Risk Management as a Component of the Brand Strategy of a Retailer

Abstract

Introduction. The article considers the issue of risk identification for retailers in order to take them into account in the process of forming a brand strategy. The purpose of the article is to analyze the possible risks for retailers in order to develop measures to prevent them, which must be taken into account in the formation of brand strategy. Results. The concept of risk for a retailer and its components are defined. Risks by classification by the nature of emergency are considered. External and internal risks are characterized, the latter is by types of sphere of influence. It is shown how certain types of risks affect the brand in general and its reputation in particular. Risks that are difficult to predict even with effective risk management planning are identified. The factors that determine the need for risk management are outlined. It is proved that taking into account these factors in the process of forming the brand strategy of a retailer will positively affect the efficiency of its activities. Risk management in a trading company should be cyclical and continuous. It will be effective only if all types of risks are identified, controlled and reduced with constant monitoring. A set of actions aimed at planning risk management at a trading company is defined. It is noted that in order to promote risk management activities, a retailer needs to develop its own methodology for continuous risk management, taking into account the specifics of a particular company. This approach to risk management will be critical to a comprehensive management process and will ensure that risk indicators for the enterprise are handled efficiently and properly. Conclusions. Given the fact that risk management is important for the effective operation of a retailer in a competitive environment, the factors that determine it are identified. Timely identification of risks for a retailer will ensure its efficiency, provided that risk management is cyclical and continuous. It is proved that the mechanism of continuous management will allow to identify risks in time and with the help of preventive measures to reduce the costs for a retailer, which in turn will reduce the reputational losses of the brand. This mechanism should be a mandatory part of the brand strategy for any retailer.