AUTHORS: Aleksandr M. Batkovskiy, Elena G. Semenova, Andrey S. Slavianov, Alena V. Fomina, Evgenii Yu. Khrustalev, Victor M. Balashov

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ABSTRACT: Insurance, which is the method of economic protection of projects, widespread in industrialized countries, cannot fully balance various types of threats due to the high level of uncertainty, characteristic of developing economies. At the same time, the use of other protection methods, such as redundancy, is justified only in the presence of certain conditions and a certain state of the external environment. A dynamic model of decision support when choosing the most effective method of economic protection of an innovation project, which also takes into account risks, the amount of investment and the amount of possible damage, is proposed herein. The model establishes the relationship between the marginal value of the insurance rate and the factors affecting the implementation of the project. The solution makes it possible to develop the most optimal economic protection strategy.

KEYWORDS: - economic security, reservation, insurance, risks, uncertainty, cost of capital, innovative project

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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #41, pp. 360-367


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