FINANCIAL FLOWS OF ENTERPRISES IN THE CONTEXT OF ECONOMIC INSTABILITY: EXPERIENCE OF UKRAINE AND WAYS OF ADAPTATION

Abstract

This article presents a comprehensive analysis of the nature and dynamics of financial flows within enterprises operating under conditions of profound economic instability, which has become a defining reality for the contemporary Ukrainian economy. The study is grounded in the current context of Ukraine, marked by the ongoing full-scale war, deep structural disruptions, heightened inflationary pressures, restricted access to financial and credit resources, and significant changes in consumption patterns. Additional emphasis is placed on the breakdown of traditional supply chains and logistical routes, which has had a cascading effect on the continuity of business operations and financial planning. The article explores the challenges of managing enterprise-level cash flows amid increased macroeconomic volatility, where uncertainty regarding future revenues and expenditures complicates both operational and strategic decision-making. Special attention is devoted to identifying the main risks faced by businesses, including declining solvency, reduced customer purchasing power, instability of income streams, inflation-induced cost surges, and limited investment inflows. These factors jointly undermine the predictability and efficiency of financial management systems in both the short and long term. In response to these challenges, the article outlines a set of adaptive strategies that enterprises can implement to improve resilience and financial stability. These include the modernization of financial management approaches through greater emphasis on liquidity monitoring, real-time financial analytics, and the application of scenario-based budgeting models. The digitalization of financial processes is discussed as a vital mechanism for enhancing transparency, control, and operational flexibility. Furthermore, the study highlights the importance of integrating comprehensive risk management systems to mitigate potential financial shocks and to support data-driven strategic decisions. Particular attention is paid to the role of strategic financial flow management as a core instrument for ensuring not only business continuity, but also long-term competitiveness and sustainable development. It is argued that in the face of ongoing instability, enterprises must transition from reactive financial practices to proactive, resilience-oriented models that emphasize adaptability, efficiency, and the capacity to operate under conditions of systemic uncertainty. The conclusions drawn from this research may serve as a foundation for the development of financial strategies at the enterprise level and offer practical recommendations for financial managers, business executives, and policymakers seeking to strengthen the economic viability of businesses in Ukraine and similar crisis-affected environments.