Bankruptcy Prevention Strategies in the Context of Risk Management
Sova O. Y., Morozov Y. Y.

Sova, Olena Yu., and Morozov, Yevhenii Yu. (2021) “Bankruptcy Prevention Strategies in the Context of Risk Management.” The Problems of Economy 1:91–97.
https://doi.org/10.32983/2222-0712-2021-1-91-97

Section: Economics and Enterprise Management

UDC 658.15:336.6

Abstract:
The article aims at summarizing the existing risk management strategies helping to prevent bankruptcy and liquidation of enterprises, taking into account modern environmental challenges and the impact of the COVID-19 pandemic on the performance of business units. As a result of the study, tactical and strategic methods of risk management were identified. The components of the risk management process are identified in accordance with international standards. The main types of enterprise management strategies in crisis situations are described, highlighting the ERM approach, together with its main differences and advantages for its use at enterprises. Statistical data on the number of business entities in Ukraine and the number of bankruptcy proceedings in 2016-2020 are analyzed. It is emphasized that the goals and main tasks of the state policy of the Ministry of Justice of Ukraine for 2021-2023 include the introduction of transparent bankruptcy procedures, which will quickly restore the debtor's solvency or fairly distribute the bankrupt's assets among creditors. Changes to the procedure for initiating bankruptcy proceedings of a legal entity, defined by the Bankruptcy Procedure Code of Ukraine, are suggested. Threats to businesses engaged in foreign economic transactions are presented based on an overall assessment of the global impact of risk scenarios on business (GBI). It is proven that the rationalization of strategic planning instruments and the implementation of a systemic approach to the crisis management of an entity, in general, and its financial and economic activities, in particular, influence greatly the effectiveness of restoring the financial solvency of that entity in a crisis situation. Determining the effectiveness of state support programs for carrying out business activity in the pandemic, and assessing the medium-term effectiveness of measures taken by government agencies make up the directions for further research.

Keywords: anti-crisis measures, anti-crisis strategy, crisis management, enterprise bankruptcy, ERM, GBI, risk management, threats and opportunities uncertainty of the environment

Fig.: 1. Tabl.: 1. Bibl.: 20.

Sova Olena Yu. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Finance, National University of Life and Environmental Sciences of Ukraine (15 Heroiv Oborony Str., Kyiv, 03041, Ukraine)
Email: sova@nubip.edu.ua
Morozov Yevhenii Yu. – Postgraduate Student, Kyiv University of Market Relations (26-B Berezniakivska Str., Kyiv, 02152, Ukraine)
Email: atrisan@ukr.net

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