Architecture of the solvency management system of business entities

Slobodyanyuk Natalya
Doctor of Economics, Professor, Professor of the Department of Business Entity Finance and Innovative Development, Kryvyi Rih National University, Kryvyi Rih, E-mail:Slobnata21@gmail.com, ORCID ID: https://orcid.org/0000-0002-0803-9423

Cite this article:

Slobodyanyuk N. (2024) Architecture of the solvency management system of business entities. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Arkhitektonika systemy upravlinnia platospromzhnistiu subiektiv hospodariuvannia; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 1-2 (314-315), pp. 77-83.

Abstract

The relevance of the chosen research topic is confirmed by the influence of solvency on indicators of competitiveness, investment attractiveness, financial condition, and financial security of economic entities. The purpose of the study is to model the solvency management system of business entities and formalize the architecture of its components. To achieve the goal, the author used the following methods: systemic approach - when substantiating the architecture of the model of the solvency management system of business entities; analysis and synthesis, generalization and systematization - when substantiating the components of the solvency management mechanism of economic entities. The article substantiates the need to study solvency as an object of management, the author's definition of "solvency" is given; it is stated that the specificity and type of business entity (enterprise, bank, insurance company) determine the architecture of the solvency management system. The work provides a detailed description of the components of the solvency management mechanism of business entities and formalizes the process of justifying management decisions with the possibility of their adjustment. The article states that the formalization of the process of managing the solvency of a business entity can be achieved through the implementation of budgeting and the formation of appropriate centers of responsibility, automation of business processes of operational, financial and investment activities, which requires changes in the organizational and financial structure of the business entity. Scientific novelty: the methodical basis of managing the solvency of economic entities has been improved based on the modeling of the architecture of the solvency management system of economic entities and the formalization of its components in order to increase the efficiency and flexibility of management decision-making taking into account the effects of risks of various etiologies. The practical significance of the proposed system for managing the solvency of business entities is to increase the completeness, efficiency, relevance and flexibility of management decision-making in conditions of uncertainty and riskiness of doing business.

Keywords

solvency, management, system, mechanism, architectonics, subject of management, object of management, cash flows, obligation, entity, management decision.

JEL classification: G310; DOI: https://doi.org/10.32680/2409-9260-2024-1-2-314-315-77-83

UD classification: 005.915:336.201.2

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