0 technologies. This paper further develops and supplements the concept of corporate social responsibility, including a new direction—corporate fight against the COVID-19 risks in it. The authors develop management implications on improving the corporate fight against the COVID-19 risks as a new direction of corporate social responsibility amid the pandemic. The advantages of using the Industry 4.0 technologies for the corporate fight against the viral threat include reduction of the share of the population with household expenditures for healthcare above 25% of total expenditures or incomes, reduction of the number of new cases per 1 million people, and an increase of the self-isolation index, the share of responsible employers amid COVID-19 risks. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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20 pages, 3502 KiB

Open AccessArticle

Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

by Elena G. Popkova and Bruno S. Sergi

Risks 2021, 9(12), 211; https://doi.org/10.3390/risks9120211 - 26 Nov 2021

Cited by 31 | Viewed by 4835

Abstract

The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific [...] Read more.

The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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14 pages, 860 KiB

Open AccessArticle

Managing the Risks of Innovative Activities Focused on the Consumer Market: Competitiveness vs. Corporate Responsibility

by Julia V. Ragulina, Stanislav E. Prokofyev and Tatyana V. Bratarchuk

Risks 2021, 9(10), 173; https://doi.org/10.3390/risks9100173 - 27 Sep 2021

Cited by 2 | Viewed by 2330

Abstract

Purpose This paper aims to study the specifics of managing the risks of innovative activities during the implementation of the Sustainable Development Goals (SDGs) in entrepreneurship that is focused on the consumer market in countries with different levels of income. Design/methodology/approach The research [...] Read more.

Purpose This paper aims to study the specifics of managing the risks of innovative activities during the implementation of the Sustainable Development Goals (SDGs) in entrepreneurship that is focused on the consumer market in countries with different levels of income. Design/methodology/approach The research is performed with the help of regression analysis (one-factor and multiple simple linear regression). Two samples are created for this: (1) countries with high income and (2) upper middle income and countries with lower middle income, according to the classification of World Bank GNI per capita in current USD (Atlas method). Findings It is determined that priorities of the consumer market (demand) are differentiated among countries with different levels of income. In countries with high income and upper middle income, corporate social responsibility does not determine the quality of life. Only competitiveness is a milestone during the implementation of the SDGs in entrepreneurship activities focused on the consumer market. In countries with lower middle income, neither corporate responsibility nor competitiveness is the decisive factor in managing the risks of innovative activities focused on the consumer market. Originality The originality of this research consists in a new view of competitiveness and corporate responsibility from the positions of their influence on the implementation of the SDGs entrepreneurship focused on the consumer market. Social implications Due to the practical implementation of the offered recommendations for corporate management of improving the practice of managing the risks of innovative activities focused on the consumer market, the Quality of Life Index will grow by 44.95% in countries with high income and upper middle income and by 98.69% in countries with lower middle income. Full article

(This article belongs to the Special Issue Managing Financial Risks Based on Corporate Social Responsibility for Sustainable Development)

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