Financial risks of the stock market: opportunities and specifics of their 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 w...

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Main Authors: Inna Shkolnyk, Eugenia Bondarenko, Ievgen Balatskyi
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2019-11-01
Series:Insurance Markets and Companies
Subjects:
Online Access:https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12633/IMC_2019_01_Shkolnyk.pdf
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spelling doaj-2012006918bd42fcbba442d03836db8a2020-11-25T01:48:01ZengLLC "CPC "Business Perspectives"Insurance Markets and Companies 2616-35512522-95912019-11-01101263510.21511/ins.10(1).2019.0312633Financial risks of the stock market: opportunities and specifics of their insuranceInna Shkolnyk0Eugenia Bondarenko1Ievgen Balatskyi2Doctor of Economics, Professor, Head of the Department of Finance, Banking and Insurance, Sumy State University Assistant, Department of Finance, Banking and Insurance, Sumy State UniversityDoctor of Economics, Head of the Department of Management and Financial and Economic Security, Education and Research Institute for Business Technologies «UAB» Sumy State University 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.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12633/IMC_2019_01_Shkolnyk.pdfconvergencecredit riskfraud riskinsurance companyinvestment riskliquidity risk
collection DOAJ
language English
format Article
sources DOAJ
author Inna Shkolnyk
Eugenia Bondarenko
Ievgen Balatskyi
spellingShingle Inna Shkolnyk
Eugenia Bondarenko
Ievgen Balatskyi
Financial risks of the stock market: opportunities and specifics of their insurance
Insurance Markets and Companies
convergence
credit risk
fraud risk
insurance company
investment risk
liquidity risk
author_facet Inna Shkolnyk
Eugenia Bondarenko
Ievgen Balatskyi
author_sort Inna Shkolnyk
title Financial risks of the stock market: opportunities and specifics of their insurance
title_short Financial risks of the stock market: opportunities and specifics of their insurance
title_full Financial risks of the stock market: opportunities and specifics of their insurance
title_fullStr Financial risks of the stock market: opportunities and specifics of their insurance
title_full_unstemmed Financial risks of the stock market: opportunities and specifics of their insurance
title_sort financial risks of the stock market: opportunities and specifics of their insurance
publisher LLC "CPC "Business Perspectives"
series Insurance Markets and Companies
issn 2616-3551
2522-9591
publishDate 2019-11-01
description 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.
topic convergence
credit risk
fraud risk
insurance company
investment risk
liquidity risk
url https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12633/IMC_2019_01_Shkolnyk.pdf
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AT eugeniabondarenko financialrisksofthestockmarketopportunitiesandspecificsoftheirinsurance
AT ievgenbalatskyi financialrisksofthestockmarketopportunitiesandspecificsoftheirinsurance
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