Proposal for a Decision Support System to Predict Financial Distress

In the context of economic instability and uncertainty, when more and more companies struggle with financial difficulties to keep in business, it becomes more obvious of the necessity of a sound strategic planning and an efficient management system. Thai is why I believe that a decision support system that could provide early warning signals of financial distress to a company a few years before actually turning to insolvency or bankruptcy becomes a true necessity. Having these arguments into perspective, this paper will try to offer a practical solution for predicting financial distress one or even two years in advance. The fact that more and more western companies use strategic management represents a guarantee for the Romanian companies, that by using strategic management they can overcome the challenges of the Romanian economic environment. These benefits contribute not only to improving the quality of management, but also to increase the competitiveness of the companies and their profitable adaptation to new demands and challenges.