BUSINESS INSURANCE PROTECTION AS A COMPONENT OF THE ENTERPRISE’S ECONOMIC SECURITY SYSTEM

Author
, associate professor, Kharkiv, Pletnovsky 5

In heading

 Economic theory;

Signed print

 27.06.2024

Issues number

 2024 - 2 (57)

Page

 40-54

Type of articles

 Scientific article

Code UDK

 330.3:[368:658]

ISSN print

 2411-5584

Abstract

 Problem setting. Risks are an essential feature of entrepreneurship in the conditions of uncertainty, contradiction and variability of the business environment, which generate real threats of loss of assets, income, solvency, competitive advantages, reputation, etc. by enterprises. Therefore, business insurance protection is an objectively necessary direction for ensuring economic security at all stages of its life cycle.
Recent research and publication analysis. Business insurance protection is the object of scientific research in the field of insurance and economic security of enterprises. Ukrainian researchers of the insurance sector of the modern economy analyze the role of insurance protection in ensuring economic security at its national, regional, and industry levels, but its microeconomic level remains without the attention of scientists. As for research into theoretical and applied aspects of economic security of enterprises, business insurance protection has not yet been identified by scientists as a special subject of research.
Paper objective. The purpose of the article is to substantiate the place and role of business insurance protection in the system of economic security of enterprises and to reveal its forms, types and measures on this basis.
Paper main body. Business insurance protection, which is provided in the process of insuring business entities, is focused on the formation, accumulation and use of resources and funds necessary to prevent, overcome and compensate for possible destructive consequences of risks for enterprises.
Interrelated forms of business insurance protection are:
– self-insurance (internal insurance);
– external insurance – use of services of insurance companies and other entity of the insurance market.
The differences between these forms of business insurance protection are that selfinsurance is characterized by the enterprise accepting risks, and external insurance is characterized by the transmission (transfer) of risks.
An effective model of business insurance protection is a combination of internal and external insurance.
Conclusion of the research. 1. By carrying out self-insurance, using the services of insurance market entities, the enterprise creates and implements business protection opportunities in economic activity, which is a condition for its efficiency and competitiveness in the long term.
2. Self-insurance is a form of business insurance protection, which involves the enterprise accepting the risks of economic activity by creating its own insurance funds and reserves, the use of which ensures the protection of business processes from the risks of their interruption.
3. External insurance as a business security tool is focused on protecting the enterprise from insurance risks and is characterized by the fact that the business entity insuring the risk transfers it to the insurer for a certain fee. External insurance provides business protection in such forms as insurance of property risks, business liability to third parties, professional liability, business interruption risks, cyber risks, staff of enterprises.
4. Business insurance protection in the system of economic security of an enterprise is a component of its subsystems which ensures the achievement of the necessary level of security of economic activity – technical and technological, personnel, financial, interface, property, information, cyber security, etc.
Short Abstract for an article
Abstract. The place and role of business insurance protection in the system of economic security of an enterprise is substantiated in the article, and its forms: self-insurance and external insurance are characterized. The main directions of business insurance protection in the context of subsystems of the company’s economic security system are revealed. It has been proven that business insurance protection is a component and effective tool for the economic security of an enterprise.

Keywords

 business insurance protection, economic security of an enterprise, selfinsurance, external insurance, technical and technological, personnel, financial, interface
security, cyber security, risky business insurance, staff insurance of enterprise.

