MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT

Abstract. The article examines the main financial management mechanisms of a commercial bank, as well as the prospect of creating a modern financial mechanism. The article analyzes the approach to the definition of the term "finances" and the focus of management on the placement of financial resources to obtain income. Emphasis is placed on the importance of productive financial relations between the bank and clients through financial management. The role of elements of planning, operational management and controlling in the creation of modern financial management methods is also considered. The stability of the banking sector largely determines the stability of the economy in general and its successful development. Therefore, the primary task of state bodies at the macro level and the management of credit organizations at the micro level should be to ensure such stability through the implementation of a rational monetary policy; assessment and monitoring of the state of the real and financial sectors of the economy; the fall of all types of risks and the acquisition of income, which multiplied aggregate costs. All this will contribute to the modernization and improvement of the quality of banking services provided to individuals and legal entities. An unreasonable and hasty policy in the field of banking business will not only lead to a decline in the financial stability of credit organizations, but will affect the economy as a whole. The article analyzes the financial management of foreign banking organizations, as a result of which the author came to the conclusion that the most important indicators in the development of a bank's financial strategy are the value of a financial organization, the level of bank capital, a certain number of active innovative projects, an increase in the range of products and services provided by banks, an increase management of external and internal risks, as well as development of an effective investment policy. As a result of the study, the relationship between effective financial management and a high level of liquidity management of the bank and the adequacy of its capital was revealed. The theoretical recommendations made by the author can be used by bank managers during the development of tactical measures aimed at increasing the financial stability of the credit organization, as well as during the clarification of the bank's development strategy in the phases of economic growth and decline in the interests of owners and other economic entities that enter into financial relations with banks

Agile in Commercial Setup – Mission Impossible?

This article reviews applicability of the very trendy in IT world Agile framework or even mindset and culture (a set of practice that in contradiction to other product and project management practises treats predominantly IT development in very flexible and iterative manner). Research starts with the very foundations of Agile practise, revises its main building blocks (principles) mentioned in primary source –Agile manifesto and examines validity of such principles to be implemented in commercial and business setup, e.g. in commercial relationships between different commercial undertakings. Justification of the research. Agile and agility is very popular nowadays in mainly IT world however due to its nature it is very close to LEAN principles being implemented in manufacturing operations. The main idea behind that mindset is that products have to be developed in iterative mode –closely communicating with the customers and delivering working pieces of functionality as soon as possible (MVP –Minimum ViableProduct). Such approach without any doubts is perfectly suitable for internal R&D projects (developing absolutely new products, brainstorming together new ideas), however its full application is doubtful in commercial setup due to the number of reasons. Aim is to examine the applicability of Agile framework in commercial setup, pointing out what and why Agile principles work, and what parts of this mindset can be ignored as non-applicable. Methods employed are analysis of the scientific articles, analysis of best practice use cases, comparison, analytical descriptive and generalization methods. Findings of this research support the assumption that through leveraged Agile practise commercial companies can essentially benefit in designing product‘s quality and speed (time to market). However some of Agile principles shall be adapted to the nature of commercial relationships by introducing more formal approach to the extent possible (without jeopardizing Agile principles). Conclusions emphasize positive Agility features and recommend to implement such practises, introducing additional key elements that would ensure formal contractual relationships between commercial undertakings

Influence of digital transformation on economic security of enterprises

The article considers possible ways to reveal the impact of digital transformation on the economic security of companies. The analysis of theoretical and methodological approaches to the disclosure of the economic essence of economic security of the enterprise in a turbulent environment and digitalization of the economy has identified six vectors of modern scientific achievements on the economic security of the enterprise. The purpose of the study summarize theoretical studies of economic security, analyze and describe digital transformations, perform an assessment of the impact of digital transformations on the economic security of enterprises. It is determined that the development of the modern system of economic security of enterprises consists in its adaptation to application in the conditions of digital transformations. The theoretical basis of formation of the adapted system of economic safety of the enterprise is formed, the basic principles of adaptation are formulated; the main stages of adaptation are highlighted; a structured model of the adapted system of economic security of digital transformations of enterprises is developed

Simulation Modeling as a Tool for Ensuring Sustainable Development and Competitiveness of an Enterprise

