The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University
PROBLEMS OF ECONOMIC SECURITY OF THE ENTERPRISE AND WAYS TO OVERCOME THEM
10.36172/EKONOMISTI.2024.XX.01.Zurab.Tsereteli
Annotation. The paper examines problems of economic security of the enterprise and ways to overcom them, as a result of improvement the economic indicators of the enterprise are achieved.
Keywords: economic security, economic security of the enterprise, economic efficiency of the enterprise.
Introduction
Nowadays, economic security has a great international recognition. It is an important condition for better existence and development a mindful society in the whole world. Economic security is understood as a field of scientific knowledge in which the role of economy is considered, that ensures a high and stable growth of the main economic indicators. A special attention is paid to the economic security and threats. This is due to the current conditions in the world. The enterprises are forced to operate with different levels of risk and also the arising of various destabilizing factors.
Problems of economic security are always relevant for the enterprises, both: in a stable economic environmental conditions and during times of crisis. Economic security is the state of economic system that provides protection from the various threats and factors that can harm the enterprise.
Economy is the main basis for development society, state, enterprise, individuals therefore economic security is one of the most important national priorities. Dynamic global changes in many cases creating the certain threats in activities of enterprise, which require the appropriate measures that should be taken immediately.
In the modern conditions of economic development, a stable operation of the enterprise is achieved, at first of all, by its economic security. An internal control system is important to achieve economic security.It is not only one of the main functions of management, but it is an effective tool for economic security of the enterprise.
The term "an internal control system" itself refers to a set of organizational measures, methods and procedures that are used by the company's management to regulate financial and economic activities, protect assets and identify errors so that effective measures can be taken to eliminate them.
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As it has shown by the current world experience, an economic security is the most important prerequisite for freedom of the enterprises, maintaining stability and raising the well-being of population.
Formation of economic security system belongs to the main aim of national priorities in the current term. Making decisions to achieve economic security largely depends on the available information about condition, functioning and development prospects of the enterprise, its completeness, reliability and timeliness issues.
The concept of "security" has a specific historical character, which is related to all legal spheres of our life.
The economic security of enterprise envisages more effective usage of existing corporate resources in order to achieve a sustainable operation of the enterprise both: in the current period and in the future.
A threat of economic security of enterprise is such a developing issue and as a result of it there is a real possibility and/or probability of disrupting a normal functioning of the enterprise. In particular, causing any kinds of enterprise’s damage.[11]
The treats of economic security are divided into 2(two) large groups: external and internal.
The external threats appear outside of enterprise and do not depend on its activities, but, of course, can cause a very significant damage to it. All external factors affecting the economic security of enterprise can be grouped into: 1. political, 2. legal, 3. technological, 4. socio-economic, 5. scientific and technical, 6. natural and climatic, etc.
The external threats of economic security of enterprise include the following: an insolvency of business partners that can worsen a financial situation of enterprise; a damage of business reputation of individuals and/or enterprises; provoke an involved in espionage; unfair competition; unfavorable actions in the political and economic issues; changes in the state legislation; the natural and man-made emergencies, and others.
The internal threats are related to concrete activities of enterprise, which arise directly in the course of economic activities and can affect a final result of the enterprise working process.
The internal threats of economic security of enterprise include: a leakage of confidential information; a low qualification of employees; the deficiencies in tactical and strategic planning which will further affect a decision-making and a goal fulfillment.
According to the level of probability, the real and potential threats can be distinguished. The general and local threats are distinguished according to the scale of implementation results. They can cause damage to the entire enterprise, while the localized threats can cause damage of enterprise within a single functional area.
The threats of economic security are also classified by functionality: 1) financial (economic crises, inflation, competition), 2) personnel (unsatisfying duties of employees, a low qualification of employees, a poor personnel management system, etc.), 3) informative (damage of software, the flaws of information and analytical issues ) 4) socio-economic, 5) productive, 6) technological, 7) legal, 8) physical (theft, raids, technological accidents, strikes, etc.).
If it is possible to predict, distinguish between 1) the predictable and 2) unpredictable threats. It should be noted that it is unpredictable threats that pose a threat to the enterprise, because they cannot be predicted.
Depending on the nature of their origin, the direct and indirect threats are distinguished. According to the probability of occurrence, threats are divided into obvious and latent. The obvious threats are more understandable, really defined and not hidden. For example, thunder that is hidden and not obvious one.
Depending on a magnitude of the expected damage, hazards can be catastrophic, significant, or a minor complicated. In addition, the threats are classified according to the nature of their origin into subjective (artificial) and objective (natural). The subjective threats arise from intentional or unintentional human actions, while the objective threats arise from natural disasters.
