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Barometer Of Efficiency Under The Action Of Risk Factors

Author

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  • BIRLE VASILE

    (Baia Mare str. Bictor Babes nr. 46,)

Abstract

The stated purpose of this research theme is to test the capacity to measure and analyze the degree of security and financial health of the company, starting with the economic content of efficiency. In this work, the efficiency will be addressed in compliance and in relation with the risks affecting the performance of economic activities. The main subject of this topic will be especially the enterprise system exogenous risks, for those risks are taken measures to achieve the desired correction effects and involve some specific decisions focused on trend evolution. Market adds to its natural fluctuations - caused by variations in aggregated supply and demand and the equilibrium price - also other disturbing factors of economic activities such as those related to movement and imbalances in the financial markets, policy factors, demographic factors, globalization intensity, vertical integration, etc. In this paper we try to find, motivate and apply a working mechanism in the diagnostic procedures that we dare to define as a "barometer of efficiency" and, to prove its applicability, we will test it at company level, respectively a practical situation. The subject took for testing the efficiency diagnostic procedure depending on the magnitude and intensity of the action of risk factors is represented by an industrial company in the field of mechanical industry, with a high level from the point of view of quality and economic efficiency. This company, like any other economic entity is anchored to specific market mechanisms and those belonging to the general market for goods, with all the advantages and disadvantages of integrating on the market. Fluctuations in the market are disruptive factors that reverberate on business activity, absorbing its effects sometimes in an amplified manner. The proposed indicators for the diagnosis of efficiency fluctuation depending on the risk factors are, in our opinion, the "barometer" sizes that management should consider and therefore should intervene through appropriate corrective decisions. In this context, the "barometer" of efficiency is the tool for measuring the risks effects fluctuations to which the company is connected through market mechanisms.

Suggested Citation

  • Birle Vasile, 2014. "Barometer Of Efficiency Under The Action Of Risk Factors," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 405-417, July.
  • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:405-417
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