CC BY-NC 4.0The work performed is unique in its kind, since it represents the development of instrumental methods for studying an urgent problem – the increase in competitiveness and ensuring sustainable development of industrial enterprises. The purpose of the study is to develop a system for assessing the impact of institutional factors on the competitiveness and innovation activity of an industrial enterprise. The analytical toolkit is simulation modeling diagrammatically represented by graphical notations illustrating system dynamics model. Based on the available world research, four main components of industrial enterprise competitiveness are identified - the competitiveness of products; strategic positioning; innovation activity of both - the enterprise and the institutional environment; and resource efficiency. Based on the identified components, a methodology for their calculation and for computation of a multiplicative composite indicator describing competitiveness has been developed. The influence of the intra-firm and institutional factors on the enterprise innovation activity is discussed as a separate segment of this method. It is shown that the institutional environment to a greater extent affects the company competitiveness through its innovation activity. The intra-firm factors (such as the enterprise’s material, scientific and technical resources, organizational and corporate culture, strategic management) expand the influence of the industrial market institutional environment. Thus, all enterprises located in the same industrial market have equal conditions for their innovative activities. Based on the elaborated system, a simulation model of industrial enterprise competitiveness is developed, which shows it as a set of cause-and-effect relationships and feedback loops. The designed simulation model may be adapted to any manufacturing company and allows simple simulation experiments

Blockhain impact on economic security

The aim of this paper is to review impact of the one of the most modern cutting edge technologies‘, namely Blockchain on Economic Security. First of all article describes concept - technological background of Blockchain technology nature, emphasizing main features that have most significant and even disruptive impact on separate industries and even whole Economy including Economic Security. Secondly contemporary challenges of this technology are provided. Thirdly multifaced concept of Economic security is explained, followed by importance of this phenomenon specifically within modern mega trends such as Globalization and Information Society. Blockhain impact has been researched through three main industries/functions – eCommerce, Payments and Logistics. Finally conclusions of the paper suggest to use Blockhain with another Industry 4.0 technologies (such as Big Data and Internet of Thing) to reach maximum possible synergy

DIGITAL TRANSFORMATION AND INCREASING MOLDOVA INDUSTRY SWOT ANALYSIS

The digital transformation is now a reality in Moldova, as Moldova has begun to transfer social, legal, and civil service delivery online. Sped-up digitalization can be expected to create new business models and opportunities for digital jumping in traditional industries. The Coronavirus crisis has highlighted the need for support and investments in digital transformation and effective digital governance, especially to guarantee the continuity and delivery of core government functions. The digital transformation is changing not just business models but the methods of production and distribution and the industry's competitiveness. The country's competitiveness is directly proportional to the country's level of economic development. According to SWOT analysis, general strengths on which Moldovan industry digitalisation will rely can be distinguished. It rely on the fact that manufacturing sector output is increasing – the contribution of the manufacturing sector to national GDP is around 12%, however it is on the lower side compared to other EU countries. Despite that, recent years indicate the rise of the output of this industry segment and industry digitisation will further encourage this process. Secondly, public and private IRT infrastructure is well-developed – is consistently updated, provides world-class internet access, and allows faster digitization. Thirdly, the growing capacity of digitization solutions providers - supply a wide range of services by participating in local and global value chains. The interview with experts who work closely in digitalization or competitiveness was done, and the SWOT analysis was done. Based on the research made, the recommendations for Moldova were prepared and presented in this article

Increasing the effectiveness of food supply chain logistics through digital transformation

During the COVID-19 crisis, there were many restrictions to transportation. Due to that, a significant disruption in the food supply chain has emerged. The transportation of the fresh food and maintaining the quality, from farm to the table or distributing and then collecting from the warehouses and delivering to the consumer, has become crucial. Technologies and especially IoT, have become the primary tool to fight it. The research objective is to analyze and create new knowledge about digital technologies used to improve and make more effective the food supply chain processes. An exploratory case study methodology helps to investigate a large consortium based on IoT technologies, implemented in pilot cases on farm level and measuring their performance over the period of four years. This is an interpretative study, and the method of semi-structured interviews and document review for collecting the data was used. The results show IoT-connected sensors and systems in food and beverage supply chain logistics offer real-time visibility and data-driven analytics, allowing stakeholders to improve performance, cut operating costs, conduct predictive maintenance to avoid downtime, and even decrease energy usage or reduce negative environmental impacts

