The Risk Analysis Process and Its Coverage: A Requirement for Management and Governance for Achieving the Objectives

Ana Morariu (), Bogdan Ionescu (), Mihaela Dăucianu (Avram) () and Maria Constantin ()
Additional contact information
Ana Morariu: Bucharest University of Economic Studies
Bogdan Ionescu: Bucharest University of Economic Studies
Mihaela Dăucianu (Avram): Bucharest University of Economic Studies
Maria Constantin: Chamber of Financial Auditors of Romania

A chapter in Entrepreneurship, Business and Economics - Vol. 2, 2016, pp 127-138 from Springer

Abstract: Abstract Organizations issue on risk assessment in conjunction with the entity’s attitude and its organizational culture is a major concern for economic and social environment. The risk analysis process and its coverage, is today a requirement for management and governance to achieve the objectives. The objective of this article is to enrich the specialized information on financial risk analysis process due to customers and developing a scoring analysis model and risk assessment of clients from a company portfolio to avoid non-collection of receivables. In order to fulfill the objectives it will be used a mixed research methodology specific to economics, which will combine both qualitative and quantitative methods, to assessing financial risk for companies customers by analyzing methods and techniques for reducing the risk of not collecting the receivables through: contracts only with clients presenting an acceptable risk for collaboration (low, medium, high), the adoption of some measures to deal with credit limits in each client depending on the risk result, penetration on regions with a lower risk, provisioning for high-risk customers, additional safeguards and closer monitoring of their collaboration with the company’s sales department.

Keywords: Risk assessment; Risk indicator; Solvency; Debt ratio; Accounting policies; The principle of prudence (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-319-27573-4_8

Ordering information: This item can be ordered from
http://www.springer.com/9783319275734

DOI: 10.1007/978-3-319-27573-4_8

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().