Financial risk assessment looks at the exposure a business has to factors that could harm its financial position — liquidity, leverage, interest rates, FX, credit, covenant breaches or over-reliance on a single funding source. A consultant will analyse financial statements, forecasts and facilities, run sensitivities, and test the resilience of cash flows under downside scenarios. The output is a set of prioritised risks and practical responses, such as refinancing, hedging, diversifying funders, adjusting working capital or tightening credit policies. This kind of assessment is particularly important in volatile or higher-rate environments, or before large capex and M&A. It enables boards and lenders to take decisions based on quantified risk, not instinct.
F
Financial Risk Assessment: What it actually means?
