Improving the system of quantitative indicators for risk assessment of financial companies

The paper examines the existing methodological recommendations for assessing risk of financial institutions of non-bank financial services market participants. In particular, the focus is on the activities of financial companies, which are the largest non-banking market participants. The purpose of the study is to develop an approach to risk assessment of financial companies. The methodological basis for achieving the goal is a systematic analysis of the existing provisions of the regulator on the criteria for assessing the risk of financial institutions. The paper examines in detail the state of the modern risk assessment system in accordance with the criteria developed by the regulator, identifies key shortcomings of the recommendations and proposes to supplement the existing list of indicators that were taken into account by the previous regulator. An analysis of the legislation on the availability of quantitative indicators for assessing risk of non-banking financial services market participants was carried out, which made it possible to offer an expanded list of criteria for achieving the research goal. The expediency of the proposed system of quantitative indicators for assessing the risks of activity is confirmed by the existing actions of the regulator, which partially coincide with the proposed provisions. The developed recommendations provide an opportunity to improve the risk assessment system both for inspections by supervisors and for financial institutions seeking to strengthen preventive measures for their management.

Analysis technology of a bank’s competitive position in the deposit market

The structurally balanced resource base of a bank determines its ability to achieve its goals and, as a result, its performance and has a decisive impact on the reproductive process in the economy by converting borrowed funds into investments. Despite a significant reduction in the number of banks over the past 10 years (from 175 to 73), the deposit market is a highly competitive environment. This necessitates the search for approaches to the formation of deposit resources that are adequate to modern conditions, aimed at their stabilization and sufficiency. The objective of the study is to develop a technology for analyzing a bank’s competitive position in the deposit market, which is the basis for choosing a strategy for managing the formation and use of the bank’s deposit resources. The technology of analysis of the bank’s competitive position in the deposit market consists of the following stages: building a system of indicators characterizing the formation and use of bank’s deposit resources, calculation and analysis of integrated taxonomic indicators of the formation and use of a bank’s deposit resources, developing the “formation of a bank’s deposit resources – use of a bank’s deposit resources” matrix, positioning of banks in this matrix, determining the strategies for the formation and use of a bank’s deposit resources, and making appropriate management decisions and their implementation. The proposed technology has been tested on the example of existing banks in Ukraine as of January 1, 2021. Its use allows determining the current competitive position of a bank in the deposit market and choosing a strategy for managing the formation and use of deposit resources from the proposed: preservation, activation, balancing, directed action, intensification, and aggressive strategy.

The essence and features of the competency-based approach to strategic enterprise management

Increasing the role of an employee as a determining factor in the economic growth of an enterprise makes managers change the philosophy of management, directing it towards the realization of employees’ unique abilities. The effective implementation of the strategic direction of action depends on the knowledge, skills and personal characteristics of specialists, i.e. competencies that are a source of competitive advantage and a strategic factor in the enterprise development. In this regard, it is necessary to study the competency-based approach features in order to identify the opportunities for application in the strategic management of an enterprise. The purpose of the study is to clarify the essence of the competency-based approach and substantiate the need for its application in strategic management. The object of the study is the process of strategic enterprise management. The following methods were used: abstract-logical, analysis and synthesis – to clarify the essence of the competency-based approach; formation of conclusions; and graphical technique – to visualize the results. The views on the essence of the competency-based approach are analyzed and the lack of research on its importance for ensuring effective strategic management at different levels is noted. Taking into account the transformation of the essence of strategic enterprise management and the significant dependence of its effectiveness on professional competence of strategic decision developers and executors of their decisions, the essence of the competence-based approach is specified. It provides for the involvement of specialists with the necessary knowledge, skills, ability to objectively perceive information, use experience and intuition in determining promising areas of action, and take responsibility for decisions to achieve strategic goals for the implementation of the stages of strategic analysis and strategic selection. This will allow managers to involve employees in the process of making strategic decisions, focusing not only on their job positions, but primarily on the availability of a set of competencies necessary for strategic management and the appropriate level of their manifestation in professional behavior. A likely result can be a reduction in the time for the implementation of the relevant stages of strategic management and an increase in the likelihood of achieving strategic goals due to a correctly chosen strategy of future actions.

