scholarly journals THE PECULIARITY OF THE RESULTS OF APPLYING RISK ANALYSIS’ MATHEMATICAL METHODS FOR MODELLING INNOVATIVE PRODUCTION AND ECONOMIC PROJECTS ON THE EXAMPLE OF CALCULATING THE AREA OF ENTERPRISE FINANCIAL STABILITY

2021 ◽  
pp. 49-56
Author(s):  
P.V. Komissarov ◽  
E.G. Zheleznov ◽  
S.V. Kolesnichenko
Keyword(s):  
Risk Analysis ◽  
Financial Stability ◽  
Mathematical Methods

scholarly journals ANALYSIS OF THE MAIN INDICATORS OF THE INSURANCE COMPANY’S FINANCIAL STABILITY USING SIMULATION MODELLING

2019 ◽  
Keyword(s):  
Simulation Model ◽  
Life Insurance ◽  
Financial Stability ◽  
Simulation Modelling ◽  
Insurance Companies ◽  
Insurance Fund ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Mathematical Methods ◽  
Financial Condition

The purpose of insurance is to accumulate funds to fulfill obligations to its clients, as well as to invest further in the expansion of insurance activities and the development of the country's economy. The success of insurance companies depends to a large extent on their financial status, that is, financial stability and solvency. The financial condition of an insurance company is characterized by the indicators that describe its ability to develop and successfully operate in a competitive market environment. The stable financial condition of the insurer is a guarantee of development in the conditions of the market economy and an insurance of the stability of the development of the insurance market in the country. The purpose of this research is to assess the financial stability of a non-life insurance company and to analyze the main factors affecting it with the use of computer simulation modelling. The simulation model covers the main processes of the non-life insurance company and is based on the application of financial analysis methods, economic and mathematical methods, and modern simulation technologies. Based on the simulation model, the financial stability of the insurance company is assessed, namely the analysis of the insurance company’s profitability, income, expenses, indicators of profitability; the coefficients of financial stability of the insurance fund and the level of insurance reserves for the analysis of the adequacy of the insurance fund are calculated; the actual and normative solvency margin is calculated for controlling the fulfillment of solvency conditions; the solvency ratio (autonomy) is calculated; the equity ratio is calculated and an analysis of the adequacy of equity is carried out. The developed simulation model can be used to increase the level of planning and analytical reporting, to improve methods of conducting insurance operations, to plan and forecast the activity, and to increase the validity of managerial decisions.

Household and Business Debt: A Fire-Sale Risk Analysis

FEDS Notes ◽  
2021 ◽  
Vol 2021 (2625) ◽  
Author(s):  
Fang Cai ◽  
◽  
Gene Kang ◽  
Gazi I. Kara ◽  
Nathan Swem ◽  
...  
Keyword(s):  
Risk Analysis ◽  
Federal Reserve ◽  
Financial Stability ◽  
Household Debt ◽  
A Share

As of year-end 2019, nonfinancial business debt (BD) and household debt (HD) as a share of GDP were at similar levels of around 74 percent, and yet Federal Reserve Financial Stability Report suggested that BD posed greater risks to financial stability than HD. Since the onset of the pandemic, the size of aggregate BD has increased considerably as a result of roughly $1.25 trillion of new issuance, while HD has grown by less than $100 billion. This note looks through the lens of fire-sale risks to show why nonfinancial BD is more concerning for financial stability than the HD.

scholarly journals MODERN APPROACHES TO ASSESS BANKING RISKS

2021 ◽  
Author(s):  
Olena Zarutska ◽  
Ludmila Novikova ◽  
Tetiana Rudianova ◽  
Anna Kovalenko
Keyword(s):  
Risk Management ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Interest Rate Risk ◽  
Risk Modeling ◽  
Mathematical Methods ◽  
Risk Management Process ◽  
National Bank ◽  
Domestic Banks

The article examines modern approaches to the organization of the risk management process in Ukrainian banks. Requirements for modeling banking risks are growing in modern conditions. Recent financial and economic crises have demonstrated the devastating effects of unforeseen risks. The dynamic development of banking technologies and products requires a detailed analysis of the possible consequences of their implementation. Contingency losses require a probabilistic study. The buffer for the absorption of these losses is the capital of the bank. Losses from anticipated risks include the creation of reserves. The basis of modern approaches to risk modeling is the recommendations of the Basel Committee on Banking Supervision. The National Bank of Ukraine clearly regulates the requirements for the organization of risk management systems, but does not interfere in the construction of models. Banks develop internal policies, procedures and risk management models independently. In recent years, domestic banks have made significant progress in modeling and stress testing of risks. Each bank carries out a comprehensive assessment of at least the following significant types of risks: credit risk, liquidity risk, interest rate risk of the banking book, market risk, operational risk, compliance risk, and other significant types of risks. The issue of validation of risk assessment models by external experts is very relevant. Such specialists may be scientists who conduct research in the field of finance, banking and economic and mathematical methods of modeling complex systems. The interaction of scientists and practitioners has a double effect. Scholars are able to provide useful advice on the features of models and tools for assessing risks, systemic risks and financial stability of the banking sector at the macro level. Specific models of banks lay the foundations for current research topics of teachers and graduates. The authors of the article share the experience of model validation, analyze the current state of the banking system and the risk profile of domestic banks. Bank reporting data are considered in the dynamics and analyzed in terms of specific risks. The obtained conclusions are compared with the Risk Map of banks of the National Bank of Ukraine.

