№ 2/2017

Fìnansi Ukr. 2017 (2): 43–52

MARKET OF FINANCIAL SERVICES

DYMNICH Olha ¹, LANH Serhii ²

¹Kyiv National Economic University named after Vadym Hetman
²Private joint-stock insurance company “INGO Ukraine”

Conceptual approaches to the classification of financial risks of the insurance company

This article is focused on the development of a generalized approach to the classification of financial risks of the insurance company. In view of objectively risky nature of economic activity, and the duality of “risk” in insurance (risks of economic agents, on the one hand, and risks of insurance business – on the other), ensuring the effective functioning of the insurance organization the question arises about another aspect of risk, in particular risks impacting insurance companies in the management process, and the associated with potential loss of financial resources – financial risks. Considering the significant scientific achievements of domestic and foreign scientists in the classification of financial risks of the insurance company, it should be noted that there is no generalized approach to the classification. That is why, the main goal of the research is to systematize and generalize existing approaches to the classification of financial risks of insurance companies. As part of this study the article considers approaches to the classification of financial risks of the insurer by various scholars, and proposes their systematization, based on which a generalized level structure for the classification of financial risks of the insurance company was developed. Thus, relying on the basic characteristics of the financial risk (probability of loss of financial resources) and their classification according to other characteristics, there was achieved the unification of a number of scientific approaches by reducing them to a single classification system. The application of this level structure will allow to focuse the risk management system of the insurer on certain risk groups depending on the chosen strategy, the current state of business environment or the economy as a whole.

Keywords:financial risk, insurance company, the classification of financial risks of the insurance company, technical risks, investment risks, non-technical risks, the risk management system

JEL: D81, G22, G32

Dymnich O. . Conceptual approaches to the classification of financial risks of the insurance company / O. . Dymnich, S. Lanh // Фінанси України. - 2017. - № 2. - C. 43-52.

Article original in Ukrainian (pp. 43 - 52)

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