The essence and classification of investment risk

Автор работы: Пользователь скрыл имя, 28 Апреля 2013 в 10:16, курсовая работа

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From the standpoint of monetary theory of money, the funds can be spent on consumption or saving. Simple savings withdraws funds from circulation and creates the preconditions for crisis management. Investing involves savings in the same turn. It can occur either directly or indirectly (temporarily available funds on deposit in the bank, which has already invested himself).


1) Concept of investment activity and its risks
1.1 Essence and classification of investment risks
1.2 Types of investment risks
2) Investment activity on example of…
2.1 General description of the company
2.2 Analysis of investment activity
3) Ways of preventing and controlling of investment risk

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In order to reduce the risk of late payment for work performed and products sold and reduce the risk of financing in general is necessary to form the reserve, providing the project in the specified time and within the estimated cost. This reserve is usually calculated as the sum of the costs of reducing:

• the risk of construction or production that entails additional costs and disruptions in the flow of funds;

• the risk of a temporary reduction in sales and as a result, delayed payments to contractors;

• Tax risk due to the abolition of tax exemptions.

As international experience shows, a guarantee of reliability calculations is the reservation of at least 8% of all planned expenditures for this step. Furthermore, it should provide additional sources of funding for the project.

In cases where the projects participants cannot be at the expense of own funds to reduce the probability of occurrence of a risk event or offset its effects, is insurance risk, i.e., risk transfer insurance company.

According to the current classification of insurance business for insurance of financial risks the insurer is obliged to fully or partially offset the loss of income (loss of profit) to the person to whom a contract of insurance: interruption or reduction in output as a result of specified events, unforeseen expenses; failure (inadequate performance) contractual counterparty insured person who is a creditor of the transaction, other event. Russian legislation provides for the obligation of the parties, which is the risk of accidental damage to the facility construction or production of material, equipment and other property insurance for the risks involved.

The choice of a method of reducing the risk should be based on an assessment of the economic effectiveness of the following algorithm: definition of risk that can have the greatest impact on the project, the calculation of increased costs, taking into account the probability of occurrence of adverse events, develop a list of activities that contribute to reducing the likelihood and dangers of the risk event; determination of the cost of implementation of the proposed measures, evaluation of the selected reserve for contingencies in terms of adequacy for the implementation of the proposed measures to reduce the risk of decision making or refusal of anti-risky activities, matching the likelihood and consequences of risk events with the cost of measures to reduce them.

In specific cases, the choice of the means to reduce the risk depends on the capabilities of its predictions. Thus, the well-known, common risks can be reduced with the help of specially developed preventive measures. For example, the risk of loss of the company's assets as a result of theft can be reduced by setting the alarm in warehouses, to improve the current system of accounting and control the storage and use of wealth.

Risk management is a complex problem solvable only by using an integrated approach that involves the use of various tools, including heuristic and rigorous economic and mathematical methods for calculating risk.

The choice of optimal policies for risk reduction is solved in the framework of microeconomic theory. The corresponding result reads as follows: the optimal poly teak risk management should be such that the marginal cost of implementing this policy consistent with a limit of utility delivered its application.



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