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Aglika Kaneva
ANALYSIS OF THE PROFITABILITY INDICATORS AND THE INDICATORS FOR ASSESSING THE QUALITY OF BANK ASSETS IN EU MEMBER STATES IN THE PERIOD FROM 2007 TO 2017
Summary:
The research paper analyses the profitability of banks in EU Member States -earnings after taxes, return on equity and return on assets. It also reviews the dynamics of the indicators for assessing the quality of bank assets, such as the share of watch exposures and non-performing exposures on loans and advance payments, specific provisions and loan impairments of banks in the European Union and the euro area, since, similar to the profitability indicators, they are strongly affected by financial crises.
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Irena Misheva
ENVIRONMENTAL INSURANCE –
A PART OF RISK MANAGEMENT
IN ENTERPRISES UTILISING HAZARDOUS PRODUCTION
Summary:
This study focuses on the problems related to the management and regulation of environmental risks and environmental behaviour in enterprises utilising hazardous production. The main focus is placed on environmental insurance as part of enterprise risk management. Priority is given to the relationship between insurance and risk management in the management structure of business entities. The relationship between enterprise risk management and other types of management in enterprises with hazardous production in relation to environmental protection is also examined. The author analyses the dynamics in the demand for environmental pollution liability insurance by industrial enterprises.
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Maya Lambovska
Methodological Features of Risk Management in Internal Control Systems
Summary:
Instruments for an alternative approach to risk management in internal control systems under revolutionary changes in an organization’s development are presented in this paper. The functions and application of instruments for the identification and measurement of the threats to the organization are demonstrated in the first section of the paper. The role and application of instruments to counteract the threats to the organization are explained in the second section of the paper. The instruments proposed in the paper are illustrated with some results from the research project ‘Theoretical fundamentals of an internal standard of measurement and evaluation of threats to organizations’, financed by the National Science Fund of the Bulgarian Ministry of Education and Science.
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Rositsa Koleva, Stela Kasabova
Statistical Methods of Business Risk Analysis
Summary:
The activities of economic entities are accompanied by a number of risks posed by the changes in the environment in which they operate. Economic theory and practice identify three basic types of risk – investment, financial and economic. The last one is a probability of adverse changes in market and economic conditions that affect the most important financial indicators of an enterprise. Business risk analysis is a system of special knowledge related to studying the economic processes in their mutual relation and dependence. It includes the quantitative measurement of factors determining the dynamics of risk indicators, as well as activities to minimize their impact. This article characterizes statistical methods of risk analysis that are applied in a case study using the measures of dispersion in three public limited companies.
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Tsveta Zafirova
Non-Financial Risk Management in Strategic Decision Making
Summary:
Within strategic management, risk is particularly important when choosing alternative strategic decisions. Specialist literature provides a variety of methods and models for determining financial risk. However, the strategic choice is greatly influenced by so-called non-financial risk. It affects the correct choice of a strategic decision. The aim of this study is to propose a methodology for non-financial risk management in strategic decision making, which is based on the theoretical research of scholars, best international practice, and the methodology of strategic management. The proposed methodology, along with its stages, is clearly explained in the study, and will help organizations in making management decisions, including strategic ones.
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Velichko Adamov
IMPROVING THE CAPITAL STRUCTURE OF BANKS
Summary:
This study examines the possibilities for improving the capital structure of banks through analysis of various combinations of long-term debt and equity. The theoretical thesis that banks should maintain a positive capital structure has not been ignored for a single moment in the reflections below. Yet, applied techniques and methods indicate that contemporary banking is predominantly based on negative capital structure in which a single unit of equity attracts multiple units of loan capital until reaching maximum levels beyond which the regulatory proportions for funding of banking business are violated. Quite logically, attention is paid to banking risk with reference to banks performance and the efficiency of capital utilisation. In parallel, financial leverage is applied to maximize bank earnings. Through the DuPont model, the capital management of banks develops a systematic tool for measuring the efficiency of decisions related to the development of the financial leverage effect. Based on this a model for the optimization of commercial banks is designed to facilitate bank managers in making efficient financial decisions, which take into consideration market capitalization and the cost of long-term capital resources
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Stefan Simeonov, Teodor Todorov
DESIGNING THE INVESTMENT PROFILE OF THE SHARES TRADED ON THE BULGARIAN STOCK EXCHANGE IN THE PERIOD FROM AUGUST 2016 TO DECEMBER 2017
Summary:
The analysis of shares performance is normally focused on risk and yield, while the third investment parameter, market liquidity, is usually ignored. In contrast to the world’s biggest stock exchanges where market liquidity is taken for granted, it seems to be a major issue for developing capital markets, such as the stock exchanges in new Balkan economies. This research paper introduces and employs a model of complex market liquidity assessment of the traded companies. We employ the Frequency Analysis of Volatility to add to the research value of Risk analysis, the coherent alternatives of VaR and the investment profile of traded shares. Based on the complex set of methods employed in our research, we present comprehensive investment profiles of the companies with the highest and the lowest market capitalization which are constituents of the four Bulgarian Stock Exchange indices about the period from August 2016 to December 2017.
