Institutional and organizational mechanism for ensuring the economic security of an enterprise

Abstract

This article examines the theoretical foundations for ensuring an enterprise’s economic security amid growing external and internal risks to economic activity. It substantiates the need to establish an institutional and organizational mechanism for ensuring an enterprise’s economic security, one that combines institutional norms, management tools, and organizational procedures. It is determined that, under current conditions, the formation of an effective enterprise economic security system capable of ensuring the timely identification and neutralization of business risks is of particular importance. Ensuring enterprise economic security is proposed to be viewed as the result of the interaction between the institutional conditions of the economy’s functioning and the organizational mechanisms of enterprise management. This approach has made it possible to develop an institutional and organizational mechanism for ensuring the economic security of an enterprise, which combines external regulatory factors of the economic environment with internal management tools to ensure the sustainable operation of the business entity.

It has been established that an enterprise’s economic security is shaped by a complex of institutional factors that determine the general conditions under which economic entities operate. The main institutional factors influencing an enterprise’s economic security have been summarized. Based on an analysis of institutional factors, internal management mechanisms are examined through which an enterprise can respond to external threats and develop its own economic security system. Key organizational tools for ensuring an enterprise’s economic security are proposed. An institutional-organizational mechanism for ensuring an enterprise’s economic security has been developed, which reflects the process of forming such a mechanism and demonstrates the logical sequence of interaction among its main elements. A structure for the institutional-organizational mechanism of ensuring an enterprise’s economic security is proposed.

The structural logic of how the institutional and organizational mechanism for ensuring an enterprise’s economic security operates, and demonstrates the interconnection between the external institutional environment, the enterprise’s internal management system, and the outcomes of management decisions in the area of security.