THE MODEL OF THE CORPORATION RISK-ORIENTED FINANCIAL STRATEGY UNDER THE CRISIS CONDITIONS

Abstract

The decomposition model of the corporation financial strategies development and selection of the risk-oriented strategy in respect to the financial risks criteria is represented. The definition concept of the risk-oriented financial strategy is given.

Full Text

Market environment, increasing competition, the financial crisis force each enterprise to search for new, more effective approaches to choose a financial strategy of the enterprises, which should guarantee financial stability at the assigned level of risk. Strategies of contemporary corporations are directed mostly for the economic increase. The scenario of possible unfavorable changes in the ambient conditions is not considered there. The optimism, which a priori prevents the crisis trajectories of economic development under the conditions of the contemporary crisis, has led many corporations to the loss of financial stability and solvency or to bankruptcy. As the author considers, for successful formation and implementation of the financial strategy it is necessary to find the approach, which ensures reaching and maintaining the financial stability of the corporation on the basis of the balance of the sales volume dynamics, assets and the sources of finance structure in respect to financial risks. At present the concept of the financial strategy in financial management is given in different aspects by different authors: as an element of strategic or financial management as a system of actions to reach the objective, or as a mechanism of making and implementing administrative decisions in financing, etc.