Digital technologies in the organization of internal control of operations with financial instruments for price risk hedging

Юрченко, Олександр Анатолійович (2026) Digital technologies in the organization of internal control of operations with financial instruments for price risk hedging Журнал “Агросвіт” (8). pp. 185-195. ISSN 2306-6792

Text Yurchenko O._Sakhno L._ Novichenko L_AS_2026_FEU.pdf - Published Version Download (1MB)

Abstract

The article examines the organizational features of internal control over operations with financial instruments used for price risk hedging in international markets. Internal control is considered as a continuous and integrated business process aimed at ensuring legality, economic feasibility, safeguarding of assets, and achieving strategic risk management objectives. Particular attention is paid to the transformation of internal control under conditions of digitalization and the increasing complexity of financial instruments. The key stages of the control process are identified and substantiated, including the preliminary assessment of the feasibility of using financial instruments, ongoing monitoring of the market value of contracts, compliance with risk limits and margin requirements, and evaluation of hedging effectiveness. The study emphasizes the importance of timely identification of deviations and rapid response to changes in market conditions. The application of the integrated Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework is proposed as a methodological basis for building an effective internal control system. This approach ensures the interconnection between the control environment, risk assessment, control activities, information and communication, and monitoring. The advantages of a risk-oriented approach are demonstrated, focusing on critical operations such as fair value measurement of derivatives, assessment of counterparties' creditworthiness, and control of foreign exchange exposure. The forms of internal control organization (self-control, institutional control, and functional control) are characterized, and their integration is justified as a means of enhancing control effectiveness. Special emphasis is placed on the information support of internal control, which includes internal regulations, primary and consolidated accounting documents, analytical reports, exchange data, and ERP system logs. The role of digital technologies, including ERP systems, data analytics tools, and automated monitoring systems, is highlighted as a key factor in improving the efficiency, transparency, and reliability of control procedures. The implementation of the proposed internal control system contributes to the timely detection of irregularities, minimization of financial losses, strengthening of risk management processes, and enhancement of the reliability and transparency of financial reporting. The results of the study can be applied in the development of modern internal control systems at enterprises operating in global financial markets under conditions of digital transformation.

Item Type:	Article
Uncontrolled Keywords:	internal control; financial instruments; hedging; price risks; derivatives; international market; risk-oriented approach; ERP systems; COSO framework; digitalization
Subjects:	Статті у базах даних > Index Copernicus Статті у періодичних виданнях > Фахові (входять до переліку фахових, затверджений МОН)
Divisions:	Факультет економіки та управління > Кафедра міжнародної економіки
Depositing User:	доцент Олександр Анатолійович Юрченко
Date Deposited:	22 Apr 2026 12:16
Last Modified:	22 Apr 2026 12:16
URI:	https://elibrary.kubg.edu.ua/id/eprint/57075

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