Risk management for sustainable growth. Do we need a new approach?

Abstract

Sustainable development refers to the fulfilment of human needs through simultaneous socioeconomic and technological progress. This kind of progress is dependent upon continued economic, social, cultural, and technological progress. In the process mentioned an adequate risk management plays an important role. This evidence allows coming to the conclusion that sustainable development could be achieved thorough consideration of risks, uncertainties, and information and knowledge imperfections Each financial and economical crisis leads to insights and affirmation that we now recognize the causes, but on the other hand the question about appropriate risk management is asked very seldom, and now after the subprime crisis no evaluation of the existing approach is done. The aim of the paper is to give a survey of the development status of the Solvency II process. The article gives an overview, analysis and evaluation of the methods that are currently available in practice.