Enterprise Financial Security as an Anti-Crisis Management Method

Abstract

Abstract. Introduction. Enterprise financial security is one of the measures to ensure and support financial stability. It is able to act as one of the main anti-crisis management methods and is extremely relevant in the uncertainty of the activities implementation. Management and staff must comply with a number of requirements for ensuring and maintaining their own level of financial capacity for effective enterprise functioning. After all, this factor will promote both its general adaptation, and will allow to carry out own activity now. It will also contribute to the plan formation to ensure the enterprise activities for the future, taking into account the necessary changes based on determining their impact on the development of further events in the business world. Purpose. His article has been described the essence and features of the «Financial security of the enterprise» concept. The necessity of its application in modern conditions of enterprise activity as one of the most important anti-crisis management methods in conditions of uncertainty has been described. Results. The financial security of the enterprise is the basis of effective activity of any enterprise in modern business conditions, taking into account the influence of both internal and external factors that take place in the business world as a whole has been determined. It is researched that financial security needs constant updating and improvement. So, it must meet modern requirements for ensuring the stability of the enterprise as an important anti-crisis managing its activities method. The main components of financial security of the enterprise are offered and described, namely: organizational, managerial, and financial-economic. Conclusions. As a result or consequence of this, the formation, support, and development of the country’s enterprises’ financial security are influenced by many different, both interdependent and independent, internal and external factors. In addition, financial security needs constant provision to achieve a high level of support for the stable and uninterrupted operation of the enterprise under any conditions of its operation. Keywords: financial security; anti-crisis method; crisis phenomenon; organizational component; management component; financial and economic component; soft skills.

Company strategic development in the context оf ensuring its financial security

“…Moreover, some authors emphasise that even types of internal and external factors are inextricably linked. Since they form both complementarity and mutual influence [7], we can also agree with this. After all, completely excluding the possibility of interconnection of external and internal factors is not a completely correct approach.…”

“…− reliability of partners and suppliers; − solvency of debtors; − price and other forms of competition; − monopolisation of the market; − etc. Further, among the external factors, in addition to the specific ones already mentioned, we can distinguish general factors, which are mainly assessed at the country level [3,7]:…”

“…The internal factors should primarily include the financial and economic indicators of the company [7,3]:…”

“…− ratio of accounts payable and receivable; − profitability; − etc. The financial security of a company is also influenced by aspects of its functioning and business activities [3,7,9]: − technicality and manufacturability of production; − approach to organising the process of operational activity; − the possibility of introducing innovative technologies; − level of use of new or outdated equipment; − level of operational financial management; − level of strategic financial management; − ability to set benchmarks within the financial strategy; − availability of optimal ways to evaluate activities; − the degree of consideration of the impact of various risks at all levels of activity; − efficiency of management decision-making; − etc. At the same time, it can be understood that some aspects depend on the position of the company management and the qualifications of personnel.…”

“…financial security of companies. Instead, we would like to pay special attention to the work of such scholars as I. Khymych, T. Vynnyk, N. Konstantiuk, N. Tymoshyk and N. Yuryk [7], in which the authors consider the financial security of a company as an anti-crisis management method, and therefore prove the importance of financial security for its long-term existence. Also, it is necessary to pay attention to the research of such authors as Minakova S.M., Mekhovych S.A. [12], who determined that "the essence of financial security of a company is the ability of a company to independently develop and implement a financial strategy in order to ensure competitiveness and sustainable development".…”