Complex issue regarding the bankruptcy risk by using the scoring method

The goal of the scoring method is to provide predictive models for the assessment of the bankruptcy risk of an enterprise. Its implementation requires observing a set on enterprises from two different groups: a group of companies with financial difficulties and a group of enterprises with no financial problems. For each of the two groups is established a set of rates, and then is determined the best linear combination of rates which allows the differentiation between the two groups of companies. The scoring method refers to profitability indicators, indicators of asset structure, liquidity indicators or efficiency indicators. The condition for selecting the indicators which show the company’s performance is the independent relation between them. The existence of correlations between indicators would lead, during that function, to record the repeated influences of the same economic or financial phenomenon.