FINANCIAL SECURITY AS A COMPONENT OF ECONOMIC SECURITY OF THE ENTERPRISE - Scientific conference
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Рік заснування видання - 2011

FINANCIAL SECURITY AS A COMPONENT OF ECONOMIC SECURITY OF THE ENTERPRISE

11.10.2023 20:44

[2. Economic sciences]

Author: Dmytro Olehovych Sinitsyn, Master's student in the field of Accounting and Taxation, Vadym Hetman Kyiv National Economic University, Kyiv



The financial security of a company is an integral part of its economic security and holds immense significance. This means that a company must effectively manage its financial resources to ensure stability, growth, and avoid potential financial risks. The financial aspect of a company's operations is crucial, so it is important to implement mechanisms to prevent threats to financial stability.

The reliability of a financial organization depends on two main factors: a carefully balanced strategy in the field of credits and finance, as well as an effective security system. Success in business is directly related to the quality of management, which must adequately respond to external and internal influences to make optimal decisions.

One of the important aspects of financial security is effective liquidity management. A company must have an adequate amount of cash to timely fulfill financial obligations and even respond to unexpected expenses or investment opportunities in its own development. Additionally, it is crucial to maintain an optimal balance between short-term and long-term obligations to avoid financial difficulties in the future.

Another key component of financial security is managing credit risks. A company must carefully select credit partners and monitor market conditions and the credit ratings of its clients. This helps avoid defaulting clients and ensures the stability of the financial flow.

Effective management of investment risks is also a significant aspect. The right choice of investment objects and their efficient management can provide the company with stable profits and future growth. However, it is essential to consider risks associated with market fluctuations, political, and economic factors.

Let's analyze investment risks, particularly those related to the possibility of non-repayment of loans, as we discussed earlier. All investment risks can be divided into external and internal.

External risks include:

•Decreased production or demand for the invested product.

•Incorrect choice of contractors and suppliers.

•Irregular supplies and non-compliance with contract terms.

•Force majeure circumstances.

External risks are events that a bank can anticipate but cannot control. In this case, the bank can protect itself from negative consequences or overcome existing risky situations by compensating for losses.

Internal investment risks include risks associated with a specific type of investment operation. These can be risks related to lending, leasing operations, and risks arising from portfolio investments.

To ensure financial security, a company also needs to have an effective system of internal control and audit. This helps identify and rectify financial deficiencies and risks that could threaten the company's stability.

These aspects interact to help companies avoid financial crises, expand their market opportunities, and ensure stable, long-term development. Implementing these strategies in modern business allows companies to be competitive and adaptive in changing market conditions, ensuring their financial security and long-term stability."

List of References

1.Moiseenko I.P., Marchenko O.M. "Management of Financial and Economic Security of the Enterprise: Textbook." Lviv, 2011. 380 p.

2.Economic Security: Textbook. Ed. by Z.S. Varnaliy. Kyiv: Znannia, 2009.

3.Current Issues in the Efficiency of Country's Economic Potential Utilization: Materials of the International Scientific and Practical Conference (Dnipro, January 20-21, 2017). Dnipro: NGO "Perspective," 2017.

4.Trakhim-Kurlovych Dmytro, "Financial Security as a Component of Economic Security of the Enterprise." Kyiv, Ukraine, 2017.

5.Podolchak N.Yu. "Organization and Management of the Financial and Economic Security System: Textbook." N.Yu. Podolchak, V.Ya. Karkovska. Lviv: Publishing House of Lviv Polytechnic, 2014.

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Науковий керівник: Криштопа Ірина Ігорівна, професор, Київський національний економічний університет імені Вадима Гетьмана

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