Scientific paper ID 2329 : 2022/3

The following paper examines the potential risks involved in the subleasing of leased cars. This type of contract is used to optimize the activities of enterprises, the goal being to minimize cash outflows and avoid significant initial investments. The series of economic crises in recent years affects different sectors of the economy both in Bulgaria and globally. Irrespective of the lease payments’ rescheduling over time, the monthly financial costs remain part of the fixed costs of the enterprise, independent of the volume of activity, which increases the risk of bankruptcy. The economic instability and rising inflation force managers to fully absorb all possible resources, making non-standard decisions. A large number of financial analysts and large banking institutions increasingly use the term ”risk management”, which management is considered as part of the strategic planning of the organization. In order for a risk to be managed, it must be analyzed, which is related to the quantitative and qualitative measurement of potential hazards in accordance with the criteria for acceptable risk in leasing cars. The limitation of risk is related to certain procedures for its management. In most cases, the use of only one method is not sufficient for a specific risk, so it is necessary to use a combination of methods to reduce the risk.