THE RELATIONSHIP BETWEEN INVESTMENT POTENTIAL AND INVESTMENT RISKS: THE PROBLEM OF PRIORITY
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Author(s): | Ilyinykh S. V., |
| Number of journal: | 2(71) | Date: | June 2025 |
| Annotation: | This scientific article presents an overview of approaches to defining the categories of investment potential and investment risk, as well as their interrelation and influence on each other. The article reveals that the investment climate consists of investment attractiveness and investment activity. The com- ponents of investment attractiveness are precisely the categories of potential and risk of a crisis situation, economic conflicts that affect the stability of the economic system and economic security. The priority of the onset of growth in potential or probability of risk is revealed as the parallelism of the processes of development of investment potential and the onset of investment risk. The author is of the opinion that these concepts exist in parallel with each other, being dependent on each other and influencing investment attrac- tiveness, and, consequently, the investment climate as a whole. Investment attractiveness, in essence, is an integrative indi- cator, which consists of the analysis of both investment risks and potential. An increase in one of these components can lead to a fluctuation in the overall level of attractiveness, but this does not always guarantee the safety of investments. The author’s position is that investment risk and investment potential rep- resent a synergistic effect, which plays an important role in the process of making investment decisions regarding the develop- ment of an investment activity object. In investment manage- ment, it becomes necessary to conduct an analysis and assess- ment of both investment potential and investment risk in the relationship of the methods for assessing each of the categories. Thus, the categories of investment potential and investment risk are interconnected, forming a holistic perimeter of investment attractiveness, which, in turn, forms the investment climate. | ||
| Keywords: | investments, investment potential, investment risks, investment attractiveness, investment climate, risk assess- ment, development factors, socio-economic development, object of investment activity, subject of investment activity, economic conflicts, region, investment niche |
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| For citation: | Ilyinykh S. V. The relationship between investment potential and investment risks: the problem of priority. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2025;2(71):13—17. DOI: 10.25683/VOLBI.2025.71.1258. |
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