IDENTIFICATION OF COMMERCIAL ORGANISATION FINANCIAL RISKS AND MECHANISMS TO NEUTRALISE THEM
The article provides an assessment of the financial risks of a poultry company over the last three years. Particular attention was paid to insolvency risk, credit risk and inflation risk. The calculations proved the presence of rather high financial risks in the organization's activity. The com...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Agricultural Sciences and Veterinary Medicine, Bucharest
2022-01-01
|
| Series: | Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| Online Access: | https://managementjournal.usamv.ro/pdf/vol.22_2/Art38.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The article provides an assessment of the financial risks of a poultry company over the last three years. Particular attention was paid to insolvency risk, credit risk and inflation risk. The calculations proved the presence of rather high financial risks in the organization's activity. The company in the first two years of the analyzed period had a high probability of insolvency and therefore the risk of bankruptcy is maximum, in the current year the situation has normalized. An assessment of the credit risk of the company from the perspective of both the borrower and the lender showed that this risk was reduced during the analyzed period. But the organization may face the risk of not securing its liabilities, i.e. a peculiar form of credit risk, since the amount of borrowed capital exceeds equity by 75.3 times. The level of inflation risk in the current period is high due to rising inflation in the country. The authors proposed mechanisms to ensure financial stability of the studied company, which are divided into internal and external. The main types of internal mechanisms of financial recovery of the company were strategic tactical and operational ones. |
|---|---|
| ISSN: | 2284-7995 2285-3952 |