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Conceptual Model of Sustainable Development Management Process

Conceptual Model of Sustainable Development Management Process

Journal of Economic Regulation, , Vol. 12 (no. 2),

The purpose of this paper is to develop a concept for managing the level of risk of disrupting the sustainable development of the enterprise. The research methodology is based on the system economic theory and the operational theory of risk management. A methodology is proposed for the study of the development and implementation of management decisions in the managerial subsystem, taking into account the identified risks of sustainable development of the enterprise at the intentional, expectational, cognitive and functional stages. Within the framework of these stages, the processes of goal setting, information collection, assessment of the existing environment and forecasting of changes in the enterprise, as well as the processes of implementing decisions are carried out. To shed light on the processes of identifying risk factors and developing appropriate anti-risk managerial impacts depend on the localization in the control object. When decomposing a control object, four types of localization are distinguished: an object subsystem, a process subsystem, a project subsystem, and an environmental subsystem. The implementation of managerial decisions, from the point of view of the object subsystem, can be limited by the high cost of the main production equipment and long life cycles of the finished product. When implementing the developed managerial solutions, there may be a redistribution of profit centers or a change in the way it is generated, which will lead to a change in the characteristics of the enterprise's process subsystem. In the project subsystem, an enterprise can achieve maximum effect by focusing its efforts on the introduction of innovative technologies. The speed of changes in the external environment of the enterprise becomes very high, so the role of forecasting the impact of these changes on the environmental subsystem of the enterprise increases, and applying this knowledge to develop managerial impact, on the one hand, and to adapt the enterprise to these changes, on the other. It is shown that by regulating and eliminating the imbalance in the preparation of managerial impacts, it is possible to reduce the level of risk in the implementation of such decisions.


Keywords: risk management, risk factors, anti-risk managerial impact, quality of enterprise management, structure of the managerial system, decomposition of the managed subsystem

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