Evaluation of the enterprise financial risks based on the rank correlation

Abstract

Purpose: the article systematizes the financial performance of an enterprise by applying an applied statistical analysis and determining an integrated assessment of financial risks based on a dynamic model. Discussion: the authors note that this approach provides a visual representation of economic information as a result of an ordinal measurement of the relationship between dynamically ordered indicators in accordance with the identified preference relationships. Results: the advantage of a dynamic assessment is to measure the volatility of the financial risk level of the enterprise over a certain period of time. Testing the results of structurally - dynamic assessment of the level of financial risk of the enterprise showed a high volatility of financial risk for investors. The presented methodological approach to assessing the financial risks of an enterprise can be used in practice by both owners and investors to assess the risks of investing in an enterprise.