Assessment Of Financial Security Research Articles

ДІАГНОСТИКА ФІНАНСОВОГО СТАНУ АГРАРНОГО ПІДПРИЄМСТВА ЯК ОСНОВА ЗАБЕЗПЕЧЕННЯ ЙОГО ФІНАНСОВОЇ БЕЗПЕКИ

Diagnostics of the financial condition of an enterprise is a priority for ensuring financial security. The purpose of the article is to study and substantiate the theoretical, methodological, and practical foundations for an integrated assessment of financial security of agricultural enterprises on the basis of an integrated approach. The economic consequences of Russia’s military aggression against Ukraine include not only permanent losses in infrastructure and other economic entities, but also significant risks and destructive processes that have a strong impact on the financial condition of domestic manufacturing enterprises and are already changing management processes. The validity of managerial decisions largely depends on the objectivity of the perception of the real situation, which can only be achieved by using the results of an analytical assessment. The essence of this method is to select such criteria for understanding the object of analysis that would allow timely and proper assessment of actual situations, which is a precondition for managerial influence on their resolution. A special object is the agricultural sector, where efficiency depends on the timely receipt and use of resources, and in a market economy, essentially determined by the availability of financial resources. In these conditions, the value of a qualitative analytical assessment becomes a determining factor in the effective management of enterprises. The article determines the importance of diagnostics of the financial state of an enterprise, considers the issues of essence and necessity of system analysis of the financial state of an enterprise. There are described theoretical, methodological, and practical aspects of applying an integral approach to a comprehensive assessment of the financial security of agricultural enterprises. In the process of the investigation was carried out an assessment of the level of financial security of agricultural enterprises, and allocated groups of indicators of financial security of enterprises. Groups of indicators of financial security of enterprise have been allocated. The conclusion is made that diagnostics of financial security of enterprises is a process of assessing the status of financial security, identifying the impact of factors on its level, as well as existing and potential threats to financial security in order to make effective management decisions in the system of ensuring financial security of enterprises.

Decision making in agricultural organizations: integral assessment methodology

The article reveals the specific features of the activities of agricultural enterprises, the principles of the functioning of agriculture, the specific features of the agricultural sector, the essence of the financial stability of the organization. A classification of threats to financial security is given. The authors proposed criteria for determining the financial security of agricultural enterprises, and provided a methodology for the integral assessment of financial security when making decisions in agricultural organizations.

COVID‐19 emergency policies, financial security, and social equity: Worldwide evidence

AbstractUsing worldwide country‐level panel data of COVID‐19 emergency policies and aggregated survey responses of 46 million randomly sampled Facebook users, we study the impact of public health and economic measures on household financial worries among various demographic groups. The analysis reveals that public health interventions with stringent mobility restrictions—domestic lockdowns and international travel restrictions—increase the proportion of households with financial stress within countries. However, economic policies with immediate disposability, like wage support and in‐kind transfers, counteract the negative impacts. Notably, younger working‐age groups are particularly sensitive to such public health and economic emergency policies in their assessment of financial security. Our results also show that a country's social safety net coverage and poverty rate moderate the financial impact. As governments face challenges in containing the pandemic, this study highlights the need to create policy packages balancing differential tradeoffs between health and economic interventions while enhancing equity objectives.

Design and Implementation of China Financial Risk Monitoring and Early Warning System Based on Deep Learning

Affected by the COVID-19 epidemic, financial regulators urgently need to establish a sensitive and scientific financial risk pre-alarm system that is suitable for the economic environment under the COVID-19 epidemic. The perfect pre-alarm system is based on in-depth scientific theoretical research, so it is of great practical significance to study the financial security assessment and systemic financial risk pre-alarm. The accumulation of massive data puts forward higher requirements for the effective organization and management of financial information. How to quickly extract effective information and analyze and predict it effectively on the basis of data has become an important issue in academic and industrial research. Exploring the nature of financial markets, analyzing and mastering the potential development rules between data not only provide effective technical support for financial management and investment business, but also play a pivotal role in promoting the steady growth of financial markets. This article proposes a financial risk pre-alarm model based on deep learning (DL). This model can detect the financial risk behaviors brought by a few people, and provides a new theory and method for the financial risk management (FRM) system. This algorithm solves the difficulties that traditional models are difficult to deal with highly nonlinear models and lack of adaptive ability.

