Analysis of bankruptcy and secure risk management models and application for their extension

Abstract

In modem management risk has management become an inevitable part of financial management. Company financial health is evaluated by financial standing and bankruptcy models. Article analyzes the selected financial standing and bankruptcy models in terms of their predictability and based on the results of this analysis suggests a new model for evaluation of financial risks in the corporate sector. In the first part we define company financial health according to selected financial standing and bankruptcy models and analyze their explanatory power. In article is presented own methodology for financial risk management in the company. Input data are expertly set based on financial analysis. These data are then used in the calculations of each of the selected methods. The final part is devoted to interpreting the results of selected analyzes and makes recommendations for their possible extend of the company risk management system.