Analysis of Entity's Ability to Continue Operations

The service provides an independent, forward-looking assessment of an entity's ability to continue operations on a going concern basis, integrating financial, operational, and strategic dimensions. It encompasses detailed analysis of liquidity, capital structure, cash flow resilience, market position, and key risk factors that may affect long-term viability. The outcome supports stakeholders in understanding sustainability of operations, identifying early warning signals, and informing critical decisions related to business continuity and strategic transformation. Submit a request

Holistic Assessment of Long-Term Business Continuity in Denmark

In the Danish business environment, characterized by a strong emphasis on transparency, stakeholder dialogue and sustainable value creation, a structured assessment of an entity's ability to continue operations has become a critical governance instrument. Read more.

Case study

Rescuing a Manufacturing Group’s Continuity

When a large industrial manufacturing group began to lose key contracts and face tightening bank covenants, the board requested a comprehensive analysis of entity's abili...More +

Retail Chain Continuity Assessment Story

The national non-food retail chain had grown rapidly over a decade, opening stores in every major city and many smaller towns. Sales volumes looked impressive, but profit...More +

Food Producer Continuity Risk Review

A regional food production company specializing in dairy and ready-made meals had enjoyed steady growth for years. However, increasing regulatory requirements, volatile r...More +

Tech Startup Going Concern Roadmap

The fast-growing software-as-a-service startup had just closed a funding round, but investor questions about runway and sustainability persisted. Revenue was increasing r...More +

What we provide

Risk Assessment

We assess the entity’s strategic, financial, operational, and compliance risks that may threaten its ability to continue as a going concern.

Financial Diagnostics

We perform in‑depth diagnostics of liquidity, solvency, cash flow projections, and covenant headroom to evaluate resilience under different scenarios.

Scenario Modeling

We design and run stress tests and multi‑scenario models to understand how adverse market, operational, and regulatory conditions impact continuity of operations.

Business Model

We review and challenge the business model, revenue streams, and cost structure to determine whether they can sustainably support ongoing operations.

Governance Review

We evaluate governance, decision‑making processes, and management’s response plans to assess how effectively risks to continuity are identified and managed.

Mitigation Planning

We help design and prioritize mitigation actions, including restructuring options, cost optimization, refinancing strategies, and contingency plans.

Stakeholder Communication

We support transparent communication with key stakeholders by preparing clear analyses, documentation, and recommendations on going concern considerations.

Monitoring Framework

We build or enhance monitoring frameworks, early‑warning indicators, and reporting routines so that management can continuously track the ability to continue operations.

How Continuity Analysis Shapes a Sustainable Future for Business

In contemporary economies, the concept of an entity’s ability to continue operations is no longer limited to short‑term financial liquidity or traditional risk management; it increasingly embraces the broader agenda of sustainability, climate resilie...

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How can we support you?

Analysis of an entity's ability to continue operations focuses on identifying financial, operational, and strategic risks that may threaten going concern status, and on defining practical responses to those risks. The service combines rigorous quantitative assessment with scenario-based judgment to support management, boards, and stakeholders in making informed, timely decisions.

Comprehensive going concern risk diagnostics

The engagement typically begins with a structured diagnostic of going concern risks across financial, operational, legal, and market dimensions. Historical performance, liquidity position, debt structure, and covenant landscape are examined to identify early warning indicators of distress. Particular attention is paid to cash flow volatility, customer and supplier concentration, and exposure to macroeconomic or sector-specific shocks. Radner conducts targeted interviews with key stakeholders to validate data-driven findings and uncover blind spots that may not be visible in standard reports. The outcome is a clear mapping of risk drivers, their interdependencies, and their potential impact on the entity’s ability to continue operations. This diagnostic serves as the foundation for all subsequent analysis and decision-making.

Short-term liquidity and cash flow resilience assessment

A detailed analysis of short-term liquidity is performed to understand whether the entity can meet its obligations as they fall due. This includes building or refining integrated cash flow models that link operating performance, working capital dynamics, and financing arrangements. Stress tests and sensitivity analyses are applied to key assumptions such as revenue decline, margin compression, payment delays, and cost inflation. Particular focus is placed on identifying liquidity levers, including working capital optimization, cost containment, and renegotiation of payment terms with counterparties. Radner evaluates the sufficiency and reliability of existing financing facilities, including undrawn lines, covenants, and potential refinancing risks. The result is a fact-based view of cash runway, liquidity gaps, and the time window available for corrective actions.

Scenario analysis, viability planning, and mitigation strategies

To assess the entity’s ability to continue operations under uncertainty, multiple business scenarios are developed and quantified. These scenarios typically range from base case to adverse and severe downside cases, reflecting plausible market, operational, and regulatory developments. For each scenario, the impact on profitability, liquidity, capital structure, and covenant compliance is evaluated. We work with management to design and prioritize mitigation strategies, such as cost restructuring, portfolio rationalization, asset disposals, or strategic partnerships. Radner supports the translation of these strategies into a coherent viability or turnaround plan, including milestones, responsibilities, and measurable targets. This structured approach helps stakeholders understand both the risks and the realistic options available to preserve going concern status.

Stakeholder communication, governance, and regulatory alignment

Effective communication with lenders, investors, auditors, and regulators is critical when going concern risks are present. Assistance is provided in preparing transparent, consistent, and evidence-based materials that explain the entity’s risk profile, assumptions, and planned responses. Particular care is taken to align the analysis with applicable financial reporting and regulatory requirements related to going concern disclosures. Governance structures and decision-making processes are reviewed to ensure that boards and audit committees receive timely, relevant information and can discharge their oversight responsibilities. We help management anticipate and address typical questions from auditors and creditors regarding forecasts, assumptions, and the feasibility of planned actions. This disciplined approach to communication and governance builds credibility and supports constructive stakeholder engagement during periods of heightened uncertainty.

Why choose us?

Deep Insight

We combine quantitative stress-testing with qualitative scenario analysis to assess the entity's ability to continue operations in a truly forward-looking way. We translate complex financial and operational signals into clear conclusions and actionable recommendations for management and stakeholders.

Regulatory Mastery

We align our going concern assessments with Danish and international regulatory expectations, ensuring that our conclusions are both robust and defensible. We work closely with auditors and supervisory bodies so that our analysis supports smooth reviews and minimizes regulatory friction.

Pragmatic Support

We do not stop at identifying risks to continuity; we co-create realistic mitigation plans, liquidity strategies, and contingency actions with our clients. We stay involved throughout implementation, monitoring key indicators and adjusting our recommendations as the situation evolves.

Contact

Need more information? Contact us.