Risk-Management of Investment Projects in Implementation of Objects of Real Economy

2019 ◽  
Vol 10 (4) ◽  
pp. 1309
Author(s):  
Yana D. MILOVIDOVA
Keyword(s):  
Risk Management ◽  
Stock Exchange ◽  
Practical Significance ◽  
Real Economy ◽  
Investment Portfolio ◽  
The Real ◽  
Investment Projects ◽  
Tremendous Amount ◽  
Definition Of ◽  
Investment Portfolios

Risk management in financial operations is based on a diverse structure and mobility of the portfolio that allow for a structural change of a project - namely, achieving synergies in the formation of the investment portfolios. However, financial operations do not always correlate with the stock exchange rules or other covenants. This provides important evidence for the restructuring purposes of the investment portfolio. In this regard, forecasting and the development of the toolkit of the risk management may be implemented only under conditions of the real object of the economy. The idea that objects of the real economy carry not only the risk of loss of the investment but also potential a technical damage is deemed to be a scientific novelty. As a place of technical damage in the system of the risk-management, it is considered to be a possible loss for the investor not only within a separate project but also throughout the whole project. In this regard, the author has carried out significant calculations according to her own methodology based on the implementation of a project of the real economy. Construction of the risk management system in an enterprise is a persistent rigorous process that requires a tremendous amount of financial, material and human resources. The practical significance of the study is defined by the need for a detailed definition of the risk-management’s practical use and qualities applied to the investment portfolio in the implementation of objects of the real economy, which explains the relevance of the study under consideration.

scholarly journals ELEMENTS OF CONTROL THEORY APPLIED TO AN INVESTMENT PORTFOLIO IN THE CAPITAL MARKET. THE OPTIMAL TIME HORIZON FOR SELLING A PORTFOLIO

2015 ◽  
Vol 1 (310) ◽  
Author(s):  
Jerzy Tymiński
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Optimal Time ◽  
Dynamic Programming Method ◽  
Financial Instruments ◽  
Investment Portfolio ◽  
Warsaw Stock Exchange ◽  
Investment Portfolios ◽  
Rational Investment ◽  
The Capital Market

The article presents a concept of capital management for assembling investment portfolios. Two optimization variants of a portfolio to be purchased are discussed. Portfolio I is structural, using the „traditional model”. To assemble Portfolio II, elements of reliability theory and the dynamic programming method were used. The article also analyses the sale of a portfolio with respect to the demand for financial instruments in the capital market. The presented concept dealing with rational investment decisions during transactions at the Warsaw Stock Exchange can also be used by managers to create an effective portfolio of financial instruments.

scholarly journals WORLD EXPERIENCE OF BUSINESS PROCESSES ORGANIZATION BUILD-INVESTMENT PROJECTS NEW FORMS AND MANAGEMENT IN THE FIELD OF UKRAINE COMPLEX OBJECTS DEVELOPMENT

2018 ◽  
Vol 1 (50) ◽  
pp. 238-245
Author(s):  
O. V. Redkin ◽  
R. I. Pahomov ◽  
O. E. Zyma
Keyword(s):  
Business Processes ◽  
Oil And Gas ◽  
Real Economy ◽  
Business Systems ◽  
Complex Objects ◽  
The Real ◽  
Investment Projects ◽  
Organization And Management ◽  
Scientific Principles ◽  
Practical Recommendations

The scientific principles and practical recommendations on the organization and management of business processes and construction investment projects in the real sector of the Ukrainian economy are developed. These issues are considered on an example of the development of objects and processes in the oil and gas complex. The basis of its improvement is proposed to apply new forms and best international experience to ensure the modern progress and competitiveness of complex industrial and business systems. It is determined that the practical recommendations given in the article can be successfully applied in industry and other sectors of the real economy sector of Ukraine. Their use should ensure the acceleration of modern progress and the growth of the competitiveness of the domestic economy.

scholarly journals STATE, DYNAMICS AND PROBLEMS OF UKRAINIAN BANKING SYSTEM LIQUIDITY

2020 ◽  
Vol 4 (2) ◽  
pp. 27-36
Author(s):  
P. Ilchuk ◽  
◽  
О. Kots ◽  
D. Martyniuk ◽  
E. Rak-Młynarska ◽  
...  
Keyword(s):  
Banking System ◽  
Sharp Change ◽  
Real Economy ◽  
Resource Base ◽  
Loan Portfolio ◽  
The Real ◽  
Excess Liquidity ◽  
Main Factors ◽  
Definition Of ◽  
Considerable Pressure

