scholarly journals Financial risks of the stock market: opportunities and specifics of their insurance

2019 ◽  
Vol 10 (1) ◽  
pp. 26-35 ◽  
Author(s):  
Inna Shkolnyk ◽  
Eugenia Bondarenko ◽  
Ievgen Balatskyi
Keyword(s):  
Stock Market ◽  
Financial Risk ◽  
Financial Institution ◽  
Emerging Market ◽  
Insurance Coverage ◽  
Risk Level ◽  
Financial Risks ◽  
Insurance Sector ◽  
Business Entities ◽  
Risk Insurance

The Ukrainian stock market is rated as an emerging market, which is characterized by high profitability and higher risk level as compared to developed economies. Securities transactions on the Ukrainian stock market are accompanied by stable uncertainties. Moreover, insurance is the most effective way to reduce financial risks and their negative effects. Given the current economic and political instability, financial risk insurance can ensure the economic performance of business entities and stimulate their further economic development. Financial risk insurance is the liability insurance in its nature, but its terms are often included in property insurance. This insurance sector has considerable facilities, which require activation of new insurance products that will be able to protect individual and institutional investors. Insurance and stock markets are direct competitors for limited investor resources, including strategic sources such as temporarily free institutional investor funds and household savings. In general, although there is a significant interaction between the insurance and other financial markets in Ukraine, it is hardly realized at all, unlike foreign economies, where it is used to its maximum. With the development of the insurance culture of the population and insurance in general, the relevance of insurance services in a high-risk segment like the stock market increases. The article harmonizes types of financial risks arising on the stock market with the methods of their leveling (insurance, hedging, diversification, etc.), determines the risk factors of the investor in the stock market, and specifies the professional risks of financial institutions. For the Ukrainian stock market participants, the use of two types of insurance coverage, namely, Bankers Blanket Bond and Financial Institution Professional Indemnity, is proposed.

scholarly journals The Peculiarities of Foreign Exchange and Insurance Markets

Economics ◽  
2021 ◽  
Vol 104 (3-5) ◽  
pp. 28-40
Author(s):  
Khatuna Shalamberidze Khatuna Shalamberidze ◽  
Nana Benidze Nana Benidze
Keyword(s):  
Foreign Exchange ◽  
Financial Market ◽  
Financial Risk ◽  
Insurance Markets ◽  
Exchange Rate Risk ◽  
Financial Risks ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
The Right ◽  
Risk Insurance

Foreign exchange risk is one of the most important components of the financial market. Like any other financial risk, it can be managed or avoided. Financial risk management requires the relevant knowledge and resources and only specialized financial institutions are engaged in doing so. Thee commercial banks do not accept foreign exchange risks, their assets and liabilities are denominated in the same currency. Therefore, it is recommended for households and businesses to avoid the currency risk. People's behavior is different during the sharp fluctuations of exchange rates. There is no ideal tactic for behavior. However, we would like to share some basic tips to help you reduce your expected financial risks; At the same time, the undesirable attitude characteristic of the period of strong fluctuations in the course will become clearer and more preventive. We hope that the information presented in such circumstances will help you to make the right decision. Keywords: Foreign exchange and insurance market efficiency; Exchange rate risk insurance; Involvement of financial instruments.

scholarly journals Estimation of the capacity of the Ukrainian stock market’s risk insurance sector

2017 ◽  
Vol 8 (1) ◽  
pp. 34-47 ◽  
Author(s):  
Inna Shkolnyk ◽  
Eugenia Bondarenko ◽  
Valery Balev
Keyword(s):  
Stock Market ◽  
Insurance Market ◽  
Insurance Markets ◽  
Individual Investors ◽  
Insurance Sector ◽  
Potential Capacity ◽  
Macroeconomic Indicators ◽  
New Type ◽  
Main Component ◽  
Risk Insurance

The purpose of the article is to determine the degree of financial interaction between the stock and insurance market, or, in other words, to determine the potential capacity of the stock market’s risk insurance sector for the Ukrainian insurance market. The authors examine the insurance not of all possible risks on the stock market, but only the most potentially important for the development of the stock market at this stage of economic development: insurance of professional risks of depositories and insurance of individual investments of individuals – participants of the stock market. In order to calculate the capacity of the stock market’s risk insurance sector in the context of the two above mentioned types, the authors apply the models that are widely used in the economic-mathematical analysis. For mathematical calculations we used 31 absolute indicators of the characteristics of the state of the stock and insurance markets, as well as some macroeconomic indicators. When forming an array of input data for mathematical calculations we used annual values of absolute indicators for the period 2005–2015 were used. For the adequacy of the received calculations the normalization of the selected indicators was carried out. All indicators were divided into two groups: stimulators and de-stimulators. The normalization of stimulator indicators was carried out by the method of natural normalization, and of de-stimulator indicators – according to the Savage formula. The capacity of the segment of the new type of insurance was determined by the authors as the maximum possible amount of insurance premiums that insurers can get in the process of implementing a new insurance product based on the current state of development of the insurance market. The capacity of the sector of the new type of insurance was presented as a function of the main component (an indicator that directly characterizes the created segment) and the corrective component (a set of indicators characterizing the segments created indirectly). The weight coefficients of the corrective component were determined by using the Fischer’s formula. As a result of the calculations, the authors obtained the data on the prospects of simultaneous introduction for the stock and insurance markets of such types of insurance as a professional liability insurance of depositories and an insurance of individual investors on the stock market.

