Assessment of risks’ management system of metallurgical industry companies
This article discusses the author’s method of risk management systems assessment based on “best practice” and publicly available information. For the assessment of risk-management system it is proposed to calculate the integrated index of the risk management system. It includes 12 parameters, which are fundamental. In determining the scores and weights were taken into account the requirements of professional standards of risk management and corporate governance code. Testing the method of assessment is carried out on the example of companies in the metallurgical industry. The information base of the research is compiled by the author. The database includes information about the risk management system for the 61 largest metallurgical industry companies. The indices’ comparison of the risk management system assessment with indicators of profitability and risk of the company has demonstrated the presence of a weak positive association. The assessment showed that in whole metallurgical industry companies demonstrate a low level of risk management systems. For many companies risk management is only a formal “superstructure”, which is not funded separately and does not influence the activities of the organization. However, some companies in the industry show a steady development in the field of risk management and can be considered as objects of benchmarking.