Dotsenko Inna, PhD in Economics, Associate Professor of the Department of Finance, Banking and Insurance, Khmelnitsky National University, Khmelnitsky, Ukraine

ORCID ID: 0000-0003-4972-3106
e-mail: innochka.docenko@gmail.com

Strategy of Management of Financial Risks of the Enterprise in the Process of Formation of its Financial Security

Abstract. Introduction. In order to avoid the global effects of financial risks, entrepreneurs should have a system of measures to detect valuation and prevent significant financial losses, integrated into the economic management system. That is why the strategy of financial risk management is of particular practical value in the process of financial security formation. Developing a strategy for managing financial risks as a basis for safe development of the enterprise is a protection against ineffectively chosen model of behavior in the market, errors in commodity, marketing policy, pricing policy, detection of uncompetitive products.

Purpose. The purpose of the article is to research and develop an enterprise financial risk management strategy to ensure the financial security of an enterprise.

Results. Based on the generalization of the considered interpretations of strategic management and its features, it is proposed to interpret “strategic management” as a process related to the development and decision-making, the result of which determines the overall effectiveness of the entity in the market, which necessitates the consideration of environmental conditions and is a set of factors influencing the activity of the enterprise and, as a consequence, the level of its financial security. There are two approaches to interpreting the concept of “risk management”: process and system. It is proposed to interpret the concept of “risk management” of the enterprise as a process based on predicting the realization of risk, determining the likely extent of its manifestation, as well as the formation and further implementation of a set of measures aimed at preventing or minimizing the losses associated with their implementation. The essence of the enterprise risk management strategy and its relationship with the financial security of the enterprise is determined. The strategy of management of financial risks of the enterprise in the process of ensuring the financial security of the enterprise has been developed, which envisages the implementation of nine main steps that are performed in the established sequence. The entities and objects of financial risk management of the enterprise are distinguished. The principles on which the developed strategy of financial risk management of the enterprise should be based are proposed: system of construction, orientation to strategic goals of the enterprise, complexity of approved management decisions, continuity of process, promptness and dynamism of management, efficiency and dynamism, continuity of monitoring and control.

Conclusions. It is substantiated that financial risk management is an important aspect of ensuring financial security. Its basis is a weighted identification of the sources of those types of risk that, if implemented, lead to threats to the stable and efficient development of the enterprise. It’s proved that the strategy of financial risk management of the enterprise is of practical value in the process of forming the financial security of the enterprise.

Keywords: risks; financial risks; financial risk management; management strategy; financial security of the enterprise; management principles; subjects and objects of management.

References:

1. Burdeniuk, T. H. (2014). Strategic analysis of enterprise competitiveness criteria. Problemy teorii ta metodolohii bukhhalters’koho obliku, kontroliu i analizu, 1 (28), 39-50 [in Ukrainian].
2. Vahner, I. (2010). The role of strategic analysis in the selection and development of enterprise management strategy. Ekonomichnyj analiz, 8, 98-104 [in Ukrainian].
3. Dovbnia, S. B., Najdovs’ka, A. O. & Khyt’ko, M. M. (2011). Stratehiia pidpryiemstva. Dnipropetrovs’k : NMetaAU [in Ukrainian].
4. Porokhnia, M., Bezzemel’na, T. O. & Kravchenko T. A. (2012). Stratehichne upravlinnia. Kyiv : Tsentr navch [in Ukrainian].
5. Chaffee, E. (1985). Three models of strategy. Academy of Management Review, 10 (1), pp 89-
6. Higgins, J. (1983). Organizational Policy and Strategic Management. Text and Cases (2-nd ed). Chicago : The Dryden Press.
7. Farion, I. D. (2009). Stratehichnyj analiz. Ternopil’: TNEU [in Ukrainian].
8. Mostens’ka, T. L. & Skopenko, N. S. (2010). Risk management as a tool for managing an enterprise’s economic risk. Visnyk Zaporiz’koho natsional’noho universytetu, 3(7), 72-79 [in Ukrainian].
9. Turko, M. O. (2011). Theoretical bases of enterprise risk management. Ekonomika rozvytku. 4(60). 85-89 [in Ukrainian].
10. Kochetkov, V. M. & Syrochuk, N. A. (2011). The essence and features of risk management in the enterprise. Aktual’ni problemy ekonomiky, 10(124), 150‒156 [in Ukrainian].
11. Pikus, R. V. (2010). Upravlinnia finansovymy ryzykamy. Kyiv : Znannia [in Ukrainian].
12. Taran, O. V. (2005). Financial risk management of economic agents. (Ph.D. Thesis). Finansy, hroshovyj obih i kredyt. Kharkiv.
13. Semenova, K. D. & Tarasova, K. I. (2015). Organization of risk management system at the enterprise. Visnyk sotsial’no-ekonomichnykh doslidzhen’, 58, 221-227 [in Ukrainian].
14. Samura, Yu. O. (2018). Risk management in the system of financial and economic security of enterprises, institutions and organizations. Ekonomika i suspil’stvo, 15, 732-738 [in Ukrainian].
15. Vitlins’kyj, V. V. & Skits’ko, V. I. (2018). Risk management of supply chains in the digital economy. Biznes Inform. 4. 384-392 [in Ukrainian].
16. Tkachenko, S. Ye. (2013). Theoretical principles of financial risk management of an enterprise. Retrieved from http://dspace.khntusg.com.ua/bitstream/123456789/1070/1/21.pdf [in Ukrainian].