WIT Press


Individualization of risks diagnostics in assessment of investment potential of sectoral companies in developing countries



Price

Free (open access)

Paper DOI

10.2495/SDP-V13-N6-851-859

Volume

Volume 13 (2018), Issue 6

Pages

8

Page Range

851 - 859

Author(s)

G. Chebotareva

Abstract

Maintaining of the high level of investment potential of sectoral companies in developing countries, along with their sustainable development, constitutes an area of paramount importance of such companies’ activity, particularly in the situation of global economic instability and mounting competitive pressure. In its turn, the development of the investment potential of a sectoral company aimed at improving its investment attractiveness necessitates the development of specific methodological tools allowing for a comprehensive approach to the issues of estimation of the existing uncertainty as well as unbiased diagnostics of risks affecting the operating efficiency of a company. The present paper describes an original method of individualized diagnostic approach to the risks of a sectoral company and assessment of the level of risks to investment potential. The practical aspects of risk assessment are discussed using a power-generating company as an example. The requirements for a modern risk management system of sectoral companies in developing countries were suggested as principles to be used in the course of the conducted study.

Keywords

Bayesian treatment, developing countries, efficiency, individualization of assessment, investment attractiveness, investment potential, power-generating company, risk management, risks diagnostics, sectoral company.