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Corresponding author:
1 Uzhhorod National University, Ukraine.
E-mail: rvps@ukr.net
ORCID: https://orcid.org/0000-0002-3869-3274
ResearcherID: AAJ-1630-2020

DOI: https://doi.org/10.30525/2661-5150/2020-3-4

FORMATION AND SUBSTANTIATION  
OF ANTI-CRISIS STRATEGY OF FINANCIAL SECURITY  

OF COUNTRIES WITH ECONOMIES IN TRANSITION

Oleksiy Getmanenko1

Abstract. The purpose of the article is to form and substantiate the anti-crisis strategy of financial security of 
countries with economies in transition. This need is due to the fact that the development of the world economy 
and international financial relations, strengthening integration processes in the world in times of the ongoing 
global financial instability, internal and external contradictions and imbalances in financial markets require the 
development of new ways to improve financial security. Methodology. In the course of the analysis, various concepts 
and directions of improving the financial security of the state were considered, using the methodology of system 
analysis in the study, which allowed to form the principles of anti-crisis strategy of financial security of countries 
with economies in transition. Results. The most important tasks of strategic anti-crisis management of financial 
security of the state on the way to its integration into the world economy are to ensure an effective integration of 
the financial component of the economy within the regional and global financial relations, to improve the efficiency 
of public administration and optimize the system of overcoming external and internal threats to financial security, 
conduct a policy of reasonable protectionism within the framework of generally accepted and effective procedures, 
as well as to maintain stability of the national currency and its moderate volatility, etc. Practical implications.  
The analysis of concepts and areas of improvement of financial security of the state allowed to formulate the 
principles of anti-crisis strategy of the financial security of countries with economies in transition and to develop 
practical recommendations for improving the process of financial security management in Ukraine. Value/originality. 
The use of systematic analysis allowed to formulate the principles of anti-crisis strategy of the financial security of 
countries with economies in transition in modern conditions.

Key words: anti-crisis strategy, financial security of a country, countries with economies in transition, international 
financial relations.

JEL Classification: F36, H12

1. Introduction
The development of the world economy and 

international financial relations, the strengthening 
of integration processes in the world in times of 
ongoing global financial instability, internal and 
external contradictions and imbalances in financial 
markets have led to the strengthening and spread of 
the following interrelated trends, risks and threats 
to global financial security.

Firstly, the openness of the world's economies 
and their financial markets, liberalization of 
international financial relations, integration 
of financial and foreign exchange markets, 
intensification of global capital movements 

have significantly strengthened the level of 
interconnectedness and interdependence of the 
world economy, global financial and economic 
system, economies and financial systems of the 
world, which have become whole.

Secondly, the interconnectedness and 
interdependence of the world economy and the 
global financial and economic system, which 
are dynamic and multi-coordinate, have made it 
a complex, vulnerable and prone to various risks 
and threats system for all member countries, due to 
the uneven development of the world;

Thirdly, the strengthening of the integration of 
the world economy, the turbulence of the global 



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financial and economic system as well as the open 
economy is accompanied by various manifestations 
of instability of economic and financial markets, 
ineffective tools for regulating and controlling 
states and their lack of possibility to impact the 
turbulent environment.

Fourthly, the virtualization of economic relations, 
the development of the e-economy, the emergence 
of new agreements, products and transactions, 
turbulence and changes in the environment have 
led to a systematic transformation of the role of 
financial institutions and economic entities on the 
basis of common tasks and functions, new laws 
and paradigms, subject to the laws of synergy, and, 
consequently, the need to form fundamentally new 
approaches to their regulation at both global and 
national levels.

It should also be noted that both globally and at 
the level of an individual country, there is a constant 
emergence of various structural disparities, which 
are constantly increasing and are critical for 
both local and global financial security, as well as 
for the development of financial and economic 
systems. In view of this, in any country, the issue of 
developing ways to neutralize the risks and threats 
to financial security in the process of integration 
into the world economic relations at the national 
level comes to the fore. This is especially true in 
the countries with economies in transition. To 
reaffirm the importance of this step, it should be 
noted that following the United Nations Summit 
on Sustainable Development on 25 September 
2015, 193 participating countries have committed 
themselves to a wide range of measures and 
structural changes to ensure macroeconomic 
stability and financial security of states, competitive 
development, ecological balance and social 
cohesion of national economies, etc. After all, 
even the market systems of developed countries 
were incapable of self-regulation: "the root causes 
of cataclysms are a utopian attempt by economic 
liberalism to create a self-regulatory market system" 
(Polanyi, 2001).

