Publication Details
Abstract
The purpose of this study is to develop an improved method for assessing the effectiveness of investment risk management in construction materials enterprises. The proposed methodology integrates risk identification, normalization of risk indicators, calculation of the Integral Risk Index (IRI), and econometric assessment of the relationship between investment risk and financial performance. Based on this approach, the Risk Management Effectiveness (RME) coefficient is introduced as a new indicator reflecting the relationship between enterprise profitability and the level of investment risk. In addition, interpretation scales for both the IRI and RME coefficients are developed to facilitate practical risk classification and managerial decision-making. The proposed method allows investment risk to be evaluated not only in quantitative terms but also from the perspective of management effectiveness. Unlike conventional assessment approaches, it considers the functional relationship between investment risk and enterprise performance, making it possible to compare enterprises according to their risk-adjusted performance and to identify the effectiveness of existing risk management mechanisms.