THEORETICAL APPROACHES TO DETERMINING THE FINANCIAL SECURITY OF THE ENTERPRISE

Abstract

The article analyzes the context of a market economy, businesses face high levels of dynamism and competition, necessitating effective responses to political, informational, and technological external influences. Entrepreneurs, as active participants in the market economy, are in constant motion due to the inherent aspects of their activities, such as creation, reorganization, bankruptcy, expansion, and contraction of businesses. This constant change introduces risks of uncontrolled business processes, leading to negative trends and imbalances in overall and financial management systems within companies. Thus, there is a pressing need for efficient identification of financial risks, recognition of potential threats, and ensuring the overall safety of the company. Despite extensive research in the field of financial security, both domestically and internationally, a comprehensive analysis of financial security as an independent phenomenon is lacking. Most studies focus on corporate security without giving due attention to the financial sector as a distinct area.The article aims to analyze theoretical approaches to understanding the concept of corporate financial security and to identify ways to ensure the safe functioning of a company's financial system. Financial security is seen as a vital precondition for the existence of both individuals and collectives, as it reflects the need for protection of vital interests from potential threats, ensuring the smooth operation of various processes. Experts argue that financial security should not only be seen as a state of protection from external and internal factors but also as a necessity for ensuring dynamic and static stability, enhancing adaptability to challenges, and fostering the company's effective development. According to the Methodological Guidelines for Calculating Ukraine's Economic Security, financial security is a specific state of the financial system that creates favorable conditions for stable socio-economic development, ensuring resilience against financial imbalances and fluctuations. Given the active development of the corporate sector in recent years, there has been growing interest in studying financial security at the enterprise level. Financial security at the enterprise level involves protecting financial interests and potential from risks and threats, both external and internal, to ensure financial stability and optimal funding of business processes in both the short and long term. The functioning of any financial system is closely linked to various risks, which are understood as the monetary expression of probable events that could cause losses. When such losses are unacceptable, protective measures are needed, which should not exceed the potential losses in cost. Risk analysis is crucial as it allows for identifying vulnerabilities in the financial system, determining the necessary and sufficient expenses to ensure financial security, and selecting appropriate protective measures, methods, and tools. In conclusion, the financial security of an enterprise is the state of the financial system in which financial equilibrium is maintained, and effective countermeasures against existing threats are implemented, enabling the achievement of set goals and the realization of development strategies.