RISK MANAGEMENT AND COMPLIANCE CONTROL AT ENTERPRISES: THEORETICAL BASIS

  • Yulia Ilkiv Lviv State University of Internal Affairs
Keywords: risks, threats, enterprise management, security activities, economic security of the enterprise, risk management, compliance control

Abstract

The article provides a theoretical analysis of the organization of security activities in enterprises, which is proposed to mean activities to ensure the most efficient use of available resources to protect their interests from the effects of internal and external threats, as well as adaptation to existing conditions with minimal losses. Theoretical bases of essence of safety activity of the enterprises as bases for maintenance of effective functioning of the enterprises in the conditions of competition are substantiated. It is proposed to position security activities as a management technology in the enterprise, which contributes to the achievement of strategy and a high level of competitiveness in the market. Currently, businesses face an increasing number of risks and threats that arise from a significant level of uncertainty in the environment, as well as illegal intentional or unintentional actions of employees. The impact of such threats has significant negative consequences on the results of enterprises, their image, market position and so on. Therefore, special attention is paid to the details of the process of risk management and compliance control in order to achieve a high level of economic security of the enterprise. Using methods of analysis, scientific abstraction, formal logic and logical generalization to determine the essence of the main categories in the field of security activities of enterprises and risk management. A comparison of risk management and a comprehensive enterprise risk management system is made. The advantages of using a comprehensive risk management system are analyzed. The ERM concept is characterized as an approach to enterprise management that integrates strategic planning, operations management and internal control and is based on risk accounting. Comparisons were made and differences were established between compliance control and internal audit at the enterprise.

Author Biography

Yulia Ilkiv, Lviv State University of Internal Affairs

Ph.D. Researcher, Lviv State University of Internal Affairs, Lviv, Ukraine

References

Kopytko, M.I, Prikhodko, S.M. (2018), “The specifics of the use of management technologies in the process of private security structures”. Scientific notes of KROK University. University of Economics and Law "KROK". Issue. 49. рр. 74-77 [in Ukrainian].

Franchuk, V.I, Prigunov, P.Ya., Melnyk, S.I. (2017), “Security activities: a systematic approach”. Scientific Bulletin of Lviv State University of Internal Affairs. № 1. pp. 154–163 [in Ukrainian].

Grinevsky, R. Do not let problems drift: 4 reasons to manage risks URL: https://bakertilly.ua/news/id47296

Feofilova, T.Yu. (2010), Risks and threats to economic security: identification, assessment and counteraction to influence. Business, Management and Law. №1. pp. 19-23 [in Russian].

Mihus, I., Koval, Ya., Laptev, S., Bala, O., Kopytko, M. (2020), “Monitoring in the system of state anti-crisis management of economic security of the banking institution of Ukraine”. Business: Theory and Practice/ 21(2), pp. 804–812. https://doi.org/10.3846/btp.2020.12985

Kopytko, M.I, Ilkiv, Yu.I. (2020), “Management of security activities of innovative enterprises”. Socio-legal studies. Issue. 3 (9). pp. 162-172. https://doi.org/10.32518/2617-4162-2020-3-162-172 [in Ukrainian].

Laptev, S.M., Alkema, V.G., Sidak, V.S., Kopytko, M.I. (2017) “Complex support of economic security of enterprises” Kyiv: University of Economics and Law" KROK. 508 p. [in Ukrainian].

Poida-Nosyk, N.N. Risks and sources of threats to the financial security of joint stock companies in modern conditions URL: www.teologia.org.ua/20110920172/stattі/dokladi/riziki-i-djerela-zagroz-fіnansovіie-bezpecі-akcіonernіx-tovaristv-u-suchasnix-umovax-1.html.

Goryacheva, K.S (2006), “The mechanism of management of financial safety of the enterprise”. Kyiv: Kyiv National University of Technology and Design. 17 p. [in Ukrainian].

Sizyakov, E.S Modern methods of risk identification URL: https://novainfo.ru/article/4019

Organization of the risk management system at the enterprise URL: https://slide-share.ru/organizaciya-sistemi-upravleniya-riskom-na-predpriyatii-147295

ERM. URL: https://www.cfo-russia.ru/glossariy/detail.php?ELEMENT_ID=1929

Break, P.G., Kotsiski. D., Vereshne Shomoshi M., Kobeleva, T.A. (2019), “Compliance program of an industrial enterprise”. Kharkiv-Miskolc: NTU "KhPI". 689 p. [in Ukrainian].

Kovalchuk, O. (2010), “The concept of compliance-control system and features of compliance risk in Ukrainian banks”. Youth and the market. №7 - 8 (66 - 67). pp. 153-157. [in Ukrainian].

Ermakova, N.A, Akhunyanov,a Ch.F. (2014), “Compliance control in the corporation's internal control system”. Accounting problems. 3 (297). pp. 2-10. [in Ukrainian].

Compliance control URL: http://www.iccwbo.ru/blog/2016/komplaens-kontrol-chto-takoe-i-dlya-chego-nuzhen/.

Herasymenko, O. (2020). Theoretical and methodological aspects of integration rational approach to business process management. Economics, Finance and Management Review, (1), 71-79. https://doi.org/10.36690/2674-5208-2020-1-71-79.

Published
2020-12-07
How to Cite
Ilkiv, Y. (2020). RISK MANAGEMENT AND COMPLIANCE CONTROL AT ENTERPRISES: THEORETICAL BASIS. Economics, Finance and Management Review, (4), 71-77. https://doi.org/10.36690/2674-5208-2020-4-71
Section
Chapter 3. Modern management technologies