scholarly journals The Financial Strategy of Anti-Crisis Management for an Entrepreneur in Modern Conditions of Operation

2020 ◽  
Vol 12 (515) ◽  
pp. 465-470
Author(s):  
H. M. Azarenkova ◽  
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Negative Consequences ◽  
Financial Strategy ◽  
Financial Condition ◽  
Significant Damage ◽  
Wide Range ◽  
Modern Economic ◽  
Business Entities ◽  
Key Aspects

The article is aimed at identifying key aspects of anti-crisis management, in particular the choice of its most effective instruments. It is noted that modern economic entities do operate under the conditions of constant impact of crisis factors. Most entrepreneurs suffer the most significant damage as a result of global financial and economic crises, political instability and a new challenge of the present – the COVID-19 pandemic. All these events require business entities to organize a permanent unit of anti-crisis management, the purpose of which is to minimize or eliminate the negative consequences of crisis phenomena. Among the key aspects of anti-crisis management, the leading place is held by the most adequate instruments for overcoming the consequences of the crisis. The article examines a wide range of modern anti-crisis management instruments and determines that one of the most efficient of them be the anti-crisis financial strategy. In this regard, the priority of the financial aspect of anti-crisis management is substantiated and a special place of anti-crisis financial strategy as its key instrument is proved. The «tree of goals» of the anti-crisis financial strategy is built up as a fundamental element in its development. It is specified that in order to build up an efficient anti-crisis financial strategy, first of all, a comprehensive assessment of the valid financial condition of the corresponding entity is required and the most used indicators of such an assessment are proposed in four directions – assessment of financial stability, liquidity, business activity, and profitability.

ANTI-CRISIS MANAGEMENT OF THE ENTERPRISE AS A MEANS OF BANKRUPTCY PROTECTION OF THE ENTERPRISE

2019 ◽  
Vol 4 (3) ◽  
pp. 181-187
Author(s):  
Nadiya REZNIK ◽  
Vitalii KOSTYLIANU
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Banking System ◽  
Enterprise Management ◽  
Main Task ◽  
Negative Consequences ◽  
Economic Sectors ◽  
Business Executives ◽  
Financial Condition ◽  
Investment Capital

The functioning of most medium-sized, small and large enterprises in today's realities remains at a low level of professionalism. Many business executives do not pay enough attention to analytical work, do not develop new strategies and do not improve the proposal related to crisis management. Only the enterprise management of the adequate level of qualification can avoid all the negative consequences of the crisis. The main task of enterprises is to comply with the requirements of the enterprise anti-crisis policy, namely the calculation of financial ratios that reflect its financial stability. The coefficients allow to consider the company from different sides, among which the most important in the implementation of anti-crisis management are: the efficiency of current assets using, own and borrowed funds, using of production potential, effective management in the enterprise, the dynamics of production and sales of products, depreciation of fixed assets, using of investment capital. In addition to monitoring indicators, crisis management involves identifying problem areas in the enterprise and developing measures to eliminate them. The final part of the enterprise's anti-crisis policy is the implementation of these measures, which prevents the bankruptcy of the enterprise at the stage of possible threats and problems. Unfortunately, modern entrepreneurs neglect this measure and therefore find themselves in a difficult financial and managerial situation. Another issue of crisis management is the issue of securities, which allows to raise additional funds used by the enterprise as a means of eliminating possible bankruptcy. This process is a means of lending in today's realities that is more effective than loans made through the banking system. In today's market economy, business development is the driving force, so we believe that the topic of crisis management is relevant, because such measures are developing enterprises, which in turn develops the economic sectors and the country's economy. Keywords: crisis management, crisis, bankruptcy, financial instruments, enterprise management, analysis of financial condition.

scholarly journals State regulation of bankruptcy relations in the national economy

2019 ◽  
Vol 3 (4) ◽  
pp. 19-27
Author(s):  
Rima Tamosiuniene ◽  
Maryna Demianchuk ◽  
Viktor Koval
Keyword(s):  
National Economy ◽  
Financial Stability ◽  
Empirical Studies ◽  
State Level ◽  
State Regulation ◽  
Negative Consequences ◽  
Credit Crisis ◽  
Financial Condition ◽  
The Difference ◽  
Business Entities

