Study Results from University of Bucharest in the Area of Theoretical and Applied Economics Published (Methods used in risk financing)

2020 DEC 18 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators publish new report on theoretical and applied economics. According to news reporting originating from the University of Bucharest by NewsRx correspondents, research stated, “Given that in most risk management programs, risk control, which involves avoiding, preventing and reducing risks, is not fully effective and over time several methods of financing the losses that have occurred have been developed, such as would be detention or transfer.”

Our news reporters obtained a quote from the research from University of Bucharest: “The withholding assumes that the injured party is also the one that bears the financial consequences, and the transfer involves the occurrence of a different entity from the injured party that bears the direct financial consequences. This method transfers the risk to another entity and involves an additional cost paid by the transferor to the one he accepts, namely the insurance premium or fees.”

According to the news editors, the research concluded: “By transferring risk through insurance, the bank is offered related risk management services, better defining its risk profile or can contribute to improving performance indicators and flows, thus preventing the crisis situation.”

For more information on this research see: Methods used in risk financing. Theoretical and Applied Economics, 2020,XXVII(4):143-158. (Theoretical and Applied Economics - http://www.ectap.ro/). The publisher for Theoretical and Applied Economics is General Association of Economists from Romania.

Our news journalists report that more information may be obtained by contacting Ana Maria POPESCU, University of Bucharest of Economic Studies, Romania. Additional authors for this research include Stefan Virgil IACOB, Alina Eliza DABIJA.

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