Introduction to Risk Analysis

the balance between achieving business objectives and the

requirement to protect the assets of the business. It provides a

way to optimize operations, leading to an equilibrium of

profitability and risk. As external scrutiny increase and

stakeholders have begun to question management decisions due

to rising scandals and bankruptcy, risk analysis has become a

potent tool to pacify them. It demonstrates management’s ability

to carry out due diligence and exhibits that they are meeting

their fiduciary duty and protecting shareholders wealth. Thus it

plays a pivotal role in management’s decision making and is

crucial for strategic planning and implementation. Risk analysis

has become an important part of the corporate world

nowadays and to survive businesses need to know how to

implement it!