2. Ways to neutralize the risks and threats  
to financial security of countries  
with economies in transition

According to Professor R . Voitovych, the 
problem of the lack of formation of national 
identity prevents the state from fully resisting the 
globalization challenges of other states, to ensure 
a sufficient level of its own financial security. 

According to the author, it is essential to develop 
a state globalization policy that would preserve the 
country 's financial stability by taking into account 
the ratio of geostrategic forces in the global space 
and a clear definition of Ukraine's place and role 
in it. At the same time, globalization policy should 
be aimed primarily at the realization of national 
interests not by adapting to the needs of the global 
development system, but by being able to declare 
and defend their own nationally regulated position 
in the global world (Voitovych, 2013).

A. Kulinska in the monograph "Management 
of the components of financial security of the 
national economy of Ukraine: concept and 
methodology " offers methodological tools for 
managing the financial security of the national 
economy of Ukraine, which is to strengthen the 
interconnections between the components of 
financial security (Kulinska, 2016).

Somewhat similar proposals were put forward by 
O. Sidorov, who proposed a fairly general approach 
to economic security on the basis of the intellectual 
potential, which involved a certain sequence of 
stages of support, which included the formation of 
methodological and information bases, analytical 
assessment, threat detection and assessment, 
development provisioning mechanism. According 
to the scientist, this approach allowed to diagnose 
the state of the national economy based on the 
results of economic security assessment, to 
identify threats to economic security in the field 
of intellectual potential and to develop measures 
to eliminate them or overcome their consequences 
(Sidorov, 2018).

It is also necessary to highlight the proposals of 
some scholars on the possible ways to neutralize 
the risks and threats to financial security in the 
process of integration into the world economic 
relations, which are to manage certain components 
of financial security. Unfortunately, such a narrow 
specialization of the ways to neutralize risks and 
threats to financial security is not able to fulfill this 
task, because the country 's financial security is 
a systemic category, and it is impossible to achieve 
its quality level only through the management of 
its individual components. Public financial policy 
and tools aimed at overcoming threats, risks 
and negative factors for the financial system and 
financial security of the country must combine 
a set of budget, tax, credit, monetary and other 
instruments. The need to use the instruments of 
all components of the country 's financial security 



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is due to the fact that the shortcomings and limited 
effects of some instruments must be offset by 
the advantages of others, it is necessary to create 
a comprehensive system of measures to strengthen 
and effectively develop both the country 's financial 
system and financial security.

Let us now consider the proposals that have been 
developed by international structures. Thus, within 
the framework of the G20 in London on April 2, 
2009, a number of priority tasks were identified in 
reforming the system of the anti-crisis regulation of 
financial security at the national level:
– expanding the scope of financial regulation 
and its extension to most transactions in the 
financial market. Regulation must keep pace with 
innovation and focus more on operations rather 
than institutions;
– strengthening market discipline, eliminating 
the risk of an incorrect assignment of ratings. 
The identification of triggers that indicate the 
need for government intervention, as well as the 
development of a more transparent system of 
distribution of losses, are of particular importance 
for system-forming banks;
– minimization of pro-cyclicality in regulation, 
creation of reserves and airbags in a "peacetime". 
Regulators should continuously monitor market 
conditions so as not to encourage the financial 
institutions to take excessive risks;
– ensuring greater information openness, reliability 
of statistical data, their accurate reflection in 
the reports on financial stability, the creation of 
more transparent conditions for the assessment 
of complex financial instruments. Various market 
indicators (stock indices, option prices, CDS 
spreads) can contain important information about 
systemic risk. Obtaining information on the over-
the-counter transactions and off-balance sheet 
transactions will expand regulators' understanding 
of the level of accumulated risk in the system;
– improving the efficiency of liquidity regulation in 
the financial system (G20 London, 2009).

According to experts of the international financial 
organizations, the priority for the country 's financial 
security in the process of integration into world 
economic relations should be the integration of the 
national macroeconomic policy and tax system, as 
well as the financial regulation of capital flows. The 
IMF has already reconsidered its strong position on 
capital controls, but governments and international 
institutions need to do more to legitimize 
such measures. For example, governments can 

strengthen the stability of the national economy 
through "countercyclical regulation of capital", i.e. 
by limiting the inflow of capital if the economy is 
overheated, and by taxing the outflow of capital in 
the event of a recession. Governments must also 
combat tax evasion by creating a global financial 
register that records the place of residence and 
citizenship of shareholders and beneficial owners 
of financial assets.

Agreeing with the above positions and activities 
of scientists, organizations and states, it should be 
noted that they are either one-time, even when 
obtaining certain positive results, or aimed at 
solving operational problems, and so on. However, 
they are not a specific system and must be constantly 
reviewed and changed depending on the situation 
and the state of financial security of the country, 
which may lead to a waste of time in case of other, 
previously irrelevant risks or threats.

