The origin and essence of the economic security concept

• Main Author: Ihor Lubenets
• Format: Article
• Language: English
• Published: Hryhorii Skovoroda University in Pereiaslav 2016-06-01
• Series: Економічний вісник університету
• Subjects: economic security; enterprise origin; cost approach; resource management theory
• Online Access: https://economic-bulletin.com/index.php/journal/article/view/341

In a market economy production units organize their activities in conditions of uncertainty and unpredictability. A global economy generates a lot of risk factors and threats which have a major impact on enterprises activity. That is, the market economy requires rapid adaptation to unstable dynamic environment. The enterprise face a need to make significant efforts to achieve their goals, ensure stable operation process and sustainable development. Those enterprises that do not have sufficient capacity to offset and mitigate the impact of external and internal changes or adapt to them, are doomed to gradual decline and bankruptcy. There is an actual task for the enterprise to provide internal self-assessment and prediction of its position in terms of performance inherent manufacturing functions, i.e maintenance of production economic security from various factors that influence the potential of the company, formation of safety monitoring system indicators, substantiation and definition of thresholds, the use of anti-threats tools. The article analyzes scientific approaches to the definition of «economic security.» Their analyses are given. A definition of «economic security» within the cost approach is proposed. The need for understanding economic security as a dynamic system is emphasized. This, in turn, requires a definition of «economic security» from the perspective of enterprise origin.