Risk diagnosis in the context of economic crisis

Abstract

The economic crisis has turned into a global phenomenon and it was hard to believe that Romania would not experience its negative effects. Initially emerged in the USA, it extended and now includes almost all countries. The diagnosis of risk under the conditions of economic crisis is more difficult to establish than in normal conditions. In this article, we are trying to explain the conditions that led to the emergence, apparition, and deepening of the economic crisis, its impact on Romania and Romanian companies, and how a correct diagnosis can be established in terms of economic, financial, and bankruptcy risk. Eventually, we have established some causes that lead to the bankruptcy of many SMEs (small and medium-sized enterprises) as well as measures that should be taken to overcome the current crisis.