Abstract
The article is devoted to the investigation and identification of financial risks of industrial enterprises. The aim of the article is to formalize the financial risks of industrial enterprises’ activity and development in the context of the implementation of the value-based management. The modern tendencies and problems of functioning and development of the industrial enterprises of Ukraine are characterized by the following issues: deficit of the financial capital in the domestic and international markets; increasing the debts of enterprises within the real sector of the economy to a greater extent than the growth of equity is; low level of bond attraction as a source of additional financing; financing the majority of the reproduction processes of the industrial sector at the expense of own money of economic entities; monopolization of the main part of industrial production, which demotivates business entities to implement innovative activities; orientation of the sectorial structure of investments in favor of low-tech industries Based on the study of financial risks and the factors that shape them, the effects of the financial risks impact on socio-economic and financial indicators of industrial development have been defined. The financial risks that are controlled and managed by the financial management of the enterprise include non-systematic (specific) financial risks, internal risks (capital structure risks, credit and investment risks). Value-based management has been grounded as the effective system of financial management at the enterprise. The comparative analysis of the balance sheet, market and cash flow approaches within value management allows determine the balance sheet method, in particular the model of economic value added, as optimal for use in the management system of an industrial enterprise. The model of the value-based management for industrial enterprises, proposed in the work, has been built on the basis of harmonization of financial risk factors of industrial enterprises with the factors of the economic value added model. It will contribute to effective financial management of economic entities.
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