Transition, Vol. 26 No. 52, 2025.
Review article
CONTEMPORARY RISKS ON THE CAPITAL MARKET IN BIH AND NEIGHBORING COUNTRIES
Spasenija Mirković
Jasmina Fišeković
Abstract
There is a strong correlation between economic development and the financial
market. Economic development encourages the growth of savings, and thus the development
of the financial market. The indicator of the development of the financial market is market
capitalization measured as a percentage of nominal GDP.
One of the most important research questions in finance is the prediction of returns on
securities, as well as the assessment of the risk of investing in the financial markets.
Quantitative risk analysis plays an important role in assessing the risks and uncertainties that
surround us when making decisions about investing in the capital market. Risk measurement
has preoccupied financial market participants since the beginning of financial history and is a
classic problem in finance. Researchers in the field of financial markets have long recognized
the importance of measuring the risk of a portfolio of securities.
At a time when companies did not proactively manage risk, those responsible would react to
risk when it arose. Such an approach was disastrous for business, and often led to disastrous
consequences. Only the modern approach to enterprise risk management has included
strategic risk planning and risk management methods. Top management has the task of
defining the methods that will be implemented in the risk management strategy. In some
cases, such decisions are made in isolation or hastily, and besides, not everyone has the same
risk appetite. Managers of business units should coordinate their business decisions in
accordance with the company's goals.
Keywords
financial market; capital market; modern risks.
Hrčak ID:
336244
URI
Publication date:
24.3.2025.
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