Actual problems of innovative economy and law

Journal "Actual problems of innovative economy and law" is included in category B for specialties: in the field of knowledge "Management and administration": 073, 076 (order of the Ministry of Education and Science of Ukraine dated 23.08.2023 No. 1035) and 071, 072, 075 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543); in the field of knowledge "Social and behavioral sciences" 051 (order of the Ministry of Education and Science of Ukraine dated August 23, 2023 No. 1035); in the field of knowledge "Law" - 081 and "Public management and administration" - 281 (order of the Ministry of Education and Science of Ukraine dated 12.20.2023 No. 1543).
Registration of an entity in print media: Decision of the National Council of Ukraine on Television and Radio Broadcasting No. 1390 dated 11/16/2023. Media identifier: R30-02018
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Development and implementation of a risk-oriented financial management system

# 12 60-66 Download/view the full text of the article

УДК: 336.64:005.334

DOI: https://doi.org/10.36887/2524-0455-2024-6-12

Chmutova Iryna,
Doct. of Sc. in Economics, Professor, Professor of Management, Business and Administration Department,
Simon Kuznets Kharkiv National University of Economics,
https://orcid.org/0000-0001-7932-7652
Hainalii Anastasiia,
Master Student,
Simon Kuznets Kharkiv National University of Economics

Developing practical approaches to risk management is a fundamental task in ensuring businesses’ sustainability and financial security in an era characterized by heightened uncertainty and complex market challenges. The increasing importance of sustainable development within the financial sector necessitates integrating innovative risk-based management systems that address the dynamic needs of the modern business environment. These systems serve as a vital mechanism for mitigating risks, enhancing adaptability, and supporting long-term strategic objectives. This paper aims to develop theoretical and practical aspects of implementing risk-oriented financial management systems aimed at enhancing the financial security and operational efficiency of companies in modern conditions of uncertainty. The study identifies key criteria for selecting these systems, including the complexity of implementation, strategic alignment, flexibility, and integration potential. These criteria are critical for ensuring risk-based systems’ successful adoption and functionality within financial companies. The balanced scorecard (BSC) is suggested as an effective tool for managing financial risks. The research outlines the main stages of implementing the BSC framework: establishing foundational infrastructure, conducting pilot testing within specific divisions, and achieving full-scale integration across the organization. The paper also offers recommendations for effective implementation, emphasizing the importance of active management involvement, forming cross-functional teams, and utilizing modern digital technologies to streamline processes and improve decision-making. The results demonstrate that adopting risk-based financial management systems contributes to reducing the adverse effects of risks while simultaneously enhancing both strategic and operational performance. By integrating such systems, companies can achieve greater resilience and competitiveness in a volatile economic landscape. Furthermore, the balanced scorecard approach facilitates the alignment of risk management practices with broader organizational goals, fostering a proactive and comprehensive approach to risk mitigation.

Keywords: risk, threats, risk-based management, balanced scorecard, risk management, digitalization, integration, financial security, financial companies.

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The article was received 12.11.2024

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Chmutova Iryna, Hainalii Anastasiia. 12.11.2024. Development and implementation of a risk-oriented financial management system. The journal "Actual problems of innovative economy and law". 2024 / #6. 60-66pp. https://doi.org/10.36887/2524-0455-2024-6-12

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Chmutova Iryna, Hainalii Anastasiia. "Development and implementation of a risk-oriented financial management system". The journal "Actual problems of innovative economy and law". 12.11.2024. https://doi.org/10.36887/2524-0455-2024-6-12

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