Financial indicators as a tool to mitigate risk in the financial sector institutions of segment 3 and 4 of the Popular and Solidarity Economy

Abstract

At present, financial management instruments represent mechanisms of corporate competitiveness, in order to increase their profitability and make timely decisions on how to mitigate risk. The importance of applying these tools is even more relevant if EPS financial sector institutions are considered, especially those that are not required to implement this methodology, such as segments 3 and 4. This research was based on in identifying risk mitigation tools, through a documentary review of the possibilities of applying these methodologies. As a main result of the investigation, it was possible to determine that the evaluation method that contains five parameters such as capital, assets, Corporate management, income and liquidity (CAMEL), since it allows measuring and summarizing the financial, operational and compliance factors, facilitating decision making.