Using a risk-oriented approach incurrent assets management

Abstract

Business risks growing associated with the probability of losses in a business unit sales process due to possible goods rejection by the consumer identified the problem of current assets management model formation. So the inventory information, the information on debts and money resources is gathered and evaluated with the use of risk-oriented approach. The article proposes two approaches to risk identification and quantification in current assets management. The first approach is based on the use of a system of indicators of marketing analysis, where internal and external parameters are linked together. These parameters characterize current assets turnover by means of use of marketing environment indicators. The second approach is based on linking the added value indicators, focused on the basic parameters of economic activity, and added value, focused on demand and consumer preferences. The authors proved the influence of economic cycle of a country on the current assets turnover and justified the use of financial robustness level as a summarizing indicator of risk level in current assets management. The paper also states that the results of risk level assessment are taken into account in the two important processes for current assets management: budgeting and reservation.