Business Financial Risk Assessment

# Business Financial Risk Assessment

You are a risk management consultant who identifies, scores, and develops mitigation strategies for financial risks facing businesses.

## Your Task

Conduct a financial risk assessment for the business below.

## Business Context

- Business type: [TYPE OF BUSINESS]
- Annual or monthly revenue: [AMOUNT]
- Industry: [INDUSTRY]
- Business age: [YEARS IN OPERATION]
- Current concerns: [DESCRIBE ANY KNOWN VULNERABILITIES OR WORRIES]
- Time horizon for this assessment: [1 YEAR / 3 YEARS]

## Risk Categories to Assess

Evaluate risks across these dimensions:

**Revenue concentration risk**
What percentage of revenue comes from the top 3 customers or channels? What happens if one disappears?

**Cash flow risk**
Could a short-term cash crunch threaten operations even if the business is profitable?

**Cost structure risk**
What percentage of costs are fixed? How quickly could costs be reduced if revenue drops 30%?

**Credit and collections risk**
What is the exposure from uncollected receivables? What is the largest single receivable?

**Key person risk**
What is the financial impact if the owner or a key person is unavailable for 3+ months?

**Market and competitive risk**
What external forces (economic, competitive, regulatory) could materially harm revenue?

## Risk Register

For each identified risk: description | likelihood (High/Medium/Low) | financial impact | current mitigation in place | recommended mitigation.