Russian Journal of Resources, Conservation and Recycling
Russian Journal of Resources, Conservation and Recycling
           

2023, Vol. 10, No. 1. - go to content...

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DOI: 10.15862/53ECOR123 (https://doi.org/10.15862/53ECOR123)

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Farafonova M.A. Improving the efficiency of preliminary assessment of counterparties in the conditions of unstable economic environment. Russian journal of resources, conservation and recycling. 2023; 10(1). Available at: https://resources.today/PDF/53ECOR123.pdf (in Russian). DOI: 10.15862/53ECOR123


Improving the efficiency of preliminary assessment of counterparties in the conditions of unstable economic environment

Farafonova Maria Alexandrovna
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: farafonowamarya@yandex.ru

Academic adviser: Kapustina Nadezhda Valerʹevna
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: NVKapustina@fa.ru

Abstract. In modern economic conditions, characterized by a high level of uncertainty and turbulence, the functioning of organizations is accompanied by a large number of risks, the severity of the consequences of which increases. The use of a risk-based approach makes it possible to identify the most risky counterparties, as well as determine the frequency of inspections depending on the risk area. In order to conduct a financial analysis of the counterparty’s reporting forms, it is possible to use both an express analysis to identify its financial risks, and a more in-depth analysis. The author focuses on the fact that when analyzing the statement of financial results, or profit and loss, of a potential counterparty, it is necessary first of all to take into account whether operating profit compensates for interest payable and the difference between other income and expenses. One of the most unfavorable scenarios in the case of uncoordinated risk management, according to the author, is the insolvency, or bankruptcy, of the company. The inability of a company to meet its obligations may be due to a wide range of reasons, focusing on the following: lack of capital, inefficient credit policy, poor management of working capital, etc. One of the factors that can lead to the implementation of these reasons is the inefficiency of preliminary counterparty assessments. The article discusses the key risks that may result from the lack of due diligence when choosing counterparties, as well as the legal aspects of checking counterparties. Moreover, the key methods, principles and tools for assessing counterparties as an element of managing the organization’s financial risks will be considered. In conclusion, the author proposes preventive methods that help reduce risks when working with contractors.

Keywords: risks; counterparties; verification of counterparties; economic security; preventive methods; organization management; risk control; economic efficiency

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ISSN 2500-0659 (Online)

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