Sensitivity analysis as a decision-making tool for the implementation of an investment project in mining industry

Introduction. Russian mining companies need to implement large-scale investment projects due to a variety of internal and external reasons. Projects are aimed at the development of new deposits, technical equipment and the modernization of existing ones. To make substantiated management decisions, a toolkit for analyzing the risks of investment projects is required. Theoretical analysis. The section contains the need to apply quantitative methods for assessing investment risks based on cash flow modeling. We have analyzed the possibility of the use of sensitivity analysis techniques, real options and Monte Carlo methods for the quantitative assessment of the mining industry investment projects risks. The result includes a justification of the feasibility of applying the sensitivity analysis method at the early stages of an investment project. Empirical analysis. The sensitivity analysis tested metrics such as production volumes, commodity prices, capital and operating costs on two mining projects. It was found out that the projects under consideration are the most sensitive to changes in the price of commercial products. Results. Sensitivity analysis is a useful tool for risk analysis of investment projects. The application of this method to an investment project in the mining industry should be carried out taking into account the industry specifics.

Proactiveness as a factor of making an effective management decision in the restoration and renovation of equipment

Introduction. The main part of the enterprises equipment of the Russian oil and gas complex operates in different natural and geographical conditions, which requires a special approach to the organization and management of its restoration and renovation. Theoretical analysis. This article examines the definitions of such concepts as “restoration”, “renovation”, as well as the issues of a reactive and proactive approach to managing the processes of restoration and renovation of equipment. Empirical analysis. Based on field studies at oil and gas enterprises, the emphasis is placed on the validity of adopting a proactive approach to the management of equipment recovery and renovation; developed an indicator (index) of proactive management decision-making in the restoration and renovation of equipment. Results. This indicator can be used by the management of oil and gas enterprises to assess the rationality of organizing and managing the processes of equipment restoration and renovation, including the choice of self-service or outsourcing services.

Stakeholder risk modeling: An econometric analysis experience

Introduction. The article is devoted to the study of stakeholder risks and the possibilities of their assessment. The methodological framework of the study was formed on the basis of the corporate governance theory and its stakeholder model. Theoretical analysis. On the basis of the the Russian-language and English-language publications’ general review, carried out by the authors, it is concluded that there is no clear generally accepted toolkit for assessing stakeholder risk. Assessment of stakeholder risks was most developed in project approaches. Methods. The authors propose an approach for assessing the stakeholder risks of an organization as a whole based on the search for a balance of interests through modeling the contributions and benefits of stakeholders and the gaps between contributions and benefits. The empirical base of the study was made up of data on flour-grinding and bakery enterprises of the Sverdlovsk region for 2010–2019. The unbalanced dashboard for analysis included 130 observations across 28 companies. Results. The methodology has been tested on the example of a comparative analysis of “more successful” and “less successful” companies in terms of revenue. Econometric models of the stakeholder contribution to revenue have been built. Stakeholder risk maps were built, which made it possible to identify the most influential stakeholders in terms of their contribution to revenue and the most risky ones in terms of the gap level. Conclusions. When assessing stakeholder risks, a broad outlook and a system of various methods for assessing stakeholder risks are required, as well as a willingness to take into account factors that may go beyond the framework of the models. The results and conclusions of the article can become a theoretical platform for further research. Further research on this topic can be related to expanding the understanding of the imbalance of interests by taking into account the subjective assessments of stakeholders and experts. For these purposes, it is necessary to adapt existing corporate surveys to accounting for stakeholder value and stakeholder risks.

Integrated development problems of the oil and gas complex logistics infrastructure

Introduction. The effective operation of industrial production, transport and processing facilities depends directly on the logistics infrastructure. This is confirmed by a significant share of logistics infrastructure costs in the investment programs of vertically integrated companies. Theoretical analysis. A theoretical study of the logistics infrastructure, its current state and prospects for development is carried out, the types of logistics infrastructure and areas of responsibility are analyzed: supply, intra-industry support and sales. Theoretical research methods were used, and the analysis of different types of logistics infrastructure designed for specific purposes at different stages of the life cycle in the supply chains of the investment project was performed. Еmpirical analysis. The possibility of reverse use of logistics infrastructure facilities, i.e., for the supply of oil and gas facilities and the sale of processed products, is analyzed. The concept of logistics infrastructure is specified, which allows to specify their share in investment costs. Results. The approach proposed by the authors will allow to take into account the importance of integrated construction of the logistics infrastructure of the Arctic region of Russia in the foreseeable future, increase the efficiency of investments, and further reduce costs at the stage of operation and elimination of industrial and social facilities.

