Risk and Crisis Management in Enterprises with the Risk of Impending Bankruptcy in the Slovak Republic

Research background: The current global situation and the situation in national economies means many existing businesses face of the problem of solving the post-covid period and now energy crisis. Some enterprises have reached the brink of bankruptcy. In the Slovak Republic, a new legislative regulation was adopted, which will enable companies with the threat of bankruptcy to use risk and crisis management solutions to improve and stabilize their financial situation and prevent bankruptcy. The new management in these companies can use analogous procedures that have been recorded in the past in the successful restructuring and stabilization of companies. Purpose of the article: To find out how businesses in bankruptcy approach the stabilization of the financial situation, what is the frequency of changes with an impact on the economic result, and to propose working procedures for risk and crisis management according to the new legislation in businesses with imminent bankruptcy in the Slovak Republic. Methods: For our research we chose the method of empirical analysis on a sample of 164 companies that were tested 3 years before entering bankruptcy with a 5-factor Altman Z-score to demonstrate riskiness, and then we followed the development of selected items of assets and liabilities and their trend in these companies. Findings & Value added: Based on the percentage development of selected items of the financial statements, we can predict some functional measures to achieve the stabilization of a company threatened with bankruptcy in their crisis and risk management as part of preventive actions.