Author(s)

A. Domnikov, P. Khomenko, G. Chebotareva

Abstract

One of the challenges facing the energy industry today is how to improve investment attractiveness and business competitiveness in energy generation. It is becoming particularly important to enhance the sectoral risk management systems in order to ensure long-term growth and sustainable development in the energy sector amidst numerous factors and uncertainties created by the globalization of the financial markets. This paper presents the authors’ approach to assessing sectoral risks in the energy industry based on capital management for the purpose of achieving a certain level of long-term financial stability. The practicalities of applying the proposed approach to sectoral risk assessment are considered using a power generation company as an example.

Keywords

power industry, energy company, competitiveness, risks, risks management, economical capital, market risks, credit rating, financial sustainable, investments