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Financial Risk Assessment

A financial risk assessment is a general term used across industries to reference an evaluation of the probability that a financial asset, loan, or investment could lose value. Financial risk assessment determines how worthwhile a specific investment might be and the best means of mitigating related risk. Risk assessment can help determine the rate of return an investor would need to earn to consider an investment worth its potential risk.

What Small and Midsize Businesses Need to Know About Financial Risk Assessment

Risk assessment is a crucial component of any financial planning process. Every SMB owner should consider regularly performing a financial risk assessment of their company. Risk assessment helps SMBs identify their current position and helps guide future direction and investments.

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