ANALYSIS OF THE FINANCIAL PERFORMANCE ASSESSMENT IN THE CONTEXT OF BANKRUPTCY RISK MANAGEMENT

Abstract

The economic environment is facing a series of transformations that are spreading rapidly and determine the appearance and manifestation of the risks, which affect the activity of the companies. Regardless of the type of activity carried out by a company, the decisions it makes regarding development and modernization, it is necessary to identify, evaluate and avoid or reduce the risks. Insufficient knowledge of the risk, as well as minimizing the importance with which it is managed, can negatively affect the performance obtained, eventually leading to the bankruptcy. In this context, determining the risk of the bankruptcy, using various mathematical models, in close correlation with the financial performance obtained, becomes particularly important. The paper presents how to evaluate the financial performance based on financial indicators and how to calculate the risk of the bankruptcy. The risk of bankruptcy is calculated using the Altman model, adapted to the field of the activity, for two companies (OMV Petrom and Rompetrol Rafinare), which operate in the same field of activity, to explain the success or failure of the activity carried out