Financial and economic resilience as a component of the enterprise development and economic security mechanism

Abstract

The article examines the theoretical foundations for building the financial and economic resilience of an enterprise and substantiates its role within the mechanism linking economic security and enterprise development. It is established that, under conditions of instability and increasing financial, resource-related, market, and other risks, economic security, resilience, and enterprise development should be considered as interconnected components that ensure the enterprise’s long-term viability. The concepts of financial resilience, economic resilience, and financial and economic resilience are conceptually differentiated. An original interpretation of financial and economic resilience is proposed, defining it as the dynamic and integrated capacity of an enterprise to maintain financial and economic equilibrium, withstand and adapt to internal and external risks, preserve its resource potential and continuity of business operations, and create the prerequisites for further development. The financial, performance-related, resource-based, risk-protection, adaptive, and investment-and-development components of financial and economic resilience are systematized, and their significance for ensuring economic security and enterprise development is determined. The diagnostic, protective, stabilizing, adaptive, preventive, resource-supporting, and development-oriented functions of financial and economic resilience are identified. A conceptual model is proposed that integrates financial and economic indicators, enterprise condition diagnostics, risks and vulnerabilities, economic security, financial and economic resilience, resource and investment potential, and enterprise development. The cyclical nature of the proposed model and the feedback relationships among its elements are substantiated. It is demonstrated that financial and economic resilience performs an integrating role between ensuring economic security and building the enterprise’s development potential.