Stefaniv Ihor, Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Financial Technologies and Banking, West Ukrainian National University, Ternopil, Ukraine

ORCID: 0000-0003-2026-9835
e-mail: sifftern@gmail.com

Improving the Mechanism for Managing the Enterprise’s Financial Stability

Abstract. Introduction. Enterprise development requires improving financial mechanisms. Given the challenging conditions under which businesses operate today, it is necessary to implement measures that will stabilize their economic activities and help them recover from the crisis. The difficult political and economic situation in the country, the instability of the economic system, and the significant risks require improving the system to ensure financial stability. This goal is of paramount importance in the current period.

Purpose. The main goal of this study is to develop a theory for managing the financial stability of economic entities and to improve scientific approaches to forming enterprise development policy in difficult conditions.

Results. Improving the financial stability management system is the main element of financial management within an enterprise. It is also a necessary prerequisite for stable long-term development. This system includes strategic planning because a business’s financial stability largely depends on its financial policy and how it’s implemented, as well as its financial strategy for managing production factors. Only under conditions of financial stability can a business entity effectively carry out its activities and achieve its goals with minimal effort and risk.

This article assesses the effectiveness of business entities’ operations, outlines the main forms of optimizing their financial activities and managing production factors under conditions of uncertainty. It also determines the features of the processes of forming and using financial resources and the existing forms of ensuring financial stability and balance. Attention is paid to the main problems hindering enterprise development. The need to use modern information technologies to plan and control the effectiveness of resource management is substantiated.

It is noted that, in modern conditions, there is an urgent need to optimize costs to stabilize profitability and normalize risk levels. The article proposes directions for improving economic relations between entities of the economic system.

Conclusions. Methods to increase the efficiency of profit formation processes, resource accumulation, and optimization of their structure; maintain optimal capital profitability; and accelerate its turnover are proposed. It is noted that one way to achieve a company’s financial stability is to select rational systems for managing production factors.

Keywords: enterprise, financial stability, profit, liquidity, profitability, cash flows, profitability.

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