Model for assessment of the financial security level of the enterprise based of the desirability scale

¹ Khmelnytskyi National University, Department of Automated Systems and Modeling in Economics, Khmelnytskyi, Ukraine
² Khmelnytskyi National University, Department of Finance, Banking and Insurance, Khmelnytskyi, Ukraine
³ Khmelnytskyi National University, Department of Software Engineering, Khmelnytskyi, Ukraine

^* Corresponding author: violete@ukr.net

Abstract

Modern economic realities of Ukraine in the conditions of growing destabilizing influences of external and internal environment convincingly prove that each year the influence of various threats on the level of financial security of economic entities increases. This necessitates constant monitoring of the financial security level in order to timely detect and neutralize possible crisis phenomena as a result of its decrease. The study aims to assess the financial security level of enterprises based on the theory of comprehensive assessment. The scientific and methodical approach to design a composite index of financial security and the identifying its level based on the double use of Harrington's desirability scale is proposed. The resulting model was tested on the particular enterprise data. The proposed approach may be used for another set of partial indicators, as well as in assessing the level of financial security at the national level. The results of the study may serve as the basis for making managerial decisions on raising the business entities financial security level and public administration.