Improvement Of Methods Of Financial Risk Management In "Borets International Ltd" Corporate Group

Oil and gas industry sector is the one of the most important export item of Russia nowadays.Oilfield service is the significant part of this industry,which provides operation and maintenance of sector enterprises.As capital-intensive sector of economy,oilfield service has financial risks as general one as specific one.In modern conditions of economic instability and volatility of oil costs financial risk management become an important part for oilfield service working process."Borets International Ltd" corporate group as one of the significant player in oilfield service industry in Russia and the world was chosen as example for identification of financial risks of oilfield service enterprise and its features,and for development of specific financial risk management policy.During the research was developed new theoretical and methodological provisions of financial risk management in oilfield service organizations.As result of research was made following provisions.Identified three main features of financial risk(loss of income,the possibility of bankruptcy,the risk of loss from participation in the financial market).Formed list of typical financial risks for the oilfield services sector and identified the most significant of them-credit risk,cost increase risk,liquidity and solvency risk,bankruptcy risk.Introduced the concept of complex financial risk,proved the feasibility of using the risk of bankruptcy as representation of this risk.For assessment of this risk for oilfield services organizations was selected rating model of Saifulin R.S.and G.G.Kadykov.Offered the methodological tools of quantitative and qualitative assessment of financial risks in oilfield service organizations on the criterion of management efficiency,namely:performance,general economy,feasibility and rationality,reliability and functional adaptability,compliance with standards and norms.Presented a set of methodological approaches that improve the efficiency and performance of financial risk management in the study area,namely:-on the basis of mathematical modeling in order to identify risk control points proven the impact of financial leverage indicators,coverage of non—current assets by equity and return of assets on profit before taxation-the performance indicator of financial risk management;Have been developed methodical recommendations on the formation of financial risk management system at oilfield service enterprises,including regulatory and methodological support,organizational management structure and procedures for developing management decisions.