A Model for Assessing Economic Risk in Financing Innovation Projects of Venture Capital Funds
A Model for Assessing Economic Risk in Financing Innovation Projects of Venture Capital Funds

Summary/Abstract: In regard to the content, each business venture carries an element of risk, which includes both threats and favorable opportunities. Risk assessment makes it possible to manage the business more effectively, which is a prerequisite for avoiding unwanted or unexpected events. Moreover, it enables the enterprise to operate more closely to the unforeseen costs limits. It also makes possible the release of resources for developing the activity and assessing the opportunities for profitable investments. The aim of this study is to present a model for economic risk assessment using some methods developed by the author. In order to achieve this aim, the author has applied the model for risk assessment to a real innovation project related to the production of drones, which is the subject of research in the present paper.The results of the study will show the practical suitability of the model presented. Applying an adaptive model for risk assessment to innovation projects is an important condition for the increase in risk financing in Bulgaria in the context of the need for increasing competitiveness of the Bulgarian economy.

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