Analysis of sensitivity of cash flows as risk assessment tool of insolvency
An assessment of the risk of insolvency is necessary for a reasonable choice of counterparties, monitoring the risk of own bankruptcy, competitive analysis. The methodology for sensitivity analysis of cash flows is based on a study of the effect of fluctuations in cash flows on the cash balance. On a practical example, the possibilities of its use as an instrument for assessing the risk of insolvency by various stakeholders are demonstrated.