WSEAS Transactions on Business and Economics

Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 16, 2019

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 16, 2019

Comparative Efficiency of Economic Security Tools for Innovative Projects

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

Download as PDF

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


[1] Baker, H.K., Filbek, G., Investment Risk Management, Oxford University Press, 2015. 963.001.0001

[2] Bazhenov, O.V., Zasukhina, Ye.A., An Econometric Analysis of Factors of Attracting Foreign Direct Investment to Developing Countries, Economic Analysis: Theory and Practice, vol. 16, No. 1 (460), 2017, pp. 188- 200.

[3] Idrisov, M-Kh.M., Specifics of Innovations Financing in Developing Countries, Economy and Entrepreneurship, No. 11-1 (64), 2015, pp. 970-973.

[4] Kuzmin, E.A., Uncertainty Cyclicity and Projectionness, International Journal of Applied Engineering Research, Vol. 10, No. 17, 2015, pp. 37783-37791.

[5] Nikitina, M.G., Pobirchenko, V.V., Shutaieva, E.A., Karlova, A.I., The Investment Component in a Nation’s Economic Security: The Case of the Russian Federation, Entrepreneurship and Sustainability Issues, Vol. 6, No. 2, 2018, pp. 958-967.

[6] Batkovskiy, A.M., Semenova, E.G., Fomina, A.V., Khrustalev, E.Iu., & Khrustalev, O.E., The Methodology and Mathematical Tools to Assess and Mitigate the Risk of Creating HighTech Products, Indian Journal of Science and Technology, Vol. 9(27), 2016, pp. 242-252.

[7] Hull, J.C., Risk Management and Financial Institutions, 4th ed., Wiley Finance, 2016.

[8] Schmeisser, W., Mohnkopf, W., Hartmann, M., Metze, G., Innovation Performance Accounting: Financing Decisions and Risk Assessment of Innovation Processes, Springer Publishing, 2016.

[9] Vlasov, A.V., Specificity of the Refinancing of Mortgage Loans in Russia and Conceptual Approaches to Them, Entrepreneur Guide, No. 27, 2015, pp. 129-134.

[10] Hopkin, P., Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management, 5th ed., Kogan Page, 2018.

[11] Boldyrevskiy, P.B., Igoshev, A.K., Kistanova, L.A., Risk Assessment of Innovation Processes, Economic Analysis: Theory and Practice, vol. 17, No. 8(479), 2018, pp. 1465- 1475.

[12] Shvetsova, O.A., Rodionova, E.A., Epstein, M.Z., Evaluation of Investment Projects under Uncertainty: Multi-Criteria Approach Using Interval Data, Entrepreneurship and Sustainability Issues, Vol. 5, No. 4, 2018, pp. 914-928.

[13] Dalton, J., Dalton, M., Langdon, T., Insurance Planning, 6th ed., Money Education, 2018.

[14] Rejda, G.E., McNamara, M., Principles of Risk Management and Insurance, 13th ed., Pearson Series in Finance, 2016.

[15] VanderLinden, S.L.B., Millie, S.M., Anderson, N., Chishti, S., The INSURTECH Book: The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries, 1st ed., Wiley, 2018.

[16] Vaughan, J., Vaughan, T., Fundamentals of Risk and Insurance, 11th ed., Wiley, 2018.

[17] Anyushina, M.A., Problems of Insurance of Risks in Complex Technical Objects in Russia to Meet International Standards of Risk Management, Labor and Social Relations, No. 6, 2018, pp. 63-71.

[18] Mustafina, A.R., Characteristics of the Main Risks of the Insurance Sector of Countries with Developing Economies, Insurance Business, No. 5(266), 2015, pp. 48-54.

[19] Teale, J., Insurance and Risk Management, John Teale, 2016.

[20] Robertson, E., Solving the Enterprise Risk Management Puzzle: Secrets to Successful Implementation, ER Technical Inc., 2016.