The approaches of scientists to the definition of categories “liquidity of banks” and “regulation of the banking system’ liquidity” are investigated. A retrospective analysis of the NBU’s approaches to regulating the liquidity of the banking system was carried out and the use of two main methods used by the NBU to calculate the liquidity level of the Ukrainian banking system during the independence period was identified. Dynamic ranks of liquidity of the Ukrainian banking system and instruments of its change in 2012–2020 were constructed, stable dynamic tendencies and the main factors causing such dynamics were identified. The changes in the liquidity of the Ukrainian banking system in the periods of the financial crisis 2014–2015 are analyzed in detail, the main factors of the change in the liquidity of the Ukrainian banking system during such period are identified. It was proved that the change in approaches to the calculation of the liquidity level of the Ukrainian banking system was accompanied by the implementation of a completely new refinancing tool for banks – NBU deposit certificates. It was also proven that changing the approach to calculating the liquidity level of the Ukrainian banking system and the use of a new refinancing tool resulted in maximizing the NBU’s influence on regulating the liquidity of the Ukrainian banking system. The crisis of excess liquidity of the banking system of Ukraine was detected, its time periods were identified, the main factors of its emergence and their quantitative characteristics were presented. The unproductive use of highly liquid assets by banks has been proved, which is caused by the processes of regulating the liquidity level of the banking system and the use of NBU certificates of deposit. A sharp change in the structure and level of liquidity of the banking system in 2020 and disruption of the transformation function of the banking system were identified. In particular, banks with significant free resources (76.24 % of banks' liquidity, which is equivalent to practically 20 % of the loan portfolio), are not able (or willing) to direct these resources to finance the real economy. Thus, a violation of the NBU’s monetary policy has been identified, which puts considerable pressure on the monetary sphere, and in the event that the NBU loses control of this process, excess liquidity of banks will cause an inflation spike. Also, the liquidity surplus in the second half of 2019 – early 2020 and the imbalance of the resource base are threatening to reduce the efficiency of banks in 2020. The NBU’s methodology for regulating banking liquidity with the help of mandatory standards is investigated. The legislative regulation of bank liquidity is analyzed and changes in the methods of calculation of liquidity ratios are revealed. Based on the analysis of retrospective data, it has been shown that, despite changes in the mandatory liquidity standards, during 2014–2020 the liquidity indicators exceeded the regulatory values several times, but peak exceedances were detected in 2020, which confirms the emergence of the excess liquidity crisis in the banking system of Ukraine. Grouping of banks by liquidity level revealed that practically 50 % of banks are in the range of 150–300 % of the standard, and 23 % of banks are in the range of 300–500 % of the standard, while 24 % of banks are in the range of more than 500 % of the standard. Such a significant excess of the liquidity ratio indicates the ineffective financing of banks in the real sector of the economy and the lack of attractive directions for active operations, which threatens both economic growth and efficiency of the banking system in 2020. The research develops key recommendations for banks to prevent excessive liquidity risk.

scholarly journals Current Issues in Assessment of Risks Related to Investment Projects

2018 ◽  
Vol 7 (3.15) ◽  
pp. 336 ◽  
Author(s):  
Alexander Sergeevich Voronov ◽  
Mikhail Vladimirovich Karmanov ◽  
Irina Anatolievna Kiseleva ◽  
Vladimir Ivanovich Kuznetsov ◽  
Lidia Sergeevna Leontieva
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Investment Project ◽  
Investment Projects ◽  
Project Valuation ◽  
Analysis Methods ◽  
Project Risks ◽  
Capm Model ◽  
Definition Of

The definition of the essence of an object of management in economics is an indispensable component of professional risk management. Since the national risk management theory is just being formed, the need to find a clear and comprehensive definition for the notion "risks" is especially topical. Capital valuation is one of the most important issues, which needs to be solved by companies during ROI studies. This article makes an attempt to study the role of risk management in the implementation of investment projects. The main purpose of this article is to identify the main regularities which determine the peculiarities of risk assessment in business, being the key element facilitating the organization of investment projects. The objectives have been as follows: to review the basic concepts of risk management; to study its components in business; to reflect the system and risk management principles, and to carry out risk assessment; to consider the main kinds of risks in the business area.The article describes various types of investment and project risks, risk analysis methods for investment projects, as well as efficiency indicators of investment projects, and provides an analysis of risk factors and uncertainties during the development of investment projects. The peculiarities of the practical use of project risks’ analysis methods have been studied. Risk assessment methods for an investment project help evaluate its feasibility, the time within which it will start being profitable, as well as the probabilistic volume of its future profits. Investment project valuation models have been analyzed, in particular, the CAPM model for emerging capital markets. The DCF method has been studied, being the base for assessing the attractiveness of business in general and a company's investment project in particular.  