scholarly journals Fractal Asset Pricing Models for Financial Risk Management

2019 ◽  
Vol 23 (6) ◽  
pp. 117-130
Author(s):  
I. Z. Yarygina ◽  
V. B. Gisin ◽  
B. A. Putko
Keyword(s):  
Mathematical Modeling ◽  
Risk Management ◽  
Asset Pricing ◽  
Financial Risk ◽  
Price Dynamics ◽  
Financial Risks ◽  
Mathematical Methods ◽  
Pricing Models ◽  
Financial Risk Management ◽  
Business Entities

The article presents the analysis findings of the problems and prospects of using the fractal markets theory to mathematically predict the price dynamics of assets as part of a financial risk management strategy. The aim of the article is to find out the features of value of bank assets and to develop recommendations for assessing financial risks based on mathematical methods for forecasting economic processes. Theoretical and empirical research methods were used to achieve the aim. The article reveals the features of mathematical modeling of economic processes related to asset pricing in a volatile market. It was proved that using financial mathematics in banking contributes to the stable development of the economy. Mathematical modeling of the price dynamics of financial assets is based on a substantive hypothesis and supported by an adequate apparatus of fractal pair pricing models in order to reveal specific market relations of business entities. According to the authors, the prospects of using forecast models to minimize the financial risks of derivative financial instruments are positive. The authors concluded that the considered methods contribute to managing financial risks and improving forecasts, including operations with derivatives. Besides, the studied fractal volatility parameters proved the predictive power regarding extreme events in financial markets, such as the bankruptcy of Lehman Brothers investment bank in 2008. The relevance of the article is due to the fact that the favorable investment climate and the use of modern financing methods largely depend on the effective financial risk management.

scholarly journals The Peculiarities of Foreign Exchange and Insurance Markets

Economics ◽  
2021 ◽  
Vol 104 (3-5) ◽  
pp. 28-40
Author(s):  
Khatuna Shalamberidze Khatuna Shalamberidze ◽  
Nana Benidze Nana Benidze
Keyword(s):  
Foreign Exchange ◽  
Financial Market ◽  
Financial Risk ◽  
Insurance Markets ◽  
Exchange Rate Risk ◽  
Financial Risks ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
The Right ◽  
Risk Insurance

Foreign exchange risk is one of the most important components of the financial market. Like any other financial risk, it can be managed or avoided. Financial risk management requires the relevant knowledge and resources and only specialized financial institutions are engaged in doing so. Thee commercial banks do not accept foreign exchange risks, their assets and liabilities are denominated in the same currency. Therefore, it is recommended for households and businesses to avoid the currency risk. People's behavior is different during the sharp fluctuations of exchange rates. There is no ideal tactic for behavior. However, we would like to share some basic tips to help you reduce your expected financial risks; At the same time, the undesirable attitude characteristic of the period of strong fluctuations in the course will become clearer and more preventive. We hope that the information presented in such circumstances will help you to make the right decision. Keywords: Foreign exchange and insurance market efficiency; Exchange rate risk insurance; Involvement of financial instruments.

CURRENT STATUS OF FINANCIAL RISKS INSURANCE IN UKRAINE

2018 ◽  
Vol 8 (2) ◽  
pp. 118-122
Author(s):  
Olena Panchenko
Keyword(s):  
Financial Risk ◽  
Insurance Market ◽  
Current Status ◽  
Financial Risks ◽  
Present Stage ◽  
The Status ◽  
Key Indicators ◽  
Financial Transactions ◽  
Risk Insurance

A set of relationships, which are formed in the process of financial risks insurance in Ukraine at the present stage, is researched within the article. When considering the organization of insurance protection of financial transactions, the features of financial risk insurance and deficiencies in its classification were identified. The analysis of the status of financial risks insurance is carried out taking into consideration the author's approach to the classification of insurance services, which prevents existing misunderstandings. The analysis of financial risk insurance is based on the study of the dynamics of key indicators, which characterize the existing situation in the insurance market. Such indicators are insurance premiums, insurance payments and the level of insurance pay-ments. Based on the analysis, problems of financial risks insurance as the most controversial and imperfect type of insurance in the insurance market of Ukraine are identified and ways to improve its organization are offered.

