Complexity Based Early Warnings in Defaulting Companies

Posted: October 14, 2019
in Research

The search for early warning signs is one of the key issues for decision makers. The advantages of knowing in advance the evolution towards critical situations are obvious. Complexity is a new and powerful indicator that quantifies the degree of sophistication and governability of a business and which impacts its Resistance to Shocks (RtS). Both complexity and RtS indicators establish a radically innovative means of anticipating crises. As of today, conventional methods have failed to identify such signals, especially with this level of details.

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