BUSINESS ENTITIES' FINANCIAL SECURITY UNDER DIGITAL ECONOMY

Abstract

Business entities conduct operations and implement the strategy in a turbulent business environment. The modern business environment is characterized by rapid change and unpredictability of trends caused by both systemic factors (development of the digital economy) and non-systemic shocks (COVID-19 pandemic, sharp fluctuations in commodity prices, Russian armed aggression in Ukraine). That causes threats to companies' financial security of companies. This paper aims to highlight the features of supporting financial security at the micro-level in the context of the digital economy's development and to formulate proposals for ensuring companies' financial security, taking into account the challenges of the exogenous and endogenous environment. The paper presents issues of the digital economy's development, its impact on macro-and microlevel economic processes, and cause-and-effect relationships with the state of companies' financial security. The influence mechanism of high-tech companies' development in the context of financial security at the micro and macro levels is revealed with a special focus on the area of changes in capital expenditures and economic cycle phases. Emphasis is placed on the importance of using contemporary tools to analyze the essence and consequences of the phenomena inherent in the digital economy in the context of ensuring companies' financial security. As a result of the analysis, a model for managing a company's financial security under digital economy conditions is developed. The proposed model covers both micro- and macro-blocks of ensuring financial security. The importance of a combination of qualitative and qualitative methods for assessing a company's financial security under conditions of the digital economy is emphasized. Within the framework of the model, a process approach to ensuring financial security at the company level is highlighted. The results of the paper may be used by state and local authorities to develop the principles of financial security management at the micro level under digital economy conditions, as well as by representatives of the scientific community to study the issues of companies' financial security under conditions of the digital society development.