FORMATION OF FINANCIAL SECURITY OF THE ENTERPRISE BASED ON STRATEGIC PLANNING

Nadiya Rushchyshyn (), Uliana Nikonenko () and Zoryana Kostak ()
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Nadiya Rushchyshyn: Department of Financial and Economic Security and Banking Business, Lviv University of Trade and Economics, Ukraine
Uliana Nikonenko: Department of Financial and Economic Security, Accounting and Taxation, Ukrainian Academy of Printing, Ukraine
Zoryana Kostak: Department of Financial and Economic Security and Banking Business, Lviv University of Trade and Economics, Ukraine

Baltic Journal of Economic Studies, 2017, vol. 3, issue 4

Abstract: The purpose of the study is to improve ways of forming financial security of the enterprise based on strategic planning. The subject of the research: formation of financial security of the enterprise on the basis of strategic planning. The methodological background of the research is a set of theoretical and general scientific methods: analysis and synthesis, theoretical and logical generalization, grouping, abstraction, and others. The paper provides a general description of the core approaches defining the concept of "financial security of the enterprise". Functional goals of financial security of the enterprise are outlined, namely: ensuring financial stability and independence; achievement of high competitiveness in the market of goods, works, services; ensuring high efficiency of financial and economic activity; ensuring high liquidity of assets, and increasing the market value of the enterprise; support secrets; efficient organization of security of share capital and assets of the enterprise. The scheme of organization of financial security organization is considered based on strategic planning. It is determined that the strategic planning results in strategic plan (strategy) for ensuring the financial security of the enterprise. Such a strategy should be consistent with both financial and the company's overall strategies, as well as main goals and objectives. For the most effective implementation of the chosen financial security strategy at the enterprise, it is expedient to develop and implement a system of plans covering all aspects of the strategic planning process, including the target program, strategic, tactical, calendar, and individual plans. The system of plans should specify: the purpose of changes in the functioning of internal systems of the enterprise; terms of making changes; the work that needs to be done to make changes; their performers; necessary material, labour, and investment resources. When ensuring the financial security of the company, a special attention should be paid to the innovative development of the enterprise. The basis for the innovative development of an enterprise is the innovation potential, its formation and utilization in innovation activity. The algorithm of the strategic tasks ensuring the innovative financial security of the enterprise is proposed. The correlation between financial security and innovative development of the enterprise is explored, which is dual in nature, where both phenomena serve as the purpose of the enterprise and means of its achievement. Conclusions. Strategic planning at the enterprise, which is the basis for ensuring its financial security, will facilitate the creation of all opportunities for further financial and economic activity with positive results. At the same time, strategic planning should be based on the use of a number of measures: increase of the innovative and intellectual potential of the enterprise; use of advanced international experience in the management of material, labour, and financial resources of the enterprise; raising the skills of employees, etc. Further research should be aimed at developing and implementing an effective innovation policy that can provide long-term competitiveness of domestic enterprises and increase their financial security.

Keywords: enterprise; financial security of enterprise; strategic planning; innovative development of enterprise (search for similar items in EconPapers)
JEL-codes: D21 J28 M21 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2017:3:4:34

DOI: 10.30525/2256-0742/2017-3-4-231-237

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