Corporate social responsibility as a strategic aspect of achieving financial stability of a business

In a modern turbulent economic environment, strengthening the principle of quasi-stability, globalization and competition, corporate social responsibility is becoming a driving force in establishing market proportions and business development prospects. This substantiates the importance of developing corporate social behavior as a strategic aspect of achieving financial stability in the practice of market participants. The study is aimed at developing a theoretical and methodological justification of the role of corporate social responsibility in optimizing the company’s costs and its impact on basic financial indicators, as well as identifying the relationship between the costs of corporate social behavior and the increase in company value. The research object is corporate social responsibility as one of the tools to achieve business financial performance. The theoretical basis was the analysis of works and publications of leading scientists, research data on CSR practices of successful Ukrainian and international companies, determination of the relationship between the current decline in company profits due to socially oriented costs and sustainable business development. The results obtained made it possible to demonstrate the CSR model of a financially stable company and to characterize the advantages and sources of reducing the company’s costs due to the effective CSR implementation by Ukrainian companies. The practical value of the results can be important not only for the company’s management system, but also for stakeholders such as consultants, shareholders, scientists, authorities, since the results show a positive relationship between CSR and financial performance, and stakeholders can exert some pressure on companies that do not have a CSR policy and thus encourage them to change.

Analysis of the enterprise`s readiness to implement modern tools of corporate culture development

Corporate culture is a unique attribute of the enterprise that positively affects the socio-economic results of its activity and develops under the influence of external and internal factors. The paper suggests a group of factors influencing corporate culture that determine the effectiveness and speed of its development. This group includes the level of competence of HR managers; the level of influence on staff of formal and informal leaders and their attitude to changes; the presence of cultural bugs, the attitude of the existing culture to changes, the degree of hierarchy, the speed of communication channels, the level of staff satisfaction with the situation, the presence of feedback. An analysis of global trends of enterprises’ corporate culture development allowed formulating the following areas of its improvement for the domestic enterprises: formation of a passionate employee, ensuring a balance between work and personal life, an individual approach to personal development and the effectiveness of staff activities, the organization of a virtual office, diversification as a part of teams, and reduction of hierarchy levels. The assessment of the domestic enterprises readiness to implement measures in the framework of the identified areas indicates that the most enterprises are ready to introduce modern tools for the development of corporate culture. At the same time, the necessity was revealed to introduce the individual approach to identify areas for improving professional skills and ensuring a balance between work and personal life of employees.

Implementation of state financial monitoring based on risk-oriented indicators in the activities of financial institutions

The article examines the systems of risks of various types of financial institutions and focuses on the absence of the risk of legalization among them. This risk is considered separately within the framework of a special system of relations in the field of combating money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction. The evolution of criteria for assessing the risk of a financial institution to be involved in legalization is analyzed, risk-oriented indicators of the activities of financial institutions used to assess their risk profile are generalized. It is established that one of the regulators in the financial services market, the National Securities and Stock Market Commission, uses outdated, formal, and ineffective criteria for assessing the risks of a financial institution to be involved in money laundering. However, the other regulator, the NBU, has already carried out the process of adapting state financial monitoring to the requirements of FATF and AMLD4 and developed risk-oriented indicators of financial institutions’ activities, used to assess their risk profile. Strengthening the control by the subjects of state financial monitoring over the risk profile of a financial institution and its overall financial monitoring system will help to increase the efficiency of state financial monitoring. It is proposed to unify risk-oriented features and introduce identical financial monitoring mechanisms for all participants in the financial services markets, considering the specifics of their activities, as well as including the risk of legalization in the risk system of a financial institution in order to improve the efficiency of the financial monitoring system.

