Operational Risk Assessment and Management in Small and Medium-sized Enterprises

Modern organizations have raised a need to actively and quickly react to the changes in external business environment, as well as in internal processes considering not only the present situation, but also evaluating possible changes and forecasting the future. Enterprise risk assessment and management, which is strongly related with foreseeing the uncertain future, becomes topical not only scientifically, but also practically seeking to reveal new and unique solutions. Operational risk management in small and medium enterprises, creating the largest part of value added in the whole European Union, demands a separate attention and coordinated decisions and means. The objective of the paper – to analyse the process of enterprise risk management in small and medium-sized enterprises, as well as to propose adequate risk management solutions for these companies. After performing a research, it was found out that small and medium enterprises more than big organizations require a risk management strategy and methodology, need to distinguish activity objectives and events influencing them, and they can efficiently apply a risk portfolio method to manage risk. In small and medium enterprises it is recommended to incorporate a risk management system based on COSO ERM model that can be modified depending on company needs and possibilities, turning it into less formal and structured and easily applicable. Įmonės veiklos rizikos vertinimas ir valdymas mažose ir vidutinėse įmonėse Santrauka Pažangių organizacijų veikloje atsirado poreikis aktyviai ir operatyviai reaguoti į pokyčius išorinėje verslo aplinkoje ir vidiniuose procesuose, atsižvelgiant ne tik į esamą padėtį, bet ir siekiant įvertinti galimus pokyčius, prognozuoti ateitį. Įmonės veiklos rizikos vertinimas ir valdymas, glaudžiai susijęs su neapibrėžtos ateities numatymu, tampa aktualus ne tik moksliniu požiūriu, bet ir praktiškai siekiant atrasti naujus ir unikalius sprendimus. Veiklos rizikos valdymas mažose ir vidutinėse įmonėse, kurios sukuria daugiausia pridėtinės vertės Europos Sąjungoje, reikalauja atskiro dėmesio ir suderintų sprendimų bei priemonių. Straipsnio tiks­las – išanalizuoti veiklos rizikos valdymo procesą mažose ir vidutinėse įmonėse, pasiūlyti šioms įmonėms tinkamus rizikos valdymo sprendimus. Atlikus tyrimą nustatyta, kad mažoms ir vidutinėms įmonėms labiau nei didelėms organizacijoms svarbu turėti rizikos valdymo strategiją ir metodiką, išskirti veiklos tikslus ir juos veikiančius įvykius, tikslinga pritaikyti rizikų portfelio metodą rizikai valdyti. Mažose ir vidutinėse įmonėse rekomenduojama diegti rizikos valdymo sistemą remiantis COSO ERM modeliu, kurią galima koreguoti atsižvelgiant į įmonės poreikius ir galimybes, paverčiant ją mažiau formalia ir struktūrizuota bei lengviau pritaikoma. Reikšminiai žodžiai: rizika,rizikos valdymas, rizikos analizė ir vertinimas, rizikos valdymo modelis, COSO ERM, ISO

GOVERNMENT DEBT AS THE INTEGRAL PORTFOLIO OF ASSETS AND LIABILITIES GENERATED BY DEBT

The paper analyses the possibilities of optimal government (national) debt management, trying to maximize the made-up net value for the debtor with the help of funds borrowed by the government. The integral portfolio of debtor assets and debt service liabilities, based on the borrowed funds, is chosen as a solution for the above-described problem. In the paper, an asset is understood as a position of government expenditures, where funds borrowed by the government are used and create a quantifiable profit (value) or the measurable damage or loss is avoided if funds are borrowed. Actually, liabilities are the main debt service positions. Naturally, the value generated by assets, as well as funds spent to settle the liabilities, could be analytically adequately evaluated only in stochastic dimension. Consequently, multidimensional multicriteria stochastic optimization technique is used as a technical solution to the formulated problem. In analytical decisions, the budget funds borrowed by the government are treated as marginal funds. Taking into account a completely new decision technique that has been invoked for government debt management, the methods of decisions are described quite particularly. First published online: 02 Oct 201

Investment Portfolio Optimisation Model Based on Stocks Investment Attractiveness

Firm's performance and potential return on investments in its stocks are determined by many factors. However, most of portfolio optimisation methods are oriented to decision- making based on stock price changes in the past. Recent financial crisis has showed that often the biggest downfall in the period of crisis is experienced by stocks, which had the biggest growth before crisis. So decision- making based on stock price tendencies analysis by ignoring fundamental factors can be inefficient. The variety of MCDM methods was briefly described and their application possibilities for portfolio optimisation were evaluated in the article. The basic portfolio selection model, based on stocks investment attractiveness, was introduced. Particular model application solutions to stocks investment attractiveness evaluation and direct portfolio optimisation stages were proposed. The pilot research was carried out, the results of which showed that proposed model enables gaining better results than comparative Markowitz and equal weights portfolios