The approach to determine the bankrupt risk of a company

The proposed approach to the consideration of the concept of «bankruptcy risk» through the presentation: - the concept of «risk» as an action that requires the investment of resources that exceed their allowable losses, which leads to the subsequent occurrence of an indefinite event (desirable or undesirable) estimated by the likelihood of an undesirable event. - management response or decision-makers, to changes in environmental factors associated with «risk» as an action leading to improvement or deterioration of financial condition up to bankruptcy, and estimated by the numerical value of the integral indicator of the reporting financial condition and the predicted probability of bankruptcy. The use of the numerical value of the integral indicator of the method used to diagnose the probability of bankruptcy as a quantitative measure of the financial status of an enterprise allowed us to compare financial conditions at the beginning and end of the reporting period and to reveal the fact of its improvement or deterioration. The approach strengthens the requirements for increasing the reliability of determining the integral indicator of financial condition and the probability of bankruptcy.