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1 Dnipro State Agrarian and Economic University, Ukraine (corresponding author)
E-mail: yasinskaya.dv@gmail.com
ORCID: https://orcid.org/0000-0001-8127-6065

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0

DOI: https://doi.org/10.30525/2661-5150/2022-4-9

ENSURING THE EFFICIENCY OF MANAGING  
THE FINANCIAL AND ECONOMIC SECURITY  

OF THE ENTERPRISE DURING THE CRISIS

Daria Yasynska1

Abstract. The purpose of the article is to present effective anti-crisis management measures to bring  
enterprises out of the crisis situation and improve their financial and economic security. The subject of this 
study is the financial and economic security of an enterprise during a crisis. Methodology. Using the historical 
and comparative methods, the author analyzes the events of recent years and analyzes the impact of external  
factors on the formation of the crisis state of an enterprise. The economic and statistical method made it  
possible to analyze the scale of damage caused by the Russian Federation to the state of Ukraine during almost 
nine years of active hostilities in violation of such principles of international law as the principle of non-use of  
force or threat of force; the principle of sovereign equality of states; the principle of equality and self- 
determination of peoples; the principle of peaceful settlement of international disputes; the principle of non-
interference in the internal affairs of states; the principle of peaceful cooperation; the principle of fulfilling 
international obligations in good faith; the principle of inviolability of borders; the principle of territorial integrity  
of states; the principle of universal respect and protection of human rights; and to see what level of crisis the  
terrorist state of the Russian Federation has spread in the largest country of the European Union, namely Ukraine. 
Using the philosophical dialectical method, the author analyzes the very phenomenon of crisis in the broad sense  
of the word and finds a way to respond to the challenges of the crisis. Results. This study assesses the benefits 
that have contributed to the development of economic relations with countries in Africa, Asia, and Europe. The 
losses suffered by the Ukrainian economic system due to the destructive processes of the crisis are analyzed.  
The author examines the peace formula approved by Volodymyr Zelenskyy, which provides for the implemen- 
tation of measures aimed at shaping peace in the European space and correcting the mistakes made by 
officials of the terrorist state of the Russian Federation, which led to terrible consequences; the author analyzes 
the achievements of this peace formula and determines how much benefit and lives it has already brought.  
The practical significance lies in the definition of reorganization as one of the best anti-crisis management  
measures that can bring an enterprise out of a crisis. In particular, attention is drawn to the effectiveness of 
rehabilitation measures that can restore the solvency of an enterprise. In turn, taking into account the established 
practice of attracting investment capital as a means of improving the economic activity of an enterprise, the author 
analyzes the risks of losing property and non-property assets in the event of adverse conditions and proposes to 
create a mechanism for investment guarantees, which consist in preserving assets by the investor in the event  
of adverse market fluctuations. The scientific novelty lies in the proposal to amend the current legislation to 
guarantee the safety of the rehabilitation procedure to the investor by mitigating the risk of loss of invested  
assets in restoring the enterprise's solvency.

Key words: crisis, rehabilitation, investor, crisis management.

JEL Classification: G00, G01

1. Introduction
During February-March 2014, the military 

aggression of the Russian Federation against 
the territorial integrity of the state of Ukraine 

began, which resulted in the annexation of the 
Autonomous Republic of Crimea, which is part 
of Ukraine, on the basis of a pseudo-referendum 
held on March 16, 2014, contrary to the provisions 



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of the Constitution of Ukraine and the Law of 
Ukraine "On All-Ukrainian Referendum" (Law 
of Ukraine "On All-Ukrainian Referendum"). 
Already on 12.04.2014, part of the territory of 
the state of Ukraine was occupied, namely the  
cities of: Sloviansk, Kramatorsk and Druzhkivka. 
The military aggression has been going on for 
more than 8 years, where, as a result of the  
large-scale invasion of the state of the Russian 
Federation into the state of Ukraine, on Feb-
ruary 24, 2022, on the basis of a proposal by the  
National Security and Defense Council of Ukraine, 
in accordance with paragraph 20 of part one of 
Article 106 of the Constitution of Ukraine, the  
Law of Ukraine "On the Legal Regime of Martial 
Law", Presidential Decree No. 64/2022 was  
issued, which introduced martial law in Ukraine.

In addition, in 2019–2021, Ukraine experienced 
an additional crisis due to the spread of the 
COVID-19, which affected the functioning of  
the national economy.

Thus, as a result of the military aggression of 
the Russian Federation and the spread of the 
COVID-19, Ukraine has faced the challenges of 
the crisis and learned to respond to the threats  
that cause the onset of a crisis. 

The goal of the article is to identify actions 
that can overcome the crisis situation of  
enterprises and restore their solvency.

