Model of Optimal Funds Allocation with Due Consideration for Risk Minimization
Irina Anatolievna Kiseleva1, Natalia Alekseevna Sadovnikova2, Mikhail Samuilovich Gasparian3, Dmitry Gennadievich Korneev4, Nikita Aleksandrovich Sysoev5
1Irina Anatolievna Kiseleva, Plekhanov Russian University of Economics, Moscow, Russia.
2Natalia Alekseevna Sadovnikova, Plekhanov Russian University of Economics, Moscow, Russia.
3Mikhail Samuilovich Gasparian, Plekhanov Russian University of Economics, Moscow, Russia.
4Dmitry Gennadievich Korneev, Plekhanov Russian University of Economics, Moscow, Russia.
5Nikita Aleksandrovich Sysoev, Plekhanov Russian University of Economics, Moscow, Russia.
Manuscript received on 07 April 2019 | Revised Manuscript received on 20 April 2019 | Manuscript published on 30 April 2019 | PP: 469-472 | Volume-8 Issue-6, April 2019 | Retrieval Number: E3261038519/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: An attempt to study the role of risk management from the standpoint of an entrepreneur is made in the article. The main goal of this article is to find the key patterns describing the features of risk assessment in business as the main element contributing to achieving the economic safety for an organization and to developing a mathematical model of optimal funds allocation for risk management using the dynamic programming techniques. The methods of cognition, retrospective and documentary analysis, as well as synthesis, generalization, and systematization were used in this article. Various risk management methods are used in the modern economic analysis. Diversification, or risk sharing among several business agents, is the most efficient way to reduce risk in the context of instability of the economic and political situation in Russia.
Keyword: Model, Optimal Allocation, Risk, Risk Management.
Scope of the Article: Risk Management