The Russian Business Sector: Cost and Risk Factors
The article covers the Russian business sector, dividing the work-related activities into two key factors: costs and risks. The former, in the critique's view, are generally implemented to increase the profit intake, while the latter are normally undertaken to cope with local or global competition. Other reasons that might lead a Russian entity to boost its risk factor include those created by the global economic crisis, operational errors, and the requisite to improve management practices. Subsequently, the document provides planning methods designed to enhance the company's effective level of management. Intended to address current economic conditions, these methods aim to mitigate the risks affecting financial results. The paper, as a pre-condition to identifying those risks, analyzes the production of components using low stringency elements. These parts have been manufactured at the 'Photopribor' research and production complex, which uses a special mechanism to determine the total number of defective parts affecting product quality. Separately, with respect to cost management, the document defines the term, notes the major technological risks that adversely raise the production-cost levels for engineering companies, and provides an algorithm that applies production costs at company level in a value (production cost) to risk equation. The blueprint claims that the algorithm considers the influence of various risks, applying the production-cost value as a contributory factor throughout the planning and assembly stages.