Abstract
The paper determines that the need in financial monitoring of Ukrainian companies of the port sector is caused by financial consequences related to the need to protect the environment, the existence of a dominant part of payments in foreign currency (foreign exchange risk associated with currency fluctuations), the possibility of cash outflows into the shadow sector of the economy and the possibility to use transport for smuggling. In addition, in the recent years there is a tendency of diminished financial stability of the seaports of Ukraine, which is a signal to determine the factors that have an impact on this situation, the consequences of risky operations and the optimal structure of sources for the formation of assets. An important aspect of financial monitoring is the necessity to identify the data about the objecton the basis of insignificant and relevant information, which makes it possible to avoid non-essential features and parameters and to speed up the decision making process at the lowest cost of expenditures and time. The study offers a methodical approach to financial monitoring of the port industry companies on the basis of the risk-based approach that takes into account the conditions for the functioning of port companies and their business characteristics, making it possible to implement the appropriate measures to prevent and avoid risky financial transactions and, consequently, to increase/preserve the competitiveness of the port sector companies. Regarding the need in further studies of the practical realization of financial monitoring of the port sector companies, there is a choice and substantiation of aggregate indicators of the financial monitoring system, their listing with a view to specific features, types and scale of activities.
Highlights
The need in new methods and instruments of financial management that would correspond to the dynamic changes in the external environment of the companies’ functioning, gives prominence to the financial aspects of the business activity
The paper determines that the need in financial monitoring of Ukrainian companies of the port sector is caused by financial consequences related to the need to protect the environment, the existence of a dominant part of payments in foreign currency, the possibility of cash outflows into the shadow sector of the economy and the possibility to use transport for smuggling
The study offers a methodical approach to financial monitoring of the port industry companies on the basis of the risk-based approach that takes into account the conditions for the functioning of port companies and their business characteristics, making it possible to implement the appropriate measures to prevent and avoid risky financial transactions and, to increase/preserve the competitiveness of the port sector companies
Summary
Financial monitoring is a part of the general management system along with other types of monitoring. The study of Helena Kościelniak (2010) indicates that “monitoring is an information mechanism to track the quantitative and qualitative changes caused by certain objects observations using specific methods of registration” (Informatsiia pro vodnyi transport Ukrainy). Helena Kościelniak (2010) argues that financial monitoring is a tool for management in the area of functioning of financial processes in enterprises. It is understood as a process of continuous economic and financial analysis supporting the process of making decisions by managers (Informatsiia pro vodnyi transport Ukrainy). Financial monitoring is a standalone tool of financial management and financial standing (Koliada, 2003) and supports management in the supervision of the most important components of the objects’ activities (Kisielnicki and Sroka, 1999). The instruments of management include key areas, analysis, methodology and standards (Kovalenko, Holovina, 2012)
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