Abstract
ABSTRACT The Omega Score, a novel small and medium-sized enterprise (SME) default predictor developed by Altman et al. in 2022, combines indicators related to financial ratios, payment behavior, and management and employees variables that play an important role in predicting SME defaults. Built with machine-learning techniques and rich dataset information, the Omega Score can be used to categorize an SME into one of the following three groups: healthy, moderate-risk, and high-risk. The Omega Score can be utilized by financial institutions to reduce lending errors and minimize loan defaults, support policy makers in implementing effective restructuring policies, assist credit analytics firms in assessing creditworthiness, assist investors in allocating funds, and asset managers to support decision-making processes.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the International Council for Small Business
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
