scholarly journals Risk management of the investment marketing on diversified enterprises

2019 ◽  
Vol 3 (4) ◽  
pp. 35-44
Author(s):  
Oleksandr Kalinin ◽  
Viktoriya Gonchar ◽  
Žaneta Simanavičienė
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Financial Stability ◽  
Private Equity ◽  
Management Program ◽  
Marketing Management ◽  
Investment Efficiency ◽  
Conservative Strategy ◽  
Marketing Activities ◽  
Investment Capital

Introduction. In modern economic environment, obtaining financial stability in the long run is one of the conditions for competitive advantages. The condition for achieving stability is the improvement of the risk management program, which is based on a balanced system of formation and use of available resources. Aim and tasks. The aim of this paper is to explore the trends of risk management of modern investors in the selection of objects for placement of capital and formation a strategy of marketing management for the diversified businesses. The tasks of the paper are to research the theoretical aspects of risk management and planning; to analyze the risk management on the diversified companies; to develop solutions to improve the system of marketing management on the diversified companies in the context of risk management. Results. Investment marketing activities are one of the main ways to develop and increase the competitiveness of the economy and the individual companies operating in it. Marketing activities allow you to attract investments that support the implementation of the company's development strategy, increase its assets, develop innovative products, enter promising markets, ensure development in a highly competitive environment and stimulate the company's capitalization in the future. The dynamic growth of a diversified company is largely possible through diversification of investment capital and raising investment funds through the placement of shares in the financial market. An increase in the investment efficiency of a diversified company is possible only if there is a system of control over the economic activities of its individual business lines, otherwise it is highly likely that irrational investment decisions will be made and investment capital eroded due to the lack of proper control over its planning, placement and subsequent management. Conclusions. Modern diversified enterprises have to show investors that firms are in the sphere of financial management. This will help with the main risk of diversification – undervaluing by fund market. Modern conglomerates on the one hand should be present in the most popular industries among investors like technologies or bioengineering but on the other hand they have to concentrate its activity on the principles of private equity or leveraged buyout firms. It means that firms have to actively use loan capital after the recession and use their equity as more conservative as possible. It will allow getting financial results as good as private equity funds but for the public conglomerates it will allow to keep present investors and to attract new ones with conservative strategy.

scholarly journals Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

2018 ◽  
Vol 7 (1) ◽  
pp. 17-42
Author(s):  
Milijana Novović Burić ◽  
Vladimir Kašćelan ◽  
Milivoje Radović ◽  
Ana Lalević Filipović
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Life Insurance ◽  
Financial Management ◽  
Financial Stability ◽  
Interest Rate Risk ◽  
Economic Security ◽  
Insurance Market ◽  
Insurance Companies ◽  
Rate Risk

Abstract Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM), as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

Risk Management Practices in Indian Microfinance Sector

2018 ◽  
pp. 1-29
Author(s):  
Ashish Kumar Sana ◽  
Bappaditya Biswas
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Financial Stability ◽  
Management Practices ◽  
West Bengal ◽  
Microfinance Institutions ◽  
Management Tools ◽  
Operational Risks ◽  
Tools And Techniques ◽  
Structured Questionnaire

Microfinance institutions (MFIs) are exposed to a great number of risks such as institutional risks, operational risks, financial management risks, and external risks that threaten effective services to clients, financial stability, and future sustainability. In this background, the objectives of the chapter are (1) to understand the concept risk and risk management of MFIs and (2) to examine the risk management practices of select MFIs in West Bengal. Based on the objectives, a structured questionnaire has been prepared to examine risk management practices of MFIs and problems associated with implementing risk management tools and techniques. The study found that most of the MFIs have not adopted risk management tools and techniques so far in their institutions to minimize risks. The study also found that the small MFIs are lacking qualified and professional persons in management and hence facing more strategic and governance risks.

scholarly journals Financial Management Capabilities Among Personnel in a State University in The Philippines

2021 ◽  
Vol 3 (2) ◽  
pp. 158-168
Author(s):  
Rosario Clarabel C. Contreras ◽  
Elias Olapane ◽  
Magdalena P. Cataluňa ◽  
Liela C. Buenviaje
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Financial Stability ◽  
Management Practices ◽  
The Philippines ◽  
Management Program ◽  
State University ◽  
Personal Finances ◽  
Key Factor ◽  
Management Capabilities

Financial management is a key factor in achieving financial autonomy. Like other employees overseas, Filipino employees too are facing financial inadequacy, in one way or another. Thus, this descriptive study was conducted to assess the financial management of the personnel in the West Visayas State University Calinog Campus, Iloilo, Philippines. Using the duly validated and pilot-tested questionnaire, this study examined the three (3) aspects of financial management, namely: financial literacy; financial attitude; and financial management practices. It revealed that the respondents have an average level of financial literacy indicating that employees already possess knowledge in handling personal finances. The financial attitude of the respondents is relatively practical spenders as evident in "comparing prices when shopping for purchases" and "spending less than income".  As to financial management practices, most of the respondents put money in the bank in order to cope with the growing expenses of the respondents' children's education. At some point, some employees venture into investments such as livestock and business. Financial management program may be conducted to improve the economic and financial stability of the employees. Emphasis may center on budgeting, expenditure, and saving mechanisms to achieve financial literacy.

