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Managing Bankruptcy and Default Risk
Author(s) -
Woodlock Peter,
Dangol Ramesh
Publication year - 2014
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22002
Subject(s) - bankruptcy , business , key (lock) , default , default risk , treasury , bankruptcy prediction , actuarial science , credit risk , finance , computer science , computer security , archaeology , history
Understanding and managing bankruptcy and default risk is a treasury imperative. The authors discuss various default/bankruptcy scoring models that a firm can use to measure its bankruptcy and default risk for its key customers, key suppliers, key investees, and others with whom the firm transacts. Then, they highlight strategies a firm can employ to limit bankruptcy and default risk exposure of bankruptcy filings by the firm's key suppliers, customers, and others.