Risk-management models losses at the level of a separate division of the industrial enterprise

Abstract

Purpose: to describe the development of mathematical tools for risk management designed to conduct quantity analysis of risk of losses in a separate business unit. Discussion: the conceptual basis for the tools is an assumption that there is a dependency between the risk level and the amount of funds allocated for anti-risk activities. The paper provides rationale for the use of a family of linear-fractional functions to approximate this dependence. Results: вased on the analytical representation of this dependency drawn up in the paper, the author obtains expressions for quantity analysis of the original and final levels of risk of losses in a business unit as well as develops models that optimize expenses on anti- risk activities.