WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 13, 2016
Risk Reducing Actions: Efficiency Evaluation
Authors: , , , , ,
Abstract: This paper reflects the results of research related to evaluating possible consequences of actions directed at the enterprise risk reduction. These results are based on applying the generalization of the classic approach to decision making in condition of uncertainty to multicriteria problems and permit one to provide a rational way to choose robust actions with the presence of multiple scenarios. The choice of the robust actions are associated with the use of so-called choice criteria of Wald, Laplace, Savage, and Hurwicz. Considering these choice criteria as objective functions permits one to apply the Bellman-Zadeh approach to decision making in a fuzzy environment to choose a rational solution alternative. The approach presented in this paper was applied in a case study to improve indicators of an enterprise liquidity risk. The results of the paper are of a general character and can be used to analyze various types of enterprise risks by considering diverse indicators.
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Keywords: Risk reduction, Robust solutions, Multicriteria decision making, Information uncertainty, Multiple scenarios, Payoff matrices
Pages: 613-619
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 13, 2016, Art. #57