Biotechnological approach to the analysis and prognostication of the financial stability of the enterprise

Abstract

This paper reviews an alternative methodological approach to assessment and conseptual foresight of financial sustainability of an enterprise. Any socio-economic system is a complex bio-technical system consisting of: a human - the decision maker, a technical object - machinery, equipment, buildings and structures, and a biological object - animals, plants, soil etc., operating in a consolidated informational field. An important place among the factors shaping financial sustainability of the economic entity is reserved for a human (the decision maker), since a human is a subject that purposefully forces all system's functions to interact. Socio-economic systems are characterized by financial dualism: on the one hand, they generate income, and on the other one, they generate costs. Financial result of a socio-economic system activity is expressed in the difference between revenues and expenditures, and the predominance of revenue over incurred costs speaks about the effectiveness. One of the most important characteristics of financial result is its resistance to various internal and external perturbations. Financial sustainability of the enterprise is reviewed from the perspective of bio-technical approach that includes the HME elements system (human, machine and environment) and allows to determine the contribution of each system element into the final result and the stability of these elements. This approach will allow to improve the adequacy of financial stability assessment results a of company in various states of the economy.