Counterparty risk management in an industrial enterprise
Counterparty risk management in an industrial enterprise

Author(s): Zoya Ivanova
Subject(s): Business Economy / Management, Micro-Economics
Published by: Икономически университет - Варна
Keywords: counterparty risk management; risk counterparties; risk circumstances; risk exposure; industrial enterprise
Summary/Abstract: Counterparty risk as a distinct type of risk generates a number of difficulties, some of which to one degree or another strongly influence the functioning, development, survival of the industrial unit. It creates a chain reaction that inevitably leads to lack of working capital for sustaining the current production activity and the timely coverage of costs related to production and its realisation. To a great extent all this reflects on the production activity of the enterprise and on the impossibility to provide enough funds to pay its obligations. The purpose of this paper is the counterparty risk and to justify the possibility of its management, thus limiting and reducing the unfavourable consequences and risk exposure of the industrial enterprise

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