Choosing The Risk Curve Type

Abstract

Dialectics of categories of risk and return are becoming increasingly important in business process. The knowledge of risk indices allows to shape the judgement and make a decision. The provided risk-management method lets to make more reasonable and adequate managing decisions. The paper provides the substantiation of necessity of the enterprise risk level integral estimation. A calculation method for determining the probability curve of enterprise financial losses level has been worked out. Examples of risk curve use are given. Methodology of plotting the curve of possible loss probability or at least determination of regions and indices for acceptable, critical and catastrophic risk is seen as quite an efficient tool of management decision-making by an organization.