Identification and analysis of market risks in the activity of business associations

Peter the Great St. Petersburg Polytechnic University, Institute of Industrial Management, Economics and Trade, Graduate School of Service and Trade, 195251, 29 Polytechnicheskaya str., St. Petersburg, Russia

^* Corresponding author: kafedra17@rambler.ru

Abstract

The relevance of the study is because small business in the service sector is sensitive to external and internal shocks, more often than enterprises in other sectors of the economy are subject to bankruptcy. The activity of business associations, aimed at optimizing the business processes of their members, is an effective mechanism for supporting enterprises in the service sector, especially during an economic downturn. One of the important quantitative indicators of the effectiveness of business associations is the dynamics of the number of its membership base. The purpose of the study is to identify groups of risks and conduct a qualitative and quantitative analysis of the degree of their influence on the indicator that predetermines the prospects and nature of the survival of business associations. The result of the study is the creation of a risk map based on the Ishikawa model, in accordance with which it is determined that economic risks have the maximum impact on the volatility of the membership of a business association. Political, financial and managerial risks can also exacerbate destructive processes in the activities of business associations, especially during periods of economic depression. Industry risks do not significantly hinder the development of business associations. Thus, the conducted qualitative analysis of the reasons for the reduction in the number of the membership base of a business association makes it possible to find approaches to the creation of a system of indicators for assessing their market stability.