The essence, goals, and capabilities of business analysis

An organization can be recognized as financially stable if it has protection from external negative factors, does not have a high degree of dependence on creditors and is not at risk of bankruptcy. Taking into account the relationship and complex structure of interaction between the many components of the financial system and the real economy, measuring financial stability is a rather complicated procedure. There are many studies that try to find the conditions of financial stability using certain indicators of the vulnerability of the financial system. But the actual situation with regard to financial stability, using a certain number of indicators, is quite difficult to assess, especially in the long term. In modern conditions, more advanced methods of analyzing the financial component are needed than just a comprehensive analysis of the organization’s activities. It is business analysis that is the tool that is able to cover the largest range of issues in terms of identifying business needs and overcoming emerging difficulties. To understand the real area covered by modern business analysis, it is worth considering its definition and essence.