APPLICATION OF BEHAVIORAL APPROACH IN THE SYSTEM OF RISK MINIMIZATION MEASURES IN MAKING MANAGEMENT DECISIONS AT THE ENTERPRISE

Abstract

The article is devoted to the practical application of the behavioral concept in the development of measures to minimize risks that arise in the process of making management decisions at the enterprise. Research was performed with applying of general scientific, sociological, heuristic research methods. Differences in managerial decision-making processes under normal conditions and conditions of uncertainty and risk from the standpoint of normative and descriptive approach are analyzed, behavioral effects that determine staff propensity to risk and lead to ineffective management decisions are identified and systematized. Social and behavioral factors that influence the acceptance or non-acceptance of management decisions, which are accompanied by situations of risk and uncertainty are considered. It was proved that risky environment reduces the confidence level of the subject of management about the further development of both individual events and the situation, leads to an increase in chances of making low-performing management decisions, can cause consequences of varying degrees of harm. The role of behavioral factors (cognitive distortions) in making managerial decisions is described, its influence at the stage of making a choice by the subject of management is analyzed. Existence of a relationship between the influence of behavioral factors and economic problems and the fact that each cognitive distortion reveals a different cause of risk and requires an appropriate approach to its management was proved based on the analysis of the risk appetite of the management of the enterprise. Analysis of management system and features of management decision-making process at the enterprise allowed to formulate a list of possible behavioral effects, which most fully explains current enterprise condition and directly affects it, as it is the result of inefficiency of both strategic and operational management decisions. Directions of behavioral risk reduction at acceptance of managerial decisions at the enterprise are offered. It is determined that the most effective method of minimizing behavioral risk is to improve the management decision-making process.