Bankruptcy Prediction Models: From Predictive Performance to Economic and Organizational Sustainability

Chapter 10 examines the economic and organizational sustainability of the insolvency prediction tools discussed in Chap. 9. It is crucial to determine which parameters assess the viability of these tools in real-world scenarios. This chapter includes a comparative analysis of existing models to bridge the gap between theoretical studies and practical applications, ensuring these tools are both academically sound and practically effective. Economic sustainability is evaluated based on cost-effectiveness, ensuring that the benefits of using these tools outweigh their costs. Organizational sustainability pertains to the ability of business structures to integrate and utilize these tools efficiently, without necessitating excessive resources or specialized expertise that could hinder practical implementation. Advanced technologies, such as artificial intelligence and machine learning, are considered for their accuracy and predictive capabilities, but their adoption must be balanced against organizational and economic challenges. The chapter underscores the importance of sustainable insolvency prediction tools for enhancing the resilience of companies and economic sectors. Accurate and sustainable tools contribute to preventing financial crises and fostering stable, long-term economic growth.