3. The concept of strategic anti-crisis 
management of financial security of the state

Given the above, we propose the concept of 
strategic anti-crisis management of financial 
security of the state, which should be implemented 
on the basis of strategic and preventive nature, 
should be aimed at continuously ensuring a level of 
financial security of the state at which it can protect 
its national interests, support socio-economic and 
financial stability of development, to be a participant 
in the world integration processes and international 
economic relations, which provides compliance of 
financial policy of the state (international, regional, 
national, local) long-term goals of sustainable 
development; constant complex interaction of 
all subjects of financial security management 
on all aspects of the financial security; constant 
control, monitoring and prevention of the existing 
and potential internal and external risks, threats, 
dangers and imbalances by building a vertically 
integrated risk management system at all levels 
of the economy; continuous development and 
improvement of tools for control, monitoring and 
avoidance of risks, threats, dangers and imbalances, 
overcoming their negative consequences and 
ensuring the financial security of the state.

At the same time, the model of strategic anti-
crisis management of financial security of the state 
should provide a list of various, consistent actions 
carried out in stages according to the algorithm:

1. Strategic diagnostics involves the 
implementation of system analysis: external and 



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internal factors, challenges, dangers and threats; 
various geopolitical, economic and financial 
influences; trends and patterns of development of 
the world economy and the world financial system; 
state and trends of the financial system and security 
of the country, etc.

2. Strategic planning involves forecasting and 
planning the development of the financial system 
and financial security of the country within the 
economic security, as well as the establishment 
of the medium and long-term priorities of its 
operation. The result is the development of 
a strategy of financial security of the state as 
a political and economic course of the financial 
security management system of the state, the 
activities of state bodies, economic and financial 
structures, which aims to create conditions and 
resources for financial stabilization and economic 
growth.

3. Strategic implementation involves ensuring the 
required level of financial security of the country by 
coordinating and ensuring the effective interaction 
and functioning of all components and elements of 
systems; introduction of preventive, anticipatory 
and / or anti-crisis solutions, measures and tools.

4. Strategic monitoring involves the 
implementation of current and future monitoring 
and control, assessment of the state of financial 
security based on the relevant indicators; 
adjustment of the medium– and long-term priorities 
of the strategy, adaptation and transformation of 
the operational decisions and actions, based on 
the results of strategic monitoring of the financial 
security system of the state.

Ensuring the quality implementation of this 
concept and achieving the greatest effect is possible 
only if the financial security management system 
of the state will be a set of the interconnected 
elements, which are characterized by the following 
system characteristics:
– mandatory presence of an ordered set of 
components, the functioning of which is 
determined by the established laws, norms and 
rules;
– the permanent nature of the relationships 
between the constituent elements that arise in the 
process of the system;
– flows of resources, information and energy both 
within the system itself and in the process of its 
interaction with the external environment;
– the presence of a clear hierarchical structure with 
the distribution of powers, duties, responsibilities 

and control centers in the implementation of the 
main functions of the system;
– ability to self-development and self-regulation 
of the system, forming its self-sufficiency and 
independence in the course of social exchange;
– the presence of a holistic system of properties and 
characteristics that are not inherent in its individual 
elements (Boiko, 2017).

The system of financial security management 
of the state should have such a structure that 
would be able to ensure clear functional and 
institutional interaction and coordination of all 
elements of the financial system. The main tasks 
of the financial security management system of 
the state include:
– ensuring coordination of various levels and 
components of the financial security, including the 
international security systems;
– identification of the internal and external threats 
to financial security;
– choice of ways and means to achieve goals and 
address financial security issues;
– formation of a set of measures capable of ensuring 
the achievement of goals and solving problems;
– coordination of actions of all participants of 
strategic anti-crisis management of the national 
financial security;
– ensuring monitoring, evaluation and control of 
the strategy implementation;
– financial, informational, personnel and other 
support of the strategy implementation process.

To confirm the correctness of the direction of 
improving financial security management, consider 
two opposite cases on the example of Poland, 
which partially implemented our principles and the 
principles of financial security management system, 
and an example of Argentina, where our principles 
and principles did not find a place.

Today, in Poland, there is a system of financial 
security management, which includes the Financial 
Stability Committee, the Ministry of Finance, the 
Financial Supervision Commission, the National 
Bank of Poland, the Bank Guarantee Fund, guarantee 
and compensation entities in the insurance and 
capital market, and the National Association credit 
unions. Each of the structures has specific tasks 
defined by the law both in case of crisis situations in 
the activities of individual institutions, and in case 
of crisis of the system as a whole (Masiukiewicz, 
2014; Masiukiewicz, 2012). 

