In the Context of High Interest Rates and Uncertainty

Description

Global economic conditions over the past few years have prompted a renewed focus on risk management models, policies, and practices. In many regions, high interest rates and tighter lending requirements have compelled companies across a range of sectors to re-examine their balance sheets and financing strategies. At the same time, a surge in so-called “zombie companies” — businesses propped up by pandemic-era government support — has underscored the need for robust mechanisms to identify and mitigate potential insolvency. As these organizations lose access to emergency funding, the importance of prudent risk assessment and timely restructuring becomes ever more critical.

Speakers

Ed Altman

Professor of Finance, Creator of the Altman-Z-Score, New York University Stern School Of Business

Patrick D. Pilch

Senior Managing Director, Ankura Consulting Group

Peter Briggs

Division Executive, Sovereign Advisory Services, Alvarez & Marsal

Guided Questions

Patrick D. Pilch

Mr. Pilch, last year, bankruptcies among healthcare companies far outpaced all other sectors except the consumer discretionary sector. Given your decades of experience helping health companies restructure, how should the sector interpret this trend—is it an alarm bell or just part of the regular business cycle? Additionally, what strategies can healthcare companies employ to fortify their balance sheets, manage risks effectively in a real- estate-heavy environment, and navigate the potential pitfalls of increasingly adopting telehealth solutions?

Peter Briggs

Peter, you founded the Sovereign Advisory Services practice at A&M. You have provided advice to diverse clients such as the Ministry of Economy of Ukraine and State Owned Enterprise Restructuring Committee of Sri Lanka. Such advising connects with international economic developments and privatization efforts. How has your extensive experience in different markets, in both corporate and sovereign restructuring shaped your perspective on risk management and bankruptcy regulations? Where should we go from here?

Ed Altman

Professor Altman, you've applied your Z-score model across various global markets and have also explored default predictors for small and medium-sized enterprises (SMEs). Can you discuss how the Z-score might need to be adapted—or interpreted differently—across diverse market conditions, and what implications your research on SME default predictors might have for policymakers aiming to mitigate systemic financial risk?