Assessment of Financial Security of SMEs Operating in the Renewable Energy Industry during COVID-19 Pandemic

Today, one of the main priorities in Europe is to introduce measures to increase environmental protection. Therefore, SMEs operating in the branch related to renewable energy are essential for several EU priorities. SMEs can also be vulnerable, especially during times of crisis, which could negatively affect renewable energy development. Therefore, this paper aims to evaluate and analyze the financial security management of renewable energy SMEs during the COVID-19 pandemic. The research is conducted on SMEs operating in the renewable energy sector in Poland. The research periods are 2019 (before the COVID-19 crisis) and 2020 (during the crisis). By analyzing different financial performance ratios, we found that SMEs operating in the energy sector have been able to stabilize and maintain their current economic position compared to the past. The results of this study indicate that the receivables collection period, cash conversion cycle, and operating cycle could have been insignificantly shorter during the COVID-19 crisis. Furthermore, to have stronger financial security, SMEs have adopted a conservative policy in which the share of accounts receivable in current assets has been significantly reduced during COVID-19. In contrast, an insignificant increase in liquidity, quick ratios, and inventory turnover have been observed. In general, Polish SMEs have chosen to adopt conservative strategies during COVID-19 to have better liquidity security.

ІНВЕСТИЦІЙНА СТРАТЕГІЯ ЯК ЕЛЕМЕНТ АНТИКРИЗОВОГО УПРАВЛІННЯ ПІДПРИЄМСТВОМ

ІНВЕСТИЦІЙНА СТРАТЕГІЯ ЯК ЕЛЕМЕНТ АНТИКРИЗОВОГО УПРАВЛІННЯ ПІДПРИЄМСТВОМ

ASSESSMENT OF THE PROSPECTS FOR RESTORING THE FINANCIAL SECURITY OF THE STATE

Abstract.In the modern period of economic governance, the assessment of the financial security of the state takes place in different directions, different groups of indicators, different methods. Mainly in scientific works, there is a desire for bringing the various components of the assessment of financial security to an integral indicator, taking into account the normalized values of individual indicators, which requires an assessment of their weight and always contains certain subjectivity through the involvement of experts in this process. Considering that the financial system of any country is the basis for the functioning of the economy, and Ukraine has a complex of accumulated socio-economic problems that constantly accompany it, this predetermines the high relevance of this area of research in recent decades. Considering approaches to assessing the level of financial and economic security, it is necessary to refer to the Methodological Recommendations for calculating the level of economic security of Ukraine, in which for this purpose the method of reconciling their estimates with individual systems of advantages that are not publicly available was used. Therefore, in this study, when forming this system of preferences, which affects the direction of the formation of the national strategy of financial and economic security, it is proposed to use the existing cause-and-effect relationships between its components. Taking into account these cause-and-effect relationships and according to the introduced symbols, a matrix of paired comparisons was done by expert means, which determines the direct impact of some components of the country’s financial security on others. The analysis which is made in the article it possible to assess the dynamics in all areas of financial security on the basis of group indicators and identify the most problematic indicators. On the other hand, such an assessment does not give an idea of which risk zone certain indicators belong to, since each of them has its own limits of acceptable values, which is indicated in the article. This direction requires further research and will help determine whether the current state of the state’s financial security belongs to a particular risk zone. Keywords: assessment of financial security, financial system, integral indicator, budget security, currency security. JEL Classіfіcatіon G17, E22, E66 Formulas: 2; fig.: 0; tabl.: 3; bibl.: 20.

