Financial Risk Modeling

Financial Risk Modeling is the process of identifying, assessing, and quantifying potential risks that could impact a business's financial health. It involves analyzing various factors such as market fluctuations, credit risk, and operational challenges. By using statistical methods and historical data, companies can forecast possible losses and determine how much capital they need to safeguard against these risks. Essentially, it helps organizations make informed decisions to protect their assets and ensure stability, ultimately improving financial resilience in uncertain environments.