In modern market conditions there is always a need to assess the possible risks for the effective management of human and material resources, to reduce losses from them and compensate for their negative consequences.
The concept of risk includes the uncertainty factor, which has basically three important reasons. This is ignorance, chance and opposition. Therefore, uncertainty is the main, absolutely logical reason for the occurrence of any type of risk.
Risk is a certain probability of occurrence of adverse factors, as a result of which both material losses (loss of cash, property, etc.) and physical are possible. This is a short-term loss of health, physical and mental injuries, etc.
Any human activity is at risk. Risk contains some elements that convey its basic essence: the ability to achieve a goal, the ability to deviate from it, the ability to receive various losses in return as a result of adverse external and internal influences. An example of the occurrence of risky circumstances can be force majeure factors. These are unpredictable risks (environmental disasters) and predicted. The classification of risks is very important for making managerial decisions, since the problem of their occurrence and behavior is little explored. And in our rapidly changing world, it is very, very difficult to foresee and accurately calculate the impact of risk factors on business processes and possible losses.
The classification of risks is divided into separate types according to the nature of the alleged danger, according to various areas of their manifestation, by source of occurrence, by the size of the possible damage, by the temporary nature of the manifestation, by the degree of possible insurance and anticipation, by the frequency, by the time of manifestation, etc.
According to the nature of the alleged danger, the classification of risks is divided into separate types. These are man-made, natural and mixed risks.
In the areas of their manifestation, risks can be divided into: environmental, political, social, commercial and professional.
According to possible sources of occurrence, risks are divided into: external (market) and internal (specific), with different frequency of occurrence.
According to the size of possible damage and apparent financial losses, the risks are divided into: economic, in which a significant loss of capital is possible, risks in the form of lost profit , etc.
Moreover, these risks are also subdivided according to the critical level. Risks can be acceptable, critical and catastrophic.
When forecasting and insurance are possible, by frequency, risk factors are divided into predictable, insured and unpredictable, and uninsured, high, medium and small.
According to the time of manifestation, risky circumstances may be permanent or temporary.
But, despite all this, some types of risks are manageable and it is very important to study them, research and try to predict, use all possible methods to exclude the possibility of their harmful effects. The classification of risks makes it possible to consider and study them in detail to further counter them. Risk management should be, first of all, rational and carefully considered, since the whole social life of a person is sometimes at stake. These are finances, careers, emotional well-being, etc. Moreover, their loss can very adversely affect both the entrepreneur himself and his loved ones. Indeed, practically without his society, modern man will not be able to survive as a person. Risk management is expressed in the adoption of certain methods in doing business. Risk management methods that exclude and anticipate various adverse circumstances include risk acceptance policy, its reduction, insurance, diversification and limitation of transaction sizes. Therefore, providing for possible risk situations, entrepreneurs try to avoid any negative consequences for their business in the form of bankruptcy and insolvency, which is very important. After all, the main goal of the business is to maximize profits.