Financial Monitoring in the System of Strategic Management of Enterprise

Abstract

The publication discusses the issues of organization of financial monitoring - a considerably new method of scientific-practical activity, the purpose of which is to obtain and process warning information about the status of enterprise and tendencies of its development. Essence of concepts of «strategy» and «strategic management» is clarified; components of the decision-making cycle in the implementation of the enterprise’s strategy are allocated. It is specified that financial indicators only estimate the economic impact of the measures taken and are the indicators of compliance of the strategy with the overall plan of the enterprise’s development. In these terms the need for carrying out financial monitoring is substantiated together with its objectives and tasks. The organization of financial monitoring (which provides for displaying changes in the financial performance of firm not only regarding their compliance with the previously defined strategic guidelines, but also in creating an operational response mechanism for an efficient management of the long-term development of enterprise) is a direction of further analysis. It is concluded that in order to implement the sustainable development strategy of enterprise, one of the key directions of strategic management should be a regular, effective and flexible financial monitoring mechanism for obtaining an adequate estimate of the financial condition and supporting for the strategic orientation alternatives.

Keywords

• strategy
• strategic management
• financial monitoring
• enterprise