Kateryna Diachenko, Ph.D. in Economics, Shares Her Expertise on Transforming Risk Management Education Through Innovative Technologies and Proven Methodologies
According to the latest FERMA (Federation of European Risk Management Associations) Global Risk Manager Survey released in October 2024, 53% of companies believe that key business activities may become uninsurable in the future, up from 41% in 2022. This growing concern coincides with the increasing complexity of risk management, as organizations face multiple challenges across different time horizons – from immediate cyber threats to long-term climate risks. The survey reveals that risk managers are increasingly leveraging new technologies and data analytics, with artificial intelligence usage in Enterprise Risk Management rising from 9% to 13% over the past two years. These findings highlight the urgent need for innovative approaches in preparing the next generation of risk management professionals.
To discuss how to transform risk management education to meet these new challenges, we spoke with an expert whose developments have already proven their effectiveness in the real economy. Kateryna Diachenko, Ph.D. in Economics, developed economic security assessment methods that were successfully implemented at UKRMISKBUD HOLDING, one of the leading developers in Ukraine, significantly improving the company’s risk management efficiency. Her research in financial regulation and risk assessment, published in 2021 in prestigious Web of Science journals, has gained international recognition. Particularly noteworthy is her innovative approach to financial education: her web quest for public budget management, implemented in Ukrainian universities since 2015, demonstrates how modern educational tools can bridge the gap between theoretical knowledge and practical skills. This blend of academic research, real-sector implementation, and educational innovation makes Dr. Diachenko uniquely positioned to address the pressing challenges in risk management education.
According to FERMA’s research, 62% of companies have established collegial bodies for risk management, with 16% of them operating at multiple management levels. How can modern educational technologies help in training specialists for such complex management structures?
Educational technologies can significantly enhance business economics and security training in three key ways. First, through interactive case studies based on my research in economic security, students learn to understand how business decisions impact different organizational levels. Second, our digital simulations help students practice complex analytical scenarios in a safe environment, developing their strategic thinking skills. Finally, data visualization tools enable future specialists to effectively communicate their analysis and recommendations across various stakeholders.
From my experience teaching Business Economics and Security at the Kharkiv Institute of Trade and Economics, I’ve seen how these technological approaches, when combined with traditional methods, produce well-rounded professionals who understand both the broader economic context and specific aspects like risk management. This comprehensive approach prepares them for the complexities of modern organizational structures, where decision-making requires understanding multiple business aspects simultaneously.
In 2021, you published studies in Web of Science journals on financial regulation methods and risk assessment. How do these scientific developments help improve approaches to educating today’s finance professionals?
Drawing from my published research in Web of Science journals in 2021, which focused on financial regulation methods (specifically in migration processes in EU countries) and the development of Ukraine’s financial system, I can demonstrate how bridging academic research and real-world practice transforms financial education.
What makes this approach particularly powerful is how it changes students’ perspectives on financial analysis. When students work with actual data from government statistical services and other official sources, what might otherwise be abstract textbook problems become meaningful contributions to solving real-world challenges, whether at the national or international level. This is especially evident in our work on migration regulation, where students see how financial flow analysis connects to global socioeconomic issues.
Our research revealed important patterns in financial flows and risk assessment that have direct educational applications. For instance, when teaching cross-border financial operations, I use real cases from our migration studies to demonstrate how theoretical concepts translate into practical decision-making.
The collaborative study on financial regulation of social development contributed to developing new analytical frameworks for understanding complex financial systems. This research highlighted how various economic factors interconnect, leading me to develop more integrated teaching approaches. Students learn to consider multiple variables simultaneously – a crucial skill for both modern financial professionals and economic security specialists.
This way, students develop not just technical knowledge, but a deeper understanding of how financial and economic security decisions impact both public and private sectors in our interconnected global economy.
Events such as the collapse of Silicon Valley Bank have highlighted the importance of risk assessment. You implemented your economic security assessment methodology in several major Ukrainian construction companies, UKRMISKBUD HOLDING and ZHYTLOBUD-2. What key lessons from this experience should be considered when training future specialists?
My work with UKRMISKBUD HOLDING and ZHYTLOBUD-2 revealed that financial security cannot be viewed in isolation. The systematic approach we developed demonstrated how various components of economic security – financial, technological, human resources, and regulatory – are deeply interconnected. This holistic perspective is crucial for all businesses, regardless of their industry.
The Silicon Valley Bank collapse in 2023 perfectly illustrates a fundamental principle I’ve consistently observed in my research: the critical importance of maintaining appropriate debt-to-equity ratios. While studying construction companies, we found that industry-specific indicators, such as advance payments, significantly impact financial security. However, the broader principle of balancing owned and borrowed capital applies universally across industries. Teaching students to analyze and optimize these ratios for different types of businesses is a crucial skill in risk assessment.
Our implementation at these companies showed that effective risk management requires both analytical skills and practical understanding. For instance, at ZHYTLOBUD-2, we developed a comprehensive assessment method that integrates short-term and long-term solvency indicators with industry-specific risk factors. This experience taught us that future specialists need training not just in financial analysis, but also in understanding how general financial principles manifest in specific industry contexts.
One of the most valuable lessons from these implementations is that risk assessment methods must be dynamic and adaptable. This is particularly important in today’s rapidly changing economic environment, where new types of risks, like those seen in the SVB case, can emerge quickly.
