Research and insurance of enterprises financial risks in the conditions of activation international economic relations between Ukraine and Germany
Students Name: Nesmiian Dariia Andriivna
Qualification Level: magister
Speciality: International Business
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: англійська
Abstract: Insurance is one of the most common and effective means of managing financial risks. However, the lack of a unified classification of financial risks necessitates the application of several types of insurance at the same time, which necessitates the formation of an individual approach when choosing a set of measures to strengthen the financial stability of the enterprise under study. The company under study is diversifying and increasing the scale of its production activities, which is evidenced by the indicators of production and sales. However, as a result of the constant possession of significant amounts of loan funds due to the lack of equity, PJSC "Lebedynsky Seed Plant" has a high risk of bankruptcy. The activation of international economic relations between countries can contribute to the exacerbation of the appearance of other financial risks, which in turn will hinder the future development of the enterprise. That is why insurance of financial risks plays an important role in ensuring the financial stability of PJSC Lebedynsky Seed Plant. Elucidation of the specifics of its implementation, taking into account the specifics and nature of the company’s activity, made it possible to form a full-fledged set of recommendations for the implementation of insurance. The study revealed that the following groups of financial risks are typical for PJSC "Lebedynsky Seed Plant": strategic (or interest risks); market risks; specific (or financial condition risks); activity risks. Under the conditions of the intensification of international economic relations, which will cause an increase in the volume of trade, the listed risks will have a higher chance of realization. Taking into account the outlined financial risks, it was proposed to build and implement a system of their insurance. This system involves the involvement of an insurance lawyer in order to obtain advisory assistance regarding the implementation of insurance, the selection of two or three insurers for further long-term cooperation, the exchange of primary information is implemented, and in the end, this process ends with the signing of an insurance contract with the inclusion of all the main conditions on the basis of which insurance is carried out. A number of the following recommendations of an organizational nature were also provided: verify the insurance company for reliability before starting to establish relations, interaction with the specified company/companies over the long term, the most rational is the average price level of insurance services, detailed study of insurance conditions, selection of the optimal amount of payments for insurance and identifying the possibility of including additional services. The object of research of the master’s qualification work is directly the activity of PrJSC "Lebedynsky Seed Plant", and its subject is the financial risks of the enterprise and their insurance in the conditions of intensifying international relations. The purpose of writing the master’s thesis is research and insurance of financial risks of enterprises in the conditions of the activation of international economic relations of Ukraine and Germany, as well as justification of the implementation of insurance as a necessary measure to minimize financial risks at the enterprise. The financial risk insurance system was determined to be economically feasible for implementation at Lebedynsky Seed Plant PJSC, as it contributed to the improvement of two main strategic indicators at the enterprise: a reduction in total cost and an increase in the level of total profit. The payback period for the costs incurred for the implementation of the proposed measure is 1.34 years. The total amount of costs for the construction and implementation of the financial risk insurance system is UAH 236,532.77 thousand. The sources for their financing are loan funds in the amount of UAH 500,000 from JSC "PrivatBank" and the rest - own funds. Key words - insurance, financial risks, agricultural products, minimization, costs.