Penggunaan Metode Altman Z-Score Dalam Analisis Risiko Keuangan PT. BTPN Syariah, Tbk.

2020 ◽  
Vol 10 (1) ◽  
pp. 15
Author(s):  
Lily Rahmawati Harahap ◽  
Shara Wulandari ◽  
Ellys Thoyib ◽  
R Y Effendy
Keyword(s):  
Financial Performance ◽  
Financial Risk ◽  
Financial Institution ◽  
Balance Sheet ◽  
Sampling Technique ◽  
Risk Level ◽  
Z Score ◽  
Income Statement ◽  
High Level ◽  
Level Of Risk

The purpose of writing this article is to find out how the Altman Z-Score discriminant analysis method has a simple role in conducting financial risk analysis. As an object, PT. Bank Tabungan Pensiunan Nasional Syariah (BTPN Syariah), Tbk. Selected by non-random sampling with purposive sampling technique through the website. PT. BTPN Syariah, Tbk. is one of a financial institution that has a role in Indonesia's economy. As an intermediary, PT BTPN Syariah, Tbk. can not avoid risks, both in the form of financial and non-financial risks. To deal with these risks, one important element is to improve its financial performance. One of the depictions of financial performance can be known from the value obtained by using the Altman Z-Score analysis. The data used in this study are secondary in the form of financial statements, which consist of the balance sheet and income statement. The time period taken as data is the period from 2014 to 2018. After each data is obtained and studied then analyzed by using the Altman Z-Score method. So it can be seen what level of risk PT. BTPN Syariah, Tbk. has, whether the low level of risk, grey area, or high level of risk. From the data analysis, it was found that the level of financial risk of PT. BTPN Syariah, Tbk. is in the low-risk level category. In other words, it describes the company that is not bankrupt. This is indicated by the acquisition value of Z-Score > 2.6 which is 5.7438 in 2014, 6.7326 in 2015, 6.9953 in 2016, 8.2041 in 2017, and 7.2012 in 2018.

scholarly journals Attitudes of Rural Customers about the Need for Life Insurance Protection – A Study in Udupi District

2021 ◽  
Vol 8 (S1-Feb) ◽  
pp. 202-211
Author(s):  
Udaya Shetty K
Keyword(s):  
Life Insurance ◽  
Rural Areas ◽  
Financial Risk ◽  
Insurance Companies ◽  
Insurance Agents ◽  
Insurance Sector ◽  
Rural And Urban ◽  
Difficult Time ◽  
Risk Insurance

Insurance, in its many forms, touches the life of virtually every person in this country. Any society could not function effectively, efficiently or safely as it does were insurance-free. If there was no insurance, there would be so much uncertainty and exposure to loss that no business would be able to function and exist. Business would have an extremely difficult time obtaining any type of financing because few lenders would risk their capital without having a guarantee of safety for their investments. Insurance’s value to society is enormous and irreplaceable. Insurance protects hard-earned, accumulated assets while minimizing financial risk. Insurance does this by reimbursing people and business for covered losses, encouraging accident prevention and safety-oriented practices, providing funds for investment, enabling people to borrow money, and reducing anxiety. Even though insurance does do all these things, many people do not fully understand how insurance works or the value and security it brings to them.A strong insurance sector is of vital importance to every modern economy. It encourages the savings habit, provides safety to rural and urban enterprise and productive individuals. It generates long term investible funds for infrastructure building.India as a country is under–insured in the urban as well as the rural areas. Only 35 percent of the 250 million insurable population is insured .There exists a vast potential in the rural areas where more than 70% of our population lives. But it is common perception and belief amongst the insurance companies that it is expensive to do business in rural areas. The present Study on attitudes of rural customers throws lights on all vital issues of rural insurance, and covers opinion of insurance customers, insurance agents and business development executives selling life insurance policies. The study attempts to understand level of awareness of rural customers in order to suggest strategies for tapping untapped market. The study aimed at a thorough investigation into various issues which are the challenges in promnotion of life insurance business in rural areas.

scholarly journals The Peculiarities of Foreign Exchange and Insurance Markets

Economics ◽  
2021 ◽  
Vol 104 (3-5) ◽  
pp. 28-40
Author(s):  
Khatuna Shalamberidze Khatuna Shalamberidze ◽  
Nana Benidze Nana Benidze
Keyword(s):  
Foreign Exchange ◽  
Financial Market ◽  
Financial Risk ◽  
Insurance Markets ◽  
Exchange Rate Risk ◽  
Financial Risks ◽  
Foreign Exchange Risk ◽  
Exchange Risk ◽  
The Right ◽  
Risk Insurance

