Specific of the creation and functioning of the financial and economic security system of business entities

Abstract

The article aims to research the theoretical aspects of the creation and functioning of the financial and economic security system of business entities. The relevance of the researched problem is determined by the need for subjects of economic activity to create an effective system of economic security. An analysis was carried out to interpret the concept of «financial and economic security». Understanding business entities' financial and economic security makes it possible to state that such security is considered the ability to independently develop and implement a financial strategy following the corporate strategy's goals in an uncertain and competitive environment. It was determined that the goal of financial and economic security is to guarantee the financial stability and maximum effective functioning of the enterprise in the current period and a high development potential in the future, the primary condition of which is the ability to resist existing negative external and internal factors, emerging dangers and threats that can cause losses to the enterprise. The purpose and basic principles of ensuring business entities' financial and economic security are considered. Defined the role of financial and economic security in ensuring the stable and practical development of the enterprise and systematized its types to the main criteria. It has been established that a business entity's financial and economic security is a complex system that includes a particular set of internal characteristics to ensure the efficiency of the use of corporate resources in each area of activity. Features of the creation and functioning of the financial and economic security system of business entities are revealed – this is the economic state of business entity of the system, which achieves balance and resistance to negative manifestations of threats, and there is the ability to ensure its own practical and sustainable development, considering its economic interests. Proposed directions for improving the financial and economic security system of business entities, namely: implementing effective risk management strategies, improving the control and audit system, and ensuring high qualification of management personnel. Keywords: financial and economic security, business entities, system of financial and economic security, financial policy, the structure of the financial and economic security system.