Genesis of the financial risk’s definition

doi:10.26565/2786-4995-2024-2-05

Roman Piskunov V.N. Karazin Kharkiv National University https://orcid.org/0000-0001-6133-9233
Olena Moskalenko V.N. Karazin Kharkiv National University https://orcid.org/0000-0001-9840-2347
Svitlana Shubina V.N. Karazin Kharkiv National University https://orcid.org/0000-0003-0266-5893

DOI: https://doi.org/10.26565/2786-4995-2024-2-05

Keywords: risk, financial risk, cash flow, financial flow, crisis regulation

Abstract

Accuracy and clarity in the conceptual-categorical framework are of paramount importance for investigating any issue and selecting effective management tools and methods. The purpose of this article is to refine the conceptual-categorical framework in terms of defining the concept of "financial risk," which will allow considering the specificities of the environment in which financial risks arise and using the most adequate tools for crisis regulation of financial flows.

This article provides basic characteristics of risk theory. The history of the emergence of risk as an economic category is analyzed. The concept of "risk" is refined based on the analysis of existing definitions of the category through the exploration of risk concepts aimed at specifying its scale and consequences. The theories of risk perception in the 20th century are systematized. Special attention is paid to the emergence of risk in the theory of systematics and the theory of non-equilibrium (entropy) processes. The foundations of financial risk management emergence are analyzed.

Approaches of authors to interpreting the category of "cash flow" are analyzed. A comparative analysis of the concepts of "cash flow" and "financial flow" is conducted to identify characteristic, similar, and distinct features of each. The content of the concept of "financial risk" in the system of crisis regulation of financial flows is refined by integrating defined key features of conceptual sets "financial flows" and "risk" and considering the peculiarities of a systemic approach to managing the activities of economic agents.

Downloads

Download data is not yet available.

Author Biographies

Roman Piskunov, V.N. Karazin Kharkiv National University

PhD of Economics, Associate Professor, Head of the Department of Accounting and Taxation

Olena Moskalenko, V.N. Karazin Kharkiv National University

PhD of Economics, Associate Professor

Svitlana Shubina, V.N. Karazin Kharkiv National University

PhD of Economics, Associate Professor

References

Baranovsky O. I. Financial crises: prerequisites, consequences and ways of prevention: monograph. Kyiv: Kyiv. national trade and economy University, 2009. 754 p. [In Ukrainian].

Gladunsky N. V. (2011. 207 p.). Systematic approach to the development and adoption of management decisions (logical and pedagogical aspects): monograph. Kyiv: UBS NBU. [In Ukrainian].

Heilman Wolf–Rіїdinger. (1989. Vol. 2. Р. 141). Versicherungs – mathematische Methoden des RiskManagement. Blatter: Deutsche Gesellschaft fur Versicherungs − mathematik.

Ortynski K., Orzechowski K. (1979. P. 46). Materialy do studiowania ekonomiki ubezpieczen gospodarczych. Radom: Wyzsza Szkola Inzynierska.

Vitlinskyi V.V., Velikoivanenko G.I. (2004. 480 p). Riskology in the economy and enterprise: a monograph. Kharkiv: KNEU. [In Ukrainian].

Smith A. An. (1776). Inquiry into the Nature and Causes of the Wealth of Nations. London: W. Strahan and T. Cadell.

Schumpeter J. A. (1911). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Leipzig: Dunker Humblot.

Knight F (1921). Risk, Uncertainty and Profit (Boston: Houghton Mifflin Co).

Piskunov R.O., Moskalenko O.V. (2021. No. 1 (44). P. 85–102). Financial risk: the genesis of the concept and the search for a definition. Economic theory and law. Kharkiv: Pravo. [In Ukrainian].

Willett A. H. The Economic Theory of Risk and Insurance. Retrieved from www.casact.org/pubs/forum/91wforum/91wf4 69.pdf.

Hawley F. B. (1893. 7(4). 459–479). The Risk Theory of Profit. The Quarterly Journal of Economics.

Keynes J.M. (1936). The general theory of employment, interest and money. London: Macmillan.

Hicks J. (1949). Value and Capital: An Inquiry Into Some Fundamental Principles of Economic Theory. Clarendon Press.

Mill J. (1848). Principles of Political Economy. University of Toronto Press.

Marshall A. (1920). Principles of Economics; an Introductory Volume (London: Macmillan).

Pigou A. C. (1848). The Economics of Welfare (London: Macmillan).

B ́acskai T., Huszti E., Mesz ́ena G., Mik ́o G. and Sz ́ep J. (1976). The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle .Budapest: KJK.

Simon J. D. (1982. 3. 62–71). Political risk assessment: Past trends and future prospects. Columbia Journal of World Business.

Terry J. V. (1989). Dictionary for business and finance. London.

Davis E. (1995. 395). Debt, Financial Fragility and systemic Risk. Oxford University Press

Black F. and Scholes M. (1973. 81. 637–654). The pricing of options and corporate liabilities. Journal of Political Economy.

Global association of risk professionals. Retrieved from https://www.garp.com/insidegsrp

Blank I.A. (2002. 735 p.). Cash flow management: monograph. Kyiv: Nika-Center. [In Ukrainian].

Encyclopaedia of banking of Ukraine. edited by: V. S. Stelmakh and others. Kyiv: Molod, In Yure, 2001. 680 p. [In Ukrainian].

Azarenkova G. M. (2009. 335 p.). Management of financial flows of economic agents: monograph. Kyiv: UBS NBU. [In Ukrainian].

Azarenkova G., Moskalenko O., Piskunov R. (2014. No. 9-10 (1). P. 94-97). Influence of accounting information on the level of financial security of system banks. Economic magazine - XXI.