Financial Monitoring

Financial Monitoring is a tool used to study the competitive environment and to collect targeted information about other members of the market using legal means in order to take management decisions on the future strategy and business tactics.

Competition is a system of internal and external factors. These factors can be promising or threatening to one's business.

In context of intense competition companies' management should have a complete picture of strengths and weaknesses of their business and be aware of competitors' plans: what advantages they have, what threats 'business partners' can pose, and what measures should be taken to counter competitors' possible actions promptly.

The main purpose of Financial Monitoring in these circumstances is informational and analytical support in taking optimal management decisions that lead to achievement of competitive advantages over other market participants.

 

The Main Objectives of Financial Monitoring

  • Assessment of the competitors' true strategies 
  • Estimation of their capacities (strong and weak sides)
  • Evaluation of profitability of business conditions
  • Assessment of the competitor's unique trading proposal 
  • (i.e. establishment of actual marketing strategy)
  • Examination of the competitor's pricing policy 
  • Defining the line of development and methods of promotion of competitor's products (services)
  • Defining the group of competitor's main counterparties
  • Establishing key figures and their resource capabilities
  • Defining the main sources of the competitor's funding
  • Assessment of perspectives of competitor's innovative and financial resourses
  • Deep and diverse market research and assessment of key players
  • Forecasting of market changes trends
  • Identification and studying of competing parties on the market
  • Detection of changes in legislation and subordinate legislation, which may affect the company's development
  • Studying information on patents, licenses and trademarks
  • Studying business methods and their compliance with the market
  • Identification of artificial inflation of the cost of the acquired business
  • Improving the company's overall safety
Data obtained in due time and then used effectively facilitates growth of existing businesses and may safeguard from bankruptsy.
Information collected in course of financial monitoring allows the company to change its business strategy as a whole, or some directions of it.
In case of a proper implementation of recommendations the financial output of investments in financial-monitoring activities would outrun expenses manifold.
It should be taken into consideration that the major success of financial monitoring is acheived  through systematic preventive measures and cannot be attained by mere physical or technical protection of the business.
Physical security, special technical measures and personnel security are integrated into the overall system of comprehensive activities on ensuring safety of business.
IPC specialists believe that despite the complexity of the modern business the professional approach will help to predict emerging risks, eliminate them promtptly and if protective barriers are put in time, the situation can be used to your own advantage.