Methodical provision of financial security assessment of the state

Purpose of the research. The main purpose of the article is to improve methodological support for the assessment of the financial security of the state, taking into account the impact of budgetary policy. Methodology. During the study the following methods were applied: comparative analysis, integral estimation, normalization of indicators, component analysis, method of principal components, etc. Results. In the course of comparing the existing methodological support for the financial security assessment, it is justified, notwithstanding the existing shortcomings, the expediency of applying in the analytical work the Methodological recommendations for the calculation of the economic security level of Ukraine of the Ministry of Economic Development and Trade of Ukraine (2013) and the necessary calculations of the level of financial security of Ukraine for 2009-2018. Additional financial security indicators are proposed, taking into account the priority of its budget component, in particular, the share of revenues from the National Bank of Ukraine (NBU) in the state budget revenues (for banking security), the ratio of the pension contributions of non-state pension funds to the own income of the Pension Fund of Ukraine (PFU) market), government revenue as a percentage of consolidated budget expenditures and the share of public servicing and debt repayment expenditures in consolidated budget expenditures (for debt security), expenditures and for servicing and repayment of public debt as % of gross domestic product (GDP) (for fiscal security); consolidated budget revenues in USD US (for currency security), consumer loans to households, % of household income, and lending to consolidated budget expenditures (for monetary security). On the basis of regression analysis, where sub-indices of functional constituents are taken by factor signs, and the integral indicator of financial security is obtained as a result sign, the reliability of the calculations is confirmed. Practical meaning. The calculated sub-indices of the functional components of the financial security of Ukraine and the integrated indicator for 2009-2018 can be used in the development of plans, forecasts, strategies for socio-economic development of Ukraine. Prospects for further research of the author are to study the impact of budgetary policy on the state of financial security of Ukraine.

Financial Security Assessment in the European Union Countries

Financial security of the country means the absence of threats to the financial system, ensuring the stability and development of the financial system and the ability to maintain the financial sovereignty of the state. The aim of the article is to evaluate financial security in EU countries. The aggregate financial security index (AFSI) is used to reach this goal. AFSI calculation is based on five sub-indexes: Human Development Index, Economic Globalisation Index, Financial Development Index, Index of Economic Freedom and Country Level Index of Financial Stress. The results show that Market-based EU countries have the highest financial security. The lowest financial security was set in Eastern European countries.

DEVELOPMENT OF A METHODOLOGY FOR ASSESSING THE FINANCIAL SECURITY OF SPECIALIZED DEVELOPERS

One of the key tasks in the housing construction market is to ensure the reliability of the developer. The transition to the project financing mechanism requires specialized developers to comply with financial stability within the established standards. In modern economic conditions, to disclose the financial position of a company in the construction industry, a more comprehensive analysis is needed, including not only indicators of financial stability. The author adapted the financial security assessment model based on the indicator approach for specialized developers. The information base was the data of the portal of the Unified Register of developers, taking into account a specific territory (Bryansk region). The formulated and tested model made it possible to assess the financial security of the largest enterprises of the construction industry in the region, draw appropriate conclusions and offer management solutions within the framework of issues of various indicators

The role of a defence industry in the system of national security: a case study

It was determined that the existing scientific and methodological approaches to the assessment of the state of financial security of defence industry enterprises due to the specific peculiarities of this industry and the rapid changes in their external environment, currently taking place, need both the advancement in the direction of improving the level of timeliness of such assessment and expansion of the indicators list for its implementation. In the light of modern conditions, characterized by globalization and increased competition in the domestic and foreign arms markets, the defence enterprises can be competitive if they can adapt their activity effectively to the changes in the external environment, take timely preventive measures against the impact of negative environmental factors and make timely use of the opportunities, provided by the environment for strengthening of their financial security. In the research, the authors have improved scientific and methodological approaches to the complex assessment of financial security of defence enterprises – conduction of the analysis upon 3 blocks: definition of the indicators system (including the one upon the criterion of the enterprise’s relations state with the subjects of the external environment; express diagnostics of the enterprise’s financial security; a full-blown assessment of the financial security of the enterprise, which makes it possible to provide operational efficiency during substantiation of the administrative decisions, concerning the provision of financial security of the enterprises and consider the change of conditions of their interaction with subjects of the external environment. The development of the integration processes in the global economy, in particular defence industries, and the steady increase in competition on the global arms market, provides importers of arms and military equipment (AME) with a diverse choice of means of pressure on the exporters, directly encourage the application of the offset practices in this area. The research determines the ways and priorities of application of the offset activity by defence enterprises of Ukraine in the context of consideration of this phenomenon as a tool for strengthening their financial security thanks to the optimization of expenditures for implementation of the export-import operations and research, development, and engineering activity (RD&T).

