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Elaboration Of The Method Of Assessment Of The Severity Degree Of Companies Crisis

Author

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  • Nusinov, Vladimir

    (State institution of higher education «Kryvyi Rih National University»)

Abstract

The analysis of scientific literature allowed us to establish the absence of unified approach to the assessment of severity of the company crisis. The definition of the term “crisis severity degree” was specified and its five-level gradation was offered, namely: absence of the crisis, its light, middle, hard and critical severity degree. From our point of view, this gradation is intuitively comprehensive for all groups of stakeholders, involved in the process of anti-crisis management and most fully characterizes the condition of the company in the aspect of possible anti-crisis arrangements. The three-level hierarchic structure of the types of crisis of the company was offered. The use of hierarchic structure favors the better understanding of the causes of crisis, its results and possible ways out of crisis. The aforesaid is attained by separation of the different types of crisis then the components of these types of crisis are separated and so on. At the same time at each step it is necessary to concentrate attention on understanding of the current element, temporarily abstracting from all other components. At such analysis the whole complexity and severity of the company crisis can be understood. The methodology of determination of the severity degree of the company crisis was elaborated for each level of hierarchy. The diagnostics of the severity degree of the company crisis of the higher level of hierarchy must be realized using the matrix of pair comparison and the severity degrees of crisis must be integrated for each its component based on the laws of economic logic. The matrix of comparison of the severity degrees of the company crisis is recommended to be formed by comparison of two parameters of assessment of the crisis of the low level of hierarchy that allows range the comparable objects in two-dimensional space. The severity degree of financial crisis of the company is offered to be determined taking into account the probability of its bankruptcy and of economic, social and ecological one – by the comparison of the current values of assessment parameters with their base values. The values of pre-crisis period are recommended to be used as the base ones. The approbation of offered methodology of assessment of the severity degree of the company crisis was realized.

Suggested Citation

  • Nusinov, Vladimir, 2016. "Elaboration Of The Method Of Assessment Of The Severity Degree Of Companies Crisis," EUREKA: Social and Humanities, Scientific Route OÜ, issue 6, pages 33-41.
  • Handle: RePEc:nos:social:y:2016:i:6:p:33-41
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