The Impact of Knowledge Management on Organizational Innovation

CC BY-NC 4.0Every organization wants to create unique products and services, but not all organizations achieve this. Those that successfully offer exceptional products and services thanks to better execution processes can be called innovative organizations. However, the desire to be an innovative organization alone is not enough, organizations need to develop new processes in order to be successful and to properly manage the knowledge of the organization. This article analyzes the impact of knowledge management on organizational innovation, and presents the research conducted in Lithuania. Many researchers see a positive impact on organizational innovation, as knowledge management practices that prioritize the generation of new knowledge and learning at the organizational level are important for achieving positive results in innovation. Thus, knowledge generation has a positive correlation with organizational innovation creation, but some researchers, e.g. Donate and de Pablo (2015) consider this relationship to be indirect. The results of a study by Lee, Leon, Hew, and Ooi (2013) revealed that knowledge acquisition is not strongly related to an organization’s technology innovation process. Capon, Farley, Lehmann, and Hulbert (1992) argue that the acquisition of knowledge does not affect an organization’s ability to innovate. However, there are other studies, e.g. Darroc and McNaughton (2002) and Tan and Nasurdin (2011) argue that knowledge acquisition strongly influences the process of technological innovation. The aim of this article is to determine whether this impact is direct or indirect, not only to limit technological innovations, and to determine which trends are typical for Lithuanian organizations

ІНФОРМАЦІЙНЕ ЗАБЕЗПЕЧЕННЯ ПРОЦЕСІВ УПРАВЛІННЯ ПРОМИСЛОВИХ ПІДПРИЄМСТВ: ШЛЯХИ ТА ПЕРСПЕКТИВИ РОЗВИТКУ

Information support is a key element of development of strategy today. Development of digital technologies reached a stage which opens new qualities of their application in administrative process. Interaction of information technologies between physical systems with the built-in software and global data transmission networks is one of key factors of maintaining competitiveness of the industrial enterprise. Understanding of interrelation between distribution of digital technologies and their social consequences is a question of the difficult and mutual relations which are formed under the influence of numerous economic, social and political factors which finally define how new potentials of technological application and what results will be received by the enterprise will be really applied. Information support of management processes at the industrial enterprises first of all has to be directed to interaction of new technologies with resultant personnel and organizational changes therefore demands conceptual revision of the general context of production. An analytical starting point for this purpose is the concept of "a sociotechnical system" which covers communications between technological, organizational and human elements of the general system of production. In a concrete phase of introduction, under certain circumstances, long, expensive and mutual process of coordination between a new system and the existing installation conditions will be required. Improvement of management processes thanks to information support gives to the industrial enterprises the chance: quicker response to environment calls; to adapt a data transmission technique; to reduce time for processing and the analysis of data; to provide reliability of information on a condition of processes at the enterprise; to improve process of forecasting of a market conjuncture, etc.Інформаційне забезпечення на сьогодні є ключовим елементом розробки стратегії. Розвиток цифрових технологій досягло етапу, який відкриває нові якості застосування їх в управлінському процесі. Взаємодія інформаційних технологій між фізичними системами з вбудованим програмним забезпеченням та  глобальними мережами передачі даних є одним з ключових чинників збереження конкурентоспроможності промислового підприємства. Розуміння взаємозв'язку між поширенням цифрових технологій та їх соціальними наслідками є питанням складних і взаємних відносин, що формуються під впливом численних економічних, соціальних і політичних факторів, які в кінцевому підсумку визначають, яким чином реально будуть застосовані нові потенціали технологічного застосування, і які результати отримає підприємство. Інформаційне забезпечення процесів управління на промислових підприємствах перш за все має бути спрямовано на взаємодію нових технологій з результуючими кадровими і організаційними змінами, тому вимагає концептуального перегляду загального контексту виробництва. Аналітичною відправною точкою для цього є концепція «соціотехнічної системи», яка охоплює взаємозалежні зв'язки між технологічними, організаційними і людськими елементами загальної системи виробництва. У конкретній фазі впровадження, за певних обставин, буде потрібно довготривалий, витратний і взаємний процес координації між новою системою та існуючими умовами установки. Удосконалення процесів управління завдяки інформаційному забезпеченню надає промисловим підприємствам можливість більш швидкого реагування на виклики середовища; адаптувати методику передачі даних; скоротити час на обробку та аналіз даних; забезпечити достовірність інформації про стан процесів на підприємстві; удосконалити процес прогнозування ринкової кон’юнктури та інш