Tolstel M.S. Improving Financial TNC’s Risk Management Under Sectoral Sanctions

http://dx.doi.org/10.15688/jvolsu3.2014.4.12

Tolstel Marina Sergeevna
Candidate of Economic Sciences,
Associate Professor, Department of Corporate Finance and Banking,
Volgograd State University
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Prosp. Universitetsky, 100, 400062 Volgograd, Russian Federation


Abstract. Features of TNC’s activity, their operations in various markets with all financial tools and currencies predetermine special requirements to the risk management. In the article financial TNCs risks (General and Specific) are revealed, possible ways to cope with them are identified. As it’s shown in the article, in the face of the deteriorating macroeconomic situation and the introduction of sectoral sanctions there is an increase in TNC’s risks that causes need for improving risk management systems. Traditional methods of risk minimization’s strategy – transfer of risk, diversification, hedging – under sectoral sanctions and high volatility of the financial markets – demand the weighed approach and limited use. In the article it’s proved that at TNC’s risk management it is necessary to consider fully features of TNC’s environment, in particular, dynamic and, generally nonlinear nature of the processes proceeding in the world financial market. Having analyzed the methods and tools of financial TNC’s risk management, the author suggests the conception of financial TNC’s risk management development under the sectoral sanctions. It’s proved in the article that elimination of risk consequences and minimization of risk events are due to the use of special funds or financial assistance from the TNC’s subsidiaries because the restrictions on access to capital don’t apply to the affiliated organizations registered in the EU.

Key words: transnational corporations (TNC), financial TNC, TNC’s risks, risk management, sectoral sanctions.

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Improving Financial TNC’s Risk Management Under Sectoral Sanctions by Tolstel M.S. is licensed under a Creative Commons Attribution 4.0 International License.

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