2. The impact of the economic crisis
As a result of the military aggression of the 

Russian Federation, the state of Ukraine suffered 
significant damage and losses. Thus, it became 
necessary to calculate the losses and damage  
caused by the Russian Federation to the state 
of Ukraine. In order to develop a methodology  
for calculating damages, the Resolution of the 
Cabinet of Ministers of Ukraine of 20.03.2022  
No. 326 "On Approval of the Procedure for 
Determining Damage and Losses Caused to 
Ukraine as a Result of the Aggression of the 
Russian Federation" established a procedure 
for determining damage and losses caused to  
Ukraine as a result of the armed aggression 
of the Russian Federation, starting from 
19.02.2014 (Resolution of the Cabinet of  
Ministers of Ukraine). 

As of November 2022, according to calculations 
by the Kyiv School of Economics (Murdoch,  
Knorr, Trager, 2001), Ukraine has suffered losses  
of more than $149.8 billion, as shown in Figure 1.

In addition, Ukraine's economy has suffered 
significant losses in recent years due to the 
COVID-19 pandemic. Thus, the large-scale war 
of the Russian Federation against the state of  
Ukraine, together with the occupation of the 
Autonomous Republic of Crimea and part of 
Donetsk, Luhansk, Zaporizhzhia, Kharkiv and 

 

0

10

20

30

40

50

60

Figure 1. Ukraine's losses from the military aggression of the Russian Federation  
(according to the calculations of the Kyiv School of Economics as of November 2022)



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Kherson regions, has caused not only legal  
damage, which consists in the violation of the 
territorial integrity of Ukraine, which is guaran- 
teed by international law, but also economic 
damage, as many businesses have ceased 
to operate and many people have suffered  
severe losses.

In turn, the challenges and external threats  
to Ukraine's economy have caused not only  
losses but also a struggle for core national values 
that has affected the entire world. For example, 
the struggle for Ukraine's territorial integrity  
led to a victory in a battle at sea, where several 
enemy warships were hit, given that Ukraine  
does not have its own navy. However, the  
decisive factor in this case was not the sighting 
of enemy ships, but the possibility of exporting  
grain, which prevented the onset of a global  
food crisis.

Thus, at the World TRT Forum 2022, President 
of Ukraine Volodymyr Zelenskyy announced 
a formula for peace, which will be defined  
as follows:

L={L1, L2, L3, L4, L5, L6, L7, L8, L9, L10}, where
L1 – radiation and nuclear safety;
L2 – food security;
L3 – energy security;
L4 – release of all prisoners and deportees;
L5 – implementation of the UN Charter, 

restoration of territorial integrity and world order;
L6 – withdrawal of Russian troops from Ukraine 

and cessation of hostilities;
L7 – justice;
L8 – protection of nature;
L9 – preventing escalation;
L10 – recording the end of the war;
L – preservation of peace and prosperity in the 

European space;
Earlier, as part of the implementation of this 

peace formula, the Grain from Ukraine program 
was launched and since August 1, 2022, more 
than 15 million tons of food have been exported 
from Odesa ports to countries in Europe, Asia  
and Africa, where, in particular, the onset of  
famine has been prevented and hundreds of 
thousands of lives have been saved from starvation.

3. Consequences of the economic crisis  
for national enterprises

As for the national enterprises, the occupation 
of some Ukrainian territories led to the cessation 

of economic activity and, as a result, to the appli-
cation for bankruptcy. The bankruptcy procedure 
in Ukraine is regulated by the Bankruptcy Code 
of Ukraine (Kopyliuk, Shtanhret, 2005). Given 
the fact that most enterprises have undergone 
the process of crisis, as already mentioned,  
precisely because of external threats to economic 
reality, it would be advisable to pay attention 
to the possibility of restoring the solvency of 
the enterprise through anti-crisis regulation 
of the bankruptcy procedure, which involves 
a rehabilitation procedure.

The participants in the company 's rehabilitation 
procedure are: the debtor, the rehabilitation 
manager, creditors and the investor. Speaking 
about the participants in the rehabilitation 
procedure, it is worth mentioning the insolvency 
receiver, who is the rehabilitation manager in  
this procedure and plays a key role in imple- 
menting measures to restore the company 's 
solvency. Thus, a rehabilitation manager is 
an insolvency officer (or debtor's manager) 
appointed by a commercial court to carry out 
the rehabilitation procedure. When exercising  
its rights and obligations, the rehabilitation  
manager is obliged to act in good faith and 
reasonably, taking into account the interests of  
the debtor and creditors, guided by the principles 
of the rule of law, legality and economic efficiency.

In order to financially rehabilitate the company, 
the insolvency practitioner begins by identifying 
the financial crisis. The next step is to conduct 
a cause-and-effect analysis of the financial crisis. 
Based on the primary information (primary 
accounting documents, resolutions of share-
holders' meetings, financial plans, etc.), external 
and internal crisis factors, as well as the actual 
financial condition of the company, are identified. 
The analysis diagnoses the financial condition  
of the company, examines its strengths and 
weaknesses.

