Koval Natalia, Candidate of Economic Sciences, Associate Professor, Vinnytsia National Technical University, Vinnytsia, Ukraine

ORCID ID: 0000-0002-7293-3331
e-mail: nokoval@gmail.com

Piliavoz Tetiana, Candidate of Economic Sciences, Associate Professor, Vinnytsia National Technical University, Vinnytsia, Ukraine

ORCID ID: 0000-0001-7535-7360
e-mail: vitan1975.75@gmail.com

Financial Risk Management in the Context of Ukraine’s Integration Into the Global Financial Space

Abstract. Introduction. The article defines the conceptual positions and approaches to financial risk management and their importance in the context of national financial management integration into the global financial space. New scientific approaches to financial risk management in the context of unpredictable financial fluctuations are introduced. It is established that the system of financial risks is an interconnection of tactical and coordinated actions at all levels, aimed at coordinating the interaction of strategy and tactics of management in the context of integration processes. The article explores and presents the tools for applying qualitatively new approaches that ensure effective management of financial risks and provide an opportunity to move to a qualitatively new level of financial management.

Purpose. The purpose of the research is to study and develop key concepts of financial risk management based on the stages of modern integrated risk control instruments; obtaining financial advantages in the process of integration into the international financial space; modern approaches to making strategic decisions on financial risk management, as well as taking into account their specific features.

Results. It is established that financial risk management aimed at integration into the global financial space is implemented at all levels of the financial management system and requires, first of all, the introduction of tools that would ensure high efficiency of financial sector development in the long term. In addition, the level and quality of financial risk management requires a modern element that would enable the acceleration and formation of supranational financial flows that would ensure a position in the global financial space.  The positive experience gained in the formation of financial risk management should outline the integration of financial markets in terms of capital flows.

Conclusions. Ukrainian banks must constantly implement new strategies to minimize financial risks, which would ensure competitive advantage and stability in an increasingly fierce market environment. In this context, it is important to accelerate the process of integration into the global financial space. Given the low level of integration of the domestic financial system into international financial centers, it is necessary to continue the integration of the Ukrainian banking system into the global financial space, provided that an effective financial risk management system is in place, both at the current stage of development and in the future.  Today, improving the quantitative and qualitative characteristics of financial sector development is an important task of state regulation of the domestic financial system, which leads to the adoption of effective and appropriate management decisions to find approaches and correct methods on the way to integration processes, taking into account the complexity of the external financial environment. In the current environment, financial risk management is becoming global. Under the influence of scientific and technological developments on the scale and variety of financial services; increasing openness of national economies; changes in the structure of consumer demand (namely, growth in demand for services), especially in developed and newly industrialized countries, which is associated with higher living standards; development of information technologies and transition of developed countries to the stage of formation of a “new information society”; emergence of new markets in the form of a large group of developing countries, as well as increased competition in the financial services sector. Its purpose is to create a management system that would contribute to the sustainable state of the enterprise and ensure the creation of competitive advantages in the long term through the formation of internal reserves. The components of strategic controlling are strategic planning, strategic analysis and strategic control. The result of the analysis is the formation of the enterprise development strategy. Strategic analysis and control should contribute to the implementation of the strategic plan of enterprise development. In real conditions of enterprise operation, strategic and operational controlling are closely related in the process of implementation of management functions. Controlling acts as a chain connecting the management system and organizational and information support of a given economic system. Practical application of controlling tools helps to improve the management system and economic stability of the enterprise.

Keywords: financial management; financial risk;, management; integration; global financial space.

References:

1. Stukalo, N. V. (2006). Measurement of financial globalization. Finansy Ukrajiny, 6, 146-153. URL: http://iepjournal.com/journals/4/2006_1_Stukalo_ukr.pdf [in Ukrainian].
2. Lucyshyn, Z. O. (2002). Transformacija svitovoji finansovoji systemy v umovax hlobalizaciji. Kyiv: Vydavnychyj centr «Druk». [in Ukrainian].
3. Prakash, B., Swetha, N., Gopi, P. & Kavya, P. (2021). Smart garbage monitoring and air pollution controlling system. International Journal of Advanced Research in Engineering and Technology (IJARET), 12 (3), 698-703. DOI: 10.34218/IJARET.12.3.2021.064 [in English].
4. Tanklevs’ka, N. & Yarmolenko, V. (2021). Current situation and problems of stock market functioning in Ukraine. Efektyvna ekonomika, 7. doi: https://doi.org/10.32702/2307-2105-2021.7.1 [in Ukrainian].
5. Shenbagavalli, S., Priyadharshini, T., Sowntharya, S., Manikandan, P. & Dr. Saravanan, S. (2020). Design and Implementation of Smart Traffic Controlling System. International Journal of Engineering Technology Research & Management, 4, 28-36 [in English].
6. Tomashuk, I. V. & Tomashuk, I. O. (2021). Enterprise development strategy: innovation and internal flexibility. Solloquium-journal, 3 (90), 4, 51-66 https://doi.org/10.24412/2520-2480-2021-390-50-64 [in English].
7. Sharova, S. V. (2021). Problems of the rink of corporate collective papers as an effective inventor of financing of financial resources. Upravlinnja zminamy ta innovaciji, 1, 76-80 [in Ukrainian].
8. Educational materials online (2023). Financial risk management. URL: https://pidru4niki.com/74707/ekonomika/upravlinnya_ finansovimi_rizikami [in Ukrainian].
9. Kostetskyy, V. V. & Butov, A. M. (2016). Construction areas of financial risk management at the enterprise. Ukrainian Journal of Applied Economics, 1, 3, 60-66 [in Ukrainian].
10. Bezditko, O. Je. (2020). Enterprise financial risk management. Taurida Scientific Herald. Series: Economics, 3, 43-49.