Internal and external factors of insolvency of the company

This article describes the main external and internal factors that lead business entities to deterioration in their financial condition and insolvency. Any enterprise may face unstable financial condition, insolvency and bankruptcy. Assessing the probability of bankruptcy makes it possible to predict the likelihood of a crisis in a company and to promptly take measures to minimize the consequences or prevent the occurrence of a crisis as a whole. Analytical methods and tools make it possible to assess the risks of insolvency, create or adjust management decisions regarding the financial recovery of the company.