Solvency II and Risk Management: The Path to Financial Stability of an Insurance Company

The financial stability of an insurance company largely depends on how effectively it manages risks, particularly the risk of liquidity loss. This article examines how modern risk management approaches within the European regulatory framework Solvency II help insurers not only comply with regulatory requirements but also enhance their solvency. Based on the case of PJSC IC "PZU Ukraine" in 2023, the article analyzes the company's financial indicators, identifies key risks, and calculates the capital required to cover them (SCR). The results confirm that competent risk management serves as a reliable foundation for the financial stability of an insurance company. Ultimately, the risk management process is no longer perceived as a formality – it becomes an integral part of strategic planning and the sustainable development of the insurer.