Corporate Failure Risk Assessment for Knowledge-Intensive Services Using the Evidential Reasoning Approach

In this study, a new risk assessment model is developed and the evidence reasoning (ER) approach applied to assess failure of knowledge-intensive services (KIS) corporates in UK. General quantitative financial indicators alone (e.g., operational capability or profitability) cannot comprehensively evaluate probability company bankruptcy KIS sector. This combines with macroeconomic variables, industrial factors non-financial criteria for robust balanced analysis. It based on theory enterprise management (ERM) can be used analyze possibility as an important aspect management. study provides insight into selection macro industry statistical Another innovation related how marginal utility functions variables are constructed imperfect data handled distributed framework. first convert observed distributions using likelihood analysis method instead subjective judgement data-driven sector within ER framework, which makes more interpretable informative. The provide early warning mechanism assist stakeholders make investment other decisions.