Application efficiency indicators of corporate risk management in the calculation of the discount rate

Ch. 14. P. 126–136.

Makarova V. A.

Implementation of risk management practices in the company’s activities has a great impact on the reputation and performance of the company. As a result, the majority of stakeholders are interested in cooperation with the selected company. Predicting the results of cooperation implemented through investment projects efficiency assessment methods, where the main index, demonstrating the attitude to risk analysts, is a discounted rate of return of the project. The purpose of this article is to adjust the discount rate on the business risk level, determined indirectly on the basis of stakeholder expectations. The resulting methodology of calculation of discount rate allows to evaluate the effectiveness of participation in business by the stakeholders and in accordance with their level of risk appetite. Participation of key indicators of business performance as an indirect measure of estimation of efficiency risk management allows to approximate the expectations of stakeholders in relation to the received level. Factor analysis of the indicators included in the rating can be used as an element of management in order to increase the investment attractiveness of the business.

Keywords: стейкхолдеры, stakeholders, ставка дисконтирования, discount rate, корпоративный риск-менеджмент, corporate risk management

In book

The Business and Management Review

Vol. 1. Issue 8. , Middlesex: The Academy of Business and Retail Management (ABRM), 2016.