Financial Risk Evaluation Form
Financial Risk Evaluation Form
Evaluator: _____________________________________ Date of Evaluation: _____________
Instructions: Please complete this form to assess and document the financial risks within the company. Evaluate each risk factor based on its likelihood and potential impact on the company. Use the following scale:
Likelihood: (1) Highly Unlikely, (5) Highly Likely
Impact: (1) Minimal, (5) Severe
Market Risk
|
Risk Factor |
Likelihood |
Impact |
Risk Rating |
Mitigation Measures |
|
Fluctuations in currency |
3 |
4 |
12 |
Monitor foreign exchange markets regularly. Implement hedging |
|
Market volatility |
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|
Interest rate changes |
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|
Commodity price risk |
Credit Risk
|
Risk Factor |
Likelihood |
Impact |
Risk Rating |
Mitigation Measures |
|
Counterparty |
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|
Non-performing loans |
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|
Credit exposure |
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|
Credit rating downgrades |
Liquidity Risk
|
Risk Factor |
Likelihood |
Impact |
Risk Rating |
Mitigation Measures |
|
Insufficient cash flow |
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|
Inadequate funding |
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|
Illiquid assets |
Operational Risk
|
Risk Factor |
Likelihood |
Impact |
Risk Rating |
Mitigation Measures |
|
IT system failures |
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|
Fraud and cybersecurity |
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|
Business process failures |
Compliance Risk
|
Risk Factor |
Likelihood |
Impact |
Risk Rating |
Mitigation Measures |
|
Regulatory non-compliance |
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|
Reporting errors |
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|
Ethical violations |
Overall Risk Assessment
|
Risk Category |
Total Risk Rating |
|
Market Risk |
|
|
Credit Risk |
|
|
Liquidity Risk |
|
|
Operational Risk |
|
|
Compliance Risk |
|
|
Total Risk |
