Methodical Approach to Bankruptcy Prediction Model Development

There is a likelihood of a crisis in any organization, which is determined by objective factors such as the fluctuations in market conditions, periodic modernization of technology, the changes in the organization of production, the change of personnel or external conditions, and often political circumstances. Bankruptcy is a critical variant of crisis phenomena at an enterprise. Of course, bankruptcy is an important element of the market system structure, and its purpose is to protect social-economic processes from the results of ineffective activities of their members and the failure to fulfill their obligations.