Foreign exchange risk is one of the most important components of the financial market. Like any other financial risk, it can be managed or avoided. Financial risk management requires the relevant knowledge and resources and only specialized financial institutions are engaged in doing so. Thee commercial banks do not accept foreign exchange risks, their assets and liabilities are denominated in the same currency. Therefore, it is recommended for households and businesses to avoid the currency risk. People's behavior is different during the sharp fluctuations of exchange rates. There is no ideal tactic for behavior. However, we would like to share some basic tips to help you reduce your expected financial risks; At the same time, the undesirable attitude characteristic of the period of strong fluctuations in the course will become clearer and more preventive. We hope that the information presented in such circumstances will help you to make the right decision. Keywords: Foreign exchange and insurance market efficiency; Exchange rate risk insurance; Involvement of financial instruments.

scholarly journals The Perception of Micro-Entrepreneurs towards the Adoption of an Islamic Equity-Based Financing: Evidence from Malaysia

2019 ◽  
Vol 10 (2) ◽  
pp. 97
Author(s):  
Siti Hajar Binti Mohd Abd Khar ◽  
Muhammad Pisol bin Mohd Mat Isa ◽  
Maran Marimuthu ◽  
Amin Jan
Keyword(s):  
Risk Sharing ◽  
Financial Risk ◽  
Cross Sectional Study ◽  
Risk Level ◽  
Practical Implementation ◽  
Financial Risks ◽  
Positive Perception ◽  
Cross Sectional ◽  
Financial Products ◽  
Business Size

This paper aims to explore the perception of micro-entrepreneurs towards the adoption of equity-based financing models in Malaysia. The investigation has covered the following characteristics of equity-based financing such as fairness, partnership, risk sharing, business size, and MFI. The current micro-financial products in Malaysia are focusing more on debt-based financing, which is holistically increasing the financial risk level of entrepreneurs in the case of defaults. There is a dire need to identify the relevancy and viability of equity-based financing in Malaysia, it will ultimately reduce the financial risks of entrepreneurs in case of default. The Islamic financial concept offers a solution to this problem, Musharakah and Mudarabah are among the other Islamic products that offer equity-based micro-financing to entrepreneurs. However, its practical implementation is still vague. In relation to this, the study adopts a cross-sectional study with a sample size of 700 micro-entrepreneurs from the state of Selangor Malaysia. The results of this study found that micro-entrepreneurs tend to register a positive perception of the characteristics of equity-based financing and risk-sharing score as the highest factor towards the adoption of the proposed equity-based PLS model in Malaysia. 

scholarly journals INSURANCE OF FINANCIAL RISKS OF BUSINESS ENTITY: FROM THEORY TO PRACTICE

2017 ◽  
pp. 151-158
Author(s):  
Tetiana Pysmenna
Keyword(s):  
Economic Activity ◽  
Financial Risk ◽  
Insurance Companies ◽  
Financial Risks ◽  
Material Loss ◽  
Insurance Premiums ◽  
Insurance Rate ◽  
The Subject ◽  
Actual Damage ◽  
Risk Insurance

The subject of the study is the theoretical and practical principles of insurance of financial risks of the subject of economic activity. The purpose of the study is to substantiate the theoretical foundations and analyse the practice of financial risk insurance of the entity. It is established that the essence of insurance of financial risks can be formulated in different ways. Often, under this notion we consider the protection of the property interests of the entity in the event of financial risks in its activities, which is carried out at the expense of the insurance company's funds formed from insurance premiums. In the implementation of financial risks, an entity may suffer material loss in the form of actual damage or loss of profit. The tendencies of development of insurance of financial risks in the market of insurance services of Ukraine are determined. They are affected by the change in the volume of gross and net insurance premiums and insurance premiums on insurance of financial risks. On the basis of the assessment of the level of gross and net insurance payments, the insurance of financial risks is classified as a profitable type of insurance to a certain extent. The main types of insurance of financial risks of the subject of economic activity are described. At the domestic insurance market, insurance companies practice loan insurance, insurance guarantees and investment insurance. Each type of insurance of financial risks is carried out in order to protect the property interests of the entity in the event of various insurance incidents. For each type of insurance of financial risks, the insured amount, insurance rate, insurance payment and insurance indemnity must be established. It is concluded that the issue of financial risk insurance needs further research in the consideration of other types of financial risk insurance of the entity.

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