Introduction The deepening crisis in numerous business entities of various sizes is due to macroeconomic and domestic political instability, complicated by the consumer credit crisis, as well as tax and administrative pressure. Therefore, the acute problem of bankruptcy of business entities of different sizes and the need to regulate this issue at the state level. Unprofitable business entities of various sizes cause negative consequences for the domestic economy. Aim and tasks. The purpose of the work is to study state regulation of relations in the field of bankruptcy in the economy of Ukraine. Results. The factors, internal and external, preceding the bankruptcy of economic entities. Thus, the external preconditions of bankruptcy are international, economic, political, demographic and others. Internal prerequisites include economic, technical, technological, social and others. The characteristic and gradation criteria of business entities in accordance with legislative acts of Ukraine are presented. It was revealed that the proportion of sales of micro-enterprises is unequal to their share in the total number of enterprises, indicating their negligible contribution to the development of the national economy. According to the results of empirical studies, it was found that during the analyzed period the share of unprofitable enterprises of different sizes is at least a 25%. Such a large number entails not only low financial stability, insolvency and efficiency of business entities themselves, but also inhibits the process of economic growth of the whole country. The application of the method of multivariate discriminant analysis will allow us to draw a conclusion about the financial condition with assigning it a class in accordance with the values of the integral indicator and taking into account the probability of non-fulfillment of obligations, that is, to identify the presence of an unprofitable enterprise and the likelihood of bankruptcy. Conclusions. So, an analysis of the criteria for graduation of business entities made it possible to establish the difference between the administrative and accounting interpretation of the criteria for the attitude of enterprises to various sizes. The dynamics of structural statistics indicators of domestic business entities were monitored, suggesting that individual entrepreneurs make an insignificant contribution to the development of the national economy. Since a quarter of business entities still remain unprofitable, it is necessary to take preventive measures to prevent the loss of solvency by enterprises, one of which is to identify the existence of an unprofitable enterprise and the likelihood of bankruptcy.

scholarly journals Method of multicriteria assessment of business entities in the process of anti-crisis management

2020 ◽  
pp. 18-28
Author(s):  
O.F. Bystrov ◽  
◽  
A.A. Rubtsova ◽  
Keyword(s):  
Comparative Analysis ◽  
Crisis Management ◽  
Financial Stability ◽  
Basic Algorithm ◽  
Multicriteria Assessment ◽  
Business Entities

The basic algorithm of the BOF method is described. The method of applying the BOF method is presented in the case of both positive and negative values of quantitative values of indicators, using the transition from real values to encoded ones. The proposed method is an innovation that allows you to conduct a comparative analysis of any number of enterprises and projects in terms of their financial stability. The methods described in this article can be used for crisis management, as well as for calculating the balance of a portfolio of projects and programs.

scholarly journals System for evaluation of business entities financial sustainability under global challenges conditions

2021 ◽  
Vol 71 (4) ◽  
pp. 20-32
Author(s):  
M. Tatar ◽  
◽  
O. Hrebenikova ◽  
Keyword(s):  
Financial Stability ◽  
Cash Flows ◽  
Normative Values ◽  
Scoring Method ◽  
Metallurgical Enterprise ◽  
Financial Responsibility ◽  
Integrated Method ◽  
Financial Condition ◽  
Global Challenges ◽  
Business Entities

