COMPREHENSIVE CONTROL SYSTEM OF THE CORPORATE ENTITY AND ITS STRUCTURAL ELEMENTS

Abstract

The article substantiates the importance of building a complete control system for corporate governance subjects, especially in conditions of systemic instability and dynamic changes in the external and internal environment of their functioning. It was determined that the existing scientific developments on this issue do not solve the problems regarding the essential understanding of the concept of "integrated control system", which is one of the components of the global management system of the economic entity. It is argued that the research of this problem must be started with the clarification of scientific approaches to the understanding of such concepts as "system", "control system", "integrated control system", "elements of an integrated control system". According to the results of the study, it was established that there are a variety of interpretations of the systematicity of control, the absence of a single scientific opinion regarding the understanding of a complete control system as a set of elements that form a stable, dynamic system and are endowed with integral properties and regularities. The conducted studies show that the necessary conditions for the introduction into the practice of corporate business entities of the efficiency of a holistic control system are the separation of its subsystems: corporate control, internal audit and internal control. On the basis of systemic and synergistic approaches, a scheme of a complete control system of a corporate entity is proposed. It was determined that a significant place in this system is occupied by the subsystem of corporate control, since it is the most integrated in the management of the corporation. The components of the corporate control subsystem are characterized and their focus on balancing the interests of the participants in corporate relations in the process of their participation in management activities is determined. The importance for a complete control system of the internal audit subsystem is substantiated, which provides the management of the corporate entity with guarantees and confidence regarding the activities of executive management bodies in a legal and effective manner, while the target direction of this subsystem is the assessment of risks, the search for ways to reduce them, as well as increase profitability of business processes. The need to expand the functions of the internal audit subsystem by providing consultations and professional assistance to managers of all levels of management of a corporate entity with an emphasis on results rather than processes has been determined. It has been found that the internal control subsystem should be considered a basic component of the integrated control system of a corporate entity, as it ensures timely information to the management about detected deviations and adverse situations for making operational decisions to eliminate and minimize activity risks. It has been established that a characteristic feature of the internal control subsystem is its hierarchical integration at all levels of management, especially for entities managing a group of enterprises. Using a hierarchical approach, a logical-structural diagram of the integral control system of the management entity of the group of enterprises was built, in which the place of the internal control subsystem and its interaction with the internal audit subsystem was determined. We believe that the proposed understanding of the essence of the integrated control system and its structural construction will contribute to the further development of the theory and practice of control among corporate governance subjects, and its implementation will be a positive signal for potential investors and creditors and will increase the investment attractiveness of the corporation.