Authors:
Miyereth Piedrahita Ocoró, Orlando Carmelo Castellanos Polo, Sneha Khandare

Addresses:
1,2 School of Economics, Administrative and Accounting Sciences, Northern Catholic University Foundation, Medellín, Colombia. 3College of Business Administration, University of Texas at Arlington, Arlington, Texas, USA. miyer3022@gmail.com1, occastellanosp@ucn.edu.co2, sneha.khandare@mavs.uta.edu3

Abstract:

Enterprise financial risk analysis is essential to ensure a company's stability and economic solvency. It allows the identification and evaluation of possible financial risks to which the company may be exposed, such as market fluctuations, bad debts or internal fraud. By knowing these risks, preventive and corrective measures can be taken to reduce their impact and avoid economic losses. In addition, financial risk analysis also provides a detailed view of the company's financial performance, allowing informed and strategic decisions to be made for its growth and development. This research is based on the importance of business financial risk analysis in Small and Medium-Sized Enterprises (SMEs), a sector that the COVID-19 crisis has threatened. How good risk management, its analysis, proper monitoring and management make these companies remain in the market; therefore, the case of the airline Avianca is analyzed, with the main financial indicators; the interest in the case starts with resilience and of the company, even though Colombia stands out for its lack of firm resilience and how it reacted to moments of uncertainty caused by mismanagement in temporary situations such as the pilots' strike of 2017 or the current COVID-19 pandemic.

Keywords: Financial Statements; Risks Companies; Analysis Management; COVID-19 Pandemic; Small and Medium-Sized Enterprises (SMEs); Airline Avianca; Financial Indicators.

Received on: 11/11/2022, Revised on: 27/12/2022, Accepted on: 18/02/2023, Published on: 11/03/2023

FMDB Transactions on Sustainable Management Letters, 2023 Vol. 1 No. 1, Pages: 12-21

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