The need to ensure financial stability of businesses under global challenges conditions is highlighted in this paper. The company financial stability is one of the most important characteristics of the company financial condition, associated with the level of dependence on creditors and investors and is characterized by the ratio of equity and liabilities. The existing methodological approaches for the evaluation of the enterprise financial stability are analyzed. The evaluation of financial stability on the example of metallurgical enterprise by coefficient, score and integrated methods is carried out. The coefficient analysis shows that the most of financial stability coefficients in the dynamics have decreased and are not within the normative values. While analyzing the financial stability type, it is determined that the enterprise in 2018–2020 had unstable financial condition, which indicates solvency violation. The results of the financial stability analysis by scoring method, according to which the coefficients are assigned the appropriate score depending on the approximation to the normative indicator, led to the conclusion that PJSC «AZOVSTAL» in 2018–2020 was included to the fifth class, i.e. crisis enterprise of the highest risk, practically not solvent. The evaluation of financial stability by the integrated method, according to which the value of the integrated indicator should be closer to one, showed that the enterprise financial stability in 2018 was bad, in 2019 very bad, and in 2020 satisfactory. The measures to increase the enterprises financial stability depending on the financial stability level are proposed, particularly, for the investigated enterprise it is proposed to improve financial flow planning, implementation of real payment calendars, creation of financial responsibility centers and strengthening control over them by the holding, which always make it possible to have reliable information about the company's cash flows and increase the controllability of current payments, reduce losses from the funds misuse. It is also proposed to accelerate the turnover of enterprise resources, which will improve the overall efficiency of activities.

scholarly journals Overcoming ambiguity in assessing the financial sustainability of Crimean hospitality companies for anti-crisis management

2021 ◽  
Vol 11 (2) ◽  
pp. 36-56
Author(s):  
V. A. Malyshenko ◽  
K. A. Malyshenko
Keyword(s):  
Crisis Management ◽  
Financial Management ◽  
Financial Stability ◽  
System Analysis ◽  
Financial Analysis ◽  
System Development ◽  
Unstable System ◽  
Financial Condition ◽  
Macroeconomic Indicators ◽  
Strategic Program

The subject of the research is the system of methods of financial management of a company, in which a contradictory situation of conflict of goals of its development has developed, with the obligatory occurrence of systemic crises on the one hand, and the rule of constant preservation of a low risk of financial destabilization, on the other. The relevance of the study is due to the significant distance of system analysis in its categories from strategic financial analysis. Systemic destabilization of active investment outwardly looks the same as the end-of-life bankruptcy crisis, which significantly distorts the perception of potential investors in the industry in general. The scientific novelty lies in the substantiation of a method that makes it moving from a simple identification of the transitional (crisis) development stages of an unstable system (company) to the substantiation of the parameters of a strategic program, including within the framework of anti-crisis management. The aim of the research is to adapt analysis methods of the system’s crisis states to the provisions of the most system-oriented financial analysis techniques have being applied to disclose the unstable states of the “system-enterprise”. The system analysis has been chosen as the research method in various areas of its manifestation: from a general philosophical description of unstable system with characteristics of a company’s life cycle to a model for assessing the company’s financial stability for strategic purposes. The result of modeling the financial condition of such unstable companies taking into account provisions of the system analysis, was the formulation of a new category of strategic financial management — the Strategic zone for the financial stability transformation, which serves as the basis for a long-term program for the transformation of the financial condition. As a conclusion, it can be noted that applying of the financial analysis method for strategic purposes (“Fregat” model) in a single connection with the system analysis provides the possibility to identify the most dangerous crises from the standpoint of the identification complexity and consequences of the cochirid stage crises of the system development. Also, this allows to separate the investment (justified) destabilization from instability which could be the cause of wrong actions of the company’s management. All this makes it possible to objectively assess the macroeconomic indicators of the hospitality industry in general.

scholarly journals Review of the monograph “O. Yu. Dyagel. Analytical procedures of anticrisis management: monograph. Krasnoyarsk: Sibirial Federal University, 2020. 268 p.”.

2021 ◽  
Vol 15 (4) ◽  
pp. 851-858
Author(s):  
D. V. Manushin ◽  
T. V. Kramin
Keyword(s):  
Crisis Management ◽  
Financial Analysis ◽  
Practical Significance ◽  
Complete Analysis ◽  
Financial Indicators ◽  
Financial Condition ◽  
Wide Range ◽  
Analysis And Synthesis ◽  
Logical Method ◽  
Analytical Procedures