Financial Security Assessment In Enterprise Potential Management

The peculiarities of financial activity and economic security of modern enterprises in the conditions of unstable environment are investigated. The eredeconds of economic security assessment are defined. The main factors that affect financial security and are the object of evaluation in the process of managing the potential of the enterprise are grouped. Models for assessing and analyzing financial security threats are proposed, which, based on factor analysis and structural modeling, allow us to identify the dominant threats and evaluate the consequences of their prolonged impact. The main stages are: assessment of the level of threats, construction of a model for assessing the significance of threats, determining the trend of change in the level of financial security of the enterprise.

QUINTESSENCE OF UKRAINE’S FINANCIAL SECURITY STRENGTHENING IN THE CONTEXT OF ECONOMIC SPACE VOLATILITY

The formation of a stable financial system is one of the important tasks facing the state. The lack of a comprehensive strategy to strengthen Ukraine’s financial security leads to fragmentation and insufficient predictability of the country’s financial policy. This directly threatens Ukraine’s national security and economic sovereignty. The author’s developments in the directions and mechanisms of ensuring the financial security of the state are aimed at forming a strategic vision of the development of the domestic financial market, promoting consolidation and effective interaction of state authorities, first of all the Ministry of Finance of Ukraine, the National Bank of Ukraine, the Committee on Financial Policy and Banking of the Verkhovna Rada Ukraine and society. This article provides for the study of factors affecting the financial security of the state, the comparative analysis of approaches to the definition of financial security used in foreign and domestic practices. As a result of the analysis, a comprehensive signal system of indicators of financial security assessment of the state will be proposed in scientific work, principles of its strengthening will be developed, mechanisms for ensuring financial stability in the context of strengthening the financial security of the state are substantiated. The results of the evaluation will serve as a basis for substantiation of strategic directions, identification of instruments and measures for ensuring the financial security of the state by the bodies of macroprudential supervision, determination of ways of development of competition in the financial market. Appropriate developments will facilitate timely and adequate management decision making in the context of high volatility of the economic space, which will ultimately serve as a basis for strengthening the financial security and development of the Ukrainian economy as a whole. In Ukraine, the financial policy of economic growth is the basis for the development of the state, improving the well-being of the population, establishing new social standards. Financial stability is an important factor in influencing economic development, the social sphere, economic transformation, demographic change, the well-being of society, and financial security as a component of economic security. Against this background, the issue of ensuring the financial security of the country and developing strategic directions for its enhancement is urgent.

FINANCIAL AND ECONOMIC SECURITY OF THE NATIONAL ECONOMY: APPROACHES TO EVALUATION IN THE CONDITIONS OF DIGITALIZATION

The article examines the indicators of financial security of Ukraine and the position of the state in international rankings compiled by international organizations. Some international rankings are considered in detail and the corresponding conclusions concerning financial safety of Ukraine are made. The impact of assessments of international organizations on the financial stability and security of the country is analyzed, namely indicators of fiscal (tax) burden, fiscal health, monetary freedom, financial freedom, are indicators that can be used for financial security at the macro level. An assessment of the Competitiveness Index of Ukraine and the Global Financial Index is provided; this facilitates the assessment of the level of financial inclusion of the country. It is concluded that Ukraine’s rating is extremely low, the state of financial security of the national economy is on the border between satisfactory and critical values, there is an unsatisfactory state in the assessment of the banking system as a whole. The article provides the assessment of financial security that is carried out by an external investor or lender who does not have deep knowledge about the peculiarities of the functioning and development of the financial system of Ukraine, but makes decisions based on international ratings of national economies, which is negative for further financial decisions. Almost half of the adult population of the state remains outside the financial system and does not use financial products and services, does not pursue its own financial interests and does not invest in the assets of the financial sector, which is in dire need of investment. It is also possible to note the significant lag in the level of financial inclusion in Ukraine, which, in turn, contributes to the spread of shadow schemes in the economy, capital outflows, shortfalls in budget revenues, and ultimately reduce the financial security of our country. Therefore, at the state level, urgent measures should be taken to increase the rating positions of Ukraine through a qualitative transformation of the domestic financial system in the direction of increasing the level of financial security of the state.

