PROCESS-FUNCTIONAL MECHANISM FOR INSURING INVESTMENT RISKS OF BUSINESS ENTITIES

The relevance of the research topic is confirmed by the modern challenges that business entities face in investment activities, particularly the high risks that can negatively impact financial stability and business development. In this context, effective investment risk management becomes a crucial factor in preserving and increasing capital.The purpose of this article is to develop a process-functional mechanism for insuring investment risks of business entities (PFM-IIRBE), focusing on structured risk assessment, management, and mitigation within investment activities. The object of the study is the PFM-IIRBE for insurance of investment risks of business entities, covering the identification, evaluation, and minimization of investment-related risks.The research methodology relies on theoretical approaches to risk management and an examination of practical insurance mechanisms within the investment sector. To achieve these goals, a systems approach, comparative analysis, and modelling are applied. The article explores a multi-stage mechanism aimed at reducing the main types of investment risks, providing a detailed description of its stages and methods, which incorporate both insurance-based and non-insurance solutions to strengthen risk management in investment activities.The findings provide grounds to assert that a well-structured PFM-IIRBE not only mitigates financial losses but also enhances the confidence of potential investors in investment projects. The practical value of the study lies in the possibility of applying the PFM-IIRBE by business entities to develop and implement effective risk management strategies under conditions of economic instability and high levels of overall uncertainty.