Economic Affairs
  • Year: 2023
  • Volume: 68
  • Issue: 4

Risk management strategy for International investment projects of an Innovative Enterprise in the context of industry 4.0

  • Author:
  • Yingxue Duan1,*, Olena Shuplat2, Viktoriia Matsuka3, Svitlana Lukash4, Maryna Horbashevska3, Liudmyla Kyslova3
  • Total Page Count: 10
  • Published Online: Jul 15, 2024
  • Page Number: 2047 to 2056

1Department of Public Management and Administration, Sumy National Agrarian University, Sumy, Ukraine

2Department of Corporate Finance and Controlling, SHEE “Kyiv National Economic University Named After V. Hetmana”, Kyiv, Ukraine

3Department of Management and Finance, Mariupol State University, Kyiv, Ukraine

4Department of Public Management and Administration, Sumy National Agrarian University, Sumy, Ukraine

*Corresponding author: 3343131845@qq.com (ORCID ID: 0000-0002-2079-8430)

Online published on 15 July, 2024.

Abstract

The significance of risk management within the framework of Industry 4.0 is on the rise, particularly within the realm of international investment projects. Contemporary technological advancements, such as artificial intelligence and blockchain, are not only ushering in fresh prospects but are also instigating the emergence of novel categories of risks. The primary objective of this investigation is to formulate an all-encompassing strategic risk management framework tailored to innovative enterprises operating within the purview of Industry 4.0. The envisaged research endeavour encompasses a thorough scrutiny of existing methodologies and models, along with an exploration of contentious dimensions within this domain. The study’s findings encompass criteria for the evaluation and quantification of risks, in addition to pivotal risk factors that exert notable influence on the efficacy of international investment projects. The pragmatic import of this investigation resides in its potential utility for enhancing managerial decisionmaking across various tiers of the organizational hierarchy. The presented material seeks to facilitate the alignment of conventional risk management approaches with the intricacies inherent in Industry 4.0. Nonetheless, it is imperative to acknowledge that the efficacy of the formulated model may hinge upon contextual nuances and might necessitate supplementary adaptations.

• The rise of Industry 4.0 and the introduction of cutting-edge technologies have necessitated the development of a more flexible and timely risk management approach, particularly for international investment projects, as traditional risk management methods like PERT and SWOT have become less effective in this context.

• An integrated strategic risk management model designed for innovative enterprises operating within the framework of Industry 4.0 should exhibit characteristics of flexibility, adaptability, and openness, allowing organizations to efficiently respond to rapidly evolving market dynamics while accommodating the complexities of the human element and ethical and social considerations.

Keywords

Risk management, Industry 4.0, International investment projects, Innovative enterprises, Strategic model