The financial security management system of the 
Argentine Republic is no less presentable from an 



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institutional point of view and includes a number 
of relevant regulations. The key institution of 
the financial security management system of the 
Republic of Argentina is the High Level Systemic 
Risk Monitoring Committee, which includes 
the Central Bank of the Republic of Argentina 
(BCRA – Banco Central de la Republica de 
Argentina), the Ministry of Economy and Public 
Finances (MECON), the National Securities 
Commission (CNV), the National Insurance 
Supervisor (SSN), and the Deposit Insurance 
Fund (FGD).

At the same time, the main problem of the systems 
and process of financial security management of 
these countries, as well as of Ukraine, is the lack 
of a financial security management system in the 
presence of conditions and appropriate regulatory 
and supervisory institutions.

4. Risk management system  
as a subsystem of the financial security 
management system of the state

Given the above, as well as returning to the 
functioning and efficiency of the financial security 
management system of the state and based on the 
requirements and features of systems theory and 
systems analysis, the criteria for monitoring and 
analyzing the functioning of the financial security 
management system should include:
– time order, which implies the need to take into 
account the state of functioning of the elements 
and the system as a whole and the dynamics of 
processes, taking into account the continuity of the 
management process;
– structural-spatial ordering as the spatial 
arrangement of system elements, and the 
establishment of different types of connections 
between them;
– information ordering as a subsystem of knowledge 
management, taking into account internal and 
external connections, fulfillment of functional 
responsibilities for functioning, security and self-
development (Moiseenko, 2007).

This can be ensured through the risk management 
system as a separate subsystem of the financial 
security management system of the state.

The main task of this risk management system 
should be:
– identification and prevention of existing and 
potential systemic risks, dangers and threats of 
the external and internal origin, because they have 
caused and continue to cause the greatest negative 

and destructive impact on the financial security of 
a single state;
– assessment and determination of the necessary 
resources to neutralize risks, dangers and threats;
– planning and adjusting measures for the 
implementation of state policy in the field of 
financial security, etc.

To implement the above-mentioned risk 
management subsystem in Ukraine, it is possible 
to establish a permanent working group under 
the National Security and Defense Council of 
Ukraine or the Cabinet of Ministers of Ukraine. 
This Council should be instructed to lead not only 
the organizational and methodological work on 
the development of the financial security strategy 
and policy, but also the current regulation, 
monitoring of global risks and assessment of their 
impact on the financial security and the economy, 
as well as a timely identification of potential 
challenges, dangers and threats to financial 
security of Ukraine. As for the structure of the risk 
management subsystem, as well as the control, 
collection and analysis of information on systemic 
risks to financial security of Ukraine, we can offer 
the following distribution and responsibility of 
the state bodies and components of the financial 
security of the state, in order to identify and 
prevent the risks, implement the necessary 
measures and tools, given the systematic category 
of "financial security ":
– Ministry of Economic Development, Trade and 
Agriculture of Ukraine: financial security of the 
state;
– Ministry of Finance of Ukraine: budget and debt 
security;
– National Bank of Ukraine: monetary banking, 
currency security and security of the non-banking 
financial sector;
– National Commission on Securities and Stock 
Markets of Ukraine: stock market security.

At the same time, a prerequisite for the 
effectiveness of this risk management system  
should be interconnected activities and 
comprehensive interaction of all its institutions, 
their quality regulation and administration 
within the entire financial security management 
system, as well as ensuring the implementation of 
a unified state policy on financial security, rather 
than a simple statistical performance of their own 
functional tasks, as it is happening today in the 
system of public administration of the financial 
system and security of the state.



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5. Conclusions 
Thus, it can be noted that strategic anti-crisis 

management of the national financial security will 
address a number of important issues for the state, 
the main of which are the following:
– ensuring the financial stability of the state for 
a long period in all conditions, including by 
preventing and minimizing the effects of various 
crises (for example, crises of monetary, financial 
systems, etc.);
– neutralization of the negative impact of the world 
finances and economic expansion of the foreign and 
transnational companies on the national financial 
security;
– meeting all the necessary needs of society in 
financial resources and ensuring economic growth 
of the country;

– counteracting existing and potential dangers, 
risks and threats to ensure a stable functioning of 
the financial system, financial independence and 
identity of the state;
– ensuring the competitiveness of the state and 
the competitiveness of domestic producers in the 
world economy and the regional markets;
– ensuring the flexibility of legislation and 
compliance of national legislation with interna-
tional standards;
– ensuring the protection of national and financial 
interests of the state and society in the context 
of growing globalization and integration of the 
country into international economic relations;
– ensuring effective control over the distribution 
and use of public funds;
– creating a favorable investment climate for foreign 
investment.

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