Strategizing Financial Security: Opportunities and Threats

Abstract

Introduction. Stability of financial systems has become the most important issue of economic strategizing as a result of geopolitics, global economic crisis, and pandemics, which affect regions and the state as a whole. Financial security is now the current strategic priority of socio-economic development. Study objects and methods. The present research featured Kuzbass as an example of industrial region and its financial security as a strategic characteristic of the financial system. The study of financial security relied on a systematic approach based on the dialectical perception of reality. The empirical research relied on statistical methods, analysis of existing knowledge systems, economic monitoring, etc. The resulting abstract system and theoretical generalizations made it possible to define the strategic priorities of the regional development. In economics, the consistency principle takes into account the territorial features of socio-economic systems; the specifics of natural, economic, technical, and other factors; the degree of its political, administrative, and economic independence; its interaction with other regions, etc. Results and discussion. The phenomenon of financial security of the region is considered as an element of strategic management of socio-economic development. The author determined and classified the essential characteristics of financial security to make up a scheme of formation and development of financial risk as an element of the system of strategic priorities. Within this scheme, inflation and unemployment are additional aggregate criteria for assessing the level of financial security. Conclusion. New systemic threats in the field of finance require new ways to optimize financial relations and develop a theoretical and methodological foundation for qualitative and quantitative assessments of financial security. Numerous studies focus on various aspects of financial security in order to explain the interrelations of the financial bloc with economic elements in the regions, in Russia, and abroad. These relationships define the methodology for assessing the level of financial security and its subsequent consideration in strategizing. The present research compared a set of criteria with their threshold levels. However, these estimates may grow less reliable following the changes in the significance and priority of the corresponding criteria in the unstable economic and political reality. The new conditions require mobility and flexibility in adapting these criteria to the conditions of a particular region. This strategic project can be designed and implemented based on Professor V.L. Kvint’s concept of strategizing.