Tag Archive | "risk management"

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Life Insurance – Their Characteristics Importance and Actuality On The Romanian Market

For the twenty-first century life, there cannot be a real, long-term and sustained progress, without insurance. Let’s only consider the avalanche of natural disasters and acts of terrorism in recent years that have affected many parts of the world, brought suffering to millions of people and caused huge economic losses.

The common knowledge that a country’s economic strength lays in banking and insurance needs no arguments. It is not accidental that the most stable economies, where even population’s prosperity is remarkable, are found in countries where insurance is well represented in economic life.

In a modern economy, insurances play an important role due to its contribution to financial stability, by promoting effective control of various risk categories and mobilizing people’s savings.

This paper plans to identify the main characteristics, trends and developments of life insurance products and their market, as well as the interactions between the insurance sector, banks and financial markets and to highlight some of the determinants of insurance demand. Also, another topic addressed is the current economic context, and the effects of inflation and economic recession on this sector.

Finally, this paper contains a short observation of the evolution of this particular market, striving to make a “prediction” of the immediate prospects of this activity.

  Life Insurance - Their Characteristics Importance and Actuality On The Romanian Market (221.9 KiB, 528 hits)

Posted in Economics, Volume II, Issue no. 4

Decision Model on Financing a Project Using Knowledge about Risk Areas

The research presents an alternative to the classical method of measuring financial risk in funding a project. The goal of the model described in the paper implies identifying “risky areas” within the financial balance of the project. The model analysis the financial risk behavior studied along four scenarios by varying only the cost of financing source used according to the specific type of funding. The model introduces the time factor into the analysis of financial risk due to the specific type of financing source used because of the influence on financial balance of project’ budget due to the distribution in time of the receipts and costs incurred in the life cycle of a project. Model presented help identifying the “risk areas” within the financials flows of a project offering a warning signal to the decision-maker to select the most suited risk management strategy.

  Decision Model on Financing a Project Using Knowledge about Risk Areas (757.5 KiB, 515 hits)

Posted in Economics, Issue no. 5, Knowledge Management