УДК 33

The “four pillars” of assessing the state of economic security of the enterprise

Громов Кирилл Евгеньевич – аспирант Нижегородского государственного технического университета имени Р. Е. Алексеева.

Вакуленко Руслан Яковлевич – доктор экономических наук, профессор Нижегородского государственного лингвистического университета имени Н. А. Добролюбова.

Abstract: The article is devoted to the study of the problem of the current state of economic security of the enterprise, the identification of real and potential risks and threats, both in the domestic and foreign markets. The paper considers the financial indicators of the enterprise for several years, characterizing financial stability. According to the results of the study, a number of open problems were identified and a set of measures was proposed to stabilize economic security at the enterprise.

Аннотация: Статья посвящена исследованию проблемы текущего состояния экономической безопасности предприятия, выявлению реальных и потенциальных рисков и угроз, как на внутреннем, так и на внешнем рынках. В работе рассматриваются финансовые показатели предприятия за несколько лет, характеризующие финансовую устойчивость. По результатам исследования был выявлен ряд открытых проблем и предложен комплекс мер для стабилизации экономической безопасности на предприятии.

Keywords: economic security, competitiveness, financial stability, market share.

Ключевые слова: экономическая безопасность, конкурентноспособность, финансовая устойчивость, доля рынка.

Introduction

The concept of security, both for the individual and for the enterprise, and on a national scale - for the state, is the basis of existence. Returning to Maslow's pyramid of needs, the security point is highlighted in second place out of seven. After the closure of physiological needs, the safety parameter becomes the most relevant for a person. Only in the absence of threats, fears and risks, we are able to move forward to achieve our goals. Similarly, for a company or enterprise, security conditions are the starting point for generating profit and achieving the set goals.

Traditionally, companies associate economic security with risk assessment. Depending on the degree of real and potential threats to the enterprise, it is possible to draw conclusions about the economic and financial stability of the company.

However, security-conscious companies often focus exclusively on risks. At the same time, it makes sense to consider such areas of performance assessment as opportunities, strengths and weaknesses. Based on the analysis of all four directions, the company will be able to draw up in more detail a set of measures and tools to create a strong platform of activity, which will certainly have the best effect on competitiveness and a confident position in the market.

The basis of the efficiency assessment tool in this article will be a SWOT analysis, on the basis of which the company will be able to understand the degree of viability in the market.

The purpose of the study

The main task of the work is to determine the right course of development and competitiveness of the RIDAFactory company in the domestic and foreign markets. Guided by the results of the study, it will be possible to draw up a plan and develop recommendations for strengthening economic security, taking into account the strategic gaps obtained.

Research Methods

The instrumental base of the study consists of the SWOT analysis method. The research database is formed from the materials provided by RIDA, as well as open-type statistical data published by the Federal State Statistics Service (Russian Federal Service of State Statistics).

Research results

The RIDA plant is a Russian manufacturer and supplier of armored vehicles and individual elements. The company has been on the market since 1993. Since October 2022, it has received the status of a defense enterprise. The key areas of the plant are: booking executive class passenger cars, as well as the production of its own brand of armored vehicles, both for individuals and for the state. The main customers of the enterprise are the first persons of various states, large domestic companies and in connection with the unfolding and gaining momentum of the SVO – the Ministry of Defense of the Russian Federation.

Table 1. RIDA's SWOT analysis.

The competitiveness of an enterprise is one of the most important factors of viability in the market. As a rule, the market leader experiences the greatest risks. The task of measures to control economic security is not to get rid of risks, but to take them under the maximum possible control. The presence of risks and threats characterizes the degree of success of the company in the market. However, success lies not in the accumulation of dangers, but in the ability to contain and predict all existing threats.

As mentioned earlier, when assessing the state of economic security, it is important to take into account, in addition to weaknesses and threats, strengths. After all, this point will become a reference point for competitive companies. Starting from the advantages, the competitor will strive to surpass them.

The beginning of the undermining of the company's economic condition was the pandemic that began in the spring of 2020. Prior to the start of the special operation, RIDA actively exported products to Europe and Asia. The only significant competitor in the foreign market remained only the companies of the United States of America. Competing companies from Europe have traditionally been inferior in price (the lack of their own natural resources, namely metal, left no chance for European companies to competitive product prices). The logistics shutdown forced the company to stop, but not in production. The undisputed advantage of RIDA in the foreign market has traditionally been its own production and the availability of domestic raw materials. Soon the borders were "unfrozen" and supplies resumed. Chart 1 shows the trend of the company's profitability before and during the pandemic.

