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Crises can come from a wide range of sources, including natural disasters that disrupt operations, financial problems that shake shareholder and investor confidence, cybersecurity breaches that leak sensitive data, and product failures that potentially harm consumers. 2022, between inflation, war in Ukraine, increase in energy costs and blockage of supply chains, has put the health of Italian companies to the test . Interest rates have reached levels not seen since the 1980s, causing global instability, significant declines in valuations and increasing volatility. This is a series of macroeconomic factors that have not been seen for decades.
Thousand Italian companies are at high solvency risk or in default . Italian companies, in fact, have been put in difficulty by the factors previously listed. The importance of audit and control to limit the risk of default It is critical to identify a crisis before the situation escalates. Creating safeguards in your processes, such as defining business KPIs , can help identify potential future problems. Many companies establish risk management teams to support Vietnam Phone Number List these efforts by developing monitoring practices . An audit is a process that helps identify default risks and implement measures to prevent them. This may include evaluating internal procedures, auditing financial records and reviewing internal controls. The goal is to ensure proper management of finances and compliance with regulatory requirements , while minimizing the risk of missed payments or bankruptcy.
To evaluate the risk of default, there are some KPIs to consider such as the measurement of liquidity. To be compared with short-term obligations, the debt-to-equity ratio. Company profitability India WhatsApp Number List based on operational management and the percentage of loans not refunded. These KPIs can help identify key factors affecting default risk and implement measures to mitigate these risks. To avoid default in a small to medium enterprise ( SME ), some strategies can be considered based on different needs. Some ideas include: realistically planning income and expenses, monitoring cash flows, diversifying sources of financing, optimizing costs, regularly monitoring the financial situation, assessing risks and acting accordingly, and maintaining open communication with the various stakeholders.