Risks associated with enterprises’ foreign economic activities: essence and characteristics

Abstract

The aim of this article is to examine the nature of risks associated with enterprises’ foreign economic activity and to summarise their current characteristics in the context of the transformation of the international business environment. We achieved this aim by employing methods of structural-logical analysis, theoretical generalization, comparison, and systematization. In this article, we have examined scientific approaches to interpreting the nature of risks in enterprises’ foreign economic activity, identified the characteristics of their understanding in contemporary economic literature, and characterized changes in approaches to risk research in the context of the development of international economic interaction. We analyzed approaches in which the risks of foreign economic activity are viewed as the probability of losses, deviations from expected results, consequences of external environmental uncertainty, and the influence of internal and external factors affecting the enterprise’s operations. The findings of the study have shown that contemporary risks in foreign economic activity are complex and multi-layered, gradually extending beyond purely financial or contractual risks. We have demonstrated that these risks are becoming increasingly integrated into the system of strategic enterprise management and depend on the business entity’s ability to adapt to changes in the international environment. In this article, we emphasize that the risks of foreign economic activity arise at the intersection of a company’s internal management processes and external factors in the international market, and their manifestations may affect financial, logistical, informational, reputational, and organizational aspects of operations. We have identified key contemporary characteristics of risks in foreign economic activity as their dynamic nature, interdependence, reliance on digitalization in international business, and the need to account for international regulatory requirements and standards. The findings demonstrate that we must view the risks associated with foreign economic activity as a complex managerial phenomenon linked to the need to make decisions in the face of uncertainty within the international environment. The study shows that a modern understanding of the risks of foreign economic activity requires consideration of both possible threats and losses, as well as potential opportunities for the enterprise’s development. On the one hand, this approach enables business entities to assess the impact of external factors on the results of foreign economic activity more comprehensively. On the other hand, this interpretation lays the groundwork for improving the risk management system and enhancing enterprises’ resilience to changes in the international business environment. In the long term, this will contribute to the development of more adaptive approaches to managing enterprises’ foreign economic activities.