Azerbaijan State University of Economics (UNEC) Researcher Updates Current Study Findings on Mathematics (Mathematical Modeling of the Risk Reinsurance Process): Mathematics

Math Daily News

2022 JUN 01 (NewsRx) -- By a News Reporter-Staff News Editor at Math Daily News -- Researchers detail new data in mathematics. According to news reporting out of Baku, Azerbaijan, by NewsRx editors, research stated, “This paper presents a method for assessing financial risks and managing them to optimize the decision-making process. It is shown that the type of economic entity at risk and its activities in the financial market affect the specifics of financial risk management, which can be classified into three main groups: hedging, diversification, and insurance.”

The news correspondents obtained a quote from the research from Azerbaijan State University of Economics (UNEC): “The main instruments used for this purpose are also identified. Special attention is given to the dynamic properties of financial flows arising from the simulation of artificial financial instruments, as well as to their influence on the results of financial risk management when taking into account errors in estimating parameters of mathematical models. The purpose of our study is to create a mathematical model that can be used to assess the risk reinsurance process. We will create a mathematical model of the risk reinsurance process using the following steps: 1. Identify all of the relevant variables in our analysis. 2. Determine how these variables interact with each other and come to a conclusion about how they influence each other’s values. 3.”

According to the news reporters, the research concluded: “Find equations that represent these relationships between the variables and solve for their values with those equations. 4. Test these models against real data from known cases in order to ensure that they work as expected, then use them for future studies or applications requiring this type of modeling technique.”

For more information on this research see: Mathematical Modeling of the Risk Reinsurance Process. WSEAS TRANSACTIONS ON MATHEMATICS, 2022,21. The publisher for WSEAS TRANSACTIONS ON MATHEMATICS is World Scientific and Engineering Academy and Society (WSEAS).

A free version of this journal article is available at https://doi.org/10.37394/23206.2022.21.52.

Our news editors report that more information may be obtained by contacting Sarvinaz Khanlarzadeh, Department of “Economics” (in Russian) of UNEC, Head of Meybullayev Islamic Economic Center(UNEC), Azerbaijan State University of Economics (UNEC), Baku, Istiqlaliyyat str.6, AZ1001 AZERBAIJAN.