Depending on the frequency of occurrence, they are divided into regular and spontaneous. They are classified according to the duration of existence: the permanent and temporary.
Depending on time of occurrence, there are: the current, completed and future threats.
The ongoing threats are those that are currently continue, the completed threats (that have occurred in the current period of past), and the advanced threats are those which may arise in the future.
Depending on the type of damage, there are the direct damage and damage which forming by a lost of profits.
One of the main conditions for the stable and sustainable development of society is the process of creation security system for concrete country, regions and enterprises.[1]
An effectively structured system is needed for economic security of the enterprise. In general, all responsibilities rest with the enterprise's economic security service (department), including the management. [11]
The economic security system of enterprise is an organized set of special bodies, services, means, methods and measures that ensure protection of the vital interests of enterprise from the internal and external threats[1].
Maintaining the economic security of enterprise is achieved by influence of both: internal and external factors, which can affect the functioning of enterprise, both: directly and indirectly.
The environment of direct influence is created by suppliers, consumers, financial institutions, intermediaries, competitors and contact auditors, as well as the indirect are: natural, demographic, environmental, economic, political and others.
Economic security of the enterprise can be maintained only when the activities are corresponded to the interests of all of them.[2]
The action of external and internal factors often leads to new risks for enterprise, which can turn into problems, cause losses or, even, in the worst case, to bankruptcy. [3]
Thus, a structure of economic security in the modern enterprises can be imagined as the protection of fundamental, diverse, centralized techniques, operations and methods from the threats caused by internal and external factors.[4]
Accordingly, an economic security of the enterprise can be characterized as a conditional state of economic development, which implies a full protection of its interests from economic threats of the external and internal issues, a stable development and efficient operation of the enterprise, under conditions of optimal usage of all existing and attracted resources.
Nowadays a successful functioning of the enterprises and rapid economic development largely depend on improvement of all activities in the economic security system.[5]
Among the problems faced by enterprises to achieve economic security, the following can be highlighted:
1. Lack of detailed and objective information, necessary for successful functioning;
2. Failure of the internal and external sources of financing;
3. Inadequacy of the laws against unfair competition;
4. Frequently changing tax and customs policy in the concrete country;
5. Low quality of available information not only about competitors but also
about the state own activities;
6. Insufficient usage of enterprise’s expenses analysis for development strategy of economic security;
7. Imperfection of production forms and methods;
8. Malfunction of the marketing system and others.
Solving these problems is the main condition for achieving a real efficiency of the enterprise.
Accordingly, the main goals of economic security system of enterprise are:
1. Timely identification and prevention of both: the external and internal threats;
2. Finding the internal and external sources of financing;
3. Ensuring the economic efficiency of enterprise;
4. Achieving a high level of competitiveness;
5. Increasing a technological potential;
6. Legal provision of economic activity;
7. Use of perfect forms and methods of production;
8. Improvement of the marketing system and others.
The mentioned goals can be achieved through such important ways as:
• Timely identification, prediction and elimination of the real threats;
• Developing a stable tax and customs policy in the country;
• Determination of the ways to avoid, mitigate or eliminate threats;
• Reliable protection of official and commercial secrets and other
confidential information from unauthorized usage;
• Introduction of access procedures to other limited resources;
• Creation of useful mechanisms and conditions for rapid response to the threats;
• Detection of negative security trends into company's operation.
At the same time, it is important that in the implementation of economic security of enterprise, the internal audit should play an important role in solving the main problems. Accordingly, its main tasks should be:
• Identification of existing and predicted the potential threats;
• Establishing an adequate view of prevention;
• Assessment of security level of informative resources in the enterprise;
• Assessment of the quality of management's response to security problems;
• Analysis of effectiveness of management actions, etc.
Conclusion
Thus, the ways of solving economic security problems of enterprise are determined on the basis of possible improvement of its activities, timely fulfillment of obligations, and based on the definition of security should:
• Determine and analyze the planned results;
• A fully define management functions, powers and levels of responsibility;
•The necessary number and direction of funding sources should be studied, calculated and sought;
• The rational usage of resources;
• Systematically control of effectiveness of the incurred expenses.
However, it can be said that the internal control, aimed to improving the financial and economic activities, is the main tool for achieving and maintaining economic security in the business enterprises.
It provides an opportunity to eliminate economic security problems, develops measures that strengthen control over the enterprise's staff and reflects their official duties, regularly analyzes the organization's financial situation, monitor the legitimacy of competing firms, and evaluates an effectiveness of the entity's contractual activity decisions.
The internal control of all current and future processes, contributes the stable operation of the enterprise and its development, which is the main goal for overcoming economic security problems.
References
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