Subject. The subject of the study is the mechanism of influence of volatility of cash flows on the stability of economic development. The volatility of cash flow is an indicator of the variability of cash flow. A volatility is a standard characteristic in the economy. However, the volatility of cash flows may increase, having a significant negative impact on the sustainability of individual economic entities. It seems reasonable to determine the mechanism of the effect of cash flow volatility on the stability of the economy, and also define the volatility of cash flows that have the greatest impact on sustainability. Goal. The research is aimed at identifying the main types of cash flows that are formed under the influence of individual decisions of economic entities. Methodology. The study identifies three main types of cash flow: laminar type, transient type, and turbulent type. The proposed approach allows us to statistically determine the type of cash flow volatility. An approach is proposed to determine the critical level of volatility influence on the stability of economic entities, which is applicable for regulating volatility. Results. Changes in the types of cash flows occur under the influence of uncertainty, which does not allow economic entities to form their expectations taking into account the real situation in the economy. It is the volatility of cash flow affecting the decisions of economic actors who have not yet had time to assess the economic situation, so they make hasty actions. It is established that the process of changing the types of cash flows is influenced by institutional characteristics, such as the level of development of the payment infrastructure, the amount of available funds, administrative requirements, etc. Conclusions. Monitoring changes in cash flow regimes should be considered as a tool for assessing crisis phenomena in the economy. The results of the study are applicable to the activities of the Bank of Russia which should predict the turbulence of cash flows. Further research in this area should be aimed at empirically identifying the factors affecting the change of types of cash flows.
Pension systems of the CIS countries, the Baltic States and Georgia are in different stages of reform, from the creation of the pension system for the first time to improve themselves of pension arrangements. Despite the different socio-economic conditions of the construction and implementation of pension systems, they face certain, largely similar problems. The main among them been the demographic and economic.
The paper suggests an original credit-risk based model for deposit insurance fund adequacy assessment. The fund is treated as a portfolio of contingent liabilities to the insured deposit-holders. The fund adequacy assessment problem is treated as an economic capital adequacy problem. Implied credit rating is used as the target indicator of solvency. This approach is consistent with the contemporary risk management paradigm and the recommendations of the Basel II Capital Accord. The target level of the fund corresponding to the target solvency standard is estimated in a Monte Carlo simulation framework using the actual data on the Russian banking system covering 1998-2005. Author acknowledges the generous support and fruitful discussions with representatives of the Russian Deposit Insurance Agency. The author expresses his personal views and not the views of the Agency.
Underestimating the imbalance in the development of insurance regional markets can lead to irreversible losses in the quality of services provided and in the development of the entire insurance market. The current situation in the regions will have long-lasting negative consequences. Without proper regional development, Russia's insurance market will have no future. The problems of regional insurance are important, but little studied, so the study is relevant. The purpose of our study is to assess the dependence of the insurance market on socio - economic factors affecting the level of development of regional markets. To achieve this goal will be used: coefficient analysis, comparative analysis and econometric regression models. The scope of the results – note of the Department of supervision of the insurance market in the Central Bank of the Russian Federation and specialized insurance organizations (VSS, RSA).
Paper demonstrates the importance of operational risk management in insurance company and includes a framework of using internal control system for operational risk management. Framework provided in the paper is based on authors’ professional experience from risk management departments of multinational consulting and insurance companies as well as global best practices.
The article presents information on important features of mergers and acquisition. It includes a survey of the literature, the main (incentive) causes of deals and typical problems regarding fallacies and self-deceptions on investment deals. Data for the study was taken mainly from foreign sources, the list of which is presented at the end of the article.
The points of view of modern writers on the ideas of "insurance product", "insurance service", and “insurance goods" are analyzed. Either the contradictions in different authors’ interpretations of these ideas, or groundlessness of some approaches to them have been discovered.
Authors, using economic approach, reveal a ratio of these conceptions and prove legitimacy of their synthesis in the category "insurance goods".