Analysis of failure prediction models

The study sought to analyse the extent to which prediction models are used as a management tool by bank managers in the Zimbabwean¿s banking sector. In this study, nineteen banks were sampled. Financial statements of these banks were used as research subjects. Tests and observation guide were used as research instruments. The study showed that managers of banks do not use prediction models in managing their business and predicting the going concern of banks. It was evident that managers were not aware that the businesses they manage were sinking into unsafe zone and no strategies were put in place to save the business. The study therefore recommends that managers include prediction models techniques in their management. This will enhance their management skills and ensures the viability of an organisation as a going concern without risk to shareholders investments. Finally, it is recommended that further research be carried in order to establish ways of reviving companies whose K-score is in the unsafe zone by way of working on the elements of K-score. This further study should touch on analyzing the budgets from the onset weather they ensure success of an organisation.