A Proposal for a Bankruptcy Risk Detection Model – Adaptation of the Taffler Model

Abstract

The purpose of this work is to adapt an established model on bankruptcy risk into 2021 requirements. This paper presents a comparative analysis between Taffler model and a proposed model for bankruptcy detection and thus prevention. The adapted model proposed by this paper is able to detect more insolvencies, this fact being tested by the predictability analysis. This model claims to be a step forward in detection and prevention of insolvencies based on risk detection models.

Keywords

• taffler insolvency model
• insolvency
• net assets
• risk model