IJSTR >> Volume 9 - Issue 7, July 2020 Edition

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AUTHOR(S)

Yevhenii Rudnichenko, Lyudmyla Krymchak, Vasyl Franchuk, Nataliia Havlovska, Stepan Melnyk

KEYWORDS

economic security, quality management decisions, financial results, indicators, scenario analysis

ABSTRACT

The aim of the study is a comprehensive assessment of the economic security of an enterprise foreign economic activity, taking into account the main financial indicators and financial results in order to make quality management decisions by enterprise management. An assessment based on criteria for maximizing marginal profit from foreign economic activity and minimizing the share of imports in the total revenue of an enterprise, which allows to quickly determine the level of economic security of foreign economic activity when considering these indicators in dynamics. This approach allows to reasonably make management decisions and form options for analyzing scenarios for achieving levels of economic security and a corresponding reaction of an enterprise management system to them. This technique was tested at industrial enterprises. Based on the analysis, a complex of scenarios for achieving levels of economic security of foreign economic activity and corresponding reaction options for an enterprise management system is proposed, which implementation allows an enterprise management to make rational management decisions and ensure a sufficient level of financial income. The presented methodology focuses on enterprises engaged in foreign economic operations, which is a certain limitation, however, from the perspective of the methodology and practical application of the proposed methodology for assessing the economic security level, the results are verifiable and can be used not only by Ukrainian enterprises, but also by other foreign enterprises-subjects of foreign economic activity. Based on this study, a methodology for assessing the level of economic security of an enterprise foreign economic activity is presented, which combines export and import components and takes into account the main financial results of enterprises. The main criteria of this technique is to maximize marginal profits from foreign economic activity and minimize the import dependence of the enterprise. This approach allows to quickly determine the level of economic security of an enterprise foreign economic activity and ensure the adoption of high-quality management decisions.

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