Development of the Regional Financial and Economic System and Its Safety

Abstract

The article is devoted to the actual problem of the development of the regional financial and economic system and the definition of security levels, improvement of management processes in order to take preventive measures and reduce risks. The study shows that the use of methods and tools affects the processes of stable development of regions in the long term. The purpose of the study is to analyze the development of regions for financial and economic security, as a complex result of the mechanisms of state management of the process to reduce risks. Methods of scientific abstraction, analysis, synthesis, induction and deduction, generalization, systematization, methods of factor analysis were used as a methodological basis for the study using expert assessments. The applied methods contributed to the formation of conceptual integrated approaches, displaying the levels of safety for effective decision-making. Also, in the process of the study, the following were used the budget mechanism in action, which determines the system for the implementation of targeted regional programs and the investment and innovation mechanism for ensuring economic security, expressed in methods and tools. A comprehensive model for assessing financial and economic security for regions has been developed, a group of indicators of financial and economic security of a risk zone has been determined. A scale was built that determined the risk zones of the financial and economic security of the region. The formed methodology for a comprehensive assessment of the level of financial and economic security for the regions provides an opportunity to identify risks and negative trends at earlier stages, this provides an opportunity to smooth out the processes of the onset of risks.