Game Risk Management Methods for Investment Portfolio Optimization
Iryna Bashynska1, Maryna Baldzhy2, Larysa Ivanchenkova3, Larysa Skliar4, Olena Nikoliuk5, Galina Tkachuk6
1Iryna Bashynska, Department of Accounting, Analysis and Audit, Odessa National Polytechnic University, Odessa, Ukraine.
2Maryna Baldzhy, Department of Economics, Law and Business Management, Odessa National Economic University, Odessa, Ukraine.
3Larysa Ivanchenkova, Department of Accounting and Audit, Odessa National Academy of Food Technologies, Odessa, Ukraine.
4Larysa Skliar, Department of Accounting and Audit, Odessa National Academy of Food Technologies, Odessa, Ukraine.
5Olena Nikoliuk, Department of Management and Logistics, Odessa National Academy of Food Technologies, Odessa, Ukraine.
6Galina Tkachuk, Department of Accounting and Audit, Odessa National Academy of Food Technologies, Odessa, Ukraine.
Manuscript received on 15 March 2019 | Revised Manuscript received on 22 March 2019 | Manuscript published on 30 July 2019 | PP: 3940-3943 | Volume-8 Issue-2, July 2019 | Retrieval Number: B1729078219/19©BEIESP | DOI: 10.35940/ijrte.B1729.078219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The world is on the verge of technological revolution, which will fundamentally change the way of life, work and attitude towards each other [1]. We live in the era of the Third Industrial (or Digital) Revolution, but modern world leaders are already actively preparing for a new period – the Fourth Industrial Revolution or Industry 4.0. New forms of interaction open up opportunities in the organization of work and change requirements for employees. Business becomes digital, but the person stays. Employees will continue to remain crucial factors in innovation, continually developing products and services. The lack of talented and skilled personnel will be the main problem of the Fourth Industrial Revolution. Flexible production through FIR will require much more skills in all workflows for all employees. Skilled workers will be more in demand in the future for making decisions that can not be replaced by any algorithm. At the same time, employees must be trained and qualified for new jobs, so it is essential to review standards, for example, in education and training, and adapt them to new requirements. The implementation of interactive technologies in learning has become a necessity. One of the effective methods is business games: both independently and in combination with theoretical training. Precisely this combination (practice) is optimal for students to learn lecture material and acquire competencies. The article is devoted to the description of the technique of conducting risk management training. We described the technology of the training, dividing it into two parts. In the first part, the students are reminded of the risk management theory; in the second part, a business game is held – “Investment portfolio”. In the article, we showed how it could be carried out with and without the use of gadgets/computers. As an example, we considered the most frequent mistake when conducting this game and gave a correct model. Besides, in the article, we gave formulas for automating the game of Excel.
Index Terms: Risk, Probability, Profitability, Risk Management.
Scope of the Article: Simulation Optimization and Risk Management