However, the biggest blow was the complete stoppage of exports after February 24, 2022. Exports accounted for 50% of the company's total profit. Interestingly, the share of the state order was quite low (40 Buran cars per year). The exception was the pandemic period, which reduced production to 10 cars per year. After the start of the special operation, the company was awarded the status of a defense enterprise and the state order grew to 40 vehicles per year. It is expected to produce 70 "Burans" in 2023 and 160 in 2024.

Thus, the withdrawal from the export market caused only a temporary decline in profits. The achievement of stable agreements with the Ministry of Defense of the Russian Federation allows us to predict the degree of financial stability of the company for several years ahead (Chart 1). The stagnation of profits is due to the deliberate unwillingness of the company's management to expand more. According to one of the shareholders, Gennady Yavorsky, the company's management will do its best to preserve the quality of products. In fact, today the size of the state order for RIDA is unlimited. A larger volume of manufactured machines will require new production facilities, new areas, and expansion of the staff of qualified employees. The gray line on chart 1 shows the possible profit of the campaign in terms of diversification.At the same time, the risks in managing a larger organization will also increase. It will become more difficult to control the maintenance of quality, financial flows, accounting, and the preservation of the qualification level of employees. To date, the company is not ready to take on additional risks, even taking into account profit growth.

Conclusions

In general, the company's position in the market today is very stable. But even in a period of calm, the ship must be prepared for an unexpected storm. Sooner or later, Russia will end the special operation and there are unconditional risks of termination of cooperation with the Ministry of Defense of the Russian Federation, while the borders will most likely be closed and the export direction will not be able to resume as soon as possible. In order to avoid a failure in profit in this situation, the company should focus more closely on the domestic market. Here, in addition to special equipment, the sector of private cars, namely off-road vehicles, will be in demand. Cooperation with the Ministry of Defense of the Russian Federation will solve the problem of distrust in the domestic brand among the private sector and companies in general.

The company has an indisputable advantage - its own production of glasses and components. However, the stoppage of metal supplies by Severstal for 1 month in August 2022 within the country showed that 2 weeks of downtime cost the company about 12 million rubles (2 weeks of downtime due to the fact that RIDA had its own stock of raw materials for 14 days). In this regard, it makes sense for the company to store a certain amount of raw materials, which will be enough for non-stop operation of production lines for 1-1.5 months (at least for 2-3 years in advance).

RIDA remains the undisputed leader in the domestic market. However, with the closure of borders and the increased demand of the Ministry of Defense of the Russian Federation, the competitive environment will grow. One of the risks of the company is the leakage of personnel and information to competitive enterprises, which may become much more over time. Often, information leakage can occur without the deliberate intent of employees, simply due to their inexperience, inattention, lack of proper qualifications. One of the key factors in the formation of the information security system from leaks is employees. The organization of information security measures includes training, knowledge control, development of internal documentation, video surveillance system, etc. The most important point is to highlight the differentiation of access to protected information. It is necessary to distribute information among employees exclusively for their work. A common mistake of organizations is to provide a large amount of information for a wide range of employees. The risks of leakage and unauthorized familiarization will be minimal with maximum access differentiation. Each employee should clearly, and not superficially, know their rights and obligations, as well as the degree of responsibility and disciplinary penalties and fines. Basic (but not always used) tools include access control, access control, electronic locks, video surveillance system.

Summary

The assessment of the current state of financial stability and security of the enterprise can be analyzed in different ways. The results of the study showed that such a way as a SWOT analysis of the company takes place. With its help, it became possible to look at the company from four different sides, which made it possible to assess the current state of financial stability as accurately as possible and predict the future scenario of successful activity in the market.

Thus, diversification, which is both a risk and a threat to the company, can become a competitive advantage and significantly increase the share of the domestic market. Competent management in the field of information security organization and personnel leakage will significantly expand the boundaries of the company in financial stability and security.

Chart 1.

References

1. Potrubach, N.N. Fundamentals of economic security / N Potrubach, R.K.Maksutov // Modern Humanitarian University. – 2001. – P. 53-60
2. Krivorotov, V.V. Economic security of the state and regions / V.V. Krivorotov // Unity-Dana. – 2012. – P. 234
3. Kutukova, E.S. Economic security in the prism of modern economic processes / E.S.Kutukova // Rusains. – 2017. – P.145.