The global effort to slow the spread of COVID-19 continues to impact all economic regions and industries. Risk professionals must adapt quickly or risk being sideswiped by the rise in bankruptcies.

Apparel retailers have required significant adjustments to handle their financial leverage and operating lease commitments. Brooks Brothers and Tailored Brands, in particular, fell prey to slowing demand for professional business attire, a trend which was accelerated by the coronavirus pandemic.

The senior housing industry reported a significant share of the coronavirus illness cases, causing a collapse in occupancy. A considerable population decline in assisted living facilities could deliver a slew of corporate bankruptcies in the coming year.

The fall of car rental giant Hertz Global Holdings, Inc. proves the point that the health of an entire supply chain, from raw material harvesting to finished products, is critical to understand relative to assessing bankruptcy risk potential.

In a pandemic period when major public company bankruptcies are hitting hard daily, reliance on payment performance and/or financial statement analysis provides a whole new slew of dangers.