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10.5593/sgemsocial2017/15/S05.007

ALGORITHMIZATION OF THE CONTEXT OF MANAGEMENT OF RISKS OF FACTORING

V. G. Semin, E. V. Semina, E. R. Khakimullin
Thursday 28 September 2017 by Libadmin2017

References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017, www.sgemsocial.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-17-1 / ISSN 2367-5659, 24 - 30 August, 2017, Book 1, Vol 5, 49-58 pp, DOI: 10.5593/sgemsocial2017/15/S05.007

ABSTRACT

The most important condition for stable social and economic development of the state is the support of small and medium-sized businesses, including the basis of ensuring the availability of financial resources. If the business does not have the possibility of direct financing through the banking system, factoring becomes an effective tool for replenishing working capital; existing competition on commodity markets determines the need for a flexible interaction between the supplier and the buyer in the conditions of limited working capital. Factoring allows you to solve the problem of shortage of working capital and includes a number of financial services: financing of the supplier, in the study of credit and monitoring of debt buyers, account receivables, cash collection, and acceptance of liquidity risk. Factoring enables suppliers to effectively solve the problem of short-term liquidity and build cash flows to expand the range of products, increasing the grace period for buyers. Factoring realizes working capital financing, credit insurance, debt management. The article presents the results of a study of the context of risk management the factoring. Context is a systematic description of external and internal factors (in particular, the structure of possible threats), that characterize risk- management [14]. A conceptual game-theoretic model and an algorithm for managing factoring risks based on the principle of guaranteed result are proposed.

Keywords: context, factoring, risk-management, context, a principle of the guaranteed result, risk, vulnerability, threat