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.

scholarly journals THE MECHANISM OF DIVERSIFICATION OF FINANCIAL RISKS AND THEIR ASSESSMENT

2021 ◽  
Author(s):  
Viacheslav Dereza
Keyword(s):  
Financial Risk ◽  
Statistical Data ◽  
Production Cycle ◽  
Financial Risks ◽  
Economic Entity ◽  
The Subject ◽  
Lending Rates ◽  
Financial Losses ◽  
Level Of Risk

The article discusses approaches to minimizing financial losses by diversifying financial risks, it is proposed to improve the mechanism for diversifying financial risks, which should consist of the following stages: 1) Formation by the financial and economic department of the subject (enterprise, bank, investment company, etc.) of the input data, depending on the type of activity, among which the most typical are: volumes and structure of credit resources, their price, borrowing terms, loan currency, volumes and structure of product exports and imports of goods, export and import currencies, duration of the production cycle, volumes and structure of securities portfolio, types of securities, profitability indicators, types and the level of expenses. 2) Determination of the types of financial risks faced by an economic entity, and its measurement for each type, as well as the level of losses suffered by an economic entity in previous periods, in order to assess the feasibility of diversifying financial risks. 3) Determination of the most effective diversification options for an economic entity by comparing the costs of implementing possible options and the resulting from diversification by reducing the level of risk. 4) Assessment of other options for minimizing losses from financial risks that the entity can apply and which can be grouped as follows: hedging risks, limiting and compensating risks. 5) Calculation of financial implications for an economic entity from the introduction of financial risk diversification To do this, it is necessary to compare the costs and the expected effect of diversification, that is, will the level of risk decrease, or what will be the maximum possible financial losses. Calculated on the basis of statistical data, the values of the coefficient of variation of deposit and lending rates, as well as the exchange rate of UAH to foreign currencies. A methodology for assessing the level of possible financial losses and the effectiveness of the process of diversifying financial risks is proposed. The introduction of a mechanism for diversifying financial risks will help reduce financial losses by economic entities, which in turn will improve the overall financial results of their activities.

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 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.

scholarly journals THEORETICAL ORDERING OF THE METHODS AND TOOLS OF FINANCIAL RISK MANAGEMENT OF INSURANCE COMPANIES

2017 ◽  
pp. 139-149 ◽  
Author(s):  
Nataliia Prykazyuk ◽  
Lesya Bilokin'
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Stress Testing ◽  
Insurance Companies ◽  
Financial Risks ◽  
Insurance Company ◽  
Risk Avoidance ◽  
Financial Risk Management ◽  
Risk Transfer ◽  
And Control

Essence of methods and tools of financial risk management of insurance companies are defined. It has been founf out that the methods of financial risk management of the insurer can be called a system of techniques in the field of financial risk management. Its use allows to solve a number of tasks to a certain extent. For example, it can allow to foresee the occurrence of risk events in the process activities of insurance companies and identify different ways of their avoidance, minimization, and transfer, and to take measures to reduce the consequences of occurrence of such events to the insurer. It has been defined that the tools of financial risk management of the insurance company are the totality of means. With their help we can make the analysis, control and funding of possible financial risks of the insurer that can arise in the process of implementation of economic activity. The methods and tools of financial risk management are closely connected. The main methods of financial risk management of the insurance company are analyzed. The most common methods of risk management in insurance are risk assessment, risk avoidance, risk reduction, risk acceptance, risk transfer. The instruments of financial risk management of the insurer, in particular, stress testing, early warning tests, Monte-Carlo, VaR-methodology, methods, which are based on calculation of indicators of ES, EVA and RAROC, as well as hedging, diversification, valuation, self-insurance, co-insurance and reinsurance are defined. The necessity to use the methods and tools of financial risk management by insurance companies is defined. It has ben provrd that the insurance company should choose the most appropriate methods and tools for risk management. The company should also take into account all the peculiarities of its activities and will assist in the evaluation and control of existing and prevention of possible risks.

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 CONCENTRATION AND COMPETITION RESEARCH. THE INSURANCE MARKET OF UKRAINE

2019 ◽  
pp. 26-35 ◽  
Author(s):  
O. Zhuravka ◽  
O. Pakhnenko ◽  
A. Sukhomlyn
Keyword(s):  
Life Insurance ◽  
Concentration Level ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Economic Science ◽  
Insurance Premiums ◽  
The World ◽  
Risk Insurance ◽  
Significant Concentration

The concentration of the insurance market is an objective process that evolves by the trends of the world market laws. In practice, many countries use a whole set of indicators that are developed by the world economic science to estimate the concentration level in different sectors of the economy. Official statistics, unfortunately, give only a fragmentary assessment of the concentration level of the domestic insurance market. The National Financial Services Commission considers two indicators: the concentration ratio and the Herfindahl-Hirschman index. The analysis of these indicators is provided on the whole market and separately on the non-life and Life insurance markets only by the volume of insurance premiums. Such an assessment is very general, and the insurance market of Ukraine remains informationally closed. Studies have shown that the level of market concentration is related to the processes of monopolization and competition. Significant concentration on the life insurance market, which in turn defines it as moderately monopolized and not a significant concentration on the risk insurance market, which has a significant level of competition. However, among a large number of insurance companies in the insurance market other than life insurance, it is possible to single out leaders who, compared to their competitors, have a significant amount of insurance payments and hold a significant share of the market in terms of insurance premiums, assets and what is important for customer - the proper level of payments, which is confirmed by the amount of insurance claims. In the market of risk insurance of Ukraine the leaders are such system-forming insurance companies as «UNIKA», «IG TAS», «ARSENAL UKRAINE», «PZU UKRAINE», «АХА INSURANCE» and «INGO UKRAINE». Key words: insurance market, concentration of insurance market, rating, assets of insurance companies, level of payments, competition.

scholarly journals Factoral Analysis of the Financial Leverage of the Enterprise

2019 ◽  
Vol 5 (1) ◽  
pp. 42
Author(s):  
Izolda Chiladze
Keyword(s):  
Financial Stability ◽  
Financial Risk ◽  
Factor Model ◽  
Enterprise Management ◽  
Financial Risks ◽  
Financial Leverage ◽  
The Public ◽  
Factorial Model ◽  
The Subject ◽  
General Indicator

The activities of the enterprises always involve some uncertainty, therefore there is always a risk that objectives may not be achieved. So, theoretical and practical aspects of business risks are always relevant. The goal of the research is to select the general indicator of the financial risk between the leverage coefficients of the enterprises and to create its’ factorial model. The subject of research is the system of financial leverage ratios of the enterprise. Financial information on Georgian wine companies is used for the practical provision for research. As a result of the research has been created a new factor model of the general indicator of financial leverage. It is possible to measure five-factor indicators making an impact on the level of financial leverage. Its regular analysis will help enterprise management to fully control and manage the financial risks of the enterprise, to implement adequate measures on the basis of which the financial stability of the enterprise would not be jeopardized, which is also in the public interest.

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.

Sign in / Sign up

Export Citation Format

Share Document