ASSESSMENT OF THE LEVEL OF FINANCIAL SECURITY OF MACHINE-BUILDING ENTERPRISES OF ZAPORIZHZHIA REGION WITH THE HELP OF INTEGRAL-RATING METHOD

Lina Khudoliei

doi:10.21303/2504-5571.2018.00546

Abstract

In the deepening of the financial crisis, enterprises are trying to implement an effective anti-crisis policy. The financial system as a source of accumulation of modern crisis phenomena, which are spreading further to all spheres of the economy, generally require the formation of new instruments to ensure their financial and economic security. The constant increase in the riskiness of economic activity may entail a significant decrease in the level of financial stability and solvency of the enterprise, and in the future lead to bankruptcy, and requires each business entity to create a perfect system of financial and economic security. To assess the financial security situation at specific enterprises, not all financial and economic indicators that are used can be applied, but only those that most closely meet the requirements and most reflect the results of financial and economic activity, and, if possible, do not contradict each other. The modern business environment highlights the issues of ensuring financial and economic security. Proper assessment of it, as well as diagnostics of the financial condition of enterprises is a priority task for ensuring sustainable development and operation of the enterprise. Market conditions require enterprises to improve production efficiency, competitiveness of products and services based on the implementation of scientific and technological progress, effective forms of management and enterprise management, enterprise activation and so on. So, the role of diagnostics of a financial condition is great enough. Diagnostics of the financial security of an enterprise is an analytical assessment of all the functional components of safety from the standpoint of achieving the highest possible level of protection against internal and external threats, aimed at making effective management decisions and developing a financial security strategy. With the help of diagnostics of the company's financial security, the article will assess the level of financial security of machine-building enterprises in the Zaporizhzia region using the integrated-rating method.

Highlights

One of the tools for successfully forecasting and managing the level of financial security of an enterprise is the diagnosis of its financial condition
Given the high degree of uncertainty that is an integral companion of any economic system at the stage of development of market relations, the high speed of financial transactions, the complexity of the conditions for the functioning of business entities, there is a need to adapt, improve, and develop the foundations for diagnosing the financial security of machine building enterprises
The main requirements for the model of financial security are: – it should reflect the general features of financial security; – be adequate and should produce results that are close to real; – to enable the use of the model for making managerial decisions; – to provide the possibility of comparing several enterprises

Summary

Introduction

One of the tools for successfully forecasting and managing the level of financial security of an enterprise is the diagnosis of its financial condition. Given the high degree of uncertainty that is an integral companion of any economic system at the stage of development of market relations, the high speed of financial transactions, the complexity of the conditions for the functioning of business entities, there is a need to adapt, improve, and develop the foundations for diagnosing the financial security of machine building enterprises. With the help of diagnostics it becomes possible in the channel of development of this particular direction to track the state of the object at each time interval, and to identify its state in order to control it. In the economic theory and law theory, various concepts of security have been developed, in particular, in the management of economic systems. According to [2] “... economic security is a state of the economic system that allows it to develop dynamically, effectively and solve social problems, and in which the state has the ability to produce and enforce an independent economic policy.”

Results

Discussion

Conclusion