Simulation of the impact of economic development on social development of the country

In the current conditions of development of the international and national economy, an important task of statistical research is to conduct an objective and timely assessment and modeling of the relationship between indicators of economic and social development. Based on the results of these studies, reasonable management influences of the state on the adjustment and regulation of the country’s development are accepted. The article is devoted to the study of the relationship between the main components of economic and social development of the country and the construction of a set of models for forecasting the prospects of the country. The object of the study is the socio-economic condition of the country. The article proposes an algorithmic model for assessing the impact of economic development on society, which allows to identify key economic indicators that influence and shape the social development of the country. The practical value of the algorithmic model is to develop a system of evaluation and selection as a result of modeling the most significant factors that shape the social development of the country. The study confirmed the hypothesis of the dominant impact of economic development on society and determined that the main economic factors are the level of competencies that satisfy the modern labour market, technical development of businesses and their competitiveness in markets.

Legal support of innovative activity of small and medium enterprises in Ukraine

In the context of European integration, the importance of state policy in the field of innovation of enterprises, especially small and medium-sized businesses, is growing. Therefore, the state of the regulatory framework should promote the development of Ukraine’s innovation system, which will increase the amount of foreign investment and increase the welfare of the population. All this requires effective coordination between legislative institutions. The dynamic formation of the legal basis for the development of innovation activities of small and medium enterprises shows positive trends, but attempts to intensify innovation activities have not been implemented in full. The article generalizes the Ukrainian legislative and regulatory support to support the innovation activities of small and medium enterprises. The structure of the institutional basis for supporting the innovation activities of small and medium enterprises was drawn up. Problems of functioning of the national innovation system are revealed. In the process of research the following methods were used: analysis and synthesis, induction and deduction, comparison, graphical and tabular method, system method. The state of the innovation system of Ukraine in relation to the world level is determined on the basis of international indices. The directions of solving the revealed problems of innovative activity of small and average enterprises are proposed, which should be solved by means of state policy tools.

Features of image formation of higher education institutions to increase the rating in the market of educational services

The article identifies a significant deformation of education, which led to the opening of new edu¬cational institutions. The authors noted the change of priorities in the state regarding the image of knowledge and education. This article examines the problem of creating a positive image for higher education institutions; orientation of modern educational institutions on search, development, and application of managerial cognitive and artistic means of creating a positive image of educational institution, reflection in this image of internal, essential meanings, maintenance and tasks, features of its activity. The authors investigated certain shifts in the market of educational services, namely: increasing so¬ciety’s requirements for the quality of vocational education, constant updates of teaching technology, rapidly changing economic conditions of universities, intensification of competition in the market of educational services. All this causes the urgent problem of finding new sources of increasing the competitiveness of higher education, the basic indicator of which is the image. The authors consider approaches to rating higher education institutions. The most famous interna¬tional university rankings are analyzed. The theoretical and methodological approaches and the basic principles of university rankings are compared. Using cluster analysis to enhance the competitiveness of higher education institutions, expand their capabilities and take them to the next level. The cluster analysis was conducted to determine the activity of students, graduates, employees, employers in the life of the university, their awareness of the symbolism of the university. As the students are not part of the university, their answers were not taken into account. The technological chain of formation of public attitude to the HEA through event measures was also formed.

Information and communication support of project management processes and enterprise value

The primary task for Ukrainian business at the present stage of it development is the development and implementation of effective mechanisms to improve the welfare of owners, which can be achieved through the management of investment projects. The realization of the outlined tasks depends on the investments that owners and investors are ready to invest in the development of business entities. The urgency of the issue of information and communication support of project management processes and the value of the enterprise is amplified in the context of the spread of information technology in all areas of enterprise activity. The place of information and communication support in the process of managing the value of the enterprise and projects is specified. Modeling of the business process of enterprise value management is carried out. The tools for improving the efficiency of enterprise project management taking into account project constraints are systematized. The expediency of using information and communication support of project and project management processes for the development and implementation of enterprise cost management strategy is proved. The study results allow combining the approaches to enterprise value and project management based on the use of modern information and communication software, which satisfies the requirements of modern times and modern market economy, oriented towards implementing the innovative instruments of business entities’ financial management.