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Long-term financial sustainability: An evaluation methodology with threats considerations

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  • Lidiya Guryanova
  • Olena Bolotova
  • Vitalii Gvozdytskyi
  • Sergienko Olena

Abstract

It is shown that one of the directions for increasing the efficiency of managing corporate systems (CS) under the influence of a large number of destabilizing fa-tors ("shocks", threats) is the development of a set of models of estimation and analysis of the long-term stability of CS in proactive contour of management, which allow timely diagnosing a decrease in the company?s security level and adopting effective preventive management decisions. A review of existing approa-ches to the formation of such a set of models showed a number of limitations, the result of which is a low forecasting accuracy. The proposed approach, unlike the existing ones, allows to: 1) determine the optimal dimension of the information space of diagnostic factors; 2) find the optimal number of classes of situations for which differentiated management strategies can be developed; 3) determine the period of pre-emption, which does not require updating the models of retrospective diagnostics. This makes it possible to identify the class of not only current, but also forecast situations for a given horizon of proactive management and to choose an adequate preventive strategy.

Suggested Citation

  • Lidiya Guryanova & Olena Bolotova & Vitalii Gvozdytskyi & Sergienko Olena, 2020. "Long-term financial sustainability: An evaluation methodology with threats considerations," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(1), pages 47-69.
    • Handle: RePEc:fan:rissri:v:html10.3280/riss2020-001004
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    2. Walas-Trębacz Jolanta & Bartusik Katarzyna, 2023. "Identification of risk types in innovation projects," International Journal of Contemporary Management, Sciendo, vol. 59(4), pages 74-93, December.
    3. Nadiia Davydenko & Svitlana Boiko & Olena Cherniavska & Maryna Nehrey, 2023. "Analysis of the Impact of State-Owned Banks on the Sustainability of Public Finances," Economies, MDPI, vol. 11(9), pages 1-23, September.

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