Is level of the financial environment of a company, in which it has the ability to function effectively in accordance with the goals set by business owners, to react promptly and adequately to changes in the internal and external environment, and to adapt to them without losing autonomy and reducing efficiency.
Published in Chapter:
Financial Security of Economic Activity: Analysis, Control, Risk Management
Natalia Kazakova (Plekhanov Russian University of Economics, Russia) and Anna Sivkova (Plekhanov Russian University of Economics, Russia)
Copyright: © 2019
|Pages: 21
DOI: 10.4018/978-1-5225-7760-7.ch006
Abstract
Under the conditions of megarisks, the general level of the world economy's instability rises, the number of unprofitable organizations with overdue debts increases, thus, creating additional threats to the financial security of states. In this regard, presented here, research results have scientific and applied importance for risk management and financial security of economic entities on the basis of the control and analytical concepts which cover: monitoring, diagnostics, prevention of crisis situations, including bankruptcy, corporate fraud and various other financial irregularities in the economy. Accounting for the specifics of economic entities in the course of analysis, diagnostics, and control over their activities is aimed at the creation of effective corporate fraud prevention and bankruptcy management systems. The conceptual principles of information and analytical support, improved methods for analyzing, and evaluating and monitoring financial security contributes to the development of a common methodology for economic analysis and control activities, ensuring their effectiveness and transparency. The comprehensive toolkit for diagnosing financial security allows identifying the areas of increased bankruptcy risks, fraudulent actions or ineffective business management; and unifies the control process, thereby reducing labor intensity and improving the quality of control measures.