Some theoretical and methodological directions for improving the support of rural settlements’ municipal budgets

Introduction. Solving the problem of improving the quality and standard of living of the Russian Federation’s rural population is associated with the need to develop and apply scientifically based support for municipal budgets of rural settlements to ensure the gradual transition of municipal budgets to replenishment from internal sources, generally accepted within the framework of the international concept of civic-oriented municipal governance. Theoretical analysis. The article develops theoretical problems of the formation of scientifically grounded support for rural settlements’ municipal budgets in conditions of their low budgetary provision. It reveals and scientifically substantiates the need for the development and application of theoretical and methodological foundations for supporting the municipal budgets of rural settlements for the subsequent transition of rural self-government to the implementation of the civic-oriented municipal governance concept based on internal sources of municipal budgets replenishment. Empirical analysis. Methodological directions of scientifically grounded support of Russian rural settlements’ municipal budgets are being developed. An indicator of the quality and standard of living of the rural population is proposed. It represents the expenditure of rural municipal budgets per capita of the rural population. The proposed indicator was calculated and studied at the level of expenditures of the municipal budgets of rural settlements in macro-regions of the Russian Federation per capita of the macro-regions’ rural population. A significant differentiation of the indicator by macro-regions of the Russian Federation was revealed. A significant differentiation of the proposed indicator’s value in macroregions of the Russian Federation has been revealed. The indicator of the rural municipal budgets expenditure per capita of Russian Federation’s rural settlements has been proposed, substantiated and calculated. The groups of Russian macroregions with the municipal budgets expenditures per capita of the rural population are higher, equal and lower than the indicator for the Russian Federation. Similar procedures were carried out on the basis of an empirical analysis of the rural settlements’ municipal budgets expenditures per capita of the rural population of the Russian constituent entities in macroregions with an agricultural orientation. Results. On the basis of the empirical analysis of indicators, characterizing the provision of the rural population with municipal services recommendations are proposed that can be used in the development of regulations governing the support of Russian rural settlements’ municipal budgets.

Enterprise internal monitoring development as part of the bank lending strategy formation

Introduction. In solving the issue of ensuring the effective implementation of the company’s lending strategy for the purpose of its rational formation, the issues of internal monitoring of enterprises are of particular relevance. Theoretical analysis. The article deals with the theoretical aspects of developing algorithmized tools for the development of a system for monitoring the credit strategy of an enterprise is justified. Empirical analysis. The analysis of the ratio of issued credit loan funds and overdue debt of legal entities of the Russian Federation is carried out, the dynamics of the industries’ debt burden is shown. Results. Methodological approaches to monitoring enterprises in the system of bank lending have been developed. The proposed algorithmized mechanism for monitoring the implementation of the current strategy, which is carried out in two stages. At the same time, at the first stage, an analysis of market and non-market factors affecting the implementation of strategies is carried out. At the second stage, the internal environment of enterprises is analyzed. The practical implementation of the research results suggests the possibility of using a shell-based mechanism for monitoring the credit strategy at specific enterprises.

Influence of COVID-19 on creative industries

Introduction. This study analyzes the impact of the new COVID-19 coronavirus infection on the creative industries in the Russian Federation, as well as finding solutions to support this area in the context of the pandemic. Theoretical analysis. Since the latest imperatives of the current world processes dictate the need for structural changes in the state economic activity, the actual principle of the economic activity organization can be called the creative industries concept development, which include industries related to the creation of a certain cultural or creative product, IT-sphere, fashion and design, advertising and marketing products, as well as folk art and craft. Due to the relevance of the creative industries development, modern research on the theory of creative economy development pays great attention to the study of the specifics of this activity and ways to improve it. The article provides a theoretical analysis of the crisis in the creative industries, as well as a detailed analysis of the opportunities and threats of the crisis. Empirical analysis. Based on the analysis of the activities of companies in the creative industries, the authors of the article identify opportunities for the development of companies in the creative sphere in terms of economic and social efficiency. New trends in the transformation of business processes in various fields (theatre, film industry, music, exhibition and Museum activities) are considered. Results. Based on the analysis, it is concluded that the urgent tasks in the situation of forced quarantine measures are the timely transformation of creative industries with the use of information technologies, the transition to online areas of interaction with consumers, as well as state support for creative industries most affected by the crisis.