ОЦІНКА ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА

The enterprise’s economic security assessment importance increases in conditions of unpredictability and dynamism of changes in the business environment. It is the provision of an appropriate economic security level that allows the enterprise to fully realize the enterprise’s potential, ensure the enterprise’s efficient operation and creates conditions for further development. Having studied the approaches to assess the enterprise’s economic security given in the scientific literature, it should be noted, that methods of indicator, resource-functional, program-target approaches, based on the theory of economic risks are proposed for application. Each of them has its own characteristics and may be appropriate in a particular situation, taking into account the purpose of the assessment, the available information and the corresponding competence of the researchers. Considering one of the approaches to determine the enterprise’s economic security as the protection of its potential from the negative impact of external and internal factors and the possibility of development, it is proposed to use the resource-functional approach with elements of the indicator approach and displaying the results graphically to assess the enterprise’s economic security. It is proposed to assess the enterprise’s economic security by the following components: production and sales, personnel security, technical and technological security, financial security. At the same time, the assessment indicators for these components are selected so that the initial information can be obtained from open information, namely the enterprise’s annual financial statements. The economic security assessment for the milk processing enterprise according to the proposed indicators was carried out in dynamics, while the financial security assessment was carried out with elements of the indicator approach. To take into account the competitive situation in the market, it is proposed to assess the enterprise’s economic security according to the adapted Potential square method. It was noted that in order to improve economic security, it is desirable for enterprises to implement a policy of transparency. Key words: economic security, enterprise, assessment, assessment methods, resource-functional approach, personnel security, technical and technological security, financial security, economic security square.

ХАРАКТЕРИСТИКА ФИНАНСОВОЙ БЕЗОПАСНОСТИ БАНКОВСКОГО СЕКТОРА РЕГИОНА (НА ПРИМЕРЕ РЕСПУБЛИКИ КОМИ)

The article presents the characteristics of the financial security of the regional banking sector, examines the threats to the financial state of the banking system in the region. The author's methodology for conducting a point assessment of financial security is proposed, based on the indicative method and the use of the nor-malizing function, as well as the distribution of ratings depending on the points awarded for six security zones. The method is tested on the example of the Republic of Komi. Significant threats to the financial security of the region have been identified, and recommendations for their elimination have been proposed. The meth-odology is proposed to be used when the state authorities and the Bank of Russia monitor the state of the banking sector in the region.

