A business crisis occurs as a consequence of economic and political problems. The term itself is often perceived negatively but in reality it can have both positive and negative aspects. A business crisis can happen with little to no warning. Along with this term, it is important to mention the term risk as well. Risk is most commonly defined as the probability of the occurrence of certain events which could have detrimental effects on a business. Risk, much like a business crisis, can have both positive and negative aspects. The identification of a business crisis is a crucial step in solving the crisis. In order to identify the crisis, it is important that the business in question is viewed as a whole. The first step is analyzing the wider surroundings, so as to accurately determine the position of the business. The next step is analyzing the branch which is used to determine the position of the business within the industry it operates in. Subsequently, an analysis of the internal factors of the business is made, the first being the analysis of the administrative system. The final step in identifying a business crisis is financial analysis. The Gavrilović enterprise is analyzed in this thesis, for which, based on performed analytic procedures, it has been concluded that the company did not adequately identified activities which showed a possibility of crisis occurrence. Therefore it has not adequately anticipated nor identified the crisis at the moment of its occurrence. Within a chosen period of time it has been noticed that the company has not fully confronted all of the crisis symptoms, for example illiquidity and indebtedness, due to insufficient risk analysis, risk quantifications and due to lack of prompt reaction on crisis elements which occurred in the company.