METHODICAL APPROACHES OF THE ENTERPRISE FINANCIAL AND ECONOMIC SECURITY DEFINITION

Abstract

The article is devoted to the study of the financial and economicsecurity of the enterprise. Modern approaches to determining thelevel of financial and economic security of the enterprise areinvestigated. According to the research, the category ‘financial andeconomic security’ is defined as a component of the economic securityof the enterprise and is determined on the basis of the calculation offinancial ratios, in particular on the basis of the analysis of financialstability (determination of the degree of adequacy of own or borrowedworking capital for production and sales activities). On the basis of theconducted researches grouping of methodical approaches to theestimation of the level of economic security at the enterprises into twogroups is carried out: traditional and non-traditional. The financialsecurity components of the enterprise are also identified and the mosteffective methods of its assessment are considered. It is determinedthat traditional methods, which are based on the estimation ofreliability and stability of functioning of the enterprise, are morecommon in domestic practice. It is established that a commondisadvantage of existing methods is the problem of determining thepriority of the relevant evaluation indicators, the complexity of conducting and interpreting the results of the evaluation. Existingapproaches highlight leading techniques and a practical tool fordetermining financial and economic security. The development andimplementation of rapid diagnostics, which should ensure that thesafety assessment results are obtained with minimal time spent inorder to make effective management decisions, are suggested in thearticle conclusions. Problem of separate factors influence on financialand economic security and determination of quantitative andqualitative criteria of enterprise’ financial and economic security levelestimation as a special object of economic security are highlighted inthe article.