Non-governmental coverage of retirement benefits as part of the national socio-economic policy

2020 ◽  
Vol 16 (3) ◽  
pp. 449-466
Author(s):  
L.D. Kapranova
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Pension Funds ◽  
Pension Plans ◽  
Fund Raising ◽  
Real Economy ◽  
Investment Portfolio ◽  
Retirement Benefits ◽  
The Real ◽  
The Russian Federation

Subject. The article examines the existing non-governmental system of retirement benefits and non-governmental pension funds, key trends and issues in the Russian Federation. Objectives. I analyze key performance indicators of non-governmental pension funds and detect the main development challenges. I also study the composition and mix of their investment portfolio, growth in pension savings and their return. Methods. The study relies upon methods of logic, statistical, qualitative and quantitative analysis, and graphical methods for representing results of the analysis. Results. I discovered that more people opt for non-governmental pension plans in the Russian Federation. I analyzed the comprehensive investment portfolio of a non-governmental pension fund and found a growth in deposited funds and their return. Non-governmental funds’ investment portfolio now include more investment in the real economy. Non-governmental pension funds may become a source of financing the real economy to implement long-terms infrastructure projects through PPP. Conclusions and Relevance. Continuing their development, non-governmental pension funds are called on to increase the standard of living and ensure the sustainability of the pension system. The stability of the national economy, growing income of the population and trust in financial institutions are cornerstones for reinforcing the non-governmental pension system. The fact that the funded part of retirement pension has been frozen impedes the development of non-governmental pension funds, since the influx of financial resources is restricted. Long-term savings people make in non-governmental funds may streamline investments in the economy. Currently, the fund raising program for non-governmental pensions funds is insufficiently implemented, with efforts to revitalize it being ineffective.

A New Macroeconomic Architecture for the Stock Market

2014 ◽  
pp. 1521-1538
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
The Real ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model, which manifests strong interaction, integration and co-evolution by circular causation relations between the monetary sector and the real economy with the bridging function of finance and financial instruments. The Money, Finance, Spending and Real Economy (MFSRE) model emerges. This model formalizes the new architecture for the macroeconomy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the MFSRE with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The economic organization of the MFSRE causes price stabilization and economic growth and development. These are signified in the social wellbeing criterion of the good economy. The stock market, exemplified by the empirical case study of Bangladesh's state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

A New Macroeconomic Architecture for the Stock Market A General-System and Cybernetic Approach

2013 ◽  
Vol 4 (2) ◽  
pp. 1-17 ◽  
Author(s):  
Masudul Alam Choudhury
Keyword(s):  
Stock Market ◽  
Growth And Development ◽  
Stock Exchange ◽  
General System ◽  
Real Economy ◽  
The Real ◽  
Financial Architecture ◽  
Macroeconomic Analysis ◽  
State Of The Economy ◽  
Emergent Structure

The old idea of segmented macroeconomics of the financial sector competing with the real economy is replaced by a new model, which manifests strong interaction, integration and co-evolution by circular causation relations between the monetary sector and the real economy with the bridging function of finance and financial instruments. The Money, Finance, Spending and Real Economy (MFSRE) model emerges. This model formalizes the new architecture for the macroeconomy, and its relationship to the stock market. In this model relating to a reconstructed state of the economy and the emergent structure of the financial architecture, money and spending are treated as complementary elements of growth and development. The overarching structure in the end is the MFSRE with its extensively complementary inter-variables relationship in a general system and cybernetic form of interrelationships. The economic organization of the MFSRE causes price stabilization and economic growth and development. These are signified in the social wellbeing criterion of the good economy. The stock market, exemplified by the empirical case study of Bangladesh’s state of the economy and the Dhaka Stock Exchange, bring out the true example of the macroeconomic analysis. The new financial architecture with its stabilization, sustainability and growth and wellbeing as basic-needs regime of development is contrasted with old macroeconomic belief and policies based on outmoded macroeconomic beliefs and futures.

scholarly journals The Executive Mechanism of Rastin Profit and Loss Sharing (PLS) Banking

2019 ◽  
Vol 3 (1) ◽  
pp. 23-39
Author(s):  
Bijan Bidabad ◽  
Mahmoud Allahyarifard
Keyword(s):  
Stock Exchange ◽  
Banking System ◽  
Practical Method ◽  
Patent Law ◽  
Real Economy ◽  
Investment Projects ◽  
For Profit ◽  
Economic Markets ◽  
Project Controlling ◽  
Executive Mechanism

