Insurance Instruments in Covering Foreign Economic Risks of an Enterprise: Ukrainian Experience

The article deals with implementing economic and mathematical analysis for the use of managing system foreign economic risks of an enterprise. It also denotes the possibility to form effective tendencies of their improvement while using insurance instruments. The realized analysis proves that covering negative foreign economic risks influences on economic activity realized by a business entity needs heavy expenses. It also reasons the search for stimuli to realize the risks including the instruments for foreign economic operating. Here we imply the use of insurance instruments as one of effective mechanisms for positive impact of foreign market trade, formation of sources to cover foreign economic risks and minimization of their influence on commercial activity. The process is caused by the fact that foreign economic contracts ignoring or underestimating may bring weakening of the positions in the corresponding branch of business relations. Defiance may also cause less expected profits. The used economic and mathematical modelling helped reveal the dependence between the amount of foreign trade operations and the insurance amount of these operations. The authors recommend a number of managing decisions that may rise the effective use of insurance instruments to cover foreign economic risks of an enterprise.