[21] Lam, J., Implementing Enterprise Risk Management: From Methods to Applications, 1st ed., Wiley Finance, 2017.

[22] DeFusco, R., McLeavey, D., Pinto, J., Runkle, D., Anson, M., Quantitative Investment Analysis, CFA Institute Investment Series, 2015.

[23] Flachenecker, F., Rentschler, J., Investing in Resource Efficiency: The Economics and Politics of Financing the Resource Transition, 1st ed., Springer, 2018.

[24] Kurbanov, S.A., Khamuradov, M.A., Risks and Their Role in Public-Private Partnerships, Politics, Economics and Social Sphere: Problems of Interaction, No. 8, 2016, pp. 16- 22.

[25] Berduygina, O.N., Vlasov, A.I., Kuzmin, E.A., Investment Capacity of the Economy during the Implementation of Projects of PublicPrivate Partnership, Investment Management and Financial Innovations, Vol. 14, No. 3, 2017, pp. 189-198.

[26] Finnerty, J., Project Financing: Asset-Based Financial Engineering, 3rd ed., Wiley, 2017.

[27] Gubin, V.N., On Optimal Reservation on an Infinite Interval, Modern Problems of Science and Education, No. 4, 2014.

[28] Mamonov, V.I., Principles of a Systematic Approach to the Reservation of Production and Economic Systems, Eurasian Scientific Association, Vol. 1, No. 3(3), 2015, pp. 70-72.

[29] Gatti, S., Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects, 3rd ed., Academic Press, 2018. 8.00006-4

[30] Pingataro, P., Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity, 1st ed., Wiley, 2017.

[31] Batkovskiy, A.M., Fomina, A.V., Batkovskiy, M.A., Klochkov, V.V., Semenova, E.G., Implementation Risks in Investment Projects on Boosting High-Tech Business Production Capacity: Analysis and Management. Journal of Applied Economic Sciences. Romania: European Research Centre of Managerial Studies in Business Administration, Vol. XI, No. 6(44), 2016, pp. 1200-1209.

[32] Bannikov, A.Yu., Sokolov, D.S., Experience in Insuring Risks of Investment and Innovation Projects in Russia, State Counselor, No. 2 (14), 2016, pp. 32-36.

[33] Gasparian, M.S., Kiseleva, I.A., Korneev, D.G., Lebedev, S.A., & Lebedev, V.A., Strategic Analysis of Risks When Implementing Investment Projects, Espasios, Vol. 39, No. 27, 2018, pp. 16-21.

[34] Bodmer, E. Corporate and Project Finance Modeling: Theory and Practice, 1st ed., Wiley, 2014.

[35] Batkovskiy, A.M., Konovalova, A.V., Semenova, E.G., Trofimets, V.Ya., Fomina, A.V., Risks of Development and Implementation of Innovative Projects. Mediterranean Journal of Social Sciences, Vol. 6, No. 4, S 4, 2015, pp. 243-253.

[36] Kadyrbayev, I.A., Methodology for the Study of Theoretical Issues of Investment Risk Insurance, Innovation and Investment, No. 1, 2016, pp. 26-29.

[37] Fernandez, P., Martinez, M., Fernández-Acín, I., Market Risk Premium and Risk-Free Rate Used for 69 Countries in 2019: A Survey, 2019, March 23.

[38] Kosovskikh, E.A., Trifonov, Yu.V., The Use of Houston Method for Evaluating Maximum Acceptable Insurance Tariff in Property Insurance of a Business, Vestnik of Lobachevsky University of Nizhni Novgorod, No. 4, 2009, pp. 216-218.

[39] Ahmed, A., Ali, R., Ejaz, A., Ahmad, M.I., Sectoral integration and investment diversification opportunities: evidence from Colombo Stock Exchange, Entrepreneurship and Sustainability Issues, Vol. 5, No. 3, 2018, pp. 514-527.

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

Copyright Β© 2018 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0