Objective: to conduct a detailed and complete analysis of a monograph by O. Yu. Dyagel2, which is devoted to the study of a wide range of issues related to analytical procedures of crisis management.Methods: the basic techniques of the abstract-logical method were used (analysis and synthesis, analogy, generalization, comparison, transition from abstract to concrete, etc.).Results: the leading line of this work is the differentiation of analytical procedures for crisis management, which implies a further standardization of individual diagnostics of enterprises’ financial condition. The reviewers emphasize the importance of the approaches to diagnosing the enterprises’ financial insolvency, systematized in the monograph.The reviewers assess the grouping of the author's approaches in the implementation of analytical procedures for crisis management, starting with preventive crisis management and ending with arbitration management.Scientific novelty: a new promising direction of financial analysis has been identified: standardization of an individual financial analysis based on specific groups of financial indicators suitable for a specific enterprise and its situation.Practical significance: the reviewers concluded that O. Yu. Dyagel’s monographic study contains examples of the practical application of the theoretical, methodological and regulatory approaches studied by the author, which significantly increases the possibility of their application in practice.

Analysis of financial stability of the Bank

2018 ◽  
Author(s):  
Елена Герасимова ◽  
YElyena Gyerasimova
Keyword(s):  
Graduate Students ◽  
Commercial Bank ◽  
Management System ◽  
Financial Stability ◽  
Analysis And Evaluation ◽  
Financial Condition ◽  
Banking Activity ◽  
Wide Range ◽  
Independent Decision

The textbook is intended for students enrolled in the direction 38.03.04 "Finance and credit" master's degree. The textbook comprehensively describes the main aspects that characterize the financial condition of a modern commercial Bank and its stability. The application of methodological tools for analysis and evaluation of the most important components of banking activity (quality of management system, equity, assets, attracted resources, liquidity, profitability, risks) is considered. The practical part of the manual includes cases, examples of solving situational problems and tasks for independent decision, as well as self-training. The materials have been prepared in accordance with the relevant regulations and legal acts regulating banking activities (as of 01.06.2018). The book may also be of interest to specialists in the field of analysis of commercial and credit organizations, students and graduate students studying in economic specialties, a wide range of readers interested in the problems of analysis of economic entities.

scholarly journals Holistic view on corporate bankruptcy causes: systematization of causes and requirements to building bankruptcy prediction models

2019 ◽  
Vol 2019 (4) ◽  
pp. 120-129
Author(s):  
Tomas Kliestik
Keyword(s):  
Market Economy ◽  
Prediction Models ◽  
Bankruptcy Prediction ◽  
Negative Consequences ◽  
Financial Health ◽  
Holistic View ◽  
Wide Range ◽  
Business Entities ◽  
A Chain ◽  
The Impact

The article presents the research of bbusinesses’ life cycle as complex organisms that do not exist in isolation, but in mutual interaction with other subjects operating in the national economy, other businesses, non-financial or financial corporations, government agencies or customers and households. The essence of the crisis as the motive force of any market economy is revealed. The causes of bankruptcy of enterprises are considered. It has been stated that bankruptcy of the enterprise can result in a chain reaction with negative consequences for all economic entities. Every economy in the world (not only market economy) is confronted with failures or bankruptcy of business entities. There exist a variety of forms, manifestations and consequences of business failures. There has been substantiated the importance of the research, the essentiality of a detailed analysis of methods of bankruptcy prediction models, i.e. determining probable development of the corporate principles in the coming years. In the centrally planned economies, the state is responsible for all the consequences; in the market economy they directly affect all entities interrelated with the enterprise. Each group involved applies a wide range of tools, algorithms and methods, but their aim is identical: to predict the future development of the corporate financial health. There appear questions about termination of activity of a particular enterprise due to its future bankruptcy, shutting down because of bad decisions, or the impact of endogenous and exogenous factors. Development of the algorithms and methods is not possible without a detailed, almost holistic knowledge of the causes of corporate bankruptcies. A methodological toolkit based on numerous studies of specialists has been developed for building bankruptcy models.

scholarly journals Theoretical essence and value of the financial stability of the enterprise

2020 ◽  
pp. 25-29
Author(s):  
Oksana VINNYTSKA ◽  
Liudmyla CHVERTKO ◽  
Tetiana KORNIIENKO
Keyword(s):  
Financial Stability ◽  
External Factors ◽  
Theoretical Research ◽  
Financial Condition ◽  
Current Period ◽  
The Future ◽  
Margin Of Safety ◽  
Business Entities ◽  
Definition Of ◽  
Internal And External Factors

