OPTIMISATION OF STRATEGIES FOR WORKING WITH COUNTERPARTIES AND RISK MANAGEMENT AT UTILITY INFRASTRUCTURE ENTERPRISES

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Published: Nov 15, 2024

  Olena Chepurna

  Nikita Razinkin

Abstract

The objective of this paper is to examine and enhance strategies for managing relationships with counterparties and mitigating risks in utility infrastructure enterprises. The paper seeks to analyse contemporary approaches and challenges faced by these enterprises, offering recommendations for improving their strategies in counterparty interactions and risk management. Ultimately, the goal is to enhance operational stability, competitiveness, and sustainable development in a dynamic business environment. Methodology. The research presents a critical review and analysis of the existing risk management and counterparty strategies employed by utility infrastructure enterprises. The methodology comprises an examination of current practices, the identification of key problems, and an evaluation of modern approaches, including digital transformation, process automation, and innovative management methods. By synthesising existing research and case studies, the paper identifies the strengths and weaknesses of various strategies and recommends improvements. Results. The analysis identified several key challenges faced by utilities in managing counterparties and risks, including inadequate risk management systems, outdated business processes and poor communication. Process automation, digital transformation and improved stakeholder integration are identified in the document as critical factors for optimising operations. It also emphasises the importance of careful selection of counterparties, performance monitoring and staff development to mitigate risks and foster better partnerships. Practical implications. The recommendations set forth in the paper provide actionable strategies for utility infrastructure enterprises to optimise their management of counterparties and risks. The implementation of these strategies, including the utilisation of digital tools, enhanced internal communication and a focus on staff development, can facilitate improvements in efficiency, risk management and long-term sustainability for utility companies. These recommendations are particularly beneficial for those in managerial or decision-making roles who are seeking to navigate the complexities of a rapidly evolving business environment. Value / Originality. This paper makes a significant contribution to the field by offering a comprehensive analysis of the strategies available for optimising counterparty relations and risk management in the utility sector. The value of this approach lies in its integration of modern technological solutions with traditional risk management practices. By offering practical, research-based recommendations, the paper addresses current gaps in the literature and provides new insights into how utility enterprises can better manage both internal and external challenges.

How to Cite

Chepurna, O., & Razinkin, N. (2024). OPTIMISATION OF STRATEGIES FOR WORKING WITH COUNTERPARTIES AND RISK MANAGEMENT AT UTILITY INFRASTRUCTURE ENTERPRISES. Three Seas Economic Journal, 5(3), 61-65. https://doi.org/10.30525/2661-5150/2024-3-8
Article views: 14 | PDF Downloads: 6

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Keywords

risks, utility infrastructure, counterparties, optimisation, strategies, economic environment

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