How to measure and ensure sustainability in financial markets

Abstract

The main goal of the paper is to analyse the structure of the sustainable investment decisions strategy in financial markets. Favourable environment for sustainability formation in financial markets, as well as sustainable investment strategy origins will be described The main elements of the investment strategy - profitability, reliability and risk - will be combined in the adequate fur investment decisions reliability assessment. It is worth noticing that investment decisions reliability assessment and desired reliability level decisions possibilities assessment methods can become the sustainable decision strategy projection mean. Reliability assessment of possible results of investment decisions is especially important component of the full investment decision efficiency assessment and necessary information for the sustainable investment strategy implementation. Also there are discussed the determination means of equal decisions possibilities reliability in different risk levels - izoguarantees, and methods of portfolio values search. Along with that some characteristics of investment portfolio adequate for decisions reliability assessment are analyzed and one of the key risk assessment means - VaR - is defined as natural and easily identified element of adequate portfolio.