Rositsa Koleva, Stela Kasabova
Statistical Methods of Business Risk Analysis
Summary:
The activities of economic entities are accompanied by a number of risks posed by the changes in the environment in which they operate. Economic theory and practice identify three basic types of risk – investment, financial and economic. The last one is a probability of adverse changes in market and economic conditions that affect the most important financial indicators of an enterprise. Business risk analysis is a system of special knowledge related to studying the economic processes in their mutual relation and dependence. It includes the quantitative measurement of factors determining the dynamics of risk indicators, as well as activities to minimize their impact. This article characterizes statistical methods of risk analysis that are applied in a case study using the measures of dispersion in three public limited companies.
