RUSSIA: Risks Less Manageable Than Prices

 Ernest & Young has published its research on risk management in Russia, comparing it to risk management in developing countries in general. The managers of 288 companies on emerging markets and 88 of the largest Russian companies were polled. Significant differences were found between their risk management strategies. Risks in Russia are typical of developing countries in several categories. It varies from the mean in the activeness of the management by companies of operational and normative risks. Those risks are more substantial after the YUKOS case, as are information-protection risks. The coincidences are more interesting. Contrary to general opinion, managers in Russia and other developing countries assess their risks from corruption, logistic risks and safety risks identically. Accounting risks are assessed as nearly the same. Although unemployment is significantly lower in Russia than other developing countries, personnel risks are still the same. The activities of companies to manage those risks are given 82 out of 100 points by managers in Russia and other countries.  Reputational risks is assessed as extremely high in Russia, with 92 points, compared to 82 in other countries. Strategic risks are considered higher, and are political risks, at 59 points, compared to an average of 42. But the main characteristic of risk management in Russia as compared to emerging markets as a whole is the combination of low competitive and price risks with high technological, transactional, currency and property risks. That corresponds with the opinion of analysts of the real problems and advantages for investors in Russia: low competition and a weak financial system (transactional risks) and weak infrastructure. For managers, that is more serious than political tension, logistics and personnel shortages.


Ernest & Young has published its research on risk management in Russia, comparing it to risk management in developing countries in general. The managers of 288 companies on emerging markets and 88 of the largest Russian companies were polled. Significant differences were found between their risk management strategies.

Risks in Russia are typical of developing countries in several categories. It varies from the mean in the activeness of the management by companies of operational and normative risks. Those risks are more substantial after the YUKOS case, as are information-protection risks. The coincidences are more interesting. Contrary to general opinion, managers in Russia and other developing countries assess their risks from corruption, logistic risks and safety risks identically. Accounting risks are assessed as nearly the same. Although unemployment is significantly lower in Russia than other developing countries, personnel risks are still the same. The activities of companies to manage those risks are given 82 out of 100 points by managers in Russia and other countries.



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 Ernest & Young has published its research on risk management in Russia, comparing it to risk management in developing countries in general. The managers of 288 companies on emerging markets and 88 of the largest Russian companies were polled. Significant differences were found between their risk management strategies. Risks in Russia are typical of developing countries in several categories. It varies from the mean in the activeness of the management by companies of operational and normative risks. Those risks are more substantial after the YUKOS case, as are information-protection risks. The coincidences are more interesting. Contrary to general opinion, managers in Russia and other developing countries assess their risks from corruption, logistic risks and safety risks identically. Accounting risks are assessed as nearly the same. Although unemployment is significantly lower in Russia than other developing countries, personnel risks are still the same. The activities of companies to manage those risks are given 82 out of 100 points by managers in Russia and other countries.  Reputational risks is assessed as extremely high in Russia, with 92 points, compared to 82 in other countries. Strategic risks are considered higher, and are political risks, at 59 points, compared to an average of 42. But the main characteristic of risk management in Russia as compared to emerging markets as a whole is the combination of low competitive and price risks with high technological, transactional, currency and property risks. That corresponds with the opinion of analysts of the real problems and advantages for investors in Russia: low competition and a weak financial system (transactional risks) and weak infrastructure. For managers, that is more serious than political tension, logistics and personnel shortages.
Reputational risks is assessed as extremely high in Russia, with 92 points, compared to 82 in other countries. Strategic risks are considered higher, and are political risks, at 59 points, compared to an average of 42. But the main characteristic of risk management in Russia as compared to emerging markets as a whole is the combination of low competitive and price risks with high technological, transactional, currency and property risks. That corresponds with the opinion of analysts of the real problems and advantages for investors in Russia: low competition and a weak financial system (transactional risks) and weak infrastructure. For managers, that is more serious than political tension, logistics and personnel shortages.

 Ernest & Young has published its research on risk management in Russia, comparing it to risk management in developing countries in general. The managers of 288 companies on emerging markets and 88 of the largest Russian companies were polled. Significant differences were found between their risk management strategies. Risks in Russia are typical of developing countries in several categories. It varies from the mean in the activeness of the management by companies of operational and normative risks. Those risks are more substantial after the YUKOS case, as are information-protection risks. The coincidences are more interesting. Contrary to general opinion, managers in Russia and other developing countries assess their risks from corruption, logistic risks and safety risks identically. Accounting risks are assessed as nearly the same. Although unemployment is significantly lower in Russia than other developing countries, personnel risks are still the same. The activities of companies to manage those risks are given 82 out of 100 points by managers in Russia and other countries.  Reputational risks is assessed as extremely high in Russia, with 92 points, compared to 82 in other countries. Strategic risks are considered higher, and are political risks, at 59 points, compared to an average of 42. But the main characteristic of risk management in Russia as compared to emerging markets as a whole is the combination of low competitive and price risks with high technological, transactional, currency and property risks. That corresponds with the opinion of analysts of the real problems and advantages for investors in Russia: low competition and a weak financial system (transactional risks) and weak infrastructure. For managers, that is more serious than political tension, logistics and personnel shortages.

Via: Kommersant

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