scholarly journals Scientific and Methodological Approach to Choosing the Financial Strategy of an Enterprise

2020 ◽  
Vol 4 (46) ◽  
pp. 241-248
Author(s):  
T. B. Khlevytska ◽  
◽  
N. O. Plevako ◽  
Keyword(s):  
Financial Stability ◽  
Selection Process ◽  
Methodological Approach ◽  
Strategic Decisions ◽  
Mathematical Methods ◽  
Financial Strategy ◽  
Strategic Development ◽  
Hierarchy Analysis ◽  
Market Transformation

The market transformation processes of Ukraine’s economy have determined the need for new approaches to managing the activities of domestic enterprises, ensuring their financial stability and competitiveness, especially when facing difficulties both in generating their own financial resources and raising funds from outside. Under such conditions, the issues of ensuring the strategic development of enterprises become especially relevant, requiring the search for optimum procedures of choosing such strategies, taking into account numerous criteria and alternatives. The purpose of the article is to substantiate a scientific and methodological approach to choosing a financial strategy for an enterprise, the choice being based on multi-vector and sound calculations. The approach is based on the hierarchy analysis method as one that helps to make decisions in complex, structured, multi-criteria and multi-alternative situations. The article substantiates the need for a profound analysis of the coordination of experts’ opinions, which would increase the argumentativeness and reasonableness of the strategy selection process. The expediency of extensively using mathematical methods while developing particular strategies and estimating the quality of their implementation is proven. The practical value of this approach lies in raising the validity level of the strategic decisions taken, and making it possible to provide their early and timely adjustment by differentiating criteria for decision-making and changing strategic alternatives. The proposed approach can be used to form a strategic portfolio for any enterprise, regardless of its scope of activity and form of ownership. Its end result is seen in improving the quality of strategic management at domestic enterprises.

SIMULATION OF THE PROCESS OF FINANCIAL STABILITY MANAGEMENT OF A COMMERCIAL BANK

2017 ◽  
Author(s):  
Mariia Bondarchuk ◽  
◽  
Stepan Paranchuk ◽  
Oleksandra Vivchar ◽  
Kateryna Motorya ◽  
...  
Keyword(s):  
Commercial Bank ◽  
Financial Stability ◽  
Financial Institution ◽  
Main Element ◽  
Mathematical Methods ◽  
Resource Base ◽  
Main Indicator ◽  
Reliability Indicator ◽  
Banking Institution ◽  
Internal And External Factors

In the article to ensure a constant level of stable activity of a commercial bank, economic and mathematical methods for managing its financial stability are proposed for use. To achieve financial and social effect, the banking institution must analyze its current state and targets, identify problems in the bank's activities and prospects for its development, taking into account internal and external factors. In this context, a mechanism for managing the financial stability of the bank is proposed. Correlation-regression analysis of the reliability indicator for UKRSIBBANK BNP Paribas Group was performed. It was established that the years 2015-2016 were problematic for the bank due to economic instability in Ukraine. Another inevitable factor that affected the functioning of the bank was the height of the Covid-19 epidemic, which significantly shook the level of its financial stability. The forecast reliability indicator of UKRSIBBANK BNP Paribas Group in the third quarter of 2020 decreased by another 12.12% compared to the fourth quarter of 2019. Therefore, in order to stimulate further development and increase the bank's profitability, it is necessary to adopt a number of recommendation requirements for ensuring and managing the financial stability of UKRSIBBANK BNP Paribas Group. Therefore, it is established that the main element of strategic planning of the financial institution is to assess the actual adequacy of the resource base of the bank in comparison with the planned. According to the results of the study on modeling the process of managing the financial stability of the bank, it is determined that the main indicator of the effective operation of a banking institution is the quality of its capital and resources. In fact, their optimal ratio in terms of liquidity, financial stability, solvency and profitability contributes to the growth of customers and, consequently, the amount of income of the bank.

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