Introduction. The solution of modern problems of stabilizing the national economy, ensuring the social development of society is possible only on the basis of positive shifts, primarily in the aspect of strengthening the financial condition of business entities. One of the important components of the analysis and management functions is to ensure the stable development of the enterprise and its financial stability. The concept of financial stability is complex and multifactorial, which is determined by the economic environment in which the enterprise operates, as well as the results of its functioning, the ability to actively and effectively respond to changes in internal and external factors. The purpose of the paper is in the study of the economic essence of financial stability, its determining factors, as well as the development of recommendations for improving the methodology of its management. Results. The financial stability of an enterprise is a complex, multifactorial category. The philosophy of the definition of the economic category “financial stability” provides for consideration as a reproduction process. This category characterizes the economic relations that make up the financial mechanism for ensuring the progressive socio-economic development of the enterprise. The analysis of theoretical research allows us to identify five approaches of scientists to determine the essence of financial stability. These approaches differ in the completeness of the characteristics of the financial condition of the enterprise. The variety of approaches indicates the ambiguity of the authors' definition of the concept of financial stability. Each author interprets this economic category from the standpoint of the goals and objectives of its research. The complexity of the category of financial stability of business entities lies in its essence, displaying the level of the financial condition and financial results of the enterprise, the ability to fulfill its obligations and ensure the development of the enterprise while maintaining credit and solvency, relative independence from changes in internal and external factors. A quantitative characteristic of financial stability is a margin of safety, which is determined by the structure of property and capital and ensures financial independence and solvency in the current period and in the future. It is this definition that determines such a logic for assessing financial stability as a sequence with varying degrees of detail in the consideration of all processes associated with the movement of financial resources, which are expressed in a change in the structure of property and capital. Conclusion. In general, the analysis of theoretical approaches to assessing financial stability and their generalization allows us to conclude that the financial stability of economic entities should be considered as a complex category, reflecting the level and structure of financial condition and financial results, the ability to fulfill their obligations and ensure the development of activities, while maintaining credit and solvency. It is also universal that the quantitative characteristics of financial stability should be considered a margin of safety, which the company, due to the structure of property and capital, and also ensures independence and solvency in the current period and in the future.

CURRENT ASSETS PLANNING AS AN INDICATOR OF FINANCIAL COMPETITIVENESS OF TRADE ENTERPRISE

2017 ◽  
Author(s):  
Hanna Blakyta ◽  
Keyword(s):  
Financial Stability ◽  
Modern Method ◽  
Main Element ◽  
Integrated Method ◽  
Financial Condition ◽  
Wide Range ◽  
Close Relationship ◽  
Projected Changes ◽  
The Relationship ◽  
Financial Competitiveness

The article substantiates the features of current assets of trade enterprises. It is determined that the main source of development and efficiency of trade enterprises is the ability to optimize the process of selling goods, which has a close relationship with current assets. The modern method of calculating the planned volume and structure of current assets is characterized, which is based on the application of the method of coefficients, which allows the use of a correction factor that shows the projected changes in the functioning of current assets. In addition to calculating the planned indicator of current assets using the method of coefficients, it is proposed to determine the planned indicators of current assets of the enterprise in terms of their types, which will provide a more extensive analysis of the effectiveness of current assets management. It is determined that the current assets of the enterprise affect a wide range of indicators and characteristics of the enterprise, in particular on liquidity, solvency, financial stability and so on. In the conditions of intensive emergence of all new crisis phenomena in the country's economy, which causes the deterioration of the financial condition of domestic enterprises, the driving force of development of such enterprises and maintenance of their financial capacity was identified. Since current assets are the main element of resource provision of current activities, as well as taking into account their role in calculating the main indicators that characterize both the operational and financial performance of the enterprise, the relationship between planning current assets of the enterprise and the level of financial competitiveness. An integrated method of assessing financial competitiveness, based on the use of a number of coefficients based on current assets, is substantiated.

Sign in / Sign up

Export Citation Format

Share Document