Your scientific consulting work with CARRERA UKRAINE and PROMEKIP, leading industrial equipment companies, provided you with insights into the fast-paced dynamics of this sector. How has this experience influenced your approach to teaching risk management, particularly in preparing students to handle industry-specific challenges?Â
Working with these companies revealed that real-time market dynamics often require faster risk assessment and decision-making than traditional models suggest. I now incorporate this insight into my teaching methodology by using real case studies and time-sensitive scenarios in training exercises.
My consulting experience showed that successful risk management requires not just technical knowledge, but also strong communication skills across different organizational levels. For example, at CARRERA UKRAINE, we implemented a multi-level risk assessment approach that improved both operational efficiency and profitability. This experience now shapes how I teach students about organizational communication in risk management.
This practical experience highlighted that risk management education must balance theoretical frameworks with real-world applications. Students need to understand how risk assessment tools adapt to different business contexts and industry-specific challenges.
Research from Harvard University shows that active learning increases material retention by 25% compared to traditional lectures. You developed an educational web quest on creating and balancing budgets. Introduced into Ukrainian education in 2015, it has been helping train future finance professionals for eight years now. Could you share more about this tool and its effectiveness?Â
The web quest I developed focuses on Ukrainian national and local budget management, creating an immersive learning environment where students tackle real fiscal challenges. What makes this tool particularly effective is its comprehensive approach to budget balancing. Students learn to navigate situations where expenditures typically exceed revenues, requiring them to make complex decisions about budget optimization while ensuring the government can fulfill all its essential functions.
Through this interactive platform, students work with real financial data from official government sources, learning to analyze, systematize, and visualize this information. They develop critical decision-making skills by evaluating which budget items can be adjusted and understanding the implications of their choices. For example, they must consider the broader impact of reducing certain expenditures while maintaining essential public services.
Since its implementation in 2015, we’ve observed significant improvements in student engagement and comprehension. Students using the web quest demonstrate stronger analytical skills and a deeper understanding of public finance processes compared to traditional learning methods. This practical experience with real fiscal data and decision-making scenarios aligns perfectly with Harvard’s findings about the effectiveness of active learning approaches.
How have advancements in educational technologies over the past decade shaped the way finance professionals are trained, and how has your tool evolved within this context?
Over the past decade, educational technologies have revolutionized how finance professionals are trained, emphasizing interactivity, real-time data analysis, and immersive learning environments. Tools like my web quest have evolved to keep pace with these advancements. For example, we’ve integrated more sophisticated data visualization and analytics features, reflecting the industry’s growing reliance on technology-driven decision-making.
More broadly, the industry has seen a surge in AI-powered educational platforms, simulation tools, and gamified learning experiences that replicate real-world scenarios. These technologies not only enhance the practical skills of students but also help them adapt to the interconnected nature of modern financial systems. The ability to analyze large datasets, predict financial trends, and communicate insights effectively is now essential. My own experiences with the web quest have highlighted how such tools can bridge the gap between theoretical knowledge and real-world applications, a trend that is increasingly central to finance education worldwide.
Your students have repeatedly won scientific competitions. In particular, under your guidance, a student became a prize winner in a student research competition in finance at one of Ukraine’s leading financial universities—the National University of State Tax Service of Ukraine. What teaching methods help you and your students achieve such results?
I encourage students to engage deeply with current financial issues through hands-on projects and research. For example, my student who won the award developed an innovative analysis of regional currency dynamics, examining the potential impacts of the “Amero” as a new regional currency. This project demonstrated both theoretical understanding and practical analytical skills.
Our success comes from a three-pillar approach: first, ensuring strong theoretical foundations; second, developing practical analytical skills through real-world data analysis; and third, cultivating presentation and defense skills necessary for academic competitions. Regular feedback sessions and iterative improvement of research work are essential parts of this process.
As an author of publications in scientific journals in the United States, Poland, the Czech Republic, and Slovakia, you are familiar with various approaches to risk assessment. Which international practices in risk management education do you consider most effective?
Despite cultural differences, I’ve observed that the most effective risk management training approaches share certain key characteristics. The American approach emphasizes data-driven decision-making and quantitative analysis, which I’ve incorporated into my teaching methodology. Eastern European practices often focus more on systemic thinking and comprehensive risk assessment frameworks, which provide valuable perspectives on interconnected risk factors.
What I’ve found particularly effective is combining these different approaches – using strong quantitative analysis methods from Western practices while maintaining the holistic view common in Eastern European risk assessment frameworks. This integrated approach helps students develop a more complete understanding of risk management.
How do you see the future of training specialists in risk management in the coming years?
We’re already seeing a shift toward more technology-integrated learning environments, but I believe this will accelerate. I plan to develop more sophisticated versions of educational tools like my web-quest, incorporating artificial intelligence and real-time data analysis capabilities. However, the core focus will remain on developing critical thinking and decision-making skills.
The future of risk management education will likely emphasize interdisciplinary approaches, combining financial expertise with technology literacy and strategic thinking. I believe we’ll see more personalized learning paths, allowing students to specialize in specific areas of risk management while maintaining a broad understanding of the field.
What’s particularly exciting is the potential for more immersive learning experiences through virtual and augmented reality technologies, which could revolutionize how we teach complex risk scenarios and decision-making processes.
