EMPATHY METHOD IN ANALYSING AND ASSESSING OF ENTERPRISE INVESTMENT RISKS

In the context of global financial instability, the role of socio-psychological factors in investment decision-making has increased and there is a need to reconsider the meaning of investment risk management and updating existing risk assessment methods from the perspective of both investor, state, industry and enterprises. Thus, risk assessment often needs to be prepared and conducted according to the principle of uniqueness, distinction, etc. Each risk requires the identification of a number of sources not found in the other types of risks. That is why the purpose of the article is to develop and improve methods of the analysis and the assessment of investment risks requiring the further refinement. On the basis of systematization and the comparative characterization of existing methods of risk assessment and analysis used in the modern economic practice of investment activities, it is proposed to improve the tools for risk analysis and assessment by including the empathy method, which allows using not only the economic criteria, but also a combination of subjective and objective cognitive assessments of an investor. The article suggests to consider «risk perception» as two separate components: risk perception and risk opportunity perception taken into account the conditions affecting the perception that one of the investment risks will be lower or higher in a certain period of time or at a certain stage of investment, regardless of the risk profile. The perception of a risk opportunity is positive for investing, although at the same time it has its own negative consequences for a developing enterprise. The impact on this can only be identified once the risk profile has been determined at the stage when the enterprise has specific proposals and prospects for attracting investment. The totality of factors making up the risk «profile» has already been considered many times in risk assessment methodologies, and is supplemented by new components such as «tolerance» and «perception» of risk, which were not previously applied in relation to investment risk. Consequently, the suggested empathy method for risk assessment and analysis allows to take into account the influence of perceptions, tolerance and risk attractiveness, which will ultimately generate a clear and logical risk profile and enables to find out which of these factors have the greatest and the indirect influence on the decision to invest.