Study of financial risk (5C) under the diffuse approach

Abstract

Among the risks that occur in the artisanal companies of the city of Cuenca-Ecuador, it is the one related to the business financial risk within the credit system, which is subject to comply with the requirements for obtaining a credit in a financial institution. The methodology presented in this article deals with the use of 5C techniques (Character, Capital, Capacity, Collateral Guarantees, Conditions of the Economy) under the scope of uncertainty, with the application of advanced tools of the fuzzy logic as the expertization, whose objective is that the company is placed in an appropriate category, and that management knows whether the financial institution can grant or not the respective credit. The development of this study allows every organization to have decision and foresight power when it comes to bank financing.