WIT Press


A Risk-oriented Approach To Capital Management At A Power Generation Company In Russia

Price

Free (open access)

Paper DOI

10.2495/ESUS140021

Volume

186

Pages

12

Page Range

13 - 24

Published

2015

Size

567 kb

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