RISK MANAGEMENT AND THE EFFECTIVENESS OF THE DECISIONTIMAKING PROCESS IN INNOVATION MANAGEMENT

Abstract

In the conditions of globalization, modern market relations offer new challenges to companies, which are not so easy to adapt to. New relations established innovative rules, new opportunities for effective functioning; Dealing with them, obviously, requires more and more time, energy, opportunities, theoretical and practical skills and other additional resources from the leaders/ managers.

The presented article is based on theoretical and empirical research. Methods of analysis, synthesis, generalization and abstraction, induction, deduction, etc. are used. The theoretical basis of the research is the works of researchers of the relevant problems of national and foreign science, articles, as well as the works of various scientific and research institutes on risk management, relevant materials published by annual special magazines and print media, publications, Internet resources, where an analysis of the practical experience of developed countries is presented and rate.

An aim of the paper is to analyze an innovative competencies the author has studied. An article discusses an effectiveness of the process of making modern and informed decisions related to risk management. The methodological basis of the research is: systematic approach to risk management, decision-making theories for financial managers; principles of innovative management responsibility and liability management; Theory of risk fundamentals and evaluation strategy selection; financial risk management criteria; Methodology for calculating the risk value margin.

Modern Western programs of business administration provide for an use of quantitative methods in making decisions, which are illustrated by the following methods: influence diagrams, decision options, statistical data and probabilistic calculations, discounting (Gabidzashvili, 2010: 182-183). All of this needs to be given an utmost attention in the decision-making analysis process.