Financial Risk Assessment

Financial risk assessment is the process of identifying and analyzing potential financial losses an individual or organization might face. It involves evaluating factors like market changes, credit issues, and operational challenges to understand how they could impact financial stability. By assessing these risks, decision-makers can develop strategies to mitigate them, such as diversifying investments or securing insurance. Ultimately, financial risk assessment helps ensure long-term success by preparing for uncertainties and protecting resources against unexpected financial setbacks.