Application of SWOT and PESTEL analysis in combating economic crimes and when identifying threats to economic security of the state

Abstract

The article examines the state of economic crime in Ukraine based on SWOT and PESTEL analysis when determining economic crimes as a threat to the economic security of Ukraine as well as using these analytical methods to identify the ways of combating economic crimes and destruction of criminal infrastructure. It is determined that the SWOT analysis is a process of establishing the links between the most common for the system, including law enforcement one, opportunities, threats, strengths (advantages), weaknesses, the results of which can be later used to formulate and choose the strategies of the activities. The SWOT analysis is carried out to study the possibility of the impact of a law enforcement agency as a part of law enforcement system on particular criminal environment. SWOT analysis is a kind of tool which does not contain the ultimate information on decision-making, but allows to organize the process of consideration of all available information using their own opinions and estimates. SWOT analysis makes it possible to form a common range of strategies for combating crime in accordance with their features – mutual influences of a law enforcement agency and criminal environment. Wide application and development of the SWOT analysis is explained by the fact that strategic management is associated with large volumes of information which should be collected, processed, analyzed, used, and, therefore, there is a need to find, develop and apply the methods of such work. The essence of PESTEL analysis is to identify and assess the impact of macro factors on the results of current and future activities of the authorized body to counter criminal activity in the economy. The purpose of the PESTEL analysis is tracking (monitoring) the changes of macro environment on key areas and identifying the trends, events which are outside the control of the body, but still have an influence over strategic decisions on ensuring economic security and combating economic crimes. The political factor of the external environmental is studied primarily in order to have a clear idea of the intentions of the government to carry out reforms in the fiscal, legal and judicial systems, political will to fight corruption and of the means by which the state assumes to implement its policy. The analysis of the economic aspect of the external environment allows us to understand how economic resources are generated and distributed on the state level as well as state fiscal policy, the state of economic crisis, income and savings of the population, the existence and nature of the government programs to support entrepreneurship, the tools of influence on enterprises, regulation measures, business support (existing exemptions and subsidies), the prevalence of prohibitive principles of economic regulation on stimulating ones, redistribution of property and others. The study of the social component of the external environment is aimed at understanding and assessing the impact of such social phenomena as poverty, people’s trust in the authorities, in particular law enforcement agencies, migration, people’s opinion regarding anti-social behavior and others on the system of combating crime. The analysis of the technological component allows to foresee the opportunities associated with the development of science and technology, timely adapt to the dynamic criminal environment and fast upgrading of their own information technology resources, learn quickly the achievements of different sciences and industries by combining the efforts of specialists in various disciplines, competencies, know-how implementation in the management and organization and others. The analysis of the legal component allows to provide the opportunities associated with the changes in current legislation or those that exclude the systemic approaches for its formation; eliminate artificial gaps that make it impossible to conduct an effective investigation and bring the perpetrators to justice; implement innovative approaches to ensure criminal and legal protection of public relations and others. The analysis of environmental component allows to determine the environmental problems in the region, the possibility of specific production in a particular region, a system of direct administrative restrictions that limit the development of environmentally hazardous industries, and in some cases, their closure and others.

Keywords

• economic (tax) security, economic crime, analysis, threat, strategy of combating crime