risk analysis in finance

What is Risk Analysis?

Risk analysis is the process of assessing the likelihood of an adverse event occurring within the company. Risk analysis is the study of the underlying uncertainty of a given course of action and refers to the uncertainty of forecasted cash flow streams, the variance of portfolio or stock returns, the probability of a project’s success or failure, and possible future economic status.

Process of Risk Analysis:

STEP 1: Identification of Risk

STEP 2: Analyzing the Risk

STEP 3: Evaluating the Risk

STEP 4: Treatment of Risk

STEP 5: Review of Risk

Key Takeaways:

  • Risk analysis seeks to identify, measure, and mitigate various risk exposures or hazards facing a business, investment, or project.
  • Quantitative risk analysis uses mathematical models and simulations to assign numerical values to risk.
  • Qualitative risk analysis relies on a person’s subjective judgment to build a theoretical model of risk for a given scenario.
  • Risk analysis is often both an art and a science.

Our design for risk analysis measures the range of risk and risk is rated as Low, Medium, and High using a unique two-dimensional table making the probability of occurrence and financial impact key factors for rating risks.

SBS Global has a dedicated team that researches and operates on analyzing the risks and mitigating such risks in complex organizations for various industry sectors.


Accounts receivable management

Accounts receivable management is the process of ensuring that customers pay their dues on time. It helps the businesses to prevent themselves from running out of working capital at any point of time. It also prevents overdue payment or non-payment of the pending amounts of the customers. It builds the business’s financial and liquidity position. Good receivable management contributes to profitability by reducing the risk of any bad debts. Management is not only about reminding the customers and collecting the money on time. It also involves identifying the reasons for such delays and finding a solution to those issues.

What is the process involved in Accounts receivable management?
An Account receivable management process involves the following:
  1. Credit rating i.e the paying ability of the customers shall be reviewed before agreeing to any terms and conditions
  2. Continuously monitoring any risk of non-payment or delay in receiving the payments
  3. Customer relations should be maintained and thus to reduce the bad debts
  4. Addressing the complaints of the customers
  5. After receiving the payments, the balances in the particular account receivable should be reduced
  6. Preventing any bad debts of the receivables outstanding during a particular period.
SBS Global possesses requisite expertise in this field to manage accounts receivable. SBS Global approaches defaulters with adequate advice from professional advocates. Continuous defaulters will be sent legal notices and legal actions against them including follow ups will be taken care by SBS Global.