What are the main steps to manage liquidation risk in corporate finance?
Liquidation risk is the possibility that a company cannot meet its short-term obligations and has to sell its assets at a loss or go bankrupt. This can have serious consequences for the company's reputation, operations, and stakeholders. Therefore, managing liquidation risk is a vital part of corporate finance. In this article, you will learn the main steps to manage liquidation risk in corporate finance and how to apply them in practice.