Financial Risk Analysis Model in the Context of the Romanian Accounting System
Keywords:financial risk; accounting model; risk management; scoring; logit model
Accounting plays an important role in the risk management process. Based on the information
provided by it, potential risks can be identified and the company’s exposure to specific risks can be measured.
The information provided by the accounting is influenced by the accounting model adopted and the way in
which it is presented varies. The Professional Management Accountants’ Corps (CIMA) in London
underlines the significant implications of accountants in the risk management process and internal control
system of their organisations, professional knowledge adding value to processes (Collier, Berry & Burke,
2007, p. 5). The objective of this study is to create a credit risk assessment model using a number of useful
financial rates in the company’s creditworthiness prediction. This will be achieved through a quantitative
model designed using real data from companies in operation or bankruptcy and statistical methods specific to
the modelling oAf this type of risk. The aim of the research is to provide relevant scientific conclusions
leading to an understanding of the relationship between the Romanian accounting model and the assessment
of financial risk, how they influence each other, and the importance of knowledge link.
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