Bìznes Inform (Dec 2022)
A Comparative Сharacterization of the Risk-Oriented Financial Strategies of Companies in the International Market During the Wartime
Abstract
The article is aimed at comparing existing risk-oriented financial strategies and developing recommendations for their implementation in the activities of Ukrainian companies focused on international markets, especially under conditions of martial law. The article is devoted to the analysis of modern approaches to determining risks and their implementation in the financial strategy. It is proved that modern enterprises, especially those operating in the international market, are focused on the constant updating of the financial strategy in accordance with the requirements of the external environment. It is found that at the present stage of economic development, companies, in particular international ones, operate in the conditions of the sixth technological structure of the economy. The processes of economic development at this stage are associated with the introduction of technological, organizational and institutional innovations, paying special attention from science and management practice to the implementation of a risk-oriented approach, even for enterprises engaged in the production of consumer goods. Today, the implementation of risk management best practices is directed towards improving the management’s ability to predict and respond to changes so that the company not only survives in conditions of uncertainty, but develops and shows better results. The main risks of the development of modern companies are specified, among which are: the risk of interruptions in production; risk of cyber incidents; risk of natural disasters; risk of amendments to legislation and public policy; risk of changes in the market situation; risk of new competitors entering the market; risk of new technologies; risk of climate change; risk of reputational damage or a decrease in brand value; risk of a shortage of skilled labor force. It is proved that taking into account these risks in the development of a financial strategy is a necessary condition for the stable development of the company. The advantages and disadvantages of each of the risk-oriented financial strategies of international companies proposed in the article are systematized as follows: concentrated growth; integrated growth; diversified growth; differentiation; minimum costs; development. It is determined that for modern enterprises operating in a turbulent external environment, but at the same time promoting their products to world markets and hoping to more actively explore new markets, it is extremely important to choose the optimal financial strategy that would take into account the risks. Precisely for this purpose, the existing financial strategies are systematized in the publication and it is proved that the application of these strategies in the context of risk orientation can increase the efficiency of enterprise development in the international market.
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