Reviewer

External reviewer

Article in PDF

 Economic Theory and Law, 2024-2-40-54

Bibliography

 1. Mazuruk, H. I. (2017). Do pytannia pro sutnist strakhovoho sektora [On the question of the essence of the insurance sector]. Naukovi zapysky Natsionalnoho universytetu «Ostrozka akademiia». Seriia «Ekonomika» – Scientific notes of the National University «Ostroh Academy». «Economy» series, 5(33), 102–107. https://eprints.oa.edu.ua/id/eprint/6386/1/19.pdf [in Ukrainian].
2. Nechyporuk, L. V. (2020). Teoretychni aspekty strakhovoho zakhystu biznesu [Theoretical aspects of business insurance protection]. Economic Development: Global Trends and National Peculiarities. collective monogr. Poland. https://doi.org/10.30525/978‑9934‑588‑61‑7‑36 [in Ukrainian].
3. Pohrishchuk, B. V. (2023). Rol strakhuvannia u zabezpechenni sotsialno-ekonomichnoi bezpeky rehioniv u konteksti staloho rozvytku [The role of insurance in ensuring social and economic security of regions in the context of sustainable development]. Modern Economics – Modern Economics, 37, 78–83. https://doi.org/10.31521/modecon [in Ukrainian].
4. Dobizha, N. V., Myronchuk, V. M., & Vyhaniailo, S. M. (2021). Zabezpechennia ekonomichnoi bezpeky derzhavy v protsesi strakhuvannia [Ensuring the economic security of the state in the insurance process]. Naukovi perspektyvy – Scientific perspectives, 8(14), 176–190. https://doi.org/10.52058/2708‑7530‑2021‑8(14)-176-190 [in Ukrainian].
5. Lichenko, I. V. (2020). Zabezpechennia ekonomichnoi bezpeky derzhavy v protsesakh strakhuvannia [Ensuring the economic security of the state in insurance processes]. Yurydychna nauka – Legal science, 3(105), 198–202. https://doi.org/10.32844/2222‑5374‑2020‑105‑3.25 [in Ukrainian].
6. Zoria, O. P., Zoria, S. P., & Mauer, D. R. (2022). Rol strakhuvannia u systemi zabezpechennia prodovolchoi ta ekonomichnoi bezpeky u period voiennoho stanu v Ukraini [The role of insurance in the system of ensuring food and economic security during the period of martial law in Ukraine]. Tsyfrova ekonomika ta ekonomichna bezpeka – Digital economy and economic security, 3(03), 36–40. https://doi.org/10.32782/dees.3-7 [in Ukrainian].
7. Prystemskyi, O. S., & Sakun, A. Zh. (2018). Rol strakhuvannia u zabezpechenni finansovoi bezpeky rozvytku silskoho hospodarstva [The role of insurance in ensuring financial security of agricultural development]. Ekonomichnyi analiz – Economic analysis, 28(4), 100–105. http://nbuv.gov.ua/UJRN/ecan_2018_28 %284 %29__16 [in Ukrainian].
8. Marchenko, O. S. (2022). Ekonomichna bezpeka pidpryiemstva [Economic security of the enterprise]. Pravo [in Ukrainian].
9. Bugrov, O. V., & Lukyanchuk, I. O. (2022). Insurance in the company’s risk management system [Insurance in the company’s risk management system]. Investments: practice and experience – Investments: practice and experience, 1, 41–47. https://ekmair.ukma.edu.ua/server/api/core/bitstreams/5e852559-452c-4674-86c8-22733dfd6f44/content [in Ukrainian].
10. Marchenko, O. S., & Shevchenko, L. S. (2023). Pidpryiemnytstvo v konkurentnomu seredovyshchi: ryzyky, dysbalansy ta bezpeka [Entrepreneurship in a competitive environment: risks, imbalances and security]. Ekonomichna teoriia ta pravo – Economic Theory and Law, 2(53), 24–47. https://doi.org/10.31359/2411-5584-2023-53-2-24 [in Ukrainian].
11. Osiyevskyy, O., Shevchenko, L., Marchenko, O., & Umantsiv, Yu. (2023). Competition Traps: Unconscious Biases and Conscious Decisions. Rutgers Business Review, 8(2), 111–129.
12. Babailov, V. K., & Dmytriieva, O. I. (2023). Ryzyk-upravlinnia – tse upravlinnia vtratamy vid ryzyku [Risk management is the management of losses from risk]. Problemy i perspektyvy rozvytku pidpryiemnytstva – Problems and prospects of entrepreneurship development, 30. https://doi.org/10.30977/PPB.2226-8820.2023.30.214 [in Ukrainian].
13. Shumkova, V. I. (2017). Vykorystannia systemy samostrakhuvannia dlia zabezpechennia ekonomichnoi bezpeky silskohospodarskykh pidpryiemstv [Using the self-insurance system to ensure the economic security of agricultural enterprises]. Naukovyi visnyk Uzhhorodskoho natsionalnoho universytetu. Seriia: Mizhnarodni ekonomichni vidnosyny ta svitove hospodarstvo – Scientific Bulletin of the Uzhhorod National University. Series: International economic relations and the world economy, 12(2), 182–185. http://www.visnyk-econom.uzhnu.uz.ua/archive/12_2_2017ua/41.pdf [in Ukrainian].
14. Pro strakhuvannia: Zakon Ukrainy vid 8 lystopada 2021 roku №1909‑IX [About insurance. Law of Ukraine dated November 8, 2021]. https://zakon.rada.gov.ua/laws/show/1909-20#Text [in Ukrainian].
15. Hospodarskyi kodeks Ukrainy vid 16 sichnia 2003 roku №436‑IV [Economic Code of Ukraine dated January 16, 2003]. https://zakon.rada.gov.ua/laws/show/436-15#Text [in Ukrainian].
16. Prykaziuk, N. V., & Humeniuk, L. S. (2020). Kiber-strakhuvannia yak vazhlyvyi instrument zakhystu pidpryiemstv v umovakh tsyfrovizatsii ekonomiky [Cyber insurance as an important tool for the protection of enterprises in the conditions of digitalization of the economy]. Efektyvna ekonomika – Efficient economy, 4. http://www.economy.nayka.com.ua/?op=1&z=7777; https://doi.org/10.32702/2307‑2105‑2020.4.6 [in Ukrainian].

Code DOI

 https://doi.org/10.31359/2411-5584-2024-57-2-40

27.06.2024