scholarly journals REDUCE RISK OF FINANCIAL STABILITY ENTERPRISE IN CURRENT CONDITIONS

2014 ◽  
pp. 84-89
Author(s):  
E. Y. Fayantzeva
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Financial Stability ◽  
Management Strategy ◽  
Risk Management Strategy ◽  
Industrial Enterprises ◽  
Risk Management Process ◽  
Effective System ◽  
High Level ◽  
Key Steps

In the current economic conditions, characterized by high level of uncertainty, the need to achieve strategic financial goals of the company and ensuring its long-term financial stability is impossible without an effective system of strategic financial management, an integral part of which is a risk management strategy reduce financial stability. The author loss risk management strategy of financial stability, substantiated scientific and methodological tools of its creation, outlines the basic principles of implementation, performed updated list of the functions. In order to maximize approximation developed strategies to the needs of industrial enterprises and economic instability are highlighted and ordered typical violations of risk management process by the author. Generalizes the scheme proposed risk management strategy losing financial stability. Outlines the key steps in developing and implementing strategies under consideration with their detailed description.

scholarly journals Strategic Risk Management in Design Companies (Based on LLC Giprosintez)

2020 ◽  
pp. 135-145
Author(s):  
Irina Borisova
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Management Program ◽  
Technology Planning ◽  
Management Scenarios ◽  
Strategic Risk ◽  
Risk Management Program ◽  
Design Activities ◽  
Risk Protection ◽  
Strategic Risk Management

The article reviews the risks that affect design activities with reference to and critical analysis of existing publications on risk management efficiency. As a result of systematization of risks, the most common problems in the field of design are characterized and a program for managing strategic risks is compiled. Thestrategic risk management program describes the existing categories of strategic risks that design companies tend to face, the design company’s strategic risk analysis, the strategic risk protection policy, strategic risk management scenarios and the organizational breakdown structure for evaluating and managing strategic risks, and the strategic risk management program monitoring procedures. The risk systematization identifies some risk categories, such as operational strategic risks (production risks including personnel-, technology-, planning-, industry- and financerelated, and commercial risks) and strategy-inherent risks. The author suggests a method for risk assessment by expert evaluation. The strategic risk management scenarios presented herein outline the measures that, being properly implemented, decrease the probability of risk occurrence and thus enable to make the risks more controllable and promptly respond to external and internal challenges. The strategic risk management program suggested by the author helps configure the potential strategic approaches to ensure financial stability of a design company.

DIRECTIONS FOR DEVELOPMENT OF ANTI-CRISIS FINANCIAL MANAGEMENT

2017 ◽  
Author(s):  
Liubov Iarova ◽  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Enterprise Management ◽  
Factors Affecting ◽  
Financial Condition ◽  
Flexible Response ◽  
Relevant Topic ◽  
Potential Risks ◽  
Negative Factors ◽  
Theoretical Foundations

For continuous performance, enterprises should not only take into account potential risks and existing negative factors, but also develop methods and principles that allow timely and flexible response to crisis occurrences, as well as determine the recovery stages in an already deteriorated financial condition. Given tasks are solved by anti-crisis financial management, designed to increase the efficiency of enterprise management and facilitate the equalization or improvement of an economic entity’s financial stability, therefore, the directions of its development are a rather relevant topic in a market economy. The article examines the theoretical foundations of anti-crisis financial management, the main factors affecting the emergence of a crisis state at an enterprise, discusses the need for its development, and provides factors that determine the effectiveness of the implemented anti-crisis policy. Identifying the need to improve anti-crisis financial management and decision-making on its implementation are accompanied by an analysis that takes into consideration possible risks and costs, which determines the expected effect. The author generalizes and indicates the main principles and stages of anti- crisis management.

FINANCIAL CONTROLLING IN THE SYSTEM OF FINANCIAL MANAGEMENT

2018 ◽  
Vol 28 (1) ◽  
pp. 137-141
Author(s):  
Petya Yordanova – Dinova
Keyword(s):  
Comparative Analysis ◽  
Financial Management ◽  
Financial Stability ◽  
Business Environment ◽  
Innovative Approach ◽  
Financial Sustainability ◽  
The Common ◽  
The Difference ◽  
Effective Use ◽  
And Control

This paper explores the comparative analysis of the financial controlling, who is a result from the common controlling concept and the financial management. In the specialized literature, financial controlling is seen as an innovative approach to financial management. It is often presented as the most promising instrument of financial diagnostics. Generally speaking, financial controlling is seen as a process of managing the company`s assets which are valued in monetary measures. The difference between the financial management and the financial controlling is that the second covers all functions of management, analysis and control of finances, aiming at maximizing their effective use and increasing the value of the enterprise. Financial controlling is often seen as a function of the common practice of financial management. Its objective is to preserve the financial stability and financial sustainability of enterprises operating in a highly aggressive business environment.

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