In order to understand the state of the company 's 
business, the insolvency officer analyzes the 
financial factors that led to insolvency; analyzes 
non-current and current assets, in-depth analysis 
of accounts receivable and payable, profitability 
of the company and production costs, and the 
use of labor resources. The insolvency officer  
also analyzes investment and innovation activities 
at the enterprise and looks for reserves to improve 
the efficiency of the enterprise and restore its 
solvency (Iasynskaia, 2014).



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Based on the results of the above analysis  
and the search for reserves to restore solvency, 
a report is prepared, which subsequently  
becomes the basis of a rehabilitation plan,  
setting out measures to restore the debtor's  
solvency and the terms of repayment of creditors' 
monetary claims. The Code does not specify 
specific deadlines for repayment of creditors' 
claims. In other words, the terms for restoring the 
debtor's solvency are set based on the company 's 
production volumes, the amount of its debt 
obligations and the number of creditors who  
agree on all the actions set out in the rehabi- 
litation plan. 

Thus, the rehabilitation procedure is able to 
bring most national enterprises out of the crisis 
and resume economic activity. There are many 
classifications of crisis management strategies  
that are implemented as part of rehabilitation 
measures. 

For example, there are differentiated types of 
crisis management strategies as follows: offensive 
(i.e., improvement of production technology, 
modernization of economic activity through 
the use of the mechanism of innovative activity 
of the enterprise); delegation (delegation of the 
company 's problem to a third party (owners, 
creditors, the state) in order to solve it through 
investment activities); compromise and consensus 
(consolidated efforts to block the competitor's 
destructive actions and restore solvency) and 
defensive (reduction of production, dismissal of 
employees and flight from the market). 

However, an effective and quick way to bring an 
enterprise out of a crisis is to attract investment 

funds, and in this regard, it is important to  
provide guarantees to the investor that in the  
event of unfavorable circumstances, he will not  
lose his assets. 

Thus, in order to improve the investment  
climate, it is necessary to implement a rapid 
and, at the same time, as safe as possible for the 
Ukrainian military de-occupation of Ukrainian 
territory, which will save as many lives as  
possible. In turn, in order to provide greater 
guarantees, it seems advisable to detail the  
rights of investors in the rehabilitation procedure, 
for example, by amending the Bankruptcy Code  
of Ukraine to provide for the possibility of 
recognizing investor's monetary claims and 
satisfying them out of turn. This guarantees 
the safety of the rehabilitation procedure for 
the investor and mitigates the risks of asset 
loss, which is crucial in the implementation 
of the rehabilitation procedure involving  
investment assets.

4. Conclusions
The results of the study suggest that Ukraine  

has experienced a number of challenges and 
threats that led to the onset of the crisis.  
Nevertheless, the Ukrainian economy is coping  
with the crisis with dignity and heroism and is 
developing a crisis management mechanism. 
As noted above, despite the fact that in 
2022 the state suffered significant losses, which 
led to the suspension of economic activity of  
many enterprises, there is still a struggle 
both at the front and in the rear. In particular, 

Schematic representation Changing the structure of the enterprise

An offensive strategy for rehabilitation Quick change of structure

Strategy of delegation of authority Change the structure as needed

A strategy of compromise and 

consensus

Change of structure by agreement

Defensive strategy No change in structure

 Figure 2. Types of strategies in the rehabilitation procedure



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a number of measures have been taken to keep 
the state's economy at a decent level and an 
action plan has been created to help restore both 
Ukraine's macroeconomic system and individual  
enterprises at the regional level. In turn, the  
de-occupation of the entire territory of the state  
of Ukraine and the guarantee of investors'  
rights in the current legislation by providing 
for the repayment of monetary claims in the 
event of bankruptcy of an enterprise out of turn 
will improve the investment climate and attract 
more assets to restore the solvency of enterprises 
in crisis and implement an anti-crisis strategy. 
Investing in restoring the company 's solvency  
will be a safe, transparent and reliable process.  
Crisis is a rather specific and difficult process, 
however, humanity has always faced crises that 
could both worsen the economic situation and 
give impetus to a qualitatively new development 
of economic activity. Many scholars point out  

that crises are cyclical and can be tracked and 
predicted. Indeed, if to focus on the economic 
activity of an enterprise, one can notice the 
preconditions that represent the onset of  
a crisis. Both crises arising from external threats  
to business operations and crises arising from 
internal threats to business operations can and 
should be monitored, prevented, and responded 
to in a timely manner. For example, in the  
latter process, it is considered effective to 
systematically diagnose the financial condition  
of the company and monitor financial ratios,  
such as the absolute liquidity ratio, coverage 
ratio, and profitability. Timely response to the  
challenges of internal and external threats to 
the company 's business activities can not only  
prevent the onset of a crisis, but also make good 
use of the situation in such a way as to develop  
the company 's business activities and bring them  
to a qualitatively new level. 

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Received on: 2th of November, 2022
Accepted on: 8th of December, 2022

Published on: 30th of December, 2022