Assessment of business risks for companies in the oil and gas sector

Abstract

Assessment and consideration of business risks in the process of making management decisions for enterprises in the oil and gas sector reduces the probability of non-receipt (loss) of income or profit, occurrence of a crisis situation or bankruptcy of the enterprise. Determination of risk limits, in turn, makes it possible to differentiate identified risks into acceptable, critical and catastrophic, and risk management is the lever with which enterprises have the opportunity to influence the results of their own economic activity. The authors of the article investigated the trends of the series of dynamics of financial and economic indicators of the oil and gas sector enterprise using methods of quantitative assessments of the degree of risk. The problems of functioning and development of oil and gas production enterprises of Ukraine are considered. Three potential zones of business risks (acceptable, critical, catastrophic) for the resource base and financial results of JSC "Ukrgazvydobuvannya" and the probability of the enterprise falling into potential zones of business risk under different scenarios of the development of the political and economic situation in Ukraine and, accordingly, different risk criteria, have been determined.