Financial and Credit Risk Management During the Introduction of High-speed Traffic in Ukraine

Abstract

The article deals with urgent issues of financial and credit risk management during the introduction of high-speed traffic in Ukraine. It is noted that Ukraine’s transport industry is facing the negative impact of the external environment, including aggression from Russia and the pandemic, which has required the tariff increase and additional state budgetary funds. The emphasis is placed on the important role of rail transportation in Ukraine due to the country’s geographical and economic features. It is also shown that the growth of international activity and the globalisation of production have led to an increase in the volume of international freight traffic, which has required higher demands for transport systems. Thus, the introduction of high-speed traffic requires special highways and infrastructure development, which can be implemented with the state support. This support can include the budgetary funds, tariffs, loans, and international grants. Financial and credit risk management is a key component of strategic management of an enterprise, especially in the condition of a changing market environment. It is proposed to optimize the financial security forms in order to increase the traffic speed and to identify the main groups of financial and credit risks for their minimization. A mechanism for financial risk management at a railway transport enterprise is also proposed. It is based on a system of indicators and can help effectively in decision-making. The article substantiates a need for effective financial and credit risk management to ensure the stable and efficient operation of Ukraine’s railway transport in the face of economic challenges and in the condition of an unstable geopolitical environment.