Koval Natalia, Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Finance and Innovation Management, 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, Associate Professor of the Department of Entrepreneurship, Logistics and Management, Vinnytsia National Technical University, Vinnytsia, Ukraine

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

Financial Diagnostics and Risk Management in Relation to Current Transformations

Abstract. Introduction. This article defines modern approaches, conceptual and principled positions to financial diagnostics, as well as existing modern risks in the context of current transformations. The article presents scientific approaches to studying the role of diagnostics in making sound management decisions to improve the stability and efficiency of a business entity, as well as its impact on minimizing risks in the current environment. The article states that financial diagnostics allows to take into account the financial situation in the market, to ensure harmonization of resource sources and costs for making strategic and tactical management decisions, as well as to develop a business development strategy and minimize risks. The tools studied and presented in the article provide an opportunity to study the economic and financial condition of financial market participants based on the analysis and synthesis of information.

Purpose. The purpose of the research is to develop concepts and approaches to financial diagnostics policy, which will allow to increase the efficiency of resource use, to introduce effective control over the feasibility of investments, and to diagnose the probability of bankruptcy and investment risks in a timely manner.

Results From a general point of view, the concept of diagnostics includes the identification of dysfunctions specific to its activities, as well as the analysis of facts and responsibilities, the determination of causes and measures that should lead to the improvement of the economic and financial situation. It should also be noted that the diagnostic analysis includes the localization of symptoms, dysfunctions related to the company, research and analysis of facts and responsibilities, determination of causes specific to the dysfunctions, development of specific programs of activities, where the restoration or improvement of productivity is ensured by their practical application. In fact, a company diagnosis can be motivated not only by a situation where it indicates difficulties or dysfunctions, but also when the company has a healthy state but wants to improve it.

Conclusions. Financial diagnostics consists of a set of tools and methods that help to assess the financial situation and performance of a company. From a general point of view, the concept of diagnostics includes the identification of dysfunctions specific to its activities, as well as the analysis of facts and responsibilities, the determination of causes and measures that should lead to the improvement of the economic and financial situation.

It should also be noted that the diagnostic analysis includes the localization of symptoms, dysfunctions related to the company, research and analysis of facts and responsibilities, determination of causes specific to dysfunctions, development of certain programs of activities, where the restoration or improvement of productivity is ensured by their practical application.

Further research on the results of financial diagnostics should be aimed at a flexible modern development strategy, which will help to increase adaptability and resilience to the changing effects of the external environment, as well as at the formation of an effective system of financial diagnostics, which should be based on improved approaches and methods, taking into account both external and internal influencing factors.

Keywords: financial diagnostics, financial risks, management, global diagnostics, financial analysis, enterprise.

References:

1. Stukalo, N. V. (2021). Measurement of financial globalization. Finances of Ukraine, 6, 146-153. https://doi.org/10.32702/2307-2105-2021.2.70.
2. Lucyshyn, Z. O. (2020). Transformatsiia svitovoi finansovoi systemy v umovakh hlobalizatsii. Publishing Center «Druk». https://doi.org/10.32782/2524-0072/2021-23-16.
3. Prakash, B., Swetha, N. & Gopi, P. (2021). Smart garbage monitoring and air pollution controlling system. International Journal of Advanced Research in Engineering and Technology (IJARET), 12(3), 698-703. https://doi.org/10.34218/IJARET.12.3.2021.06.
4. Tanklevsjka, N. S. & Jarmolenko, V. V. (2021). The current state and problems of the functioning of the stock market in Ukraine. Efficient economy, 7. http://www.economy.nayka.com.ua/?op=1&z=904.
5. Shenbagavalli, S. & Priyadharshini, T. (2020). Design and Implementation of Smart Traffic Controlling System. International Journal of Engineering Technology Research & Management, 4, 28-36.
6. Tomashuk, I. V. & Tomashuk, I. O. (2021). Enterprise development strategy: innovation and internal flexibility. Solloquium-journal, 3(4), 51-66.
7. Sharova, S. V. (2021). Problems of the corporate securities market as an effective tool for attracting financial resources. Change management and innovation, 1, 76-80.
8. Educational materials online (2023). Financial risk management. URL: https://pidru4niki.com/74707/ekonomika/upravlinnya_finansovimi_rizikami.
9. Kostecjkyy̆, V. V. & Butov, A. M. (2021). Naprjamy pobudovy systemy upravlinnja finansovymy ryzykamy na pidpryjemstvi. Ukraïnsjkyy̆ zhurnal prykladnoï ekonomiky, 1, 3, 60–66.
10. Bezditko, O. Je. (2020). Management of financial risks of the enterprise. Tavriysk scientific bulletin. Series: Economy, 3, 43-49.