Government information policy and the dynamics of federal funding for the dissemination of US research and development results

Introduction. The traditionally high level of government participation in scientific and technical, innovation and implementation and foreign trade activities of the United States presupposes the active nature of federal funding for activities and information policy instruments related to the dissemination of the results of American R&D both in the national economy and in the international market. The study of the dynamics and structure of the distribution of allocations for the dissemination of special scientific and technical information and documentation is an urgent socio-economic problem, reflecting the level of scientific and technological development of the United States and the innovative activity of advanced sectors of the national economy for a long period of time. The theoretical analysis was carried out in the context of organizational and administrative institutions of the federal government (specialized departments), endowed with financial powers, subordinate to the central body generating a unified US information policy strategy for the dissemination of R&D results. An empirical analysis based on US official statistics made it possible to assess the specifics of financing scientific and technical information in the field of R&D by types, categories and departments – domestically for 1965–2019, as well as to calculate changes in the balance of US foreign trade with scientific and technical information and documentation in 2001–2019. Results. The general resulting conclusion is that any innovative information on the results of R&D provides a certain monopoly for a certain period, which gives the industry that created and introduced it, the department and the country as a whole, a certain advantage in the export of a new product. Since the United States has the most powerful national financial and innovation system among all states, with a developed structure, it provides its economic residents and their counterparties with ample opportunities for conducting fundamental and applied research and development and, of course, has an advantage in the production of innovative products with high competitiveness both in the domestic and in the global market, subject to the classic price-quality ratio.

Employment and economic growth in the conditions of COVID-19 pandemics: Cross-country comparisons

Introduction. The factor of a sharp slowdown in economic growth in almost all countries since the beginning of 2020 has been quite atypical. Whereas previously we had seen shocks mainly related to economic processes, this time the “black swan” was a public health emergency – the new coronavirus pandemic COVID-19. A feature of this crisis was the unprecedented measures of states to restrict the movement of citizens, as well as the suspension of the activities of both industrial enterprises and enterprises in the sphere of trade and services. The aim of this work is to make cross-country comparisons of the impact of increased unemployment caused by the COVID-19 pandemic on different countries’ economic growth. Theoretical analysis. The relationship between the actual output gap and potential and cyclical unemployment rates has traditionally been studied according to the well-known law of A. Okun. Okun’s Law can be viewed as a linear algebraic equation for the function of real gross domestic product (GDP). The essence of the law is that with an increase in cyclical unemployment, total output should decrease, since the number of people employed in GDP production falls. Empirical analysis. Cross-country comparisons of economic growth and characteristics of the labor market in Russia, the USA, China, Canada and Germany from 2000 to 2020, including the period of the new coronavirus infection pandemic, were carried out. Results. Based on the analysis of time series of GDP and the unemployment rate, it is shown that, depending on the depth and effectiveness of state support measures for business in terms of maintaining employment, deviations of the actual values of GDP from those calculated in accordance with Okun’s empirical law are observed. The largest and smallest deviations in real GDP changes from the predictions for the first half of 2020 have been recorded in Germany and Canada, respectively.

Priorities and Mechanisms for Managing the Interbranch Structure of the Agri-Food Complex

Introduction. In managing the competitive advantages of the agri-food complex, the study of the structural modernization of the agri-food complex on the basis of taking into account the levels of risks and the uncertainties of the economic situation that determine the possible boundaries of the use of regulatory measures is of particular importance. An interdisciplinary approach to the analysis and prediction of the structure of the complex opens up new possibilities for research, taking into account the relationships and interactions of all its elements. Theoretical analysis. The quality of the economic dynamics of the complex and its compliance with the long-term development goals of the Russian economy are evaluated. Trends in the interbranch structure, and priorities of state support have been revealed. Empirical analysis. The results of import substitution in the agri-food complex have been analyzed. The factors and structure of its growth have been revealed. The interbranch structure of the participation of various stages of its product chains in the production of total value added has been estimated. The stability of the local production systems of the complex has been characterized. Consumption growth is considered as an independent driver of the economic growth of the complex. The influence of the dynamics and structural parameters of investments has been analyzed. Results. It has been proved that structural balance largely determines the competitive stability of the development of the agri-food complex as a diversified system. Based on the interbranch analysis, new directions of development of the structure of the complex have been identified, directions of its state support have been clarified. Priorities of the foreign trade policy of the complex have been determined.