Despite the interest of bankers for using Profit and Loss Sharing (PLS)[1] banking for the last decades, it has not prevailed yet executively. The existence of different definitions of Riba, absence of appropriate operational, supervisory, and managing mechanism on PLS are some reasons that haven't allowed this kind of banking to be practiced yet. Here, we are going to introduce a practical method for Profit and Loss Sharing (PLS) banking to overcome these problems. In this bank, the basis for determination of interest rate of loans is real economy return rate. The bank operates as an intermediary, who gets commission fee, collects saving resources and as an attorney or legal representative of the depositor, allocates them to investment projects, and supervises the detailed operation of the contractor. The yields of the investment will transfer to resources owners who are depositors whatever profit or losses.The PLS banking is a banking system with newly defined instruments of Mosharaka and Pazireh that not only stabilizes the financial and economic markets by preventing the banks, loanees /entrepreneurs and design, construction and contractor sectors in the economy from bankruptcy during crisis periods and volatile markets, but also makes the banks as an international firm which perform similar jobs as stock exchange markets for transactions of PLS products certificates through a secondary certificate market on virtual internet space. Depositors will earn more stabilized benefits too.In this designed method, a trustee (Amin) is a unit who supervise the contractor/entrepreneur operations on behalf of the bank for being honesty in carrying out the project, controlling on executive operations along with announced programs, resources allocation manner, and auditing financial statements.PLS banking will use new financial instruments and innovations such as Mosharaka (partnership) Certificates for projects with specific ends and Pazireh (Subscripted) Certificates for endless (productive) projects. Establishing of secondary exchange market for the transaction of certificates, and various insurance services will play important roles for activating and increasing the efficiency of newly established virtual markets.All of the activities in this method will be done on the basis of compiled instructions. The framework and the organization of the PLS banking have been analyzed in forms of required committees, units, and departments tailored for this type of Non-Usury Bank (NubankCo.) definition. JEL:L86 ,L87 ,G21 ,G24 [1] - This invention has been protected by US patent law under the application number: US 12/588,188

scholarly journals Capital Investment Decision Making and Risk Management Methods: Evidence From Listed Companies on Pakistan Stock Exchange

2019 ◽  
Vol 5 (2) ◽  
pp. 291-302
Author(s):  
Mirza Nasir Mehdi ◽  
Anjum Ihsan ◽  
Shahid Bashir
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Capital Investment ◽  
Stock Exchange ◽  
Investment Decision ◽  
Corporate Managers ◽  
Investment Projects ◽  
Investment Decision Making ◽  
Management Techniques ◽  
Tools And Techniques

Capital Investment projects are evaluated and appraised by the corporate managers of business firms listed on PSX through different pragmatic methods, tools and techniques. The complexity of the application of all the methods simultaneously including traditional financial methods, strategic pragmatic methods and risk management methods, urge the corporate managers to apply at least one of the pragmatic methods so that projects’ capital investment decision making criterion or criteria may be reached at to measure the appropriate capital investment decision making. Keeping all this in view, this paper aims to study the risk management techniques rather than studying and measuring all the traditional methods. This paper examines the effect of financial and non-financial factors on risk management methods which are supported by different theories and empirical background with proper references and citations. The responses of the corporate managers of 250 listed business firms on PSX through regression analysis show that almost 80% of the factors have a direct relationship with Risk Management Methods. The maximum significant results of the study point out that the capital investment projects are also evaluated by the corporate managers through risk management methods but the application of the financial and strategic methods cannot be ignored. As many of the project financial experts apply the risk management methods simultaneously with the collaboration of other methods as well. The results also show that effect of firm size as a moderator is also partial significant.

scholarly journals The Application of genetic algorithms for the selection of WSE companies in Warsaw for the investment portfolio.

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Beata Basiura ◽  
Joanna Motyczyńska
Keyword(s):  
Genetic Algorithms ◽  
Time Window ◽  
Stock Exchange ◽  
Selection Function ◽  
Investment Portfolio ◽  
Short Processing Time ◽  
Simulation Based ◽  
Warsaw Stock Exchange ◽  
Investment Portfolios ◽  
Selection Of

Portfolio analysis is a tool particularly intended for investors. Risk assessment and risk specification make the investor able to properly diversify and offset the portfolio. Broadly speaking, there are multiple tools destined for building up an efficient set of portfolios.One of them is Markowitz’s model theory postulating building up a portfolio determined on the basis of equilibrium between expected profit level as well as accepted level of risk assessment.In the context of this paper, the objective is to shed some light on creating investment portfolios based on either Markowitz's portfolio theory or evolutionary algorithm. The simulation based methods for building up a portfolio of approximately 40-50 companies listed out in the primary marketof the Warsaw Stock Exchange using the selection function proposed in the BA thesis were presented.Portfolio profit values have been evaluated in a dynamically shifted time window. The conducted analysis showed shifts in the economy at certain periods of time. The implemented genetic algorithms smoothly handled the optimization with a relatively short processing time of the task result.

Sign in / Sign up

Export Citation Format

Share Document