Abstract
In its life cycle, an enterprise may experience periods of crisis. If the crisis is monitored
promptly and appropriate measures are taken, not only may the enterprise continue
to operate but it may also be able to seize opportunities for growth. The Italian legislator is introducing a procedure aimed at supporting companies to detect the very
irst warning signs of a crisis. The supervisory board of auditors, the audit irm, and
certain qualiied creditors will have the right and duty to start the early warning procedure (“allerta”). The board of statutory auditors (Collegio Sindacale) plays a fundamental role: its ex-ante supervisory and control activities over management allow
it to efectively play an important role as main recipient of any crisis warning signs.
The new regulatory framework lays down certain indicators and critical thresholds,
which may trigger the alert process. Initially, the Delegated Legislation (Bill No.3671-bis) sets forth certain speciic inancial indicators. The new bill (Crisis and Insolvency
Code) on the contrary refers to a more complex and sector-speciic system of indicators. The indings of an empirical research conducted by analysing a sample of more
than 600 enterprises and testing the discriminating capacity of the indicators initially
considered are presented herein.
Lingua originale | Inglese |
---|---|
Titolo della pubblicazione ospite | Crisis Management. Theory and Practice Chapter 9 |
Editore | INTECHOPEN |
Pagine | 157-177 |
Numero di pagine | 21 |
ISBN (stampa) | 978-1-78923-234-9 |
Stato di pubblicazione | Pubblicato - 1 gen 2018 |
Keywords
- European directive on preventive restructuring frameworks and insolvency
- Italian crisis and insolvency legislation
- alert measures
- audit irm
- board of statutory auditors (Collegio Sindacale)
- crisis indicators
- crisis setlement body for companies(OCRI from its Italian initials)
- crisis thresholds
- insolvency
- performance measurement
- risis