Economic Security of the Enterprise: from European Economic Security Strategy to Corporate Business Strategy
The work covers the concept of economic security of business activity, which is an integral part of the economic security of the countries’ economy, as well as the issue of developing a corporate strategy for the economic security of Ukrainian enterprises. Special attention is paid to the need to consider the provisions of the European Economic Security Strategy during the development of the corporate business strategy of national enterprises.
The concept of economic security of business activity refers to various measures and strategies that businesses implement to protect themselves from financial risks, threats, and uncertainties. It covers a wide range of aspects, including financial stability, risk management and resilience to economic shocks.
It is the efficiency of the enterprise’s economic security system that creates reliable conditions for its further development, increasing the level of financial benefit, creating conditions for timely identification of possible risks and threats.
Economic security is a complex concept that considers internal and external factors. For national Ukrainian companies in current conditions, the policies adopted and recommended by the EU Commission should be taken into account among the factors of external influence.
The work is aimed to study the peculiarities of the development of the corporate strategy of economic security of Ukrainian enterprises considering the European Economic Security Strategy.
The EU Commission has adopted five initiatives to strengthen the EU’s economic security at a time of growing geopolitical tensions and profound technological change. This aims to strengthen economic security while maintaining openness to trade, investment, and research for the EU economy, in line with the European Economic Security Strategy of June 2023.
The initiatives adopted aim at [1]:
- further strengthening the protection of EU security and public order by proposing improved screening of foreign investment into the EU;
- stimulating discussions and action for more European coordination in the area of export controls, in full respect of existing multilateral regimes and Member States’ prerogatives;
- consulting Member States and stakeholders to identify potential risks stemming from outbound investments in a narrow set of technologies;
- promoting further discussions on how to better support research and development involving technologies with dual-use potential;
- proposing that the Council recommends measures aimed at enhancing research security at national and sector level.
In the work [2], the author understands the process of creating conditions for achieving a sufficient level of economic security by protecting against threats based on principles, functions, methods and means aimed at increasing the efficiency, innovation and competitiveness of the enterprise. In the author’s opinion, by ensuring an increase in efficiency, innovation and competitiveness, the enterprise will also ensure its economic security. For the effective provision of economic security, an important point is to define and observe the basic guidelines and methodological basis of this process, namely the principles and functions of provision, based on which the methods and means of this provision are formed. The basis of such planning is the development of a corporate business strategy, which should be built in the vector of ensuring personnel, property, and informational components of economic security; marketing activities; diagnostics and analysis of the efficiency of the enterprise; implementation of the forecasting and risk assessment system.
The development of the corporate business strategy of national companies to ensure a high level of economic security, taking into account the strategy adopted by the EU Commission, should include the following key components of the organization of the enterprise’s economic security: the development of basic provisions for the organization of the enterprise’s economic security system, including provisions on national and foreign investment, export-import operations, innovations and research; determination of the range of information for the organization and functioning of the enterprise’s economic security system and the protection of this information; analysis of the state of enterprise’s economic security and the safety of its development; formation of a system for ensuring the personnel component of the enterprise’s economic security; development of a system of diagnostics, assessment and forecasting of risks and threats to the enterprise’s economic security.
Thus, the development of basic provisions for the organization of the enterprise’s economic security system represents the formation of a strategic basis for the further organization and functioning of the economic security system at the enterprise. In this aspect, strategic priorities, forms, methods, and principles of ensuring economic security are defined, the organizational and functional structure of the future system.
References
- Commission proposes new initiatives to strengthen economic security (2024). URL : https://ec.europa.eu/commission/presscorner/detail/en/IP_24_363
- Fisunenko, P. A. (2019). Ensuring economic security of the enterprise: essence, principles, functions, methods, means. Economic space, (152), 176-203. URL : https://doi.org/10.32782/2224-6282/152-15 (Фісуненко, П. А. Забезпечення економічної безпеки підприємства: сутність, принципи, функції, методи, засоби. Економічний простір).