Answer to Question #210930 in Economics for charvi

Question

explain the implications of risk and uncertainity at covid 19 time for theory of firm

Answer 1

At the moment, the global economy is experiencing an intense increase in instability and a global crisis caused by the COVID-19 pandemic. In such unstable conditions, the need to improve the efficiency of project risk management is especially acute.

The risk of a project is the loss that an object or subject of economic relations may suffer due to the occurrence of unfavorable events in various fields or the adoption of incorrect management decisions in conditions of uncertainty of information about the conditions of ordinary or entrepreneurial activity.

The main sources of risk are:

Natural processes and phenomena;

Randomness;

Opposing tendencies and interests;

The probabilistic nature of scientific and technological progress;

Insufficient amount of information;

Limited and insufficient material and financial resources when making and implementing decisions;

The limited methods of cognition of the investigated object.