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Firms’ activity risk under a knowledge economy

Research paper by Elzbeta Monchinska

Indexed on: 01 Mar '06Published on: 01 Mar '06Published in: Studies on Russian Economic Development



Abstract

Processes of growing uncertainty and risks in economics are analyzed against a broad background of the “civilizational shift” and globalization. The rapid ageing of equipment, technologies and knowledge leads to numeric growth of bankruptcies and the intensification of their destructive effects. Their mitigation would be possible if an institutional system of threat monitoring and prevention were created.The case is presented for revision of existing bankruptcy laws towards the readjustment of enterprises, not just their debt repayment to creditors.The author comes to the conclusion about an increase of the state’s role in shaping the educational environment of enterprises and the need to synchronize micro-and macroeconomic policies.