Impact of Opportunistic Behavior in Contractual Relations on Risk Management in the Modern Russian Economy

DOI

10.2991/aebmr.k.200312.153How to use a DOI?

Abstract

One of the key problems in risk management planning in Russian business is the widely practiced opportunism in contractual relations. Within the last 10-15 years the opportunistic contract has become one of the stable business patterns in the Russian economy. The article dedicated to the study of the most typical forms of opportunistic contracts is based on the data from the personal business experience of the author as well as the practice of interaction of economic entities in Tyumen region. By an opportunistic contract we mean the written procedure of economic agents interaction stipulating terms and conditions of a contract that are not evident at first glance, but when subsequently realized (or under a certain combination of external factors)can significantly change the economic effect of the contract execution without benefit of one of the parties involved. The role of specific institutional and psychological factors of behavior typical to the Russian economy and business culture is extremely important in the implementation of the opportunistic contract. The fundamental condition making possible the widespread practice of the institution of an opportunistic contract is the lack of efficiency of the judicial system and mechanisms in protection of the violated rights of economic agents. The manifestations of opportunistic behavior in terms of contract relationship may be implemented with the involvement of third parties. Widespread opportunistic contracts in the Russian economy caused a reaction from the management of Russian companies in the form of wide use of arbitration mediators as a mechanism of risk control implementation of the contracts. Such a large influence of intermediaries on economic processes has led to a significant increase in transaction costs and has become an independent economic problem.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - A Deev
AU  - S Chernomorchenko
AU  - L Shabatura
PY  - 2020
DA  - 2020/03/17
TI  - Impact of Opportunistic Behavior in Contractual Relations on Risk Management in the Modern Russian Economy
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020)
PB  - Atlantis Press
SP  - 1113
EP  - 1117
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200312.153
DO  - 10.2991/aebmr.k.200312.153
ID  - Deev2020
ER  -