Eco-risk insurance using the Wald Criterion

Improvement of production efficiency in the conditions of systemic environmental damage is of the high priority for the mining industry in Russia. Pursuing this goal allows simultaneously shaping a relevant package plan on development of the mining industry using wage bonuses, ecological insurance and other tools of industrial safety. While analyzing attractiveness of the ecological insurance system aimed at environmental safety and indemnification, the author has developed the task procedure. This novation will dictate application of auxiliary facilities for the eco-risk mitigation, global environmental pressure reduction and higher production safety. Furthermore, this article describes the tool that enables market participants to understand and put into practice environmental measures based on the introduction of eco-risk insurance (Wald Criterion). This criterion aims at the management strategy determination in the condition of uncertain income and expenditure. It is proposed to create and provide institutional support of the ecological insurance introduction in the mining industry to solve the industrial safety problems. © 2019, Publishing house Mining book. All rights reserved.