Risks are inevitable, objective category faced by all people and all business entities and they are widespread in all areas of human existence, regardless of the level of the human community development. Therefore, various strategies for risk management are developed, among which the insurance have one of the central positions. But, the demand for insurance services is largely determined by the legal framework regulating the insurance market (compulsory and optional insurance), the level of awareness for the need of buying insurance services (because it is usually about types of risks that the frequency of occurrence is not extremely expressed), and the level of the living standard, or the availability of insurance services for socially vulnerable categories of the population in a national economy. Uninsured risks, regardless of the type of risk in question, especially badly affect poorer categories of society which cannot cope with the catastrophic losses from negative shocks.The paper refers to the elaboration of the need for developing microinsurance services by comparative analysis of the coverage of these services in the countries in the world, analysis of the socially vulnerable strata of the population in Macedonia that could potentially be involved in the demand of these services and the microinsurance models that could be applied in countries that have not still developed this form of insurance.

Banking and insurance are complementary parts of the financial system. Bankinsurance is relationship between a bank and an insurance company, whereby the insurance company uses the bank sales channels in order to sell insurance products, an agreement in which a bank and insurance company agree in a way that the insurance company can sell its products to customers of the bank.The core goal of this paper is to analyze the level of bankinsurance in Republic of Macedonia because it brings many benefits in the times of increasing competition among participants in the financial market.As a result of development of banking and insurance sectors in the Republic of Macedonia more often with every bank goes insurance company and vice versa. It is important to note that banking and insurance are the two sectors which are in constant and unbreakable connection when analyzing the financial sector as a whole. The actions are complementary in business activities in the market. Therefore, it is logical emergence of integrated delivery of banking and insurance services through the model of bankinsurance. This especially refers to special shaping of the products of life and non-life insurance adjusted for sales through the banking network.

The paper gives a brief elaboration of the basic macroeconomic aspects of investments with emphasis on the specificities of small open economies in the process, theoretically elaborates the need for openness of small economies (especially the economies that need the acceleration of their development), then highlights the risks and opportunities arising from the investment activity both on the micro and macro level. Further distinguishes between investments in financial instruments and in real investment projects, emphasize the need for creation of an optimal diversified portfolio. Finally, the paper underlines the need for various forms of foreign direct investment for all economies, particularly the opportunities and threats arising in small open economies, to complete the wholeness with empirical data of the previously elaborated matters on the example of the Republic of Macedonia as a small open economy.

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The credit portfolio in banks with the traditional model of banking hasdominant role in the banks' operations and. Loan portfolio quality it is the main generator of the banks' results. The basic indicator for quality of the credit portfolio is the share of non-performing loans to total credit portfolio. Very often, the NPL loans are also a source of other risks, as liquidity risk and solvencyand increase the risk profile of the bank.This paper investigates the influence of the non-performing ratio on houseeholds on the financial performance ofbanking system in the Republic of Macedonia for the period 2010-2017. The analysis presents correlation and regression between non-performing loan ratio on housholds and profitability indicators: rate of return on assets and rate of return on equity, as well as the capital adequacy.The results of correlation shows a moderately high, negative correlation between the non-performing loans ratio and rates of return on equity and return on assets. Regression analysis shows that increasing the non-performing loans ratio has influence to reduce the bank profitability.