Risks are divided into many varieties. These are interest rate risk, market risk, political risk, financial risk, business risk, management risk, non-repayment risk, marketability risk, purchasing power risk, interest rate risk, exchange rate risk, structural delay risk, equity risk, corporate bond risk, liquidity risk, taxation risk, reinvestment risk, country risk, dynamic risk, structural risk, conditional risk, customer risk and interpretation risks.
Published in Chapter:
Enterprise Risk Management and Bankruptcy
Pınar Avci (Tekirdağ Namık Kemal University, Turkey) and Sevgi Sümerli Sarigül (Kayseri University, Turkey)
Copyright: © 2023
|Pages: 18
DOI: 10.4018/978-1-6684-5181-6.ch007
Abstract
This study explains bankruptcy by talking about risk, risk types, and risk management and bankruptcy forecasting models. The studies in the literature are examined and explained as risk, danger, possibility of bad consequences, loss, or misfortune. Types of risks, purchasing power, interest rate, market, political, exchange rate, financial, industry, corporate bond, liquidity, taxation, reinvestment, country, dynamic, structural, conditional, customer, financial/regulatory, reputation/loss, corporate and interpretation risks are identified in the literature. The study explains bankruptcy as the situation that occurs when a business cannot obtain sufficient value to cover the costs of doing business. Finally, it is stated in this study that bankruptcy estimation methods, which are constructed with historical observations and evaluated with historical observations, are used to predict firms without failing. The findings, which are obtained by examining the literature, offer important contributions to company managers.