**7. Conclusions**

248 Risk Management – Current Issues and Challenges

flows of the financial year.

the year


**Table 10.** Situations determined by the evolution of the components of the current result of

**and the financial condition and the risk analysis** 

**6. Using the discriminating statistical models in determining of financial** 

The financial condition of an economic agent can be considered a qualitative indicator that characterizes the overall activity of the economic agent, is subjected continuously to the influence of quantitative variables. This allows the use of statistical discriminant analysis to determine the financial status of an economic agent (in-depth presentation of this method and of the models developed on its basis was performed by Anghel [14]. The best known method from the specified category is the scores method. For variables taken into account are determined certain weights so that their sum reflects a global indicator called" The Z score ". This method involves the building of a database with information on a group of bankrupted companies and a group of healthy companies that allow calculation of financial ratios for each entity subject to the analysis and the determination The manifestation of risks in a higher or lower degree cannot be eliminated, regardless of the strategy used. However, in practice it has been shown that a potential risk with higher negative impact but which has been identified and controlled can cause fewer losses than a lower but uncontrolled risk. Therefore, a good manager should use a risk management strategy in order to enable the reduction or even avoidance of losses caused by their manifestation. A proactive risk management can generate durable benefits for the company, materialized wither in costs reduction or in improving or making internal processes efficient, or in canceling insurances expenses, which are not justified from economic point of view.

The problems presented in this work are due to identify the issues that highlight the importance of active risk management, to optimize the ratio of the risk level –the level of the profitability achieved, the need to monitor and update the information on risk and the possibility of realization, the role of risk management in identifying the opportunities of the business determines the highest level of profitability in accordance with the accepted risk

level and the amount of available resources, the proactive risk management capacity generates sustainable benefits for the company, resulting either in reducing the costs or to improve and streamline of the internal processes or the elimination of the insurance costs, economically unjustified, the need of training the decider as a person capable to take the increased costs due to the running of a business, whether to obtain a corresponding reduction in risk and thus of the losses that would be determined by their expression ; the attraction of the approach risk management to empiricism in the application of techniques with clear and measurable objectives.

Risk Management in Business – The Foundation of Performance in Economic Organizations 251

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The application of techniques and methods of risk management must be a starting point for substantiating and applying the company's financial strategy. The course of action must be related to identifying the elements that may cause the manifestation of risks, sizing the probability of their manifestation, forecasting channels of influence and establishing means of protection.

It is not advisable to use only statistical models to determine the financial status (statistics entails the use of previously recorded data, and the maintaining of a constant level of indicators calculated on their basis is unlikely in an environment subjected continuously to profound transformations at short time intervals) but is required their completion with analysis reported to financial equilibrium, level of profitability, the ability to pay, the changes in the financial flows so as to enable an evaluation of the global risk and to apply an optimal management of it.

Taking into consideration the issues presented in the paper it resulted: the importance of active risk management, to optimize the degree of risk assumed - the level of profitability achieved; the need to monitor and update the information on risk and the possibility of realization; the role of risk management in identifying business opportunities that lead to the highest level of return, consistent with accepted risk level and the amount of available resources; the capacity of proactive risk management to generate sustainable business benefits, materialized either by cost reduction or improvement and streamline of internal processes or the elimination of expenses with insurances, economically unjustified; the necessity to train the decision maker as a person able to undertake increasing the costs of running a business, whether obtaining a corresponding reduction in risk and thus of the losses that would be determined by their expression; attracting risk management from the area of the empiricism into that of a clear approach and the application of techniques with clear measurable objectives.
