Methods of assessing financial risks in times of crisis: the role of accounting and analysis

Abstract

This paper focuses on methods for assessing financial risks during periods of crisis, emphasizing the role of accounting and financial analysis in risk management. In times of economic instability, organizations face increased uncertainty, necessitating the implementation of effective tools to evaluate and mitigate financial risks. Key methods such as liquidity analysis, solvency evaluation, and the use of financial ratios to identify vulnerable areas within the organization's financial structure are discussed. The role of accounting reports and financial analysis is highlighted as critical tools that help companies assess current risks and develop strategies to neutralize them. Practical examples of these methods applied in crisis situations are provided, offering a comprehensive view of how accounting and analytics can support an organization’s financial stability in challenging times.