Authors: S.A. Zhironkin, D. Cagáňová

Title of the article: On the issue of assessing the value at risk of an entrepreneurial firm

Year: 2019, Issue: 4, Pages: 67-85

Branch of knowledge: 08.00.05 Economics and Management of National Economy

Index UDK: 330.142.2

DOI: 10.26730/2587-5574-2019-4-67-85

Abstract: In order to assess the impact of the uncertainty of a market economy on entrepreneurial activity, it is necessary to know how much of its object – the entrepreneur’s capital – can be lost due to an adverse change in the financial market environment, changes in the rules and practices of state regulation of business. This article raises the question of assessing that part of the value of entrepreneurial capital that could be lost in adverse market or systemic circumstances. This part of capital, called value at risk, should be determined taking into account its objective-and-subjective nature, since the entrepreneur, on the one hand, is not subject to market processes that create uniform conditions for many business entities; on the other hand, the entrepreneur is free to build the structure of his(her) of own and borrowed funds, make investment decisions, diversify and insure risks. The total value at risk of all the entrepreneur’s assets is completely transferred to the firm, as a result of which a certain level of risk of his business as such is formed.

Key words: entrepreneurial risks value at risk systemic risk currency risk interest rate risk

Receiving date: 05.11.2019

Publication date: 30.12.2019

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