Risk and Uncertainty in the Russian Model of Management

Abstract

The paperexamines the attitude to uncertainty and risk withinthe Russian model of management by A.P. Prokhorov. It is shown that the attitudeis determined by the dual nature of this model. The Russian managementsystem in itsmobilization phase easily copes with the uncertainty and allows risky decisions. In the stable phase, the Russian model rejects risk, and security, understood as maintaining the achieved state, becomes a priority. A risky situation is a type of uncertain one when the occurrence of possible events is probable and can be estimated. In this situation, it is possible to assess the likelihood of events resulting from the influence of the natural environment, the actions of partners, opponents, etc., which cannot be done in a situationof uncertainty, and this is thekey factor that distinguishes between risk and uncertainty. Wedefine risk as an integral indicator that combines assessments of both the probabilities of implementing a solution and the quantitative characteristics of its consequences. Thus, risk management presupposes, first of all, a conscious and rational choice. Since changing the national model of management takes a lot of time, wesuggest to try to change the attitude to risk in modern Russian organizations.