On the Relationship between Risk Sustainability and Economic Security in a Competitive Environment

Abstract

The relevance of the chosen research topic is due to the fact that in modern conditions of economic instability and increasing competition, there is a high degree of uncertainty, both in the external and internal environment. All this forces business entities to constantly monitor the environment, look for alternative management solutions aimed at ensuring the risk resistance of the enterprise while maintaining the optimal level of profitability. Many obstacles exist in the conduct of business activities: information uncertainty, unstable economic environment, unpredictability of market conditions, prices, supply and demand, consumers’ ability to pay, low efficiency of the tax system. In this regard, an increasing number of enterprises are introducing risk assessment and analysis systems in their practice. However, due to the fact that each functioning enterprise differs in a number of specific features and, first of all, in economic activity, size, business processes, today there is no single methodological approach to risk management. In the scientific literature, there are many alternative methods for identifying risk factors and their assessment, but they are all considered through the prism of the specific characteristics of an economic entity. The purpose of the study is to develop theoretical foundations and methodological approaches to substantiate the relationship between risk resistance and economic security in order to ensure the strengthening of the competitiveness of the functioning of a small enterprise. Especially the authors of the article highlighted the review of scientific opinions of such concepts as “risk resistance”, “economic security of the enterprise”. The article is devoted to the consideration of such an important aspect of the life of an enterprise as ensuring its competitiveness. In this regard, the authors focus their attention on the relationship and impact on the economic security of the enterprise of its risk resistance. On a specific example, a model of the relationship between financial stability and economic security of a small enterprise is presented. The article examines the scientific positions and points of view of various researchers on this issue, formulates the authors’ opinion based on these observations, describes the main conclusions and recommendations.