АНАЛІЗ ФІНАНСОВИХ РЕЗУЛЬТАТІВ У СИСТЕМІ ІНФОРМАЦІЙНОГО ЗАБЕЗПЕЧЕННЯ ЕКОНОМІЧНОЇ БЕЗПЕКИ ПІДПРИЄМСТВА

The purpose of the article is to identify areas for improving the analytical management of financial and economic security of the enterprise through the use of a system of indicators that characterize the financial results as indicators of threat assessment of internal and external environment of the enterprise. The article identifies the relationship between financial results and financial security as a component of economic security of economic entities. The concept of profit in the domestic legal framework and international standards of accounting and financial reporting is revealed. The essence of normal profit, lost profit and excess profit, which arise as a result of risky transactions, is highlighted. Measures have been identified to ensure the objectivity of financial performance indicators, which include compliance with the principles of accounting and financial reporting, timely development of accounting policies, compliance with laws and regulations, and the absence of falsifications, errors and fraud in calculating financial results. The composition of information support for the analysis of financial results, which is based on financial, tax and statistical reporting, is determined. It is established that the assessment of the level of financial security is based on the use of methods of analysis based on quantitative and qualitative approaches. The essence of methods of analysis with the use of indicators of financial results is revealed, which allow assessing the level of financial security of the enterprise. The peculiarities of the methodology of analysis of the composition, dynamics and structure of financial results, factor analysis of profit, profitability assessment, analysis of the relationship between financial results and financial security using indicator methods that involve the use of income, expenses and financial results. It is indicated that the indicator methods include the indicator method with the formation of an integrated indicator, the spectral-point method, the multiplicative model of financial security assessment, the model of assessing the probability of bankruptcy. As a result of the review of the specified methods, advantages and disadvantages of their use are defined.

ОСНОВНІ АСПЕКТИ ФІНАНСОВОГО ПЛАНУВАННЯ В СИСТЕМІ ФІНАНСОВОЇ БЕЗПЕКИ ПІДПРИЄМСТВА

В статті відмічено, що в сучасних економічних умовах успішний розвиток підприємств залежить від постійного вдосконалення системи фінансового планування їх діяльності. Запропоновано в процесі фінансового планування на підприємстві застосовувати комплексний підхід щодо оцінки його фінансової безпеки. Доведено, що при проведенні комплексної оцінки фінансової безпеки підприємства необхідно включати інформаційну базу дослідження, формування системи показників для оцінювання рівня фінансової безпеки, аналіз фінансового стану підприємства, оцінку фінансових ризиків. Досліджено зовнішні чинники, що впливають на рівень фінансової безпеки підприємства, відображають економічну ситуацію в державі і за кордоном. Досліджено внутрішні чинники впливу, що відображають фінансовий стан підприємства, та рівень фінансових ризиків підприємства.

Ресурсное обоснование финансовой безопасности российских промышленных организаций

One of the components of the positions of strengthening the competitiveness and financial independence of Russian industrial organizations is the definition of interrelated compositions in the context of the national and economic security of the country. Verification of the information flow of a data set is to a large extent a tool base for determining key facts in the event of challenges and threats. Therefore, the main goal of the work is to build an information base and mathematically determine the relationship between individual indicators to establish the level of financial security of Russian industrial production. Dialectical research methods determine the fundamental foundations of the issue being disclosed. The proposed methodology for the integral assessment of financial security reflects individual positions in the system of assessing financial risk and combines both positive and negative features of the development of industrial production. As a result of the multi-criteria assessment and the calculated integral indicator, the article singles out groups for assessing the financial risk of industrial organizations, which is the basis for assessing the competitiveness and financial stability both at the current time and in the forecast future.

Digitization as an innovative segment of enterprise financial security management

Today, the global trend of the digital world economy is entering an active phase of its development. In the leading countries of the world, the development of digital technologies, both at the state and corporate levels, has been begun to advance massively in government programs and business strategies. The substantiation of the role aspect of introduction of the process of digitization as an innovative element of improvement of the system of financial security management of representatives of the business sector of the economy is relevant. It is to investigate the impact of the digitalization system on improving the financial security management of enterprises in the process of improving the conceptual apparatus and develop an economic and mathematical model for evaluating financial security based on innovative proposals.
 To achieve this goal, we used the method of theoretical generalization to determine the conceptual apparatus of digitization and economic-statistical methods to substantiate the economic and mathematical model of assessing the financial security of enterprises. It is proposed to expand the conceptual apparatus of the system of financial security management of enterprises by introducing such definitions as «digitization of financial security», «digital base of financial storage» and «regulator of financial security». The authors’ position of the essential characteristic of the definitions is given and the advantages of their adaptation in the management cycle are stated. The feasibility of introducing the principle of «digitization of financial security» as one of the key elements of the innovative proposal of the system of financial security management of enterprises in the future is argued. An economic and mathematical model of financial security assessment based on the profitability criteria is developed and substantiated. A number of proposals have been made to improve the financial security management of enterprises based on individual segments of the digitization system.