
Risk Analysis models
What are the types of risk?
The risk involved in these types of models can fall under four types of categories. Firstly, there is financial risk, which means the potential loss of money for shareholders, investors or stakeholders in a company. There are compliance risks as complying with certain regulations could lead to increased costs for a company. Furthermore, there are strategic risks which come from mergers, industry changes or research development. Finally, there are operational risks which come from a company’s administrative methods, like IT systems and recruitment. These risks can apply to not only businesses but also individual people, entities of the government or the financial market as a whole.
You can learn more about Financial risk (the most common kind), here.
What is risk analysis and how is it measured?
Risk analysis is the assessment of the likelihood of a problem occurring within a company or sector, which can be done by studying the precariousness of an action; it also refers to the uncertainty of forecasted cash flow streams, the variance of portfolio/stock returns, the probability of a project's success or failure, and possible future economic states.
The measurement of risk can be made by weighing the negative events that could happen against a probability metric to see how probable it is that it will happen. By doing this, the analyst can estimate the extent of the impact on the company or entity if the risk occurs.
You can learn more about Risk Analysis here.
Quantitative and Qualitative risk analysis
The two types of risk analysis are quantitative and qualitative. Models for quantitative risk analysis are made using simulation or statistics to put numerical values to the risk. Inputs that are mostly assumptions and random variables are fed into the risk model.
One of the most famous types of quantitative technique is the Monte Carlo simulation, which produces a range of possible outcomes from an action that has been taken. It does this by calculating a random set of input variables each time, which creates a probability distribution including all possible outcomes.
On the other hand, qualitative risk analysis uses text to measure the risk of a potential problem. This can include written definitions of the uncertainties, evaluations of the impact that could occur and possible methods to counter the negative effect of the risk in question. Examples of methods used to undertake a qualitative risk analysis are SWOT Analysis, Cause and Effect diagrams, Decision Matrix, and Game Theory.
Where can I find risk analysis models?
For companies or individuals looking to conduct a risk analysis of for their companies or themselves, the Eloquens catalogue has a variety of models designed and built by professionals. You can also build and self-publish your own model and template on Eloquens directly.
- ALM Model to compute Earnings at Risk and Equity at Risk for a TIER 3 bank or Credit Union1,4761add_shopping_cart$50.00
by Satish Ramanathan
Managing Risk in Financing Big Infrastructure Projects
A Classic Real Life case on Project Financing (The Tricks of the Trade) No matter what you do, you may still get stuck!!195Discussadd_shopping_cart$50.00by Rajib Bose
How to do a Startup Valuation using the Risk Factor Summation Method
A startup valuation methodology that considered a broader range of factors in determining the pre-money valuation.243Discussadd_shopping_cartfreeby Bill Payne
Hydro Excel Model - with Commodity Price Risk and Monte Carlo Simulation
Financial model for hydro investments including commodity price risk and monte carlo simulation1,7292add_shopping_cart$50.00by Prof. Ed Bodmer
Commodity Price Risk and Monte Carlo Simulation - Project Finance Excel Model
A commodity price risk model with Monte Carlo simulation within a project finance excel model.1,151Discussadd_shopping_cart$5.00by Prof. Ed Bodmer
Risk Management Dashboard
Risk Management Dashboard - Planner and Task Manager2772add_shopping_cart$19.95by Steve Lindsey
Risk Assessment Excel Template
Designed to help the user identify, document, assess, manage and control risks within the organisation.4,387Discussadd_shopping_cartfreeby Someka
Risk Premium Formula: Calculator (with Excel Template)
Calculator in Excel and formula in PDF to allow you to work out risk premium.510Discussadd_shopping_cartBusiness Assumptions & Risk Exercise Template
Learn what you need to learn and test yourself by challenging your belief system for your big idea596Discussadd_shopping_cartfreeby Giff Constable
Modeling Credit Risk on Negotiable Debt Securities and Treasury Bonds Excel Model
An overview of credit risk modeling on a bond portfolio to achieve a lower risk portfolio and high return.344Discussadd_shopping_cartfreeby Gnimdo Bali
Financial risks evaluation
Highlight and explain the financial risks of a revenue statement scenario.419Discussadd_shopping_cart$10.00by WMI Consulting
Financial Analysis Template
Financial Analysis Template - 70 Financial Ratios to asses a companies financial health2194add_shopping_cart$35.00by Fin-Wiser Advisory
Compute Incremental Risk Charge for a Bond Using Monte Carlo Simulation
A prototype to compute the incremental risk charge (IRC) for a bond position using a novel monte carlo simulation.4032add_shopping_cart$299.00by Satish Ramanathan
IFRS 9 Model, Financial Instrument
IFRS 9 Financial Instrument ECL Model in Microsoft Excel.1523add_shopping_cart$175.00by K Raza
How To Estimate The Equity Risk Premium For a Company
This video analyses and explains the process behind estimating Equity Risk Premiums for individual companies.254Discussfreeby Aswath Damodaran
Risk Tower
Risk Tower is a risk register Excel Sheet with a bubble graph18Discussadd_shopping_cart$6.00by Jean-Philippe Borel
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