RISK MANAGEMENT AND THE FORMATION OF A RESERVE POLICY OF HOUSING CONSTRUCTION COMPANIES IN ORDER TO ENSURE THEIR FINANCIAL STABILITY

The article is devoted to the formation of a reserve policy of real estate developers, aimed to minimize the risks of these organizations. It is noted that the risk-oriented approach should be the basis of the reserve policy formation; in this connection there is a need for the qualitative and quantitative activity risk estimation and determination of the necessary reserves amount with due regard for the branch specifics of the activity of construction industry companies. When implementing the reserve policy, building companies need to form general and special reserves, taking into account industry specifics. The important accounting and analytical advantages of conducting an effective reserve policy in the practice of real estate developers are identified. The implementation of a competent reserve policy is an effective tool for reducing various types of risks in the activities of real estate developers and increasing the sustainability of these organizations. It is emphasized that the accounting system should allow assessing the possible impact of risks on the position of the company. The article reveals the need for the functioning of a corporate risk management system in housing construction companies, which provides for the formation of a special kind of reserves to cover risks arising at various stages of the creation and operation of a housing construction facility. It is noted that in accordance with the integrated approach to the analysis of risk events, it is necessary to assess risks and the effectiveness of the use of reserves to cover them at various stages of the life cycle of housing construction facilities and the functioning of the company on an ongoing basis. The methods of assessment and stages of risk management in organizations of this industry are characterized. The main reasons constraining the use of redundancy tools by building companies in their activities are formulated.

accounting, risk, risk management, risk assessment, risk-oriented approach, reserve, reserve policy, financial stability, housing construction, building company

Shulekin A. N. Risk management and the formation of a reserve policy of housing construction companies in order to ensure their financial stability. Business. Education. Law, 2021, no. 4, pp